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BMW to build second plant in China; operations not affected by job cuts
Shanghai. February 29 (Gasgoo.com) - BMW China announced recently that it plans to build a second plant in China in this year as sales growth in the market is increasingly challenged by output capacity.
The second plant is reportedly to have an annual capacity of 100,000 units, but Brilliance chairman Qi Yumin said the company will unveil output details in the first half year. Not only BMW 3 and 5 series, but also BMW 1 series will be produced at the second plant.
The production site, however, has not been formally confirmed, but Chinese newspaper said it will still be located at the northern city of Shenyang, where its first joint venture plant with Brilliance Auto is operating at capacity of 41,000 annually.
In addition, BMW and its partner in China, Brilliance Auto, have agreed to boost the joint venture's current capacity to 44,000 units in the next few months.
BMW AG has sold 51,588 vehicles (including both home-made and imported units) in Chinese market in 2007, up 42 percent from one year earlier. If BMW AG wants to further boost its sales in China, it has no other option but increase its output capacity.
Separately, BMW AG said yesterday that it would cut another 5,600 jobs by the end of 2008, on top of 2,500 other positions that have been eliminated, according to a Associated Press report.
"BMW headquarter is cutting jobs to reduce expenses amid a wider cost-cutting program, but this move will not affect its operations in China, " said Ma Qingsheng, a Public Relationship official from BMW China.
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