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BMW, Audi And Mercedes Will Build U.S. Factories

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On: Fri, Jan 21, 2011 at 10:11AM | By: Sherry Christiansen

 BMW, Audi And Mercedes Will Build U.S. Factories

The official word from the automotive world is clear: “the world’s three largest luxury automakers will expand factories this year to ease capacity constraints.” Translation: BMW, Daimler, and Audi are building bigger factories which means new jobs all around! Why can’t they just say that?

Actually, the race is on between those three big European automakers to see who is going to come out on top. However, they’re not only thinking about sales this year, but they they’re already talking about who is going to be the industry leader for 2015. That’s confidence.

First to lay down the gauntlet was Volkswagen AG’s Audi who announced that they are going to increase production on their assembly lines in order to roll out more SUVs and cars then they did last year. That will mean selling 1.15 plus at least one to beat 2010’s record. Once BMW and Mercedes-Benz heard about this, they went all in with their own plans to expand their factories in Germany and the United Stated.

Audi has put their marker down to spend $15.7 billion through 2015 on their factory expansion and development of new cars. Over at BMW they’ve already dropped a significant amount of cash into building out their German plants since 2009. Not to be outdone, Dailmer is sinking 800 million-euro into a small-car plant over in Hungary. They’ve also pumped $750 million into expanding their American operations in Spartanburg, South Carolina. Thank you, BMW!

“The top three are poised for further growth,” said Juergen Pieper, a Frankfurt-based analyst with Bankhaus Metzler. He’s so bullish on the European big three that he’s telling anyone who will listen to buy shares in VW, Daimler, and BMW. “The momentum in luxury markets will continue this year and also in 2012. It’s a necessity for manufacturers to take steps to address this.”

You can draw a direct line between these expansion plans and the increased orders coming out of China and the U.S. Clearly, everyone got the memo that the recession is over and are now going back to those luxury cars. To meet with the burgeoning new demand, Audi plans to let fly with 13 new models and redesigned vehicles and that’s just this year. Among the new Audis coming our way will be an updated A6 sedan and the new Q3 compact SUV. A little something for everyone.


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