2006-09-14 20:20:19 · 7 answers · asked by div 1 in Business & Finance ➔ Other - Business & Finance
Americans will work for much lower wages than Germans or Austrian...(this includes hidden employer costs like retirement, unemployment taxes, etc.) and the cost of transportation of the car to market is MUCH less...not to mention the Public Relations factor of being able to say the car was made in the USA. Smart move on their part I'd say.
2006-09-14 20:33:01 · answer #1 · answered by Anonymous · 0⤊ 0⤋
There are locations available in asia where the cars can be manufactured at a lesser price with competitive skilled manpower..I am sot sure why BMW has selected USA.May there is some secret agreement between the two countries.
2006-09-14 21:20:08 · answer #2 · answered by Keyman 3 · 0⤊ 0⤋
Its very simple. The company (as all companies) is out to increase market share. Extending their manufacturing force to the US is a very smart move. Toyota proved that.
2006-09-14 20:25:12 · answer #3 · answered by Robere 5 · 0⤊ 0⤋
the manufacturing sector is able to offer incentives and discounts to locally assembled manufacturers...
that is why BMW ...would considers this option . . .
from this ...they're able to cut costs !!!!!
2006-09-14 20:33:46 · answer #4 · answered by megadisc 4 · 0⤊ 0⤋
Manufacturing where you sell is a good idea for items that are difficult and bulky to ship.
2006-09-14 20:29:38 · answer #5 · answered by DARTHCARL 2 · 0⤊ 0⤋
Costs are cheaper and consumers abound...greener pastures for the German company..
2006-09-14 20:28:57 · answer #6 · answered by Joy RP 4 · 0⤊ 0⤋
you save shipping cost by building closer to your sales point
2006-09-14 20:30:50 · answer #7 · answered by Anonymous · 0⤊ 0⤋