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BMW plans to increase US production while cutting workers

CBC News -- COLUMBIA, South Carolina - BMW says it will cut 7.5 per cent of its work force in Germany over two years while increasing production in the U.S. by more than 50 per cent by 2012.

"This is completely driven by the plunge in the dollar," said Greg Gardner with Oliver Wyman, publisher of the Harbour Report on automotive manufacturing activity. "It is untenable to produce at a much higher cost in Germany."

The euro climbed to record heights Friday, reaching $1.5463 before falling back to $1.5335 in late trading after the Federal Reserve announced it would provide more cash to banks that need it. That means European goods cost more for Americans to buy.


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Submitted Mar 10, 2008 By: JT
Category: Daily News Article Discussions > Topics Add to favorite topics   Post new topicPost New Topic
Author Topic: BMW plans to increase US production while cutting workers Post a Reply Back to Topics
REPLIES (newest first)
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All-Star Author Hamilton

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Message Posted: Mar 11, 2008 1:10:43 PM

Go figure?
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Champion Author Tallahassee

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Message Posted: Mar 11, 2008 12:27:12 PM

The U.S. is falling to a second-world country. This is what we've come to with an administration that has destroyed the economy over seven years borrowing $2.5 billion to $3 billion per week on an endless war and lowered interest rates.
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Veteran Author Indianapolis

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Message Posted: Mar 11, 2008 12:26:48 PM

Old news...
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Champion Author Oklahoma City

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Message Posted: Mar 11, 2008 11:55:08 AM

Every thing has a price.
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Champion Author Michigan

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Message Posted: Mar 11, 2008 11:48:50 AM

a weak dollar wont mean a cheaper car.
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Champion Author Tampa

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Message Posted: Mar 11, 2008 11:41:51 AM

BMW is a great car, I drive a mercedes!
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Champion Author California

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Message Posted: Mar 11, 2008 11:33:32 AM

Old news!
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Champion Author Los Angeles

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Message Posted: Mar 11, 2008 11:33:15 AM

It's getting tough everywhere.
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Champion Author Los Angeles

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Message Posted: Mar 11, 2008 11:27:02 AM

world money is betting that the dollar will collapse long term
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Champion Author Milwaukee

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Message Posted: Mar 11, 2008 11:08:22 AM

I don't plan on getting a BMW anytime soon either.
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Champion Author Maine

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Message Posted: Mar 11, 2008 11:05:55 AM

I do not intend to buy a BMW in the near future.
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Champion Author Riverside

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Message Posted: Mar 11, 2008 11:04:43 AM

bring jobs here...we need em'
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Champion Author Albany

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Message Posted: Mar 11, 2008 10:56:16 AM

well for the rich the gas cap is too much for me
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Champion Author Twin Cities

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Message Posted: Mar 11, 2008 10:54:24 AM

why
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Champion Author Gary

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Message Posted: Mar 11, 2008 10:53:21 AM

increase production.
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Sophomore Author Connecticut

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Message Posted: Mar 11, 2008 10:53:08 AM

I read a second article on this topic this morning that estimated up to 500 new US jobs will be created by this investment. This is good news for sure.

And don't worry so much about a weak dollar, it's all relative and follows a cycle. The euro is going to be in trouble before too long - most of Europe just hasn't realized it yet. Give it a few years and it'll be cheap to go on vacation to Europe and/or buy a fine German car again.
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Champion Author St. Louis

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Message Posted: Mar 11, 2008 10:51:05 AM

The only BMW I can afford is dangling under the giant magnet.
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Champion Author Toronto

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Message Posted: Mar 11, 2008 10:49:10 AM

Didn't ever think of hearing our cost of labour being low....also surprised they aren't upping/moving production to India or China like many manuf. are....given that it is closer than moving more to US.
Guess there are some bright spots in all the gloom.
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Veteran Author Dallas

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Message Posted: Mar 11, 2008 10:47:40 AM

IT SEEMS IT WILL BRING MORE JOBS HERE.
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Champion Author Nevada

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Message Posted: Mar 11, 2008 10:45:29 AM

Ah, but exporters love the lower dollar, they can sell more at a lower price!
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Champion Author Tampa

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Message Posted: Mar 11, 2008 10:39:33 AM

Some good from the bad but it doesn't help me and the majority of us, shore up the dollar damn it.
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Veteran Author Fort Worth

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Message Posted: Mar 11, 2008 10:38:35 AM

Great new, but I can't afford a BMW when I cant afford a 40,000+ car.
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Champion Author New Mexico

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Message Posted: Mar 11, 2008 10:38:18 AM

The fed needs to raise interst rates to incorage foriegn investment. And strenghten the dollar. Those people who borrowed to much for their homes to bad. Now I'm taking it in the shorts for them.
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Champion Author Chicago

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Message Posted: Mar 11, 2008 10:37:53 AM

So BMW is outsourcing work to America? Damn!
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Champion Author Raleigh

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Message Posted: Mar 11, 2008 10:35:04 AM

WOW, new jobs made by the fallen dollar.
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Champion Author Pittsburgh

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Message Posted: Mar 11, 2008 10:33:36 AM

And if they go where labor is cheapest, they'll have to stop calling it Bavarian Motor Werks, and start calling it 'Bama Moter Werks!!!

