According to company insiders BMW will build the next generation X3 at the Spartanburg, South Carolina plant in the US. The new X3 will be built alongside the upcoming BMW X6 and the current X5 and Z4.
Roughly 105,000 vehicles were built at the plant last year but CEO Norbert Reithofer has discussed his desire to raise production to 200,000 units per year.
BMW originally planned on building the new X3 in Germany, but do to current exchange rates it is more beneficial that the vehicle is built in the US. The depreciating dollar is making it harder for automakers to import vehicles made in Europe into the US.
Lincoln recently announced that they are not going to be able to import a Lincoln version of the upcoming Ford SUV that is based on the Iosis Concept X. The SUV was supposed to come to the US next year.
This may not be a bad thing for the US workforce. The weak dollar may force automakers to build their vehicles in the US, which could create more jobs. Or it could go the other way and reduce the number of "cool" cars that we get here.
One more question: How come GM is managing to import Opel vehicles for Saturn, while Ford is not able to do it for Lincoln?
Full Story: Motor Authority
Comments (2)
A lot of industries will suffer from the weak dollar. We just can't buy as much and we import soooo much. This is why China's monetary policy is to have the RMB pegged to the US dollar. All those companies who moved their factories overseas decades ago are somewhat fubar.
Posted by Tim | May 15, 2007 2:03 PM
Posted on May 15, 2007 14:03
Actually most industries will benefit from a weaker dollar. A large amount of our imports (ex-energy) come from countries where the currency move has been much smaller (either due to pegs i.e. China, or other moves i.e. Japan). Anyhow imports are good for mainly the retail industry, while having a negative impact on most other industries.
In addition any industry exporting (i.e. high-tech as well as others) will have an easier time selling their products, and will achieve higher dollar denomianted earnings, which will aloow them to grow the work force. All in all the chief negative impact is mitigated by the benefit (imports are generally not a good thing, but rather denote a lack of competitiveness in a given country).
Posted by Kamel5547 | May 15, 2007 5:29 PM
Posted on May 15, 2007 17:29