BMW to make Thailand its regional hub

BMW to make Thailand its regional hub

BANGKOK (AFP): German automaker BMW AG announced plans
Saturday to build cars in Thailand, with the aim of turning the
country into its regional manufacturing hub.

Executives from the firm officially launched two new companies
to make and export cars, but warned that the project's future
depended on further trade liberalization in the region.

"The board of the BMW Group has decided to establish a
manufacturing plant for BMW and Rover Group vehicles in
Thailand," marketing executive and board member Wolfgang Reitzle
said.

BMW manufacturing (Thailand) Co. Ltd. will be wholly owned by
parent BMW AG, while a wholesale subsidiary Bayerische Motoren
Werke (Thailand) Co. Ltd. will be 51 percent owned by Thailand's
Thepsatri Co. Ltd.

But executives said "second step" plans to expand beyond local
sales would depend on moves by Asian countries toward removing
trade barriers and creating a free trade area.

Executives said the new plant, on Thailand's eastern seaboard,
already the home of Ford and General Motors, would involve an
initial investment of one billion baht ($25.5 million) and would
turn out 10,000 vehicles a year by 2004.

Construction of the new plant is due to begin later this year
and the first vehicles will roll off production lines in the year
2000 at the rate of 5,000 per annum, a statement said.

The first model to be produced will be the new BMW 3 Series.
Landrover and Rover cars will also eventually be produced.