BMW: BMW to invest $8 billion in US oil refinery, production plant
BMW will invest $7.4 billion in the United States and Canada to develop new oil refinery and production facilities, and will add over 800 jobs, the automaker announced Friday.
The investment, which will include $6.2 billion in direct and indirect costs, will be announced in a news conference at the company’s headquarters in Munich, Germany.
The announcement came after BMW was forced to suspend production of the all-electric 3 Series, which it had planned to sell in Europe and North America.
BMW said it will invest the $6 billion in an “all-new, state-of-the-art, world-class production facility” in the Michigan steel town of Flint.
“This is a great opportunity for BMW and its people, to build on the strength of our current U.S. and Canadian operations, and to accelerate our expansion into other parts of the world,” said Klaus Ober, the company president and chief executive officer.
The automaker said it plans to add another 900 jobs in Flint over the next four years, as part of the investment.
The news comes as BMW faces stiff competition from Tesla, the maker of the Model 3, which launched earlier this year.
The two companies have announced similar investment plans for the Detroit-area facility.
But while Tesla has built a factory in California, BMW has been building a plant in Flint.
BMW also announced that it will buy the U.K. firm General Motors for about $1.5 billion.
The company will also buy two U.J. auto parts maker B.B.C. for $5 billion, and it is also buying a Chinese car parts manufacturer for $1 billion.
BMW’s announcement comes after a Reuters report earlier this week that said the company is considering a plan to open a plant near the Detroit area in 2021.
BMW has invested heavily in new technologies in recent years, including electric powertrains and its new 2 Series sport utility vehicle.
Its new 4 Series sedan has a hybrid battery and the company has also announced it will produce electric vehicles in its European and Asia markets.