BMW to open new plant in Hungary

BMW has announced a new plant in Hungary, able to produce around 150,000 cars per year, employ around 1000 people, and cost roughly €1 billion ($1.6 billion) to construct.

It hasn't been announced when the plant will start operation, or which models it will produce. BMW says it is adding another European factory to its roster because sales on the continent accounted for almost 45 per cent of its volume in 2017.

Additionally it was lured by the site's good infrastructure, logistics connections, and physical proximity to an establisher supplier base. No doubt the country's lower wage demands, compared to existing European sites, also helped.

BMW says the new factory will be able to produce models with traditional internal combustion engines on the same line as electrified models. The company says its existing European factories will also be upgraded to have this level of flexibility in the future.

The company operates eight factories in Germany, one in Austria, and three in the UK. Vehicles are also produced under contract by Magna Steyr in Austria, and VDL Nedcar in the Netherlands.

Key factories in other regions include the export-oriented factories in Spartanburg, South Carolina, and Rosslyn, South Africa.

In order to skirt around import tariffs or gain a local foothold, BMW also has "partner plants" in Kaliningrad, Russia; Cairo, Egypt; Jakarta, Indonesia; and Kulim, Malaysia making vehicles from complete knock down (CKD) kits.

For those interested, here are all the BMW factories listed on the company's corporate site, and the vehicles they manufacture:

Germany and Austria

The UK

The Americas

Asia

Africa

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