BMW sets sights on global expansion as plans move forward for a new Brazilian manufacturing plant.
BMW is the world’s largest luxury automobile manufacturer. However, as Volkswagen AG continues to press the market, BMW is looking to strengthen its standing by expanding its global manufacturing presence. To accomplish this, BMW plans to spend $261 million to build its newest state-of-the-art factory in Brazil.
The new factory will be located in Santa Catarina, Brazil and is expected to be up and running by 2014. According to BMW’s head of sales and marketing, productions for the facility are expected to reach as many as 30,000 vehicles per year.
Boosting Global Production
In a media appearance, BMW’s head of sales and marketing, Ian Robertson announced, “The investment plan has been aligned with new automobile industry incentives and is the result of difficult work with Brazilian authorities during the last six months.” He also acknowledged that the company has plans to increase vehicle production as demand grows.
The original announcement to build the facility was made by BMW back in March of 2011, and the company is optimistic about the future of the factory as they work with the Brazilian government to finalize the project.
The factory is a response to the growing heat placed on the brand by the Volkswagen/Audi brand. Volkswagen recently announced plans for a new production facility in Mexico. BMW plans to expand into emerging markets to help boost sales by 20 percent in the next four years and counter VW’s efforts.
Brazil Welcomes Automakers
The decision to build a Brazilian plant was also partly influenced by tax changes on imported vehicles and an increasing demand for luxury vehicles in South America. Brazil’s market is stronger than ever as it ramps up to host the World Cup in 2014 and the Summer Olympics in 2016.
To boost the struggling automotive market in Brazil, the Brazilian President announced tax breaks to incentivize carmakers including BMW. Automakers will be held to higher standards for environmental and safety standards in order to qualify for the additional tax breaks.
Sales Continue to Rise for BMW
As BMW continues to invest in the global marketplace, the company has seen positive results. In the first three quarters of 2012, BMW’s sales rose to 1.11 million vehicles – over halfway to its 2 million-unit sales goal.
Current sales in the United States have risen in the past few months. The BMW Group recently announced that October sales reached over 32,300 vehicles, representing an 18% increase over last October. Year to date, the company is up 8.4%.
“We have continued to see strong sales,” states BMW North Scottsdale General Manager, Robert Dombrowski. “Thanks to the progressive updates featured in the latest model lines like the 3 Series, BMW drivers continue to seek out the Ultimate Driving Machine and are pleased with their experience.”
The best-selling vehicles in the U.S. continue to be the re-designed BMW 3 Series and the BMW 6 Series. To learn more about the latest vehicles, technology, and news from BMW, customers can stop by BMW North Scottsdale to speak with a sales representative or schedule a test drive.
About BMW North Scottsdale
BMW North Scottsdale is the premier BMW dealership of Arizona. It offers a wide selection of both new and certified pre-owned BMW vehicles. BMW North Scottsdale is also a member of the Penske Automotive Group team and prides itself in offering the best customer service to make
car buying fun and memorable and to offer the best in maintenance and repair services.
BMW North Scottsdale is located off N. Scottsdale Road in Phoenix, Arizona and welcomes Phoenix BMW fans in to learn more about their favorite new or used BMW models.
BMW North Scottsdale
18018 North Scottsdale Road
Phoenix, AZ 85054