BMW announced in a press release that it will start producing the X1 model in China, together with it’s partner: Briliance Auto. BMW started producing cars in China 3 years ago when the factory owned by Auto Briliance began assembling the BMW 3 Series. Some months ago, BMW announced it had stopped production in China to improve the assembly line for 3 Series, but apparently it was revamped also to assemble the X1.
Norbert Reithofer (CEO BMW) said they would assemble x1 and 3 Series models in China just because these models are very requested by the chinese market and have no plan to relocate production to China to reduce costs.
Hard to believe this third-party statement, considering that competitors from Volkswagen and Audi announced they have started construction of 6 assembly plants in China to cope with market demand.
It is clear that all producers are interested in cheap labor in China and in these moments when the auto industry doen’t work that well, the best solution is to lower the cost and increase the production profit.