BMW Brilliance starts construction of 2nd plant

Shanghai, November 26 (Gasgoo.com) BMW Brilliance Automotive Ltd, German luxury carmaker BMW's joint venture with Brilliance China Auto, has started construction of its second plant at the northeastern Chinese city of Shenyang, the Xinhua news agency reported today.

The new plant is expected to double BMW Brilliance's annual production capacity from the existing 40,000 cars to 80,000 units after the new facility starts operation by the end of 2009.

Analysts say that despite the financial crisis in the global market, China has much more room for development than the mature markets in North America and Europe, and BMW Brilliance is less affected by rising fuel prices than makers of cheaper cars as its customers are better off.

Munich-based BMW's China sales rose 30% in the first three quarters of this year to 47,342 cars, which include 25,026 units of BMW 3- and 5-series built by its Chinese ventures. Sales of BMW jumped 42%  in China last year.