BMW Investing $270 Million In U.S. Operations

"These investments show that we are convinced of the continued long-term growth of the U.S. market despite the difficult economic conditions currently," BMW sales chief Ian Robertson said in a statement.

BMW sold 336,000 vehicles last year in the United States -- the world's single largest luxury car market -- an increase of 7.1 percent and accounting for roughly 22 percent of total group sales.

In order to better cope with the growing volumes and the resulting need for more spare parts, BMW will invest by the end of this year $170 million in two new parts distribution centres in Pennsylvania and Illinois.

Bmw8ter - 6/13/2008 1:11:28 PM

-1 Boost

"The depreciation in the dollar has forced more carmakers to consider local dollar-zone production."

Don't get too comfortable. Bernanke is about to drop an interest rate bomb.

enthusiastx11 - 6/13/2008 1:14:01 PM

+2 Boost

a small increase in interest rates--if it even happens--isn't going to do much for the dollar. the euro has appreciated more than 50% against the greenback in the last few years. interest rates would need to go through the ceiling to have a real impact.

Bmw8ter - 6/13/2008 2:02:37 PM

-2 Boost

They wouldn't have to go through the ceiling. The Fed being the biggest spender, would have to spend more itself, which would help to increase GDP. A higher GDP will result in increased valuation of the currency.

enthusiastx11 - 6/13/2008 1:11:35 PM

+5 Boost

smart to expand US operations. the euro is so ridiculously strong relative to the dollar that producing more cars in the US is the only way they can remain profitable.

Vantage - 6/13/2008 4:21:33 PM

-4 Boost

Guess they need to try to stave of Audi's rapid rise... I fiqure this should piss off the people who view BMW as the gold standard. You know who you are

VISO - 6/13/2008 5:38:44 PM

-5 Boost

Didn't BMW loose $375 million recently due to over-inflating the residual values of their cars?