Despite difficulties in cutting costs, BMW announced on Thursday it will spend $270 million on expanding its U.S. operations. The luxury automaker’s New Jersey headquarters will get a $100 million expansion that will house a national Training Center, Eastern Sales Region and U.S. Engineering operations, employing a total of 1,000 people. The remaining $170 million will be spent on building two parts distribution centers.
“These investments show that we are convinced of the continued long-term growth of the U.S. market despite the difficult economic conditions currently,” said BMW’s sales chief, Ian Robertson.
The new addition, called South Campus, will more than double the size of BMW’s current headquarters. By 2012, the German automaker will invest nearly $1 billion into its U.S. operations, with the Spartanburg, South Carolina-based plant receiving a $750 million expansion that will see its capacity increase by 50 percent, to 240,000. Once the revisions are completed, the plant will produce all three of the automaker’s SUVs: the X3, X5 and X6. The plant’s expansion is due to create 500 new jobs as well.
The recent slump of the U.S. dollar, especially compared to a strong euro, spurred automakers to build local factories, with VW also looking to build a plant Stateside — its first — in the near future.
06/13, 10:22 AM
posted by:
xyunya
Don’t they have already plant stateside already in South Caroline? Expansion makes sense: ratio of quality per dollar is better then in Mexico and probably is the same as in Europe, although I read conflicting stories.
06/13, 10:25 AM
posted by:
NoNameDenton1
That is the plant talked about. I wish they would build something here other then all their SUVs here, like the 1, 3 and 5 series.
06/13, 10:29 AM
posted by:
xyunya
Z3 started life there. Then Bandle created Z4; BMW could not sell any of them blame went to US plant and production moved to either to Germany or Austria. They still cant sell ‘em. Correct me if my recollection of history is incorrect.
06/13, 10:32 AM
posted by:
NoNameDenton1
You are right xyunya, the Z3 was built at that Spartanburg plant, and the Z4 is built there currently, but I think it is switching plants back to Europe in the future.
06/13, 11:40 AM
posted by:
howsmydriving
Why New Jersey?
06/13, 11:43 AM
posted by:
NoNameDenton1
Why not, a few of them have their American HQs there.
06/13, 8:01 PM
posted by:
1c3d0g
At least BMW’s thinking about investing and expanding in the U.S. instead of the other way around, which is more than I can say for some OTHER manufacturers…
06/14, 4:53 PM
posted by:
El Aleman
xyunya, you are right about the plants, but I think they switched because the main market for it is Europe, so at least atg the point they made the decision it made sense. Here in Germany, you see tons of them, so I guess it would be easier to build them here.
With the dollar being so weak though, it should be profitable either way