Automakers Worried About Future China Projects After BWM Failure to Win OK for Plant Expansion image

The fact that BMW failed to win approval to expand Chinese plant worry global automakers about future projects in the Asian country.

China’s Ministry of Environmental Protection did not approve BMW’s plan to expand plant in the region citing the facility’s failure to meet government anti-pollution regulations, as well as negative results at the wastewater analysis.

“The ease of expansion is probably not going to be as easy as in the past,” said Bill Russo, Beijing-based president of automotive consultant Synergistics.

Russo said that during the 10 years he has been in China he never heard the government refusing an automaker’s expansion plan. Alexander Bilgeri, BMW’s spokesman, said that the government requested additional documents and that its decision regarding this roject was not final.

In the statement posted on the ministry’s website the government announced it did not approve BMW Brilliance Automotive’s strategy to implement the third expansion phase of the facility located in the northeastern Chinese city of Shenyang, as the plant still has to pass an inspection related to the first expansion phase.

Yesterday, July 29th, the Economic Information Daily published a report according to which industry officials are requesting the Chinese government to begin an investigation into imported vehicle prices. The newspaper said that that the profit from imported luxury vehicle sales in China was with 30% higher compared with the global average.

Source: The Detroit News