Audi And BMW Will Expand Their Factories This Year
According to Bloomberg.com, it seems that BMW, Mercedes and Audi AG (the world’s three largest luxury-car manufacturers), will expand their factory units in 2011 in order to keep up with the increasing customer demand.
Audi is targeting to overtake BMW as the largest manufacturer of premium cars by 2015 and for this reason it plans to increase the production of their cars and sport utility vehicles to more than the 1.15 million produced last year.
Mercedes and BMW have just about the same plans as Volkswagen AG’s Audi, with increased output at the Stuttgart and respectively Leipzig plant.
Juergen Pieper is a Frankfurt-based analyst for Bankhaus Metzler and he said that “the top three are poised for further growth”. “The momentum in luxury markets will continue this year and also in 2012.” He also recommends buying BMW, Daimler and VW shares.
This targeted increase in production output is directly linked to the continuous expansion of China’s market which became in the last years one of the two largest automotive markets in the entire world, after United States. To satisfy this increasing request, Audi is planning on spending $15.7 billion (11.6 billion Euros) through 2015 on plants as well as new models. Since 2009, BMW has already spent 1.5 billion Euros for the German plants and Daimler is at the moment building a small-car plant in Hungary for which they will invest a total of 800 million Euros.
BMW plans on selling more than 1.5 million units of their BMW, Rolls Royce and Mini models in 2011. In order to prepare the production of the highly-anticipated Mega City electric vehicle which is due in 2013, BMW is spending 400 million Euros at its factory unit located in Leipzig, Germany. The company also announced that it will roll out 20 new models by 2015 while Audi affirmed that they will launch 13 new models and upgraded cars in 2011.
As far as Volkswagen is concerned, they plan on investing more than 5 billion Euros for two of their factories in Germany, the one in Neckarsulm and the other in Ingolstadt, where the new Audi A6 model will be made. In addition, Audi said that pretty soon they will begin working on expanding the output of their factory located in Gyor, Hungary to 125,000 units per year.
In 2010, BMW finished a $750 million expansion of its United States factory, located in Spartanburg, South Carolina, in order to create the facilities for making the facelift version of the X3 SAV. The company has plans of increasing its production in South Africa, India and most important, China.
Source: BMWBlog via Bloomberg.com
Post tags: Tags: a6, Audi, BMW, Mini, Rolls Royce, Volkswagen