The BMW X1 - Now 'Made in China'
With expanded capacity coming on line in China, BMW are to start production of the BMW X1 in Shenyang for the China market.
We reported in November that BMW, together with its Chinese partner Brilliance, was planning a new factory in China to produce an extra 100,000 BMWs a year by 2012, and was looking to expand its current facilities to up production from 30,000 cars a year to 75,000. We knew that part of these new facilities were to start churning out the long wheelbase versions of the 3-Series and 5-Series (only for the China market) but we also thought it likely that BMW would look to start making the BMW X1 in China as well.
China has fallen in love with the compact SUV, so the announcement that the BMW X1 will start production in China is no surprise. The work now appears to have been completed on BMW’s plant in Shenyang and much of the additional capacity (an extra 45,000 cars a year) will be taken up with domestic X1 production. Producing the X1 in China will help BMW in its fight for domincance in this sector against Audi with the Q5 and VW with the Tiguan. But not for long.
VW are investing 4 billion Euros in China in the next couple of years to increase their production capacity in conjunction with partners SAIC, and part of that expansion will see the VW Tiguan being produced in China before the end of 2010, and doubtless the Audi Q5 as well. So it’s going to be an all China fight-out between the premium compact SUVs.
Made in China is rapidly losing its derogatory meaning.
