Posted on Sunday 20 May 2007

BMW made the announcement last week that it was planning to start production of yet another model outside of Germany, with the Spartanburg plant in the US now locked in to build the next-generation X3 as well as an all-new X6 crossover. The decision enables BMW to take advantage of the depreciating US dollar but has upset unions and employees back in Germany where some of its plants are under utilized.
An internal source has now revealed to reporters from Automobilwoche that BMW is likely to build a new sedan at its Dingolfing plant in Southern Bavaria and is expected to make a decision soon concerning plans to outsource further production to Austria’s Magna Steyr.
The new sedan model is expected to hit the market in 2009, but before that we’ll see the new X6 roll-in with a launch date in the second half of next year. BMW won’t be leaving Magna Steyr high and dry after the current X3 ceases production in 2010. An announcement is due soon concerning several new models including a crossover MINI that will spawn a BMW X1 model.
Demand for the MINI brand is expected to increase in coming years with plans for even more models including the possible crossover version and long wheelbase Clubman. Production at its Oxford plant in the UK is expected to top-out at 240,000 units in roughly two years, and BMW is considering either outsourcing to Magna or expanding the Oxford facility.