BMW, Audi and Mercedes to expand output as record sales constrain capacity
01-19-11, 10:42 AM
#1
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BMW, Audi and Mercedes to expand output as record sales constrain capacity
(Bloomberg) -- BMW AG, Daimler AG and Audi AG, the world's three largest luxury-car makers, will expand factories in the U.S. and Europe this year to ease capacity constraints driven by record demand for their vehicles.
Volkswagen AG's Audi, vying to top BMW as the world's bigger maker of premium vehicles by 2015, said today it will increase production to build more cars and SUVs in 2011 than the 1.15 million produced in 2010. BMW and Daimler's Mercedes-Benz also plan to expand plants, including in the U.S. and Germany.
“The top three are poised for further growth,” said Juergen Pieper, a Frankfurt-based analyst with Bankhaus Metzler. “The momentum in luxury markets will continue this year and also in 2012. It's a necessity for manufacturers to take steps to address this.”
Germany's luxury automakers are benefiting from increased deliveries in China and the U.S., the world's two largest auto markets, as the global economy bounces back from recession. Audi plans to spend 11.6 billion euros ($15.7 billion) through 2015 on plants and new models. BMW has spent 1.5 billion euros alone on its German plants since 2009, while Daimler is building an 800 million-euro small-car plant in Hungary.
Audi said today it will roll out a total of 13 new models and upgraded vehicles this year, including an updated version of its A6 sedan and the Q3 compact SUV. The VW unit will spend more than 5 billion euros at two German factories in Ingolstadt and Neckarsulm, where the A6 will be built. Audi also said it will begin work this year to expand a factory in Gyor, Hungary, to increase capacity to 125,000 cars.
Record sales
BMW, which is forecasting record sales of more than 1.5 million BMW, Mini and Rolls-Royce models this year, is spending 400 million euros at its factory in Leipzig, Germany, to prepare for the production of an electric city car by 2013.
The Munich-based automaker late last year completed a $750 million expansion of its U.S. factory in Spartanburg, S.C., to make room for the revamped X3 sport-utility vehicle. The company is also expanding capacity in China, India, and South Africa, spokesman Daniel Kammerer said today.
Daimler is expanding factories to accommodate revamped versions of the B-Class compact and SLK hard-top roadster due this year and to ease production constraints that may limit deliveries.
Mercedes projects sales this year will exceed the previous record of 1.29 million vehicles sold in 2007. Deliveries in 2011 will be “defined by production capabilities rather than demand,” Daimler Chief Executive Officer Dieter Zetsche said last week at the Detroit auto show. “That's a good problem to have.”
To boost capacity, Daimler is spending 600 million euros on the B-Class factory in Rastatt, Germany. The carmaker's facility in Bremen will get more than 100 million euros in investments for the SLK and to expand the body shop. Mercedes is also expanding assembly and paint shop facilities at its U.S. factory in Alabama, spokesman Markus Mainka said.
Read more: http://www.autonews.com/apps/pbcs.dl...#ixzz1BVYtMl4u
Volkswagen AG's Audi, vying to top BMW as the world's bigger maker of premium vehicles by 2015, said today it will increase production to build more cars and SUVs in 2011 than the 1.15 million produced in 2010. BMW and Daimler's Mercedes-Benz also plan to expand plants, including in the U.S. and Germany.
“The top three are poised for further growth,” said Juergen Pieper, a Frankfurt-based analyst with Bankhaus Metzler. “The momentum in luxury markets will continue this year and also in 2012. It's a necessity for manufacturers to take steps to address this.”
Germany's luxury automakers are benefiting from increased deliveries in China and the U.S., the world's two largest auto markets, as the global economy bounces back from recession. Audi plans to spend 11.6 billion euros ($15.7 billion) through 2015 on plants and new models. BMW has spent 1.5 billion euros alone on its German plants since 2009, while Daimler is building an 800 million-euro small-car plant in Hungary.
Audi said today it will roll out a total of 13 new models and upgraded vehicles this year, including an updated version of its A6 sedan and the Q3 compact SUV. The VW unit will spend more than 5 billion euros at two German factories in Ingolstadt and Neckarsulm, where the A6 will be built. Audi also said it will begin work this year to expand a factory in Gyor, Hungary, to increase capacity to 125,000 cars.
Record sales
BMW, which is forecasting record sales of more than 1.5 million BMW, Mini and Rolls-Royce models this year, is spending 400 million euros at its factory in Leipzig, Germany, to prepare for the production of an electric city car by 2013.
