BMW broke ground on construction of a new Brazilian assembly plant in Araquari, Brazil, recently, and took the opportunity to confirm that the plant's production range is scheduled to include the 3-Series, X3 and Mini Countryman as well as the 1-Series five-door and X1. BMW is working at "achieving balanced growth in all markets and on all continents. Fast-growing emerging markets such as Brazil, Russia and India and Korea play a vital role in this effort." Production start is scheduled for late 2014, and the facility will include a body shop, a paint shop and an assembly facility. Its location was strategically selected for proximity to ports, airports and federal motorways. BMW is investing EUR200 million, with planned capacity of 30,000 vehicles annually. The new facility is expected to hire about 1,300, with 60 already hired. In line with the Brazilian government's intent, BMW will source "numerous components" locally.
Significance: The BMW production schedule is expanded from what was expected, which was the 3-Series, X1 and 1-Series. The additive products do not share platform with the core three, or with one another, which can make for a high degree of complexity for a low-volume plant. IHS Automotive forecasts BMW sales in South America about 51,500 units per annum (upa) by 2018, up from 26,000 in 2013 – less than 1% of the overall market. Brazilian sales are expected to increase from 14,000 upa to 31,500. Sales in Brazil are expected to grow in 2014 and beyond, despite a flat 2013. By 2017, sales are forecast to reach 4.3 million units. Sales in the South American region are expected to grow from 5.82 million units in 2012 to 6.93 million in 2017; of the forecast growth, about 700,000 of those will be sold in Brazil. Production in Brazil through 2017 is forecast to jump from 3.44 million units to 4.18 million; the region is growing by 1 million units, from 4.55 in 2013 to 5.50 in 2017 – again, the bulk of the increase is in South America's largest market.
