BMW To Build More Cars In U.S.

With Dollar Low, German Automaker Will Increase Production In America While Cutting Jobs At Home

(AP)  On one side of the Atlantic Ocean, BMW says it will cut 7.5 percent of its work force over two years. On this side of the water, the company says it plans to increase production by more than 50 percent by 2012.

"This is completely driven by the plunge in the dollar," said Greg Gardner with Oliver Wyman, publisher of the Harbour Report on automotive manufacturing activity. "It is untenable to produce at a much higher cost in Germany."

The euro climbed to record heights Friday, reaching $1.5463 before falling back to $1.5335 in late trading after the Federal Reserve announced it would provide more cash to banks that need it. That means European goods cost more for Americans to buy.

By building the cars in the U.S., BMW can save money on the lower dollar and on wages since its South Carolina workers make less than German workers, Gardner said.

The declining dollar also means BMW and other foreign automakers likely will start buying locally for more of the parts used by their U.S. plants, he said.

That shift in production has led to the cuts at home for the Munich-based luxury car maker.

BMW's head of personnel, Ernst Baumann, said last month that 5,600 jobs would be cut by the end of the year. That's on top of 2,500 positions already eliminated. That adds up to 7.5 percent of the company's total work force of almost 108,000, including both permanent and temporary employees.

In the U.S., BMW Manufacturing Co. in Greer expects to increase production to 240,000 cars by 2012, company spokesman Bobby Hitt said last month. That's up from 155,000 last year.

"Conceivably, as the volume increases and the manufacturing system at the Spartanburg (S.C.) plant improves, costs may come down enough to cut prices of their cars," Gardner said.

The company has not said what impact the increase in production will have on employment in Greer, which is about 4,500 permanent employees and up to 900 temporary employees.

The company has scheduled an announcement for Monday at the BMW Zentrum in Greer, S.C., to discuss an addition to the plant, which makes the X5 and Z4 models. A spokeswoman at the Greer plant did not return phone messages seeking comment.

While luxury car sales are expected to be flat or a little down from last year, "BMW will still show growth," said Jack Nerad, executive market analyst for Irvine, Calif.-based Kelley Blue Book.

The company said BMW Group, which includes the Mini and Rolls-Royce brands, sold 198,628 cars worldwide in January and February, up from 191,357 for the same period last year. Sales of the BMW brand for February rose to 89,983 up from 85,310 for the month last year.

Nerad and the company say launches of new 1-Series models and the X6 also are expected to lift sales in 2008.

[cdfoxtrot]

Great. I guess we can look forward to Beamers becoming shi_t_ty, second-rate cars. The race to the bottom is never-ending.

[missingamerica]

So we can look forward to employment oscillating globally in response to fluctuations in the value of the dollar, now?

I bet that makes the hedge traders happy - not only do they get to underpay taxes, if an Adminstration - of any of the world''s nations - ticks them off, they can manipulate the value of the dollar and force jobs out of that country, leaving that country''s government holding the bag and the blame.

[cfin5]

Great. I guess we can look forward to Beamers becoming shi_t_ty, second-rate cars. The race to the bottom is never-ending.

Posted by cdfoxtrot at 03:53 PM : Mar 09, 2008-----Really? So BMW will lower standards just because they''re made here like American Workers have all the say in production material used? I say we can build them BETTER than they can over there. We can out compete anyone in the world if they would just let us. Have you read how much we''re exporting lately? It''s time to get back to work!

[cdfoxtrot]

So BMW will lower standards just because they''''re made here like American Workers have all the say in production material used? I say we can build them BETTER than they can over there. We can out compete anyone in the world if they would just let us. Have you read how much we''''re exporting lately? It''''s time to get back to work!

Posted by cfin5

Dream on. US exports are doing well purely because the dollar is at record lows against key currencies like the euro. I have yet to hear anyone trumpet something as being of high quality, on the basis that it''s US made. On the contrary, marketers generally like to push any "European-ness" of a product, as Europe is synonymous with quality. German engineering is world renowned. It''s awfully hard to imagine that a bunch of yokels in Carolina will be up to the task of matching what they can do in Bavaria.

[cdfoxtrot]

So BMW will lower standards just because they''''re made here like American Workers have all the say in production material used? I say we can build them BETTER than they can over there. We can out compete anyone in the world if they would just let us. Have you read how much we''''re exporting lately? It''''s time to get back to work!

