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A look back on BMW, South Carolina and Southern manufacturing
Sat, 29 Dec 2012It has been 20 years since BMW broke ground on its Spartanburg, SC manufacturing facility, and while the automaker doesn't have any plans to mark the moment, economists and industry analysts have taken a closer look at the facility's impact on South Carolina, the South and global manufacturing. As of November, the Spartanburg plant's 7,000 employees cranked out 25,000 vehicles per month, and BMW has poured some $6 billion into the state since the plant opened in 1993. While that figure nearly matches the state's proposed budget for next year, some say there have been drawbacks.
To begin with, South Carolina provided BMW with hundreds of millions of dollars worth of public money and tax breaks with little public oversight, setting a precedent that would repeat itself with other corporations. The Detroit News reports that a Pew Center evaluation found 26 states didn't have a sufficient system for evaluating tax incentive performance. But BMW opened the door for a Southern manufacturing renaissance, with automakers from Mercedes-Benz to Hyundai and Volkswagen opening plants in the Deep South.
While states have raced to offer ever sweeter tax and cash incentives for big manufacturers, officials say BMW is proof the system can pay dividends. You can read the full piece here.
BMW recalls over 76k 2012-2014 models over brake failure
Sat, 28 Sep 2013Bimmerfest is reporting that BMW has notified the National Highway Traffic Safety Administration of its intention to voluntarily recall more than 75,000 3 Series, 5 Series, X1, X3 and Z4 models due to a possible loss of power brake assist that could result in the vehicles failing to stop. The recall affects 2012-2014 models equipped with either the N20 or N26 engine produced from May 2012 to August 2013. Until recall repairs have been performed, BMW dealers will discontinue selling or delivering any affected vehicles in their inventories.
The problem has been traced to restricted oil supply from the intake camshaft to the brake vacuum pump, which may cause the brake vacuum pump to fail, resulting in a loss of power brake assist. While the hydraulic brakes will still function, the driver must much apply greater pedal pressure and the distance required to stop the vehicle will increase.
BMW has reported three minor accidents with no confirmed injuries. According to Bimmerfest, drivers who encounter a braking problem should "pull the emergency brake and apply as much brake pedal pressure as possible. If your BMW has an electronic parking brake pull up and hold the switch to engage the brake." Drivers should then park in a safe location and contact BMW Roadside Assistance.
Hyundai, BMW in plant talks with Mexican officials
Fri, 27 Sep 2013BMW and Hyundai may be joining the rush for the border that has already seen Nissan, Honda and Mazda begin factory construction in Mexico, while Ford and General Motors have both made significant investments in their Mexican facilities. BMW's interest in Mexico has been apparent for some time, and while we'd heard grumblings about Hyundai's move into Latin America some time ago, the last we heard about it was in 2009.
This new move, reported by Bloomberg, doesn't get specific on which models will be produced south of the Rio Grande, and as neither automakers' spokespeople responded to the business site's request for statements, all we really have to go on are the statements of Mexico's Economy Minister, Ildefonso Guajardo: "I cannot talk for them, but I think that starting 2014 we'll have new announcements. At least for one." Which manufacturer that will be remains anyone's guess, although judging by all the recent scuttlebutt that's been going around, the smart money seems to be on BMW. We'll stay with this one.