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U.S. Investments for BMW (Parts) and VW (New Plant)

U.S. Investments for BMW (Parts) and VW (New Plant)

Tuesday, May 27, 2008
 
In separate stories, BMW executives have been quoted as saying the firm will increase its purchases of car parts and components in the United States, as a result of the depreciation of the dollar against the euro; and Volkswagen is in talks with officials from three U.S. states competing for a new VW factory. A German magazine reports that while the BMW plant in Spartanburg, SC, accounts for about 22 percent of the firm’s overall sales, only 10 percent of its purchasing comes from U.S. suppliers. BMW CFO Michael Ganal said to expect purchasing volume from the United States to increase over the next four years. Volkswagen, meanwhile, is pitting Michigan, Alabama and Tennessee in a battle of tax incentives, infrastructure logistics and availability of skilled workers to decide where it locates a new U.S. plant scheduled to open in 2010. The firm plans to more than triple its annual U.S. sales by 2018, according to a report from Automotive News Europe. The new plant will have the capacity to build 250,000 vehicles per year.

 

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