BMW to Expand Production in S. Africa

Reuter’s is reporting that BMW has decided to invest $288 million in its Roslyn, South Africa plant to increase production. BMW has agreed with the government there to increase production capacity by 45%. This announcement comes after BMW has also made improvements and expansion to increase production of the South Carolina plant.

BMW produces 3 series sedan models for the US at the Roslyn plant which has received accolades for its quality and efficiency.

JOHNANNESBURG, Oct 5 (Reuters) – German carmaker BMW (BMWG.DE) plans to invest 2.2 billion rand ($288 million) at its Rosslyn plant in South Africa to boost production capacity by 45 percent, boosting capacity to 87,000 units. BMW said on Monday the decision came after signing a letter of commitment with the South African Department of Trade and Industry. “The BMW Group has never shied away from making decisions for the future in spite of the current tough conditions the motor industry is facing,” BMW South Africa’s managing director, Bodo Donauer said in a statement. South Africa’s total new vehicle sales fell by 19.5 percent year-on-year in September, showing continued pressure on households as Africa’s biggest economy grapples with its first recession in nearly two decades. The Rosslyn Plant produces the BMW 3 series and almost 75 percent of production is exported — to Japan, Taiwan, Singapore, Hong Kong, Sub Sahara and Australia. (Reporting by Alison Raymond; Editing by Dan Lalor) ($1 = 07.636 rand)

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