Posted by cfin5

Dream on. US exports are doing well purely because the dollar is at record lows against key currencies like the euro. I have yet to hear anyone trumpet something as being of high quality, on the basis that it''s US made. On the contrary, marketers generally like to push any "European-ness" of a product, as Europe is synonymous with quality. German engineering is world renowned. It''s awfully hard to imagine that a bunch of yokels in Carolina will be up to the task of matching what they can do in Bavaria.

[bozworth4]

Maybe the US companies in Mexico will come back to. Cheap labor, poor dollar, King George II has a plan.
Of course the Mexicans here will have to go back to Mexico to get the higher paying jobs. King George II thought this thru?

[libsrweak]

these fu cking american liberals have nothing else better to do than just simply whine ABOUT EVERYTHING.jobs leaving THEY WHINE jobs coming in..THEY WHINE..
WHINE WHINE WHINE..

[soldat44]

Dream on. US exports are doing well purely because the dollar is at record lows against key currencies like the euro. I have yet to hear anyone trumpet something as being of high quality, on the basis that it''''s US made. On the contrary, marketers generally like to push any "European-ness" of a product, as Europe is synonymous with quality. German engineering is world renowned. It''''s awfully hard to imagine that a bunch of yokels in Carolina will be up to the task of matching what they can do in Bavaria.
Posted by cdfoxtrot at 04:37 PM : Mar 09, 2008

Actually, they do as pretty good job. It took a couple of years, but they were finally able to build Bimmers just as well as they do in Deutschland. They are currently producing Z4 and X5 and plan to start building X3 in 2010.

If they weren''t up to the standards in South Carolina BMW would not continue to build there. The Germans are funny about that. Our X3 was built in Graz, Austria and our 330i was built in Munich. Outstanding vehicles.

BMW - The Ultimate Driving Machine.

[soldat44]

Great. I guess we can look forward to Beamers becoming shi_t_ty, second-rate cars. The race to the bottom is never-ending.
Posted by cdfoxtrot at 03:53 PM : Mar 09, 2008

Wrong!

BTW - It''s Bimmers not beamers.

[soldat44]

German Engineering = flaws are built right in.

American Made = flaws are not considered flaws... they''''re "features"

So the two make for a happy marriage for the BMW company.

All for the low sticker price starting around $40,000 on up!

Woo hoo.
Posted by USAyesterday at 04:22 PM : Mar 09, 2008

Go drive one.

[bozworth4]

these fu cking american liberals have nothing else better to do than just simply whine ABOUT EVERYTHING.jobs leaving THEY WHINE jobs coming in..THEY WHINE..
WHINE WHINE WHINE..


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Posted by libsrweak




Liberalism refers to a broad array of related ideas and theories of government that consider individual liberty to be the most important political goal.[1] Liberalism has its roots in the Middle Ages and Age of Enlightenment.

Broadly speaking, liberalism emphasizes individual rights and equality of opportunity. Different forms of liberalism may propose very different policies, but they are generally united by their support for a number of principles, including extensive freedom of thought and speech, limitations on the power of governments, the rule of law, the free exchange of ideas, a market or mixed economy, and a transparent system of government.[2] All liberals %u2014 as well as some adherents of other political ideologies %u2014 support some variant of the form of government known as liberal democracy, with open and fair elections, where all citizens have equal rights by law.[3]

Liberalism rejected many foundational assumptions that dominated most earlier theories of government, such as the Divine Right of Kings, hereditary status, and established religion.
Thanks!!!!

[cfin5]

cdfoxtrot,....I bet your democrat "America First" workers would beg to differ with you big time. Folks like you with your memory of the 70''s American vehicles don''t hold water with todays quality standards. I have relatives that own American-Made BMW''s and have to this day NOT had the first problem with them,......they LOVE them! Come on dude, I''m no democrat or republican. I''m a constitutionalist who does not want to see any of our workers regardless of party affiliation laid off for any reason. So help tow the line for our team how about it! You can''t have it both ways.

[omega39-2009]

If BMW is making such a long term commitment then they must believe that the dollar is going to remain in the toilet for a long time to come.

[cfin5]

Posted by bozworth4 at 06:05 PM : Mar 09, 2008-----So why didn''t you mention how Leninism has taken over modern liberalism. What''s the difference in the failed social policies of tyrants whether they are monarchical or communist?......just that in name only. We have been given the FAIREST CONSTITUTION in the world! Let''s use it wisely so as to not lose it folks!

