Germany Goes to Chinatown?

Well, not exactly. But there will be some mega-German investments in China. BMW is currently planning to advance development of its work in China with “investments to increase manufacturing capacity.” According to the company’s board of management chair, Norbert Reithofer, the Chinese really like the BMW vehicles and “anticipate” more growth for the company for the future.

Mega Monies Investments

Hence the company in Germany is combining its efforts with their “joint venture partner Brilliance” in an effort to further develop the investment monies it announced before which was already significant at EU 560m. This will be taking place in Shenyang which is where their Chinese facility is. Now, the figure will be increased to EU 1bn.

This extra money will be split between BMW and Brilliance and be utilized for the construction of paint shop, press shop and to advance the Tiexi plant’s infrastructure in anticipation of greater production capacities hoped for the future.

German-Chinese Manufacturing Relations

Germany has had a good relationship with China vis-a-vis investments for a while now. For the last six years, there has been production in China of both the BMW 3 and 5 Series. Around a year and a half ago, BMW Germany said it was planning on constructing a second production plant in China “with the BMW X1 slated to begin production there in 2012.” Further, this renders China as BMW’s “third-largest market worldwide, with 167,116 vehicles sold in China during the last financial year.” The plan is that there will be an expansion of over 100,000 vehicles per annum at the first facility (Da Dong) and then at the second one, 200,000.