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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

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onethumb All-Star Author Hamilton Posts:796 Points:287,705 Joined:Mar 2006	Message Posted: Mar 11, 2008 1:10:43 PM Ignore onethumb Report Abuse Go figure?
CruisinLinda Champion Author Tallahassee Posts:5,579 Points:1,122,545 Joined:Sep 2005	Message Posted: Mar 11, 2008 12:27:12 PM Ignore CruisinLinda Report Abuse 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.
tbradley1973 Veteran Author Indianapolis Posts:334 Points:255,905 Joined:Jun 2007	Message Posted: Mar 11, 2008 12:26:48 PM Ignore tbradley1973 Report Abuse Old news...
Don20 Champion Author Oklahoma City Posts:3,856 Points:1,472,115 Joined:Mar 2005	Message Posted: Mar 11, 2008 11:55:08 AM Ignore Don20 Report Abuse Every thing has a price.
Jacks45 Champion Author Kalamazoo Posts:2,796 Points:775,300 Joined:Jul 2007	Message Posted: Mar 11, 2008 11:48:50 AM Ignore Jacks45 Report Abuse a weak dollar wont mean a cheaper car.
Cheepo Champion Author Tampa Posts:4,331 Points:2,032,590 Joined:Apr 2003	Message Posted: Mar 11, 2008 11:41:51 AM Ignore Cheepo Report Abuse BMW is a great car, I drive a mercedes!
jvt666 Champion Author California Posts:2,387 Points:871,790 Joined:Apr 2006	Message Posted: Mar 11, 2008 11:33:32 AM Ignore jvt666 Report Abuse Old news!
NavyEOD Champion Author Los Angeles Posts:4,263 Points:885,415 Joined:Jul 2007	Message Posted: Mar 11, 2008 11:33:15 AM Ignore NavyEOD Report Abuse It's getting tough everywhere.
findcheap Champion Author Los Angeles Posts:3,790 Points:860,525 Joined:Apr 2007	Message Posted: Mar 11, 2008 11:27:02 AM Ignore findcheap Report Abuse world money is betting that the dollar will collapse long term
pgerassi Champion Author Milwaukee Posts:5,005 Points:1,001,750 Joined:Apr 2007	Message Posted: Mar 11, 2008 11:08:22 AM Ignore pgerassi Report Abuse I don't plan on getting a BMW anytime soon either.
gasie1 Champion Author Maine Posts:4,572 Points:1,399,240 Joined:Nov 2005	Message Posted: Mar 11, 2008 11:05:55 AM Ignore gasie1 Report Abuse I do not intend to buy a BMW in the near future.
murdershewrote Champion Author Riverside Posts:3,758 Points:1,458,735 Joined:Mar 2005	Message Posted: Mar 11, 2008 11:04:43 AM Ignore murdershewrote Report Abuse bring jobs here...we need em'
Mr.Dirt Champion Author Albany Posts:4,200 Points:1,664,795 Joined:Mar 2004	Message Posted: Mar 11, 2008 10:56:16 AM Ignore Mr.Dirt Report Abuse well for the rich the gas cap is too much for me
KO292 Champion Author Twin Cities Posts:4,370 Points:1,037,055 Joined:Apr 2007	Message Posted: Mar 11, 2008 10:54:24 AM Ignore KO292 Report Abuse why
PremiumGas4Less Champion Author Gary Posts:1,241 Points:369,500 Joined:Apr 2005	Message Posted: Mar 11, 2008 10:53:21 AM Ignore PremiumGas4Less Report Abuse increase production.
jck667 Sophomore Author Connecticut Posts:210 Points:338,600 Joined:Nov 2005	Message Posted: Mar 11, 2008 10:53:08 AM Ignore jck667 Report Abuse 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.
