To lower costs and attract more customers, most major auto makers have set up manufacturing factories in China now.
Because of local policy and regulations, almost all foreign makers chose this way to expand its product in China market: they are collaborating with one of Chinese local auto companies and set up a joint venture. For example, Ford is working with Chang’an Automobile, Honda has signed contract with Guangzhou Automobile. For, BMW is teamed up with Brilliance China Automotive Holdings Limited (CBA), and formed “HuaChen BMW” for China market.
BMW has two factories in Shenyang, China: one is called Dadong plant, another is called Tiexi plant. According to BMW’s latest report, it is planning to raised the annual production volume in China from 300,000 units to a mighty 400,000 units, within two years.
At the current stage, BMW has already localized three models: 3-series LWB, 5-series LWB and the X1. From our insider, we are told that now the China factories has made preparation for the BMW UKL FWD platform. We also get confirmation that, BMW has decided to build 3 more models in China, they are the X3, the 2-series Active Tourer and another completely new model that is positioned below the 3-series.
Besides this, BMW is also preparing the Tiexi plant to build 3-cylinder and 4-cylinder engines, and it is scheduled go into production in 2016. By that time, the Tiexi plant will be the first BMW factory outside of Germany that has the ability to forge cylinder blocks and assemble BMW engines.
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