[joyous88]

why not, Americans make less than both Germans and Mexicans now, they will save a fortune, and hey! They do not have to provide anyone with health care,

as GW Bush would say, "How uniquely american"

bush is a criminal, vote mcBush for four more of the same

[prairiefox1]

OUTSOURCING TO A CHEAPER THIRD WORLD COUNTRY WITH CHEAP LABOR!

[prairiefox1]

ALL THE PEOPLE ARE AT FAULT FOR THIS! UNLESS I MISSED THE REPORT OF A THOUSAND REGIMENTS MARCHING ON WASHINGTON! YOU, AND MYSELF ENABLED THIS TO HAPPEN!
SO STOP CRYING ABOUT IT!

[donbl1]

BMW is making the same decision Honda and Toyota made in the 90''s when the Yen appreciated to 80 per dollar.

Honda and Toyota now build the majority of US sales in America.

I guess Bush did something right.........

[hawksprings]

"Broadly speaking, liberalism emphasizes individual rights and equality of opportunity. Different forms of liberalism may propose very different policies, but they are generally united by their support for a number of principles, including extensive freedom of thought and speech, limitations on the power of governments, the rule of law, the free exchange of ideas, a market or mixed economy, and a transparent system of government.[2] All liberals %u2014 as well as some adherents of other political ideologies %u2014 support some variant of the form of government known as liberal democracy, with open and fair elections, where all citizens have equal rights by law.[3]
Liberalism rejected many foundational assumptions that dominated most earlier theories of government, such as the Divine Right of Kings, hereditary status, and established religion."
Posted by bozworth4


Bozworth, this may be where Liberalism started out hundreds of years ago, but it is NOT the Liberalism in America today.

Liberalism today is defined best by mocaloe''s post''s last sentence:

"Like spoiled, angry children, liberals rebel against the normal responsibilities of adulthood and demand that a parental government meet their needs from cradle to grave."

[bozworth4]

Funny all I wanted to do is give myself a title. Seems most people commenting want to label everyone.
I''ve been called a liberal, a conservative, a moron, a gun nut, a stupid uneducated clod, an inbred. Thought I should look some of them up. The liberal definition came from wilkepedia? Boy I didn''t even say I was one. However, King George II must be one because CFIN5 said we should use our constitution wisely I think King George II has used our constitution Up!!!! For his needs.

[bozworth4]

"Like spoiled, angry children, liberals rebel against the normal responsibilities of adulthood and demand that a parental government meet their needs from cradle to grave."



--------------------------------------------------------------------------------

Posted by mocaIeo

You know I guess I could be one of them there liberals! After 17 years and 6 families I decided I could live on my own. Went to Cambodia for a trip. Came home in 1969, to be spit on and labeled a child killer. (kinda rebelled) Went on to raise 2 daughters, and 1 son. Don''t now, nor did then get any assistance from government (not even unemployment). Opps did get to live free, and do appreciate that. Now at close to retiring I do see the light. I only ask for the monies back from SS that I have paid in for the last 44 years. Never thought government was my parent. Because of bogus military rules don''t get any VA either. In other words don''t think your right about lumping everyone into one group!

[samthetvcat]

omg - we''ve become Europe''s ''China'' . . . soon the Mexicans are going to be building a fence to keep US out . . .

[olebd]

As a diehard VW fan, I am pleased that they too are setting up shop(s) in the U.S. very soon.

And now a joke:

What''s the difference between a BMW and a porcupine?

The porcupine has it''s pri*cks on the outside. LOL

[cfin5]

bosworth4,......Neocon = Neolib. Hope this clears up any misunderstanding.

[changenow]

BMW To Build More Cars In U.S.



Why? we can''t afford them.

[bozworth4]

bosworth4,......Neocon = Neolib. Hope this clears up any misunderstanding.


--------------------------------------------------------------------------------

Posted by cfin5


Yep!I guess, got to look and see what they mean.

[bozworth4]

In many respects, the term is used to denote a group of neoclassical-influenced economic theories and right-wing libertarian political philosophies which believe that government control over the economy is inefficient, corrupt or otherwise undesirable. Neoliberalism is not a unified economic theory or political philosophy %u2014 it is a label denoting an apparent shift in social-scientific and political sentiments that manifested themselves in theories and political platforms supporting a reform of largely centralized postwar economic institutions in favor of decentralized ones. Few supporters of neoliberal policies use the word itself.

