Munich, Germany – BMW is planning further expansion of its activities in China with investments to increase manufacturing capacity.

“BMW Group vehicles are very popular in China,” said Norbert Reithofer, chairman of the board of management of BMW AG. “We anticipate that this growth will continue in the future. Therefore, together with our joint venture partner Brilliance, we will increase the previously-announced investment of 560 million euros in our Chinese facility in Shenyang to around one billion euros.”

The additional investment, which will be shared between the two partners, will be used to build a press shop, paint shop and to expand infrastructure at the new plant in Tiexi in preparation for higher production capacities in the future.

In November 2009, the BMW Group announced that it would build a second production plant in China, with the BMW X1 slated to begin production there in 2012. The planned production capacity will increase to more than 100,000 vehicles per year at the existing Da Dong facility and, over the medium term, to 200,000 at the new plant in Tiexi.

The company has been producing the 3 Series and 5 Series in Shenyang since 2003. China is now the BMW Group’s third-largest market worldwide, with 167,116 vehicles sold in China during the last financial year. In the first four months of 2011, the company delivered 79,306 vehicles, an increase of 70.1 per cent over the same period in 2010.

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