Another Impact of Globalization on America

Tennessean: BMW to increase U.S. production while cutting workers in Germany (HT: Mark Perry)

COLUMBIA, S.C. — On one side of the Atlantic Ocean, BMW says it will cut 7.5 percent of its work force over two years. On this side of the water, the company says it plans to increase production by more than 50 percent by 2012.

"This is completely driven by the plunge in the dollar," said Greg Gardner with Oliver Wyman, publisher of the Harbour Report on automotive manufacturing activity. "It is untenable to produce at a much higher cost in Germany."…

…By building the cars in the U.S., BMW can save money on the lower dollar and on wages because its South Carolina workers make less than German workers, Gardner said.

The declining dollar also means BMW and other foreign automakers probably will start buying locally for more of the parts used by their U.S. plants, he said. That shift in production has led to the cuts at home for the Munich-based luxury car maker. …

…In the U.S., BMW Manufacturing Co. in Greer expects to increase production to 240,000 cars by 2012, company spokesman Bobby Hitt said last month. That's up from 155,000 last year….