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BMW Revives Plan to Erect Plant in Brazil
BMW AG has resuscitated plans to build its first assembly plant in Brazil to cater to the demand for luxury vehicles from the country's growing population of well-heeled consumers.
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BMW AG has resuscitated plans to build its first assembly plant in Brazil to cater to the demand for luxury vehicles from the country's growing population of well-heeled consumers.
BMW Finance chief Friedrich Eichiner tells Reuters that the company will submit an investment plan to the government soon. He did not disclose the size of the investment, the facility's location or what vehicles would be made there.
The Financial Times predicts the new factory will be near Sao Paulo or in the southern state of Santa Catarina.
BMW began discussing the plant publicly last year. But the company put the project on hold in late 2011 when Brazil unveiled plans to impose a 30% surtax on imported cars in January. Vehicles with a large proportion of imported parts were classified as a foreign-made a problem for BMW, which planned initially to assemble vehicles in Brazil from kits.
Bloomberg News reported in February that the government would selectively lower the tax for manufacturers that are building local assembly plants. Brazil also pledged earlier this month to give tax exemptions to carmakers that improve fuel efficiency and buy more parts locally.
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