BMW Group and its Chinese joint venture partner could build new electric vehicles or plug-in hybrids at their new factory in Shenyang which was officially opened here today.
BMW finance chief Friedrich Eichiner said that the German carmaker is currently developing so-called ‘new energy’ vehicles with Brilliance Automobile Holdings. “By definition these are EVs or plug-in hybrids and the will be built in Shenyang,” he added.
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The joint venture’s second plant at Tiexi, west of the city, was opened by BMW chairman Norbert Reithofer. It’s first, also with Brilliance, started operations at Dadong, northeast of Shenyang in 2005 making 3 and 5 series models.
Tiexi has already started producing the X1 which will be joined soon by a long wheelbase version of the 3 series, a model exclusive to China.
Reithofer said that the Tiexi factory is one of the most efficient and sustainable in the group. Flexibility is also a key point.
The 220,000 sq m site represents an investment of €1 billion by BMW and Brilliance. It houses a pressing plant, body-in-white, assembly, logistics and administration offices all located in a one building ‘single roof’ concept.
The new plant will double BMW’s production capability in China to 200,000 a year operating two shifts, five days a week. A further investment of 500 million will see this expanded to 300,000 across the two plants by the end of next year.
This will also lead to the creation of some 2,000 new jobs over the next few years in addition to the 8,000 previously created by the joint venture. Reithofer added that due to the flexible production structure, the two plants will be able to produce up to 400,000 vehicles a year in the longer term, depending on market development.
BMW and Brilliance have also started to produce four-cylinder engines at another new plant in the city with a further investment of €50m. It supplies both the BMW plants and is BMW’s only engine facility outside Europe.
Eichiner added that further vehicle production capacity could be made available in the future by adding a third shift or weekend working. “It is important to stress that our Chinese plants meet the same quality standards as our other factories around the world.
“Every BMW car is a promise. It represents premium quality regardless of where it is built: in Eastern Bavaria, Eastern China or the eastern United States. But it is important that we do not depend too much on the Chinese market,” he added. “We also need to build up and maintain production at our other plants around the world including the US which remains an important market for BMW.
“We don’t like to give forward sales projections for China because you can easily get it wrong, either over or underestimating. We have been wrong in the past, but right now we are very happy with a 28% share of the premium market in the country.”
The addition of the second plant will also see a ramp up of research and development for BMW. The Tiexi factory includes a number of test chambers which can be used for the development of future products.
See also: CHINA: BMW expands in China
