Apple Strudel?
Posted on 03/09/2008 11:21:01 PM PDT by Vince Ferrer
COLUMBIA, S.C. (AP) -- On one side of the Atlantic Ocean, BMW says it will cut 7.5 percent of its work force over two years. On this side of the water, the company says it plans to increase production by more than 50 percent by 2012.
"This is completely driven by the plunge in the dollar," said Greg Gardner with Oliver Wyman, publisher of the Harbour Report on automotive manufacturing activity. "It is untenable to produce at a much higher cost in Germany."
The euro climbed to record heights Friday, reaching $1.5463 before falling back to $1.5335 in late trading after the Federal Reserve announced it would provide more cash to banks that need it. That means European goods cost more for Americans to buy.
By building the cars in the U.S., BMW can save money on the lower dollar and on wages since its South Carolina workers make less than German workers, Gardner said.
The declining dollar also means BMW and other foreign automakers likely will start buying locally for more of the parts used by their U.S. plants, he said.
That shift in production has led to the cuts at home for the Munich-based luxury car maker.
BMW's head of personnel, Ernst Baumann, said last month that 5,600 jobs would be cut by the end of the year. That's on top of 2,500 positions already eliminated. That adds up to 7.5 percent of the company's total work force of almost 108,000, including both permanent and temporary employees.
In the U.S., BMW Manufacturing Co. in Greer expects to increase production to 240,000 cars by 2012, company spokesman Bobby Hitt said last month. That's up from 155,000 last year.
"Conceivably, as the volume increases and the manufacturing system at the Spartanburg (S.C.) plant improves, costs may come down enough to cut prices of their cars," Gardner said.
The company has not said what impact the increase in production will have on employment in Greer, which is about 4,500 permanent employees and up to 900 temporary employees.
The company has scheduled an announcement for Monday at the BMW Zentrum in Greer, S.C., to discuss an addition to the plant, which makes the X5 and Z4 models. A spokeswoman at the Greer plant did not return phone messages seeking comment.
While luxury car sales are expected to be flat or a little down from last year, "BMW will still show growth," said Jack Nerad, executive market analyst for Irvine, Calif.-based Kelley Blue Book.
The company said BMW Group, which includes the Mini and Rolls-Royce brands, sold 198,628 cars worldwide in January and February, up from 191,357 for the same period last year. Sales of the BMW brand for February rose to 89,983 up from 85,310 for the month last year.
Nerad and the company say launches of new 1-Series models and the X6 also are expected to lift sales in 2008.
The upside to being the newest third world country.
I see a lot of the X3 and X5, both built in the US, around these days.
I don’t know of many manufacturing plants in Rwanda.
Now, what will the Turkish Muslim workers in Germany do?
Go on the dole? With all four wives?
Move to the US, of course.
Since the move the South Carolina, BMW is renaming itself. No longer will BMW mean Bavarian Motor Works (Bayerische Motoren Werke). It now means Bubba Making Wheels!
I’m driving my fourth BMW. I think it’s the best production car in the world. I didn’t think anything could top the 2003 until I got a 2007. Both of these were assembled in SC, proving U.S. quality (but also German engineering).
When you factor in the cost of maintenance (bundled into a BMW) and the lower lease price due to the higher residual, BMW’s are pretty good values too.
>> The upside to being the newest third world country.
So we can now expect more companies to return to the good ol’ days of “in” sourcing.
Any takers?
Cuckoo clocks?
Dirndls?
Alpenhorns?
Bangers & Mash?
those cute wooden shoes?
Apple Strudel?
I drive an Audi.
“So we can now expect more companies to return to the good ol’ days of “in” sourcing.”
Let me teach you what i’ve learned from life:
Those who “source out” are going to be the ones that will “source in” in the future.
“I’m thinking of some UNIQUE European things for the US market that can be built here cheaper without sacrificing quality.
Any takers?”
French Cheeeeseeee !
Hmmm. How comes americans are buying foreign european cars from SC, but are outraged by the AF decission to buy a “american-Northrop-but-european-technology-based-Airframe-build-in-AL tanker” ?
Agreed. The X5 and Z4 were being built in Spartanburg long before the US dollar started tanking and was all about capturing the market and reducing costs by getting the factories closer to its major market to reduce all those overseas shipping costs. The X5 and Z4’s built at that plant are not only sold in the US where the majority for those cars demand is, but exported to Europe and the rest of the world.
Saw a tv show that detailed the construction of a Z4 at the Spartanburg plant. They were building left side driver versions as well for England, etc...
I just bought my second BMW in Dec., an X3 and I couldn’t be more pleased with the ride.
Something not many people know is that many 3 series sedans are now built in South Africa.
BMW has already decided that the new X6 crossover style SUV that will start production in about a year will be built at Spartanburg, and the next generation X3 (model year 2010) will be moved from assembly in Graz, Austria to Spartanburg as well.
Good news for South Carolina’s economy and good news for manufacturing jobs there.
This is a great deal for more Americans to work for our new foreign masters. German in this case
1) Because we tend to be more sensitive when it comes to outsourcing major military defense projects. Boeing has been supplying tankers for our military for over 50 years and its a stunning sign of the times that those airframes would be manufactured elsewhere.
2) It gives the congress plenty of oppurtunities to pander for the cameras.
wooden shoes?
