BMW is seeking to fend off challenges by Audi and Mercedes-Benz with its own expansion. BMW is introducing 25 models in 2014 including 10 vehicles, such as the Rolls-Royce Wraith. BMW said in November this year that its spending will exceed targets this year and will continue at a high rate in 2014. BMW Group is considering building engines in the United States or Mexico for the first time and expanding vehicle production in the region to capitalize on growing demand, three people familiar with the matter said.
BMW could potentially decide on the project in 2014, according to the people, who asked not to be identified because the talks are confidential.
The automaker has focused on developing fuel-efficient powertrains since CEO Norbert Reithofer took the helm in 2006. BMW has kept tight control of the technology, only starting production of engines outside Europe last year with 4-cylinder units made in Shenyang, China, to supply BMW’s local car plants in Dadong and Tiexi.
BMW set up its only North American factory in Spartanburg, South Carolina, in 1994. The site produces all of the German company’s X3, X5 and X6 SUVs, and is one of the U.S.’s main auto exporters. BMW may expand vehicle-making in the region beyond a new model already announced for next year, the people said. Rival Mercedes-Benz makes SUVs in Tuscaloosa, Alabama.
