BMW is reportedly planning to invest as much as THB600 million (USD18.26 million) to install a new engine line at its Thai plant, reports local publication the Bangkok Post. Klaus Dräger, a member of BMW's board of management, was quoted as saying, "This will be the first engine manufacturing facility for BMW in ASEAN [the Association of Southeast Asian Nations]." The engine plant is to be located inside BMW's current vehicle manufacturing facility at Rayong's Amata City Industrial Estate, and is expected to begin production of 4-cylinder diesel engines in December 2015, while 4-cylinder gasoline (petrol) engines are expected to enter production lines by end-2016, according to the report. The automaker is planning to transfer its technology and expertise to its Thai facility, while it is also planning to conduct training programmes in the areas of engine production and cold testing for local employees.
Significance: The investment amount indicates this will be an engine assembly line building parts shipped from elsewhere, although the report does not specify that this is the case. BMW produces fewer than 10 nameplates for the BMW and Mini brands locally in Thailand, with the BMW 3-Series leading the chart, followed by the 5-Series and the Mini Countryman, according to IHS Automotive light-vehicle production data. The Thai plant also exports these models to neighbouring countries including Indonesia, Vietnam, the Philippines, and Malaysia, as well as a few other unknown markets, albeit in limited volumes. The automaker announced an investment of EUR9 million (USD11 million) in July to expand annual production capacity at its Thai plant to 10,000 units in 2015 from the projected 8,880 units this year. Although unconfirmed, the reported engine assembly line in Thailand will be the first for BMW in the ASEAN region; BMW currently has four engine plants in Europe (Austria, Germany, and the United Kingdom), and one in China, while IHS Automotive expects a new engine plant in the United States to come on stream in the future.