The Munich-based automaker late last year completed a $750 million expansion of its U.S. factory in Spartanburg, S.C., to make room for the revamped X3 sport-utility vehicle. The company is also expanding capacity in China, India, and South Africa, spokesman Daniel Kammerer said today.
Daimler is expanding factories to accommodate revamped versions of the B-Class compact and SLK hard-top roadster due this year and to ease production constraints that may limit deliveries.
Mercedes projects sales this year will exceed the previous record of 1.29 million vehicles sold in 2007. Deliveries in 2011 will be “defined by production capabilities rather than demand,” Daimler Chief Executive Officer Dieter Zetsche said last week at the Detroit auto show. “That's a good problem to have.”
To boost capacity, Daimler is spending 600 million euros on the B-Class factory in Rastatt, Germany. The carmaker's facility in Bremen will get more than 100 million euros in investments for the SLK and to expand the body shop. Mercedes is also expanding assembly and paint shop facilities at its U.S. factory in Alabama, spokesman Markus Mainka said.
Read more: http://www.autonews.com/apps/pbcs.dl...#ixzz1BVYtMl4u
01-19-11, 12:46 PM
#3
The german AG groups used to not have to worry about competition outside of themselves in the past. Things has changed now due to a certain start-up lux division in the 90's that no one thought would succeed. Lexus has really got these other companies doubling there efforts to stay on top.
01-19-11, 02:51 PM
#5
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Actually I see this as big trouble for Lexus. Germany has the big 3, Benz, BMW, Audi. Well Audi is getting their act together here. So the world can see German luxury on a unified front.
Whereas Japanese luxury is basically Lexus as the powerhouse and the other 2 brands from Japan way under those four. It hurts the Japanese image of luxury when only one brand is seen on par with the Germans.
Lexus is a distant fourth in sales. True they don't sell anywhere near the 4 cylinders and small cars as the big 3 but they don't sell the sports sedans/coupe or V-12 etc cars like them either.
Lexus will have to continue to grow while keeping quality, a task we have seen isn't very easy to do.
Whereas Japanese luxury is basically Lexus as the powerhouse and the other 2 brands from Japan way under those four. It hurts the Japanese image of luxury when only one brand is seen on par with the Germans.
Lexus is a distant fourth in sales. True they don't sell anywhere near the 4 cylinders and small cars as the big 3 but they don't sell the sports sedans/coupe or V-12 etc cars like them either.
Lexus will have to continue to grow while keeping quality, a task we have seen isn't very easy to do.
01-19-11, 05:12 PM
#7
Lexus Fanatic
Audi, especially in the American market, has done very well lately. For the first time in many years, they are now considered serious competition to BMW. BMW still does what, IMO, is (arguably) the world's best sedan/coupe chassis/steering systems, but Audi has caught up to and surpassed them in several other areas, including fit-and-finish. Audi, along with Subaru, also has some of the industry's best AWD systems.
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01-19-11, 05:47 PM
#8
Audi, especially in the American market, has done very well lately. For the first time in many years, they are now considered serious competition to BMW. BMW still does what, IMO, is (arguably) the world's best sedan/coupe chassis/steering systems, but Audi has caught up to and surpassed them in several other areas, including fit-and-finish. Audi, along with Subaru, also has some of the industry's best AWD systems.
Welcome back BTW
01-19-11, 06:47 PM
#9
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Outside USA, Audi is big. Its the strongest luxury brand in China, does well in Canada and has a big presence in Europe. Its sales and luxury image in most countries outside the US is equal to that of Mercedes and BMW.
01-20-11, 06:42 AM
#11
It will be another interesting year for the sales race, that is for sure.
I am left scratching my head at Audi's success in other parts of the world, but maybe that is just my ignorant American mindset
To me, their designs have become extremely bland in the last 2-3 years and share too much common ground with VW. FWD makes them more unappealing, as does their pricing structure and lack of a competitive mid-grade 6 cylinder engine. Previously, I have been a big fan of Audi interiors but lately they seem too cold and uninviting for my tastes.
That said, I know diesels and 4cyl engines are a big part of their appeal abroad.
I am left scratching my head at Audi's success in other parts of the world, but maybe that is just my ignorant American mindset
To me, their designs have become extremely bland in the last 2-3 years and share too much common ground with VW. FWD makes them more unappealing, as does their pricing structure and lack of a competitive mid-grade 6 cylinder engine. Previously, I have been a big fan of Audi interiors but lately they seem too cold and uninviting for my tastes.
That said, I know diesels and 4cyl engines are a big part of their appeal abroad.
01-20-11, 11:09 AM
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