Tuesday, May 28, 2013

MINI to build cars in China?

MINI to build cars in China?


A new report finds that BMW's MINI division is looking to build cars in China in order to avoid paying profit-robbing tariffs that the national government slaps on imported cars.  The first Chinese-built MINIs are expected to roll off the assembly line in 2015 at the earliest.   

Citing anonymous internal sources, analysts at Sanford C. Bernstein claim that both the three- and five-door variants of the upcoming third generation MINI will be built in Shengyang, China, once the factory has been adequately expanded, a process that will take about two years.  The cars will be sold exclusively on the local market.  

MINI has been hesitant to build cars in China because sales have been slow to catch on.   Helped by the launch of new models such as the Paceman, the brand is becoming increasingly popular and China is now its fourth largest global market.  MINI boss Dr. Kay Segler explained the brand will continue to build momentum by importing its performance-focused, range-topping John Cooper Works models.  

The MINI Cooper will not be the only front-wheel drive BMW product built in the People's Republic.  Bernstein added in its report that a yet-unnamed front-wheel drive BMW will be assembled alongside the third-gen MINI in Shengyang.

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