BMW targets over 2 million global sales with US and China plant expansions
BMW is expanding production at its Spartanburg and Chinese joint-venture plants as it aims to surpass two million vehicle sales worldwide in 2014.
BMW is increasing production capacity at its plants in the United States and China as it sets its sights on surpassing two million global vehicle sales in 2014. The German manufacturer confirmed the plans at its annual accounts press conference in Munich, following a record 1.96 million deliveries in 2013.
Chairman Norbert Reithofer said the company expects a “significant rise” in sales volume this year, aiming for a new all-time high. The target covers all BMW Group brands, including MINI and Rolls-Royce. In 2013, BMW brand sales reached 1.66 million, while MINI contributed over 305,000 units and Rolls-Royce delivered 3,630 cars. The group’s motorcycle division, BMW Motorrad, added more than 115,000 units.
US and China plant expansions
BMW is preparing to expand output at its Spartanburg, South Carolina plant, which built around 300,000 vehicles in 2013. The facility, which produces SUVs for global markets, is expected to increase capacity to support the group’s ambitious sales target. While the company did not confirm new model allocations, speculation continues about a possible large SUV to rival competitors’ future offerings.
In China, BMW and its partner Brilliance are moving ahead with plans to boost annual capacity at their joint-venture plant from 300,000 to 400,000 vehicles. The expansion includes preparations for a new engine assembly facility, supporting local production and reducing reliance on imports. China remains a critical market for BMW and its premium rivals, with local manufacturing seen as key to maintaining growth.
Sales growth and competition
The push for higher production in both the US and China highlights BMW’s strategy of building cars closer to key markets. This approach is intended to improve supply flexibility, reduce costs and respond faster to changes in demand, especially as local content requirements and trade tensions influence global automotive manufacturing decisions.
Profit outlook and future developments
BMW said it expects group profit before tax to rise in 2014, despite ongoing volatility in global business conditions. The company has not confirmed details on future model launches at the expanded plants, but industry speculation centres on larger SUV models to compete with forthcoming rivals from Audi and Volkswagen. Any such decisions would further underline BMW’s commitment to its largest growth markets.
BMW’s expansion in the US and China comes as global carmakers adjust their manufacturing footprints to capture rising demand and manage risks in a shifting market. The company’s two-million sales target for 2014 will test its ability to balance growth with profitability as competition intensifies worldwide.
