Earlier this year, we reported that BMW is looking to build a new plant. The 50 percent increase in market share in the booming Brazilian market has made BMW look at their future expansion strategy. Following up on the topic, Automotive News reports that BMW is in the process to decide on a site for the plant.
The new plant will help the company sustain global sales growth following record deliveries in 2011. This year, BMW sold nearly 1.6 million vehicles and according BMW CEO Norbert Reithofer, the automaker aims to sell 2 million cars every year in 2020.
“We are better prepared for a potential crisis” than during the 2009 recession because of lower production costs and a better financial cushion, Reithofer said at the briefing Thursday. He reiterated that profit in 2011 will “rise significantly” to a record and that automotive earnings before interest and taxes will amount to at least 10 percent of sales.
With the introduction of the new 3 Series sedan in early 2012, the company anticipates increased sales in U.S., China and Europe. Reithofer says that Chinese consumers drive about the same number of economy cars as Europeans, but the difference is that 75 percent of Chinese economy car owners want to upgrade for their next purchase.
BMW is keeping its factories’ Christmas breaks as short as possible to meet demand, shutting most plants only for the week between Christmas and New Year’s Day. Frank-Peter Arndt, BMW’s production chief, said in October that the carmaker can reduce output by 20 percent to 30 percent if necessary.