BMW Looking at Brazilian Assembly Plant On Strong Local Growth, Report Says

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Following 50-percent market growth in the booming Brazilian market, BMW is considering the possibility of a local assembly plant to meet strong demand for its products. The South American nation has now overtaken Germany in total sales volume.

Overall unit sales are still small at around 10,000, but the pace of growth far surpasses that in BMW’s more mature markets.

"For us, it is really about the significance and prominence of the market, since we believe it has a big future. The development of Brazil over the past ten years is impressive," BMW production chief Frank-Peter Arndt told Reuters at the company's annual news conference on Tuesday.

Because of the modest initial production goals, it’s likely the Brazil plant, if built would be a “complete knock-down” (CKD) assembly plant, where components are shipped from Germany or other primary component manufacturing plants, and assembled locally. BMW currently has CKD plants in Egypt, India, Indonesia, Malaysia, Russia, and Thailand.

Overall production volume of 100,000 units is the usual benchmark for establishing full local production and component sourcing, according to Arndt.

Source: Reuters

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