BMW running at 100% capacity, suppliers up in arms

Everything at BMW is running full steam ahead. All 23 of their production facilities worldwide are running at 100% capacity. It's come to the point that BMW has actually criticized their suppliers for having a better bottom line than BMW. BMW currently is pushing a 10% profit margin.

In an effort to become more cost effective. BMW is now starting to produce components in house. Rather than rely on suppliers. Current facilities in Leipzig and Regensburg are undergoing expansion. An entirely new Leipzig stamping facility will be built in 2009.

The statements made by BMW's deputy chairman of the supervisory board, Manfred Scoch to the suppliers. Many are displeased with how BMW thinks they are treating them. All of this dissatisfaction has led the suppliers to feel that BMW has shifted its focus from quality and innovative technology to the bottom line.

Source: Automotive News

The Italians are coming! Alfa Romeo building U.S. Assembly Plant

This is about as official as you can get. Alfa Romeo will give it another go at the North American market. it has been nearly 20 years since Alfa pulled out due to poor sales and poor reliability ratings. Though all of that has changed. Alfa has been building some rather splendid automobiles in Europe for many years now. Though their quality can be questionable at times.

With the decline in the U.S. Dollar, Fiat Group CEO Sergio Marchionