BMW expands output as record sales constrain capacity

BMW will be expanding their factories in the Europe and the U.S. this year to deal with capacity constraints driven by record demand for their premium vehicles. In the fight for the top spot in the premium segment, Audi and Mercedez-Benz do the same.

Juergen Pieper, a Frankfurt-based analyst with Bankhaus Metzler said, “The top three are poised for further growth. The momentum in luxury markets will continue this year and also in 2012. It’s a necessity for manufacturers to take steps to address this.”

BMW has already spent 1.5 billion euros on its German plants since 2009. 400 million euro were spent at their factory in Leipzig, Germany, to prepare for the production of the Megacity Vehicle by 2013. They have completed a US$750 million expansion of their Spartanburg Plant late last year for the production of the new X3 SUV. BMW spokesman Daniel Kammerer said that BMW is also expanding their capacity in China, India, and South Africa. This is in line with BMW’s forecasting record sales of more than 1.5 million BMW, Mini and Rolls-Royce models this year.

Source: Automotive News