BMW Considering Factory In Brazil

BMW is considering an assembly plant in Latin America, specifically Brazil, but its exact plans remain up in the air. BMW currently builds motorcycles at a plant in Manaus, and is debating whether to expand its facility to include auto production, or starting an all new plant exclusively for cars.

BMW would likely begin with assembling knock-down kits of their cars and expand the plant as necessary. While a full-blown facility with a stamping plant, paint shop and assembly line would normally require high volumes, BMW officials noted that their South African operation is successful even when producing 50,000 cars per year, about half of what is normally required for a large plant to be profitable. The company also maintains assembly sites for knock-down kits in countries like Egypt, India, Russia and Malaysia.

[Source: Reuters]