Vladimír Urbánek (Kurzy.cz)
World markets  |  April 16, 2013 11:02:33

VW, Daimler and BMW are planning investments for 25.5 mld.USD to support production abroad


German automakers have announced plans to invest total of about 25 mld.USD to promote their products in foreign destinations.

BMW plans to expand the production capacity of its existing plant in South Carolina American company producing mainly SUV models on the production of a new sports car bearing the X4.
VW builds a new factory for 1.3 mld.USD in Mexico. This year also put into operation its hundredth anniversary production plant also in Mexico.
Daimler expands its manufacturing plant in the U.S. Alabama.
Overall, VW plans by the end of 2017 to invest outside Europe to 19 mld.USD. Daimler will invest globally in a similar way to the end of 2015 mld.USD 5.

According to estimates of the VW Group has over 77% of its production generated outside Germany. By becoming a world leader in this regard, he overcomes American GM, which abroad produces about 76% of its production.Japanese Toyota among Japanese islands produces about 59% of its production. BMW produced outside Germany 29% of its production.

Keeping VW confirms that the goal is to become a truly global player. Markedly expansionary policy of the largest German automaker took place despite the strong depreciation of the euro in recent years, which favored production at home.
Competitive Daimler on this topic noted that the decline of the euro supported its operating profit in the last two years, a total of 958 million euros. Analysts estimate that the strong decline of the yen will support Toyota's profit by as much as 50%.
The opposite trend of the euro in the nineties almost buried carmaker Porsche, which most of the production produced in domestic factories, while selling it abroad.First of all her problems then led to greater diversification of production capacities at other German carmakers and greater involvement in their production abroad.

Foreign expansion of the German automaker protects, among others, before much of the negative effects sinks European car sales, which have recently particular, weigh heavily on French producers who focus almost exclusively on the European automotive market.

Emphasis is placed on investments primarily on China, where only VW plans to invest with local partners by the end of 2015 about 9.8 mld.EUR over 16 mld.EUR proinvestovaným in this country for the last 25 years.
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VW, Daimler a BMW plánují investice za 25,5 mld.USD pro podporu produkce v zahraničí

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