💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

BMW to invest 2.2 bln rand in South African plant

Published 10/05/2009, 10:03 AM
Updated 10/05/2009, 10:06 AM
TTEF
-

* Investment to boost production capacity

* Decision came after agreement with government

JOHNANNESBURG, Oct 5 (Reuters) - German carmaker BMW plans to invest 2.2 billion rand ($288 million) at its Rosslyn plant in South Africa to boost production capacity by 45 percent, boosting capacity to 87,000 units.

BMW said on Monday the decision came after signing a letter of commitment with the South African Department of Trade and Industry.

"The BMW Group has never shied away from making decisions for the future in spite of the current tough conditions the motor industry is facing," BMW South Africa's managing director, Bodo Donauer said in a statement.

South Africa's total new vehicle sales fell by 19.5 percent year-on-year in September, showing continued pressure on households as Africa's biggest economy grapples with its first recession in nearly two decades.

The Rosslyn Plant produces the BMW 3 series and almost 75 percent of production is exported -- to Japan, Taiwan, Singapore, Hong Kong, Sub Sahara and Australia. (Reporting by Alison Raymond; Editing by Dan Lalor) ($1 = 07.636 rand)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.