BMW Plans to Expand Its Production in East Europe

January 15, 2013 at 04:58

The largest premium carmaker in the world BMW plans to expand in the emerging markets of the Eastern Europe, as well as to strengthen its position in North America. In addition the company intends to reduce dependence on the German market, which now accounts for 60% of sales of cars. Even though the sales in such countries as Russia and the USA are already established, the sales in other countries will soon be developing.

black BMW Hamann 2012

Photo of the black BMW Hamann 2012

As it was told in an interview to the Wall Street Journal by BMW finance director Friedrich Ayhiner, the Group intends to reduce dependence on the demand for its cars in Germany, so far the largest market for BMW. Currently in Germany there are sold about 60% of all cars. For comparison, a decade earlier the share of sales of BMW in Germany was 70%. But last year, the European car market was marked by a significant decline in sales.

BMW new concept car

Image of the BMW new concept car

According to Ayhinera, the only escape from the fluctuations of the market can be a flexibility of production and cost management. “In East Europe, we are in negotiations on the expansion of capacity. This makes sense from a strategic point of view,” – said the representative of the company. True, the final decision on the matter is still pending. Currently BMW investment plans in the Russian market are conservative.

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