>> Those who “source out” are going to be the ones that will “source in” in the future.
Regretting they ever sourced out in the first place.
Isn’t strange that there are no industrial giants these days like Andrew Carnegie or Lee Iacocca.
Steve Jobs.
Fred Smith.
Herb Kelleher.
Jeff Bezos.
All the guys that started eBay.
Yeah, the BMW plants in Rwanda are rather thin on the ground. In any case, 1. if the dollar falls complain about them buying our stuff, and 2. if the dollar rises complain about us buying theirs. It’s that simple.
BMW broke ground for the Spartanburg plant in the early 90s when the exchange rate was the exact opposite of what it is today. White collar jobs at BMWNA and BMW Manufacturing have more than doubled in the years since, along with jobs within dealerships. Right now, dealers of every nameplate are begging for service technicians. The yearly shortage is running at about 100,000.
Good jobs. Good wages. Not enough qualified applicants.
What will really turn us into a Third World country is our ability to continually turn out high school and college graduates who can't read, write, count or show up to work on time.
By the time they implement this, the dollar may be making a recovery.
What will really turn us into a Third World country is our ability to continually turn out high school and college graduates who can’t read, write, count or show up to work on time.
**********************************
You are right, but those grads know all about Kwanzaa, American imperialism, diversity training, and global warming. Our future global citizenry who arent proud of America. Paging Ms. Obama.
“Good news for South Carolina’s economy and good news for manufacturing jobs there.”
The ads in local nespapers are offering entry level factory assembly jobs in South Carolina for 10-$12 per hour. Not bad for 18-year-old high school grads just starting out.
It won’t buy you a BMW and McMansion, but it’s good enough to get your wheels rolling.
Discovery Channel did a show on that factory on it’s “Ultimate Factories” program. It was cool and the plant had a lot of automation. Didn’t really see that many younger people working there, mostly older black men who could weld a perfect seam with their eyes shut.
Great the only way we can create/protect jobs is to engage in virtual tarrifs by undercutting our currency, because lets face it the "free trade" lunatics have made proper tarrif's a boogeyman.
They should all be unemployed instead. It's the patriotic thing to do.
Maybe we should apply for foreign aid from Somalia and Haiti.
After all, they owe us.
The rest of the nation has always considered South Carolina to be part of the third world.
.....and we want to keep it that way!!!!.....
.....way too many yankees movin down here and gummin up the works.....
.....let's let them keep on thinking of us that way.....
Just this last weekend I was comparing a Z4 M and a C6 Corvette. Including the options I was interested in, each cost $56k.
Look at the lease costs. You might find the a better residual for the Z4. A Z4 M class is smoking.
Also, check through a leasing company, not a dealer. We've found better deals and fewer hassles with leasing companies. If BMW's are hot in your town or all the dealerships are owned by the same group, they'll call around the state to find a better deal.
Go kiss the ass of your new foreign masters
They all made great contributions but I had charismatic industrial types in mind; leaders with name recognition familiar in most households. I’m talking about the revitalization of our industrial capacity.
The risk involved in shipping can be interesting...
This picture was titled, "Do Not Tumble Dry - January 2008" on the website www.cargolaw.com . I highly recommend going to their site and perusing it every now and then.
This from www.cargolaw.com:
The BMW Autos Aboard Car Carrier M/V Courage - Tumbled When The Vessel Suffered A Hard List
From The Cargo Letter - Jan. 11 2008
59,000-dwt car carrier M/V Courage listed heavily in the port of New Jersey on Jan. 11. 370 BMW cars were damaged, seventy were lost. M/V Courage had come from Europa with a cargo of 2,000 cars, mainly BMW 1-series, 3-series and M3's.
The seriously damaged cars will be destroyed, cars with less damage will be repaired. From our Sr. Correspondent Tim Schwabedissen (Thurs. Jan 17 2008).
If Your BMW Gets Wet -- Use A Towel -- Not A Tumble Dry
The car carrier M/V Courage tumbled at the port in Jersey City on Jan. 11 causing damage to over 370 BMWs. M/V Courage was loaded with new 3-series and 1-series vehicles, including new M3s. Around 70 of the damaged cars are reported to be total losses with others sustaining major damage. Word is that the M3s bared the majority of the damage.
Extensively damaged cars will be declared a total looss & crushed while those with minor damage will undergo repair at a receiving facility in Elizabeth, NJ, after which they will proceed onto dealers.
Bimmers destined for European delivery customers were also on board, although it's not clear how those buyers will be handled in the wake of the incident.
This is a particularly harsh hit to BMW in terms of the new M3 and even more so for the owners awaiting their new V8-powered uber-coupes. We'd expect this unfortunately event will lead to an extension of the waiting period many potential customers will have to endure. It also means many dealerships are out of luck for a demo car. With the M3's competition coming on strong from the likes of Lexus, Cadillac & Mercedes one can only imagine this sort of setback might steer away a few potential buyers.
Likely due to the transfer of fluids between tanks on the vessel -- this tumble will cost MILLIONS!
I’m enjoying the ‘84 633csi coupe I bought a few months ago for $3k. It’s a beautiful car, and as easy to work on as my Toyotas.
Certainly does help influence companies to make products in the country of their end destination.
Now if a few ships from China would sink...
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