BMW to Build New Plant in Brazil

Official Release: The BMW Group plans to build a new plant in Brazil. “We welcome the new framework for investments in Brazil, based on the recently adopted “Inovar Auto” legislation. We have submitted an investment proposal for our planned new plant to the Brazilian Government,” said Ian Robertson, Member of the Board of Management, responsible for Sales and Marketing BMW, at a meeting with Brazilian President Dilma Rousseff in the capital, Brasilia, on Monday.

Subject to final approval of the plans by the Brazilian Government, the goal is for production to begin in 2014. Investments over the next few years will total more than 200 million euros. Plans call for a production capacity of approximately 30,000 vehicles per year. More than 1,000 new jobs will be created at the new production site – as well as additional jobs within the supplier network as a result of the new plant. Negotiations with the State Government of Santa Catarina are already well underway for the new facility in the Joinville region.

“Brazil is a market with tremendous potential for the future for the BMW Group. For that reason, we are strengthening our long-term commitment to this country,” Robertson explained. “This will create the necessary conditions for us to maintain the balance of sales between Europe, Asia and the Americas – and, therefore, for the long-term success of our company. With this move, the BMW Group is applying its strategic principle of ‘production follows the market’, which has already proved successful in markets such as the U.S., China and India.”

The new plant in Brazil will extend the BMW Group’s production network which currently comprises 29 production and assembly facilities in 14 countries. The company has been manufacturing BMW motorcycles at its Manaus location since 2010.

The BMW Group has had a local sales company in Brazil since 1995. A total of 15,214 vehicles were sold in Brazil in 2011. This represents a growth rate of almost 54%. BMW Motorrad also increased its sales by 55% in 2011 to reach a total of 5,442 motorcycles.

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  • Adam

    So all the people bitching about a Mexican facility, is this better? Gabe, Michael what are your thoughts? I honestly cant see this being a detriment.

    • http://bridger.us/ Gabriel Bridger

      High level agree. Brazil and South America hold huge opportunity for growth that is to some degree protected from the struggles of the US or Europe. It’s also a cheaper place to make cars than either the US or Europe.

    • BimmerFile_Michael

      This was expected- Brazil has some interesting laws about importation and has one of the strongest economies in South America. Foxconn also has a factory there now for building Apple products.

      When there were rumors of BMW building a plant in Mexico- it made little sense as BMW has an amazing plant in the US that continues to grow, has a supply chain network and a willing workforce.

      Brazil is a profit making machine now and will be such in the foreseeable future- BMW wants to build close to markets it sells in volumes so it is not hurt by currency fluctuations so much. However with the Euro zone weakening daily it seems like more production will come from Germany at the current time.

  • http://www.facebook.com/people/Mark-Smith/1742553353 Mark Smith

    From what I see BMW is very strategic and will only build factories where the work force is capable and skilled enough to build their product to their particular standards. Look at the U.S. for example? We started out building E36 318 sedans. Now we’re building most of the SAV lineup exclusively for the rest of the world to own and enjoy. Who would have imagined that when they first opened they would eventually become this far advanced?