BMW’s new financial officer, Michael Ganal, wants to reduce the company’s exposure to the weak dollar by sourcing more vehicles and components from the US.
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According to Automobilwoche, Ganal said that losses attributable to the dollar exchange rate would be lower thatn last year, but still substantial at EUR666m.
BMW plans to increase production at its Spartanburg plant to 240,000 units a year, up from 100,000 in 2006. It sells around 300,000 cars in the US.
Ganal also hopes to increase component sourcing, although he acknowledged that some work needs to be done to improve quality and price.
Ganal said he preferred this form of natural currency hedging over financial hedging and that he foresees similar strategies for India and China. At the moment BMW builds around 40,000 cars in China and sells around 1,000 in India.
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