BMW to invest €1 billion in German plants

BMW to invest €1 billion in German plants
Photo: DPA
BMW announced on Wednesday it would stay committed to producing cars in Germany by investing €1 billion into its factories around the country.

“This year and next, we’re going to invest €1 billion in our German production sites,” BMW chief of production Frank-Peter Arndt told the daily Passauer Neue Presse. “We could not make a more explicit and clear commitment at the moment.”

Arndt went further to dismiss the rumours that BMW was planning to cut back production in Dingolfing as “nonsense,” adding that the Bavarian factory was indispensable to the company’s future success.

The small community, an hour north east of Munich, was hit hard twice when it changed its model production to the Grand Turismo and the BMW 5-series as demand for the bigger vehicles dropped. But Arndt had a positive outlook for Dingolfing.

“Until the end of the year, we’ll still deal with cyclical difficulties, however, looking into 2010 it will get much better and from there we can move away from reduced working hours for good,” he said, referring to the German government scheme that allows companies to cut back on employee’s hours while Berlin subsidises the wages.

Arndt also said that greater demand will come from outside of Europe, but the Bavarian factories would still see benefit from that.

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