BMW is planning to produce a fourth model at its plant in Spartanburg in the southern United States, to neutralise the effect of the weak dollar, according to finanzen.net.
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It has also been reported that the company is aiming to reduce costs by sourcing more components from low cost countries, particularly in eastern Europe.
According to German weekly news magazine Wirtschaftswoche, the fourth model will be the X7. There has already been press speculation that recent expansion at Spartanburg could pave the way for the X7 to be produced there.
The plant currently produces the Z4 roadster and coupe and the X5 SUV.
The X7 will be produced from 2007 and create an additional 500 jobs at the plant which currently employs 4,500 and produces around 600 cars a day.
BMW’s head of purchasing Burkhard Göschel told Wirtshaftswoche, that BMW currently sources around 15% of parts from low cost countries but is aiming to increase this by at least 10% in the next five years.
Component sourcing from China is limited to electronics because of transport costs and quality concerns.
Indeed, BMW supplier Alpine will switch sourcing of CD changers to Hungary from China.
Other purchasing cost savings will come from simpler design, or optimised production, according to the report.
