BMW plans to assemble five models in Brazil

A flex-engine sedan (biofuel), equipped with turbo and sold today in Brazil at a price of R $ 130 thousand will be the starting point in the factory being built by BMW in the North of Santa Catarina. Yesterday, the direction of the German carmaker announced that the 320i-that makes up the series 3-brand will be the first model to be assembled in the country.
The car was presented as the only developed in the premium segment to run both with gasoline and ethanol, while alia in propulsion system a turbocharger and the mechanism of direct fuel injection into the combustion chamber-two solutions that allow you to reduce the size of the engines without compromising the power of the vehicle.
After the 3-series sedan will be produced in the Brazilian factory, not necessarily in that order, a 1-series hatch and two SUVs-x 1 and X 3. As he had anticipated the value, the Mini Cooper also will be assembled on site. According to BMW, the model will be produced in the country in the Countryman, a species of the family sport utility of minis that comprise the English Group's portfolio.
The five models, all to be mounted on a single production line, were announced yesterday by BMW during the launch of the foundation stone of the factory which is being erected by the municipality of Araquari, in Santa Catarina. Type ceremonies are conducted to officiate the opening of a factory works. But in the case of BMW, the ceremony had merely aspect Protocol because since May the automaker prepares the groundwork and construction has already entered the phase of foundations.
The company's plan is to complete the works until September of next year to start production next month. The investment exceeds € 200 million, or approximately $ 600 million. The annual production capacity of the line, that BMW aims to achieve in three years, will be 32 thousand vehicles in a single work shift, with the generation of approximately 1.3 thousand direct jobs and other 2.5 thousand vacancies in suppliers and car dealerships.
The plant will occupy one-third of a land of 1.5 million square meters. Have assembly lines, welding, painting systems and logistics, as well as administrative and auxiliary buildings. To include all these processes, leaving out a few lines, such as stamping and motors, the automaker says the project can meet all the requirements of Innovate-Auto, the federal Government's program that grants tax incentives in Exchange for the nationalization of vehicles.
Along with the factory, the group is setting up a training center in Joinville, a city 20 kilometers of Araquari. The site will house a replica of the future Assembly line to prepare, from next month, the future workers of the company.
Speaking at the ceremony of cornerstone, the head of BMW in the region of the Americas, Ludwig Willisch, pointed out the two main reasons that have led the automaker to invest in Northern Santa Catarina: access to skilled labor of a metal-mechanic, pole more closely the Cinque ports in the State.
According to him, investment in Brazil-the world's fourth largest automotive market-is aligned to the strategy of the German carmaker to produce where there are heated demand. "This is a clear signal that we are assuming with Brazil a long-term commitment to sustainability," said the Executive, when addressing the development of flex engine for the 320i. In Europe, the automaker works to lead to bi-fuel technology, consecrated among Brazilian consumers, other models that will be produced in the country.
Despite the hopes of many that the production of premium cars in Brazil could make them more accessible, the President of BMW in the country, Arturo Piñeiro, added that the prices of the mark should not change when the plant is completed.
According to him, the BMW prices are already competitive incentives data obtained with your license to Innovate-Auto. By joining the program, BMW can sell up to 12.8 thousand cars per year in the Brazilian market without having to pay the extra 30 percentage points in the tax on industrialized products (IPI) applied on imported vehicles. The benefit is given in return for investments made by the group in Brazil.
When the factory is ready, BMW will also escape the 35% import tax, but Piñeiro said that despite this, production costs in the country are very similar to what the company faces in other regions of the world.
"Therefore, there is no radical price reduction, as people imagine. Prices will be at the same level they are now, "said the Executive. Today, prices of BMW in Brazil starting from $ 99.9 million, 118, and reach nearly $ 525 thousand, if the SUV X 6.
In addition to BMW, Mercedes-Benz, which will build a factory in São Paulo State, have said that nationalization of the models will not lead to price reductions. The justification is that, although the tax benefits allowed for a factory in Brazil, automakers need to seek the return of the heavy investments made in assembly lines.
When speaking with journalists after the ceremony of cornerstone, Piñeiro said that, with the rise in the country's social, the premium car market should grow by an annual volume of 50 thousand to more than 100 thousand vehicles over the next five years.
The purpose of the tag is about 40% of that gain volume with the production of 32 thousand cars in Araquari, more imports of other 8 thousand units.