X3 production to shift to US and Germany from Austria

[LeMansX5]

BMW to shift X3 model production to Germany and US from Austria by 2010
FRANKFURT (AFX) 07.23.2006, 11:31 AM- Bayerische Motoren Werke AG plans to shift production of its X3 model to Germany and the US from Austria by 2010, Automotive News Europe reported, citing an unnamed company manager.

A BMW spokesman contacted by DPA News Agency said such a move was a possibility.

'Naturally that could happen, but things could also turn out differently,' the spokesman said without providing further details.

Automotive News Europe reported that Austria's Magna Steyr will lose the production contract once BMW begins production of the next generation of the X3.

The unnamed BMW manager said that by 2010 his company plans to produce 50,000 X3s at its Spartanburg, US plant and another 100,000 in Regensburg, Germany.

The vehicles are currently built at Magna Steyr's Graz, Austria facility.

Source: Forbes.com

[DINANM3]

I thought it was already switched from austria to gremany like last year

[xx3]

Hmm,

why would BMW be doing this?

The original reason for using Magna Setyr was because BMW factories were already running at 100% and there was no room to spare to factor in X3 production. Apparently it was deemed that building a new factory would take too long, and be too expensive.

Perhaps they will move the X3 production to the new Leipzig plant. The new X3 will be based on the E90, so I guess it wouldn't be that hard to build X3's alongside E90 3's as both would share the same parts.

It appears Spartenburg will have to grow in the short term future. Not only is the RFK going to be built at Spartenburg, but the next gen X5, Z4, X6 and now X3.

Perhaps, with the popularity of the X3 in the United States, it appears BMW has suffered with the bad exchange rate, and feels it could make better money by building the X3's here and selling them here as well.

[B&DCalgary]

My guess would be that the move would be primarily due to economics in the long run. Since the U.S. dollar has tanked, it would make sense to produce the vehicle here, provided the quality was good (Magna Steyr is renowned as being tops in technology and quality control). I'd hate to see quality go down.

The timing for a move would be perfectly appropriate, as it would be the end of the seven year first gen. X3 run and Magna Steyr's contract would be up.

[AzNMpower32]

I really don't want the X3 produced in the US. It's the reason that prevented my dad from buying an X5 in the first place. X3 owners occasionally get hit with the "BMW doesnt even make the X3" line, but I'd rather have a sub-contractor build it in Austria than BMW build it in the US.

[rebound]

Does that mean you wouldn't buy a Z4, also?

[blondboinsd]

The Z4 was a poorly built car thou, I owned one and kept it 4 mos, I was not impressed

[xx3]

Originally Posted by AzNMpower32

It's the reason that prevented my dad from buying an X5 in the first place. X3 owners occasionally get hit with the "BMW doesnt even make the X3" line, but I'd rather have a sub-contractor build it in Austria than BMW build it in the US.

Sorry if this is strong, but that really is idiotic thinking at best.

[mwbbmw]

Originally Posted by AzNMpower32

I really don't want the X3 produced in the US. It's the reason that prevented my dad from buying an X5 in the first place. X3 owners occasionally get hit with the "BMW doesnt even make the X3" line, but I'd rather have a sub-contractor build it in Austria than BMW build it in the US.

My brother and I had that debate and what we finally agreed on was that whoever manufacturers (or assembles) the vehicle itself, it is done so per BMW specifications. Try and find a single car company that produces each and every single piece of a vehicle themselves - you can't because they don't. Pieces, parts and assemblies are outsourced to other manufacturers. BMW even has Daimler-Chrysler supplying the motor for the MINIs. Why is Bavarian Motor Werkes buying engines? Probably to keep the two companies as distinct as possible and even produce an engine in a timely fashion that would allow production to start A.S.A.P. and what with all the troubles Rover caused BMW I'm sure they were in a hurry to see it start producing a positive return. My 2005 325i was assembled in South Africa and both of my X3's (past and current) were made in Austria. They still handle and perform as they were designed to do and I don't necessarily care where they are built so long as BMW designs (yes, even Bangle and Hoydonk) and specs them and they still perform as BMW should, I'm sold.

[X3eme]

Sorry if you have seen this before but, after reading the article below, I felt glad that the X3 is assembled by Magna Steyr...



Magna Steyr's Graz Facility Honored With J.D. Power Gold Plant Quality Award - an Industry First for a Supplier

AURORA, Ontario, June 9 -- Magna International Inc. today announced that its Magna Steyr unit has won a J.D. Power Gold Plant Quality Award in Europe for its vehicle assembly facility in Graz, Austria. It is the first time this award has been given to a supplier.

The Gold Plant Quality Award, announced June 7 with the release of the J.D. Power and Associates 2006 Initial Quality Study, recognizes that Magna Steyr's Graz facility produces vehicles with the fewest number of defects as compared to other European vehicle assembly facilities.

The Graz facility has a long-standing tradition in vehicle production starting in 1906 as Steyr-Daimler-Puch AG, which Magna acquired in 1998. Today, eight different vehicles are built by Magna Steyr in Graz: the BMW X3, Chrysler Voyager/Grand Voyager, 300C sedan and Touring; Jeep Grand Cherokee and Commander; Mercedes-Benz E class 4MATIC and G class; and Saab 9-3 convertible. In 2005, the Graz facility built more than 230,000 vehicles.

"We are extremely proud to win such a distinguished award," said Siegfried Wolf, co-chief executive officer of Magna International. "This award is the result of the efforts of Magna Steyr's hard-working employees, who make a commitment to quality every day, as well as the unique partnerships that Magna Steyr has forged with its customers."

Magna Steyr is the premier global supplier of complete vehicle engineering and assembly services for original equipment manufacturer (OEM) customers. Magna International Inc., which ranks among the world's largest suppliers to the automotive industry, employs over 84,000 people at 224 manufacturing divisions and 60 engineering centers in 22 countries.

(http://www.theautochannel.com/news/2...09/010689.html)