Ramaniac Champion Author St. Louis Posts:9,330 Points:1,568,590 Joined:Sep 2005	Message Posted: Mar 11, 2008 10:51:05 AM Ignore Ramaniac Report Abuse The only BMW I can afford is dangling under the giant magnet.
bluebird1 Champion Author Toronto Posts:9,817 Points:1,970,710 Joined:May 2004	Message Posted: Mar 11, 2008 10:49:10 AM Ignore bluebird1 Report Abuse 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.
uncleron Veteran Author Dallas Posts:481 Points:626,220 Joined:Sep 2006	Message Posted: Mar 11, 2008 10:47:40 AM Ignore uncleron Report Abuse IT SEEMS IT WILL BRING MORE JOBS HERE.
Chazzer Champion Author Nevada Posts:10,398 Points:2,183,235 Joined:May 2002	Message Posted: Mar 11, 2008 10:45:29 AM Ignore Chazzer Report Abuse Ah, but exporters love the lower dollar, they can sell more at a lower price!
JPGKC Champion Author Tampa Posts:4,419 Points:821,125 Joined:Sep 2006	Message Posted: Mar 11, 2008 10:39:33 AM Ignore JPGKC Report Abuse Some good from the bad but it doesn't help me and the majority of us, shore up the dollar damn it.
Rivermedic Veteran Author Fort Worth Posts:446 Points:86,160 Joined:Mar 2008	Message Posted: Mar 11, 2008 10:38:35 AM Ignore Rivermedic Report Abuse Great new, but I can't afford a BMW when I cant afford a 40,000+ car.
JB1881 Champion Author New Mexico Posts:4,124 Points:874,635 Joined:Aug 2007	Message Posted: Mar 11, 2008 10:38:18 AM Ignore JB1881 Report Abuse 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.
nyacoub1 Champion Author Chicago Posts:1,185 Points:82,335 Joined:May 2007	Message Posted: Mar 11, 2008 10:37:53 AM Ignore nyacoub1 Report Abuse So BMW is outsourcing work to America? Damn!
joel27nc Champion Author Raleigh Posts:4,639 Points:714,570 Joined:Mar 2008	Message Posted: Mar 11, 2008 10:35:04 AM Ignore joel27nc Report Abuse WOW, new jobs made by the fallen dollar.
Fencemaker Champion Author Pittsburgh Posts:2,649 Points:612,270 Joined:Sep 2006	Message Posted: Mar 11, 2008 10:33:36 AM Ignore Fencemaker Report Abuse 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!!!
w4kh Champion Author Riverside Posts:5,981 Points:1,101,345 Joined:May 2004	Message Posted: Mar 11, 2008 10:33:32 AM Ignore w4kh Report Abuse 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!
Lonewolftx Champion Author Houston Posts:7,574 Points:1,501,765 Joined:Sep 2005	Message Posted: Mar 11, 2008 10:31:11 AM Ignore Lonewolftx Report Abuse It will all shift as time goes on. Just making short term business choices . . .
RochBear Champion Author Minnesota Posts:4,532 Points:904,085 Joined:May 2006	Message Posted: Mar 11, 2008 10:17:51 AM Ignore RochBear Report Abuse 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]
flatcoatfun Champion Author Orlando Posts:1,175 Points:377,805 Joined:Nov 2007	Message Posted: Mar 11, 2008 10:17:11 AM Ignore flatcoatfun Report Abuse that is interesting that the USA for once has cheaper labor!!!
river47 Champion Author North Dakota Posts:1,340 Points:518,225 Joined:Aug 2005	Message Posted: Mar 11, 2008 10:16:33 AM Ignore river47 Report Abuse 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.
1ply Veteran Author Ontario Posts:264 Points:256,110 Joined:Aug 2005	Message Posted: Mar 11, 2008 10:13:09 AM Ignore 1ply Report Abuse Amerika - the new China.
AC-302 Champion Author Los Angeles Posts:13,379 Points:1,777,075 Joined:Aug 2004	Message Posted: Mar 11, 2008 10:12:58 AM Ignore AC-302 Report Abuse 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.