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Champion Author Riverside

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Message Posted: Mar 11, 2008 10:33:32 AM

What a switch! "W" has buggered the economy so badly that US Auto workers, once the high paid lords of labor, are now putting skilled Auto workers in Germany out of work as the outsource TO the US! Who'd have thought it possible? Is this the "economic growth" W has been talking about - wrecking the dollar so we feel cheaper that the rest of the world? Screw it up some more in your last months, W, and maybe we can get back the jobs that were exported to India and China... *NOT*!
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Champion Author Houston

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Message Posted: Mar 11, 2008 10:31:11 AM

It will all shift as time goes on. Just making short term business choices . . .
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Champion Author Minnesota

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Message Posted: Mar 11, 2008 10:17:51 AM

Bringing jobs to America is good news. But BMW needs to keep the UAW out of their plants. The UAW is the reason why many of our jobs have gone overseas in the first place. Stupid rules, like a tool/die maker can only make 3 changes a day. But that was true in 1970, but now with quick connects, it litterally takes 30 seconds to change a tool, but the UAW insists, only 3 per day per employee. STUPID. And the tool changer is making $30/hr. So, that's $240 to do 90 seconds of work. Even a very good lawyer/Dr. doesn't make that!

I pray more manufacturing jobs come back, and they are not union. OSHA and other Gov't have made unions obsolete.

As long as I am on my soap box, paying every machinist the same rate is wrong. Some machinists are worth their weight in gold (even with today's prices) Some machinists aren't worth their weight in the chips they make. But to pay them based on their seniority is really bad. The good ones leave, and the bad ones stay.

[Edited by: RochBear at 3/11/2008 10:21:17 AM EST]
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Champion Author Orlando

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Message Posted: Mar 11, 2008 10:17:11 AM

that is interesting that the USA for once has cheaper labor!!!
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Champion Author North Dakota

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Message Posted: Mar 11, 2008 10:16:33 AM

This adds a twist to "Buy American". Of course, that saying doesn't mean what it used to. Supposedly, my "American" pickup has a German engine and a French transmission.
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Veteran Author Ontario

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Message Posted: Mar 11, 2008 10:13:09 AM

Amerika - the new China.

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Champion Author Los Angeles

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Message Posted: Mar 11, 2008 10:12:58 AM

I hardly think the unions are destroyed. Also, workers have more legal rights than ever. In some ways, due to protective legislation, the Unions are becoming irrelevant.

But back to BMW for a second. It's interesting that they're becoming more "American-like". Germany is known for having a business-hostile climate (the worst in Europe, in fact). So yeah, I can understand them moving production away from a difficult business climate to one that is more conducive to actually producing quality goods. Despite what people say, America is still a fantastic place to produce things. We have tremendous natural wealth, and a surprisingly educated labor force upon which to draw.
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Champion Author Detroit

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Message Posted: Mar 11, 2008 10:02:42 AM

Keep cutting and who will buy the cars?
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Champion Author Phoenix

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Message Posted: Mar 11, 2008 10:01:10 AM

Surprise, Surprise, Surprise -- NOT! This rates a DUH! If the USD is worthless, then corporations will manufacture items here. If we rebuild our manufacturing base, then the USD will increase in value, and then they will move their manufacturing elsewhere. In the meantime having destroyed the unions ability to help workers defend themselves against the greedy powerfull corporate management, less USA workers will be used to do any given job and the workers pay and living standards will shrink.
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Champion Author Vancouver

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Message Posted: Mar 11, 2008 9:56:17 AM

bout time
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Champion Author San Antonio

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Message Posted: Mar 11, 2008 9:54:41 AM

We've been exporting enough of our jobs; it's about time for the reverse to happen.
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Champion Author West Virginia

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Message Posted: Mar 11, 2008 9:54:00 AM

Way to put money in front of humanities BMW.
Of course, the ultra-rich who buy such vehicles won't care a bit.
I bet their quality drops, too.
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Veteran Author St. Louis

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Message Posted: Mar 11, 2008 9:52:08 AM

Sure thing.
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Rookie Author Montreal

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Message Posted: Mar 11, 2008 9:51:26 AM

Funny to see how some people reply to the title without even reading the whole text...just chassing points asap I guess...

Unfortunately, they certainly won't hire all the guys who lost their job at the american automakers. A single drop in an ocean of economic hell.
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Champion Author Manitoba

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Message Posted: Mar 11, 2008 9:45:43 AM

I guess North Americans are purchasing more beamers than Europeans are.

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Champion Author San Antonio

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Message Posted: Mar 11, 2008 9:44:16 AM

With the Euro being worth 50% more than it was against the dollar just a few years ago, I don't blame them.

One of the not so talked about benefits of a weak dollar is that our labor becomes cheaper for European countries and it makes better international sense to produce the products we buy over here.
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Champion Author Illinois

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Message Posted: Mar 11, 2008 9:42:58 AM

So true MnSwede.
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Rookie Author Texas

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Message Posted: Mar 11, 2008 9:39:53 AM

More jobs gone out of the US nothing new
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Champion Author Twin Cities

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Message Posted: Mar 11, 2008 9:33:08 AM

Globalization, except that this time the US benefits
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All-Star Author Toronto

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Message Posted: Mar 11, 2008 9:32:30 AM

old stuff
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Sophomore Author Virginia

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Message Posted: Mar 11, 2008 9:31:49 AM

BMW = Quality not seen by american made junk
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Champion Author Salt Lake City

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Message Posted: Mar 11, 2008 9:31:17 AM

Well, if this is a possiblity that they may put more money into making a better car... good for them! BUT at this point why not by a piece of junk american car cause your getting the same quality!

hmmm... something to think about!
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Rookie Author Georgia

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Message Posted: Mar 11, 2008 9:26:26 AM

Beamer for the price of camry
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Champion Author Denver

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Message Posted: Mar 11, 2008 9:26:18 AM

Old news.
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