BMW Brilliance to break ground on 2nd plant on June 1

Shanghai, May 28 (Gasgoo.com) The official ground-breaking ceremony for construction of the second plant of BMW Brilliance Automotive Ltd., will take place in Shenyang, northeastern China on June 1 this year, China.com reported today.

Reportedly, the designed capacity of the new plant in the first phase is 100,000 vehicles and the second phase will start with a designed capacity of 200,000 units in 2012.

In November last year, Brilliance China Auto signed a final agreement with German carmaker BMW on capacity expansion of their venture's existing plant and jointly building a new plant with 5 billion yuan ($73 million). Under the agreement, the new plant would be built in Shenyang Economic and Technological Development Zone, and be put into operation in 2012 with a designed capacity of 100,000 units. As development of the Chinese auto market, the maximum capacity could be expanded to 300,000 units.

Small capacity has always been hindering BMW's development in the China market. While Audi, its main rival, has had a capacity of 200,000 units, and is preparing for a new plant. Hence, BMW has set its annual sales target at 120,000 units, which however is far beyond the 30,000-unit capacity of its current plant.

In addition, the combined sales of BMW in China including Hong Kong, Macao and Taiwan came to 36,579 units, with the mini cars rising 100.5%, in the first quarter of this year.