Printer Friendly

BMW TO BUILD MANUFACTURING FACILITY IN SOUTH CAROLINA

 BMW TO BUILD MANUFACTURING FACILITY IN SOUTH CAROLINA
 GREENVILLE/SPARTANBURG, S.C., June 23 /PRNewswire/ -- BMW AG today


announced plans to enhance its global competitiveness by building a manufacturing facility in the United States, near the Greenville- Spartanburg Airport on Interstate 85. The announcement was made by Eberhard von Kuenheim, chairman of the board of BMW AG, in a live telecast from Munich to a news conference here.
 Bernd Pischetsrieder, member of the board responsible for manufacturing; Helmut Panke, director, Corporate Planning, BMW Group; and Karl Gerlinger, president and CEO of BMW North America, joined Gov. Carroll Campbell and other state and local officials at the conference.
 Preparation of the 900-acre site for construction of the planned 1.9-million-square-foot facility will begin next month, with the first car planned to be built in 1995. The facility will represent an initial investment of between $250 million and $300 million. Employment will build gradually to about 2,000 people by the end of the decade. The investment will allow BMW to build 300 cars per day.
 BMW said it would build a new model in South Carolina, but declined to give details. It will be sold in the U.S. and exported to supply worldwide demand and will make a positive contribution to the U.S. trade balance, especially with Europe, which is America's best customer.
 BMW's statement offered the key considerations for "this major investment and commitment in the United States:"
 -- The United States is the largest, most competitive and dynamic consumer market in the world. BMW believes it is essential for global brands, especially manufacturers of luxury/performance automobiles, to be fully represented in this market. BMW's objective is to expand and strengthen the position it has taken today as an importer and customer of U.S. technology.
 -- Second, BMW wishes to become more independent of fluctuations in exchange rates. Even an aggressive purchasing program cannot accomplish this quickly enough. However, it will be achieved with its own production facility. The prospect of a North American Free Trade Agreement will make BMW virtually immune to fluctuations in exchange rates or possible trade barriers.
 -- Production and sales in the U.S. and the exports it plans from the U.S. factory, will strengthen BMW's global competitiveness and secure BMW employment worldwide, especially in Germany. BMW's export strategy is based on its total confidence in the ability of Americans to build world-class quality products.
 BMW said the research for the decision started three years ago with the evaluation of more than 250 different locations in Germany, Europe and the rest of the world. The list was narrowed to a handful of locations, then two states, Nebraska and South Carolina. BMW said it used the primary criteria to make the final decision:
 * the availability of sufficient, qualified labor for a modern production facility;
 * a positive relationship between business and government;
 * the quality of life -- housing, education, culture and recreation -- to attract, retain and motivate our employees.
 The most critical factor was how the infrastructure would support BMW's business strategy. BMW cited air, sea, rail and highway transportation; reliable utilities and support for the communications technology required to integrate the new facility into its international production, supply and distribution network.
 Mr. von Kuenheim said the site on Interstate 85, the Greenville- Spartanburg area, and South Carolina completely fulfill BMW's requirements.
 "Today, BMW and South Carolina are rightfully at center stage in the global economy. After three years of determined pursuit, I am delighted by today's announcement and grateful for BMW's plans to make South Carolina home to a showcase manufacturing facility," said Governor Campbell, who led the state's efforts to attract the company.
 "Together, we have a winning combination: BMW's unassailable excellence plus South Carolina workers and training and our bounty of strategic advantages for manufacturers. South Carolina wins, BMW wins and so do car buyers with exacting standards," he added.
 BMW's objective is to use a high level of domestic content, so it expects the U.S. facility will attract numerous suppliers and other economic activity to the area. BMW said its experience in Germany has been that regional suppliers generally provide the same number of jobs as the plant creates. The 900-acre site will allow suppliers to locate nearby.
 And, like its other plants, BMW said its goal will be not only to achieve lean production, but also clean production. BMW cited its international electric car and recycling initiatives and said it is equally inventive anticipating environmental needs.
 BMWs were the first sold here through an independent importer. BMW of North America, a sales subsidiary headquartered in Woodcliff Lake, NJ, was established in 1975 and currently employees 850 people at 10 locations in four states. BMW currently purchases $250 million in high-technology parts and components from American suppliers.
 -0- 6/23/92
 /CONTACT: Thomas O. McGurn of BMW North America, Inc., 201-307-3789/ CO: BMW North America, Inc. ST: South Carolina IN: AUT SU:


DH-DC -- DE001 -- 2678 06/23/92 08:09 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jun 23, 1992
Words:830
Previous Article:PAGINE'S DEBUT: PRICE FOR RISC-BASED X TERMINALS REACHES ALL-TIME LOW
Next Article:LITTLE CAESARS PIZZA CHAIRMAN OF THE BOARD CHOSEN AS A 1992 GOLDEN CHAIN WINNER
Topics:


Related Articles
GEORGINE OF BUILDING TRADES ASKS U.S. HOUSE, SENATE LABOR COMMITTEES TO INVESTIGATE BMW, HOLD PUBLIC HEARINGS
MAGNA INTERNATIONAL AND BMW REACH FINAL AGREEMENT
BMW CELEBRATES SOUTH CAROLINA PLANT OPENING
BMW MANUFACTURING CORP. RECEIVES ISO CERTIFICATION
BMW EXPANDS INVESTMENT IN SOUTH CAROLINA TO $800 MILLION
First Customer BMW X5 Sports Activity Vehicle Rolls Off the Line.
New BMW Manufacturing Corp. President Named.
BMW Manufacturing Corp. Launches Website.
BMW Manufacturing Corp. Has a strong 2000.
10 Years Later - BMW Manufacturing Corp. to Invest $400 Million And Add 400 Jobs; Clemson Automotive Graduate School; New Interchange Part of...

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters