BMW Granted License to Export Chinese Made Vehicles

[Jason]

Via Automotive News

May 31, 2017

SHENYANG, China -- BMW Group has been granted a license by Chinese authorities to export vehicles manufactured by its local joint venture BMW Brilliance, opening up the possibility of China-built BMWs being sold to customers in Europe or the U.S.

German premium automakers have steadily expanded production in China at their joint ventures with local companies but plans to export vehicles so far have not been on the agenda, in part because cars from China have a poor reputation for safety and reliability in Western markets.

BMW now believes the quality of cars produced in China has reached the level of those built in Germany or the U.S.

"We have an export license for the JV but so far we haven't decided on exports since we need the production for the local market," said Olaf Kastner, head of BMW in China.

BMW built just over 300,000 vehicles last year at its two Chinese factories in Dadong and Tiexi, located 700 km (435 miles) east of Beijing on the outskirts of Shenyang near the North Korean border.

Volumes have more than doubled since 2012, as the company added compact models such as the 2-series Active Tourer minivan and X1 SUV to production of 3- and 5-series sedans.

BMW Brilliance's capacity in both plants has just been increased to 450,000 cars annually with an expansion of the Dadong factory.

Next year a sixth model, the X3, will begin running off the lines in Dadong, making it the third assembly plant where the SUV is built alongside lead plant Spartanburg in the U.S. and in BMW’s factory in Rosslyn, South Africa.

Perhaps one model that may make most sense to export is the 1-series compact sedan, which is built in Tiexi and currently only sold in China. Given the country is the world’s largest market for full-electric vehicles, these could also be an option, especially since construction is underway to include high-voltage battery manufacturing in the joint venture's powertrain plant, BMW's only engine factory outside of Europe.

For the moment, however, BMW says is has no plans since "everything is still being absorbed” locally, Kastner said.

When asked why BMW spent 12 months acquiring the license, if it has no plans to export from China, a source who declined to be named because he was not authorized to speak publicly about the matter said politicians had pushed and prodded the automaker into applying for one.

"It's the government's declared goal to foster vehicle exports. We told them we would only consider it if it makes economic sense," the source said.

Volvo is the first premium automaker to export China-built cars to Europe and the U.S. The company has exported its S60 to the U.S. from Daqing since 2015. It began exports of its S90 flagship sedan to Europe from Daqing this month.

In the past Honda exported China-built Jazz models to Europe.

[c1pher]

I think regardless of the actual quality, some people may not be convinced. I'm sure BMW has already done the math and determined impact is negligible.

[Laki021]

No no and no, please, no China-built BMWs in Europe!

[psuibmw]

Sign me up for a chinese built Bimmer with 2 cylinders and 45hp

[Hansell]

...I will never buy one.

[Unknown_Car]

Originally Posted by Hansell

...I will never buy one.

Sure you will lol, you already own probably more then falf of your stuff made in China.

[mfstrby]

I wonder how much of the current parts are sourced from China

[tommytexter]

People just want to bitch about everything. Same equipment and training, u think Chinese workers are worse than South Africans? Lazy Americans?

[ska///235i]

Everyone sell their iphones and get another chinese made phone lol

[MightyMouseTech]

Originally Posted by Roma_335i

Sure you will lol, you already own probably more then falf of your stuff made in China.

Only if you don't give a crap and don't check.

I will really go out of my way to not buy items made in China. Sometimes that means spending significantly more for something, but principles are not cheap. Only thing I did by choice was my iPhone. But I don't plan on replacing that for a long, long time.

At this time, I would not even consider a car built in China.

[reprod]

Assuming the same level of quality checks and process from BMW, I'm fairly certain no one would notice the difference unless everyone is breaking down their VINs to capture point of origin for their vehicles.

[ah3nyc]

My South African 340 rattles like a horse carriage. Waiting for the Chinese version; disposable cars.

[goj]

Originally Posted by tommytexter

People just want to bitch about everything. Same equipment and training, u think Chinese workers are worse than South Africans? Lazy Americans?

The Chinese auto industry isn't exactly highly regarded anywhere in the world. Traditionally cars built in china have been crap. So there is justified worry of trickle effect even if it won't happen in actuality.

[MightyMouseTech]

Originally Posted by reprod

Assuming the same level of quality checks and process from BMW, I'm fairly certain no one would notice the difference unless everyone is breaking down their VINs to capture point of origin for their vehicles.

Probably pretty easy. I see it all the time on poorly made wiring harnesses made in Mexico and China already here at Acura.

And the big Takata recall is mainly due to poor quality control at the Takata plant in Mexico.

[tommytexter]

Originally Posted by goj

The Chinese auto industry isn't exactly highly regarded anywhere in the world. Traditionally cars built in china have been crap. So there is justified worry of trickle effect even if it won't happen in actuality.

Have you look into the reason behind it? Why previous Chinese-made cars are crap? Have u analyze if these causes still exist? Some stupid fella won't bother to look. Are u?

[ORIGIN M.]

Pai Gow

[3rdcoast228i]

I just don't think the Chinese have the same passion for autos that the Germans do. No offence to anyone

When you want a fine wine you don't go looking for it in the made in Puerto Rico section. If you want a good rum however...

[GuidoK]

Originally Posted by Laki021

No no and no, please, no China-built BMWs in Europe!

Thats what I yelled somewhere in the 90's about US built BMW's.....

Now I have an E85


Fact of the matter is that a lot of parts are already china made.
Your bosch O2 sensors, or your INA multirib pulleys, or your lemforder rubber bushings, or your knecht oil filter housing, or your behr thermostat, or your sharp infotainment display or.... (going on for hours...)

All very old traditional german companies (obviously not sharp from my examples), that still have loads of production in germany, but more and more of those consumer products are made in china but carry a traditional german brand name (all those companies also make commercial or military grade products at a more premium price, which is usually still german made).
If you have a 'german made' car, it means its (partially) assembled in germany....with chinese parts. (more complex parts like heaterboxes come pre-assembled obviously)

[Wolf 335]

Concern here should not be if Chinese are assembling the cars.

These assembly lines are idiot proof and same across all mass manufacturing plants, for various manufacturers.

The concern lies in the quality of material used to manufacture the vehicles. If that slips through the cracks then you will see a big change.

[ORIGIN M.]

Originally Posted by Wolf 335

Concern here should not be if Chinese are assembling the cars.

These assembly lines are idiot proof and same across all mass manufacturing plants, for various manufacturers.

The concern lies in the quality of material used to manufacture the vehicles. If that slips through the cracks then you will see a big change.

I will take a chance on a Chinese Water Pump or a Chinese Thermostat cannot be any worse than what is made currently. Crap is crap.

[Ghostriderf80]

Originally Posted by Jason

Via Automotive News

May 31, 2017

SHENYANG, China -- BMW Group has been granted a license by Chinese authorities to export vehicles manufactured by its local joint venture BMW Brilliance, opening up the possibility of China-built BMWs being sold to customers in Europe or the U.S.

German premium automakers have steadily expanded production in China at their joint ventures with local companies but plans to export vehicles so far have not been on the agenda, in part because cars from China have a poor reputation for safety and reliability in Western markets.

BMW now believes the quality of cars produced in China has reached the level of those built in Germany or the U.S.

"We have an export license for the JV but so far we haven't decided on exports since we need the production for the local market," said Olaf Kastner, head of BMW in China.

BMW built just over 300,000 vehicles last year at its two Chinese factories in Dadong and Tiexi, located 700 km (435 miles) east of Beijing on the outskirts of Shenyang near the North Korean border.

Volumes have more than doubled since 2012, as the company added compact models such as the 2-series Active Tourer minivan and X1 SUV to production of 3- and 5-series sedans.

BMW Brilliance's capacity in both plants has just been increased to 450,000 cars annually with an expansion of the Dadong factory.

Next year a sixth model, the X3, will begin running off the lines in Dadong, making it the third assembly plant where the SUV is built alongside lead plant Spartanburg in the U.S. and in BMW’s factory in Rosslyn, South Africa.

Perhaps one model that may make most sense to export is the 1-series compact sedan, which is built in Tiexi and currently only sold in China. Given the country is the world’s largest market for full-electric vehicles, these could also be an option, especially since construction is underway to include high-voltage battery manufacturing in the joint venture's powertrain plant, BMW's only engine factory outside of Europe.

For the moment, however, BMW says is has no plans since "everything is still being absorbed” locally, Kastner said.

When asked why BMW spent 12 months acquiring the license, if it has no plans to export from China, a source who declined to be named because he was not authorized to speak publicly about the matter said politicians had pushed and prodded the automaker into applying for one.

"It's the government's declared goal to foster vehicle exports. We told them we would only consider it if it makes economic sense," the source said.

Volvo is the first premium automaker to export China-built cars to Europe and the U.S. The company has exported its S60 to the U.S. from Daqing since 2015. It began exports of its S90 flagship sedan to Europe from Daqing this month.

In the past Honda exported China-built Jazz models to Europe.

That is just bad.

[Viffermike]

Originally Posted by goj

The Chinese auto industry isn't exactly highly regarded anywhere in the world. Traditionally cars built in china have been crap. So there is justified worry of trickle effect even if it won't happen in actuality.

Actually, anything complex and mechanical isn't regarded highly -- automobiles, motorcycles, military hardware, ships, etc. China simply hasn't demonstrated a competence with manufacturing large machinery in any capacity, no matter if the product is a Western copy, an original design, or overseen by a Western company.

There are theories out there that the issue partially cultural and partially social. I feel there's some credence to it. But it's also emblematic of the Chinese propensity to cut corners and not pay attention to details expected (and taken for granted) by others unless compelled to. That's really easy to avoid if you're manufacturing, say, a TV that flat-out won't work if corners are cut. Apply the same to a mechanical product, and it'll likely still work -- it just won't work as well.

Bottom line: I'll never buy a vehicle made there, for the above reasons and for others not worth discussing here -- and I think BMW severely underestimates Western attitudes toward Chinese-manufactured heavy goods. The only reasons the Japanese got over the hump after WWII is because we helped, and it learned how to make stuff better and less expensively than anywhere else on the planet -- and it still took it nearly 40 years to gain that advantage.