"Neocon" is used by critics as a code word for a lot of things, among them: imperialist, unrealistic dreamer, and scheming puppeteer (along with its subset, scheming evil Jewish puppeteer).


Boy I ought to know better. I sure do know why I don''t like titles. Everybody has a different definition for the same thing. Guess I''ll have to settle for being an American citizen! And be thankful for that.

[cfin5]

Posted by bozworth4 at 10:48 PM : Mar 09, 2008-----Yep, my point was that when both sides stray from the literal interpretation of the Constitution with a metaphorical one, and to the extent of their efforts, they are destroying what a constitutional "centrist" American governs his/her citizenship upon........Glad you just want to be an American :)

[antizion]

Thanks to a dictator named Bush, america has a few more millionares that can afford them and millions of jobless people living in poverty to fill those few jobs.

[juwboy]

Aunty Zion:

Why don''t you tell us once more how water can be used in place of gasoline if you change its molecular structure by giving it an electrical charge?

BMW could use this "superwater" as fuel in their cars, couldn''t they?

You weren''t fired by your Jewish former employer because you''re a Goy pig.

You were fired because you have pschitt for brains!

[inventagod]

We own an American-produced Acura...

Everything that could go wrong -

Has gone wrong!

OOPS!

[forthepeopl1]

Carlyle Capital had leveraged $670 million in equity 32 times to finance a $21.7 billion portfolio of highly rated mortgage-backed securities issued by U.S. housing agencies Freddie Mac and Fannie Mae.

The company, to establish financing for the deals, entered into repurchase agreements with banks in which it would post the mortgage securities as collateral in exchange for cash.

If the value of the security held as collateral falls, the lender has the right to ask for more collateral -- a "margin call" -- to secure the loan.

If the borrower does not meet the margin call by putting up more collateral, the lender may sell the security.

so all the banks used the inflated houseing prices to get large sums of cash, our mortages that they lied in the first place saying a home is valued at 400000 or 500000 and it was really worth 200000, then go to investers and say look we have so much equity that if they go bad we still make billions..OOPS THE VALUES HAVE COME DOWN TO WHAT THE HOMES ARE REALLY WORTH, OOPS, WHAT DO WE DO?????? LETS JUST RIGHT IT OFF...NO MATTER THE GOVERNEMNT WONT LET US GO DOWN..

GREAT JOB..CONGRESS HOW ABOUT SAVEING US AMERICANS INSTEAD OF THE ONES THAT LIED AND CHEATED US...

[usbrit-2009]

We own an American-produced Acura...

Everything that could go wrong -

Has gone wrong!

OOPS!

Posted by Inventagod at 09:16

I own a 1994 Japanese made Acura; 185000 miles and only about $3000 in repairs total. Hmmmmm!

[usbrit-2009]

Hey Bozworth - Great commentary. One problem, I doubt that any neocons understand a word you''re saying!!!

[usbrit-2009]

Posted by forthepeopl1 - Carlyle capital; as in Carlyle Group - the Repug financing organization so beloved by the Bushes? - Say it ain''t so Joe.

[soldat44]

BMW To Build More Cars In U.S.



Why? we can''''t afford them.

Posted by CHANGENOW at 09:06 PM : Mar 09, 2008

Don''t include ''me'' in your self-serving ''we''.

maybe you should get out more and check the prices of some of the GM product line - ''Burbs and Tahoe. They''re pushing $60k.

[djberson]

We own an American-produced Acura...

Everything that could go wrong -

Has gone wrong!

OOPS!

Posted by Inventagod at 09:16

I own a 1994 Japanese made Acura; 185000 miles and only about $3000 in repairs total. Hmmmmm!
------------

Well I own a 100% American made 2000 Pontiac Bonneville. 120K miles, and all I have had to do since I took ownership in ''03 is balance the wheels, change the oil and replace some light bulbs that burned out from old age.

[cfin5]

My Chevy Tahoe had around 250,000 miles before I sold it. Used a 250:1 chainsaw gas mix in the fuel almost all the time. Never burned oil or turned the first wrench on the motor except for the plugs at 100k. Bosch Platinums are still in it......Best truck I ever had.

[ramos937]

It really makes you wonder. Our American car companies are going broke and Toyota and BMW, etc. are not only doing great but they are expanding here in the USA.

[logicanada]

I told you guys last year that Europe would soon be outsourcing jobs to the U.S.
Canada, India and Russia to follow.