BMW Said to Weigh Setting Up North American Engine Plant

[Purveyor]

By Christoph Rauwald - Dec 11, 2013

Bayerische Motoren Werke AG (BMW), the world’s biggest maker of luxury cars, is considering building engines in North America for the first time and expanding vehicle production in the region to capitalize on growing demand, three people familiar with the matter said.

BMW may establish a motor factory in Mexico or the U.S., and the Munich-based company could potentially decide on the project in 2014, according to the people, who asked not to be identified because the talks are confidential.

The carmaker would join German premium-auto rival Mercedes-Benz in producing engines in the region as Asian and U.S. rivals already do. Mercedes will start using motors next year built at a Nissan Motor Co. (7201) plant in Tennessee. BMW has largely restricted its engine-making to Europe, only announcing a plan last year to build 4-cylinder units in Shenyang, China, to supply the company’s local car plants in Dadong and Tiexi.

“Engine technology is BMW’s core competence,” Juergen Pieper, a Frankfurt-based analyst at Bankhaus Metzler, said by phone. “Establishing local motor manufacturing abroad is more complex than assembling cars, but it’s a logical step for them to eventually start making engines in markets where they’re expanding vehicle production,” to reduce the cost of logistics and mitigate currency effects.

more...

http://www.bloomberg.com/news/2013-12-11/bmw-said-to-weigh-setting-up-north-american-engine-plant.html

[madokie]

1. Sounds like a good deal to me

I remember years ago a friend had a 318i and it was ugly as sin but a hell of a good car. We put a lot of miles on that old beater

[snooper2]

3. E30s make great tuner cars-

[madokie]

8. Brings back memories

Not quiet in the same class but never the less the bimmer was a tough, solid good car. In fact after watching this video I'm going to go on a hunt for one for myself to putter around in.

[dipsydoodle]

2. I found out today they've stopped issuing service books with new 3 series cars.

Service history etc is recorded on the car key.............provided the work is carried out by a BMW dealer.

Next they'll stop putting instruction manuals in the cars all of which have got i inputs from which the details may be read.

[Mopar151]

4. Saturn, Spring Hill, Tenn.

Just sittin' there, AFIK. Some very modern process tooling there - tho BMW wouldn't like the "lost foam" castings much. But the composite body panel tooling could be a big winner?????

[Initech]

6. Tennessee = right to work state

Would much rather have it built in a state that would allow the UAW to set up shop.

[Mopar151]

7. Waddya got in an engine plant?

Fairly modern, good foundry nearby, Power Grid, Highway, Rail infrastructures in place....... VW has flummoxed Tenesee by trying to include union representation on a management board, as they do in Germany. And their new plant isn't union - YET.

[pampango]

11. VW asked the state of Tennessee to "include union representation on a management board"?

How "European"! Did the state go along with that idea?

Hard to imagine an American corporation asking government to allow it to have union representation on a management board.

I wonder what German execs think of the American corporate mindset to avoid and dismantle unions whenever possible.

[pampango]

5. If BMW locates in the US, I bet it will be in a right-to-work state which

will further weaken unions and prove that republican politicians were 'right' (from a 'my state needs jobs' perspective) to pass right-to-work laws.

[CTyankee]

9. Talk about "outsourcing"!

BMW is treating the U.S.A. like a third world country...and we are rapidly becoming one...

[Glassunion]

10. Sweet... Come to PA!

Please come to PA!