BMW planning to shift more production to China

Munich, December 14 / BNA /: A spokesman for the German car manufacturer BMW confirmed today, Monday, the transfer of more of its production capacity to China.

Under the new plans, the X5 SUV will not be produced in Spartanburg, South Carolina, but also in China. The company’s X line of SUVs was originally made exclusively in the United States, but BMW has long begun to diversify, with some production lines moving to China and others to South Africa, German news agency DPA reported.

China is BMW’s largest single market, just as it is for other German automakers, such as Volkswagen and Daimler. BMW sold about 1.9 million cars in the first nine months of 2021, and about 670,000 of those are in China. The transition to production in China has always been expected.

A BMW spokesperson said production needs to follow demand, as it allows the company to scrutinize its products more closely with specific Chinese orders. Shifting production also cuts rebates fees, which have worsened thanks to trade tensions that have escalated since 2018.

BMW is also taking steps to acquire a majority stake in its production joint venture with Brilliance in early 2022, the first time a foreign car company has taken such a step. If the plan succeeds, BMW will own 75 percent of the operation.

According to the Handelsblatt newspaper, which cited company sources, it is also planning an electric version of its BMW 3 to be manufactured exclusively in China. The spokesperson did not comment on the reports, describing them as “speculation.”

MI