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BMW considering North American engine plant?

BMW may be set to expand its US operations with a new engine plant, Bloomberg reports. The Bavarian automaker already has its Spartanburg, SC factory which builds the company's X3, X5 and X6 crossovers. According to the story, Mexico is also under consideration for the BMW engine factory, with the report claiming a final decision will be made in 2014.
"Establishing local motor manufacturing abroad is more complex than assembling cars, but it's a logical step for them to eventually start making engines in markets where they're expanding vehicle production," Juergen Pieper, an analyst for Bankhaus Metzler tells Bloomberg. Building engines in the US or Mexico would save BMW from having to ship engines for some of its most popular models across the Atlantic.
BMW, for its part, hasn't said anything concrete. Spokesman Mathias Schmidt is quoted in the story saying, "As part of our long-term growth strategy, we're frequently looking at different countries for possible locations of future production facilities. No decisions have been made yet, though, for an additional plant."

BMW heads for the waves with Path 22 concept bike

BMW has been reminding us in the grandest of style recently of the serious clout it has in the classic motorcycle field. Most important is the R NineT that it put into production, but it's also been giving us a steady stream of enticing concept bikes, like the Concept 90 retro racer and the more recent Concept 101 custom bagger. And now it's showcasing another. This time, BMW Motorrad has taken a page out of the scrambler playbook with the Concept Path 22. Based on the R NineT, this concept bike is designed for surfers in impressive 1950s style. It features a single-side swing arm rear suspension, a classic circular headlamp, reprofiled tank and seat, studded tires, an oversized front wheel, longer fork travel, and a raised exhaust. It also has a unique paint job by Ornamental Conifer, and a pair of surf boards designed by Dyer Brand and mounted to a collapsible bracket on the side. Meant to showcase just one possibility for customizing the R NineT, the concept bike is named (and numbered) after one of Europe's premier surfing spots. It is being unveiled – appropriately enough – at the Wheels & Waves Festival in Biarritz, France. BMW Concept Path 22 – The Expression of Freedom. Munich/Biarritz. From June 11th - 14th 2015, the Wheels & Waves Festival celebrates for the fourth time a unique meeting of custom bikes, surfing and art in Biarritz. The festival is a great event that provides a straightforward opportunity for people to get together in a unique atmosphere and express their lifestyle of freedom and individuality. In this special setting, BMW Motorrad presents the BMW interpretation of a scrambler for the first time: the BMW Concept Path 22. Expression of a Lifestyle. The first scramblers in the 1950s were modified road machines with deep-treaded tyres, somewhat increased spring travel and a raised exhaust for off-road riding. These features gave the bikes a characteristic appearance that came to symbolise an attitude. "A scrambler is the perfect match for Wheels & Waves. It's the epitome of a motorcycle beyond established standards and conventions. Performance specifications are not so much of interest - style and originality all the more so. Scramblers express passion and are as varied as their owners. The Concept Path 22 is our own interpretation based on the R nineT. The latter is the perfect basis for a scrambler conversion", explains Edgar Heinrich, Head of BMW Motorrad Design.

U.S. tariff threat hits European automakers' stocks

FRANKFURT, Germany — A U.S. warning that it may introduce tariffs on foreign auto imports hit shares in German carmakers BMW, Daimler and Volkswagen on Thursday, which together have a more than 90 percent share of North America's premium car market. Washington said on Wednesday it had launched an investigation into whether car and truck imports are a national security issue due to signs they had damaged the U.S. auto industry. That could lead to new U.S. tariffs — up to 25 percent — similar to those imposed on imported steel and aluminum in March. BMW and Daimler shares fell as much as 3.1 percent in early Thursday trading, while Volkswagen's dropped as much as 2.5 percent. "(U.S. President) Donald Trump is obviously not thinking about how to prevent a trade war. Import duties on cars would be a nightmare for the German auto industry and would lead to a massive sales impact," said Thomas Altmann at Frankfurt-based asset manager QC Partners. BMW on Thursday condemned the move to consider tariffs. "The BMW Group is committed to free trade worldwide. Barrier-free access to markets is therefore a key factor not only for our business model, but also for growth welfare and employment throughout the global economy," it said. Daimler, which makes Mercedes-Benz cars, and Volkswagen, which makes upmarket Audis and Porsches, were not immediately available for comment. German carmakers produced 804,000 cars at local factories in the United States and exported 657,000 German-made cars into North America last year, according to German auto industry association VDA. China took pains on Thursday to welcome German firms and investments, with Premier Li Keqiang talking up relations after a meeting with German Chancellor Angela Merkel. BMW and Mercedes have expanded production capacity in the United States, but BMW, Audi, Volkswagen and Daimler have also invested billions to build new factories in Mexico in the hope of selling locally produced cars into the United States. German carmakers hiked vehicle production in Mexico by 46 percent to 620,000 cars last year, while production levels inside the United States fell by 6 percent to 804,000 cars because of a shift to Mexico, according to the VDA. BMW has its biggest factory worldwide in Spartanburg, South Carolina, and is the largest vehicle exporter among all the carmakers in the United States measured by value of goods exported. More than 70 percent of BMW's U.S.-made cars are exported.