The_WB Champion Author Detroit Posts:7,951 Points:924,375 Joined:Apr 2007	Message Posted: Mar 11, 2008 10:02:42 AM Ignore The_WB Report Abuse Keep cutting and who will buy the cars?
JimL1 Champion Author Phoenix Posts:2,235 Points:340,495 Joined:Jul 2003	Message Posted: Mar 11, 2008 10:01:10 AM Ignore JimL1 Report Abuse 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.
scrounger Champion Author Vancouver Posts:7,734 Points:2,079,135 Joined:Mar 2003	Message Posted: Mar 11, 2008 9:56:17 AM Ignore scrounger Report Abuse bout time
cudatim Champion Author San Antonio Posts:1,526 Points:674,680 Joined:Jan 2007	Message Posted: Mar 11, 2008 9:54:41 AM Ignore cudatim Report Abuse We've been exporting enough of our jobs; it's about time for the reverse to happen.
Road_Fever Champion Author West Virginia Posts:5,493 Points:1,013,425 Joined:Jul 2006	Message Posted: Mar 11, 2008 9:54:00 AM Ignore Road_Fever Report Abuse 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.
drenske Veteran Author St. Louis Posts:495 Points:226,135 Joined:Mar 2004	Message Posted: Mar 11, 2008 9:52:08 AM Ignore drenske Report Abuse Sure thing.
wolfgang_fener Rookie Author Montreal Posts:4 Points:12,330 Joined:Feb 2008	Message Posted: Mar 11, 2008 9:51:26 AM Ignore wolfgang_fener Report Abuse 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.
Mooseman1 Champion Author Manitoba Posts:4,622 Points:762,885 Joined:Jul 2007	Message Posted: Mar 11, 2008 9:45:43 AM Ignore Mooseman1 Report Abuse I guess North Americans are purchasing more beamers than Europeans are.
BoerneWatch Champion Author San Antonio Posts:9,120 Points:1,302,010 Joined:Oct 2005	Message Posted: Mar 11, 2008 9:44:16 AM Ignore BoerneWatch Report Abuse 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.
Dale Jr. Champion Author Illinois Posts:10,400 Points:2,084,475 Joined:May 2004	Message Posted: Mar 11, 2008 9:42:58 AM Ignore Dale Jr. Report Abuse So true MnSwede.
Chatmon Rookie Author Texas Posts:5 Points:475 Joined:Mar 2008	Message Posted: Mar 11, 2008 9:39:53 AM Ignore Chatmon Report Abuse More jobs gone out of the US nothing new
MnSwede Champion Author Twin Cities Posts:5,063 Points:824,325 Joined:Oct 2005	Message Posted: Mar 11, 2008 9:33:08 AM Ignore MnSwede Report Abuse Globalization, except that this time the US benefits
radrunner All-Star Author Toronto Posts:707 Points:1,462,940 Joined:Apr 2004	Message Posted: Mar 11, 2008 9:32:30 AM Ignore radrunner Report Abuse old stuff
tboneindc Sophomore Author Virginia Posts:236 Points:49,570 Joined:Feb 2008	Message Posted: Mar 11, 2008 9:31:49 AM Ignore tboneindc Report Abuse BMW = Quality not seen by american made junk
motch6 Champion Author Salt Lake City Posts:3,900 Points:594,540 Joined:Mar 2004	Message Posted: Mar 11, 2008 9:31:17 AM Ignore motch6 Report Abuse 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!
Gasbuddy99 Rookie Author Georgia Posts:10 Points:2,025 Joined:Mar 2008	Message Posted: Mar 11, 2008 9:26:26 AM Ignore Gasbuddy99 Report Abuse Beamer for the price of camry
don985 Champion Author Denver Posts:4,076 Points:1,174,665 Joined:Jul 2006	Message Posted: Mar 11, 2008 9:26:18 AM Ignore don985 Report Abuse Old news.