BMW to Double Engine Output in China

BMW AG plans to double engine production capacity in China to 400,000 units by building a second engine plant at its joint venture manufacturing complex in Shenyang.

The factory, which is scheduled to open in 2015, is part of BMW's partnership with Brilliance China Automotive Holdings Co. The venture's first engine facility began production in March.

The partners also build BMW's 3 and 5 Series cars and X1 compact crossover vehicles at two adjacent assembly plants with combined capacity of 200,000 units. BMW said the venture could produce twice that many vehicles in the medium term by running those factories around the clock seven days per week.

The two carmakers said in May they would invest €500 million in unspecified projects to expand capacity in Shenyang. They indicated some of the funding would be used to boost engine output but provided no details.

The company sold 182,000 BMW and Mini brand vehicles in China from January through July, up 30% from a year earlier. Sales by BMW Brilliance jumped 46% to 65,500 vehicles in the first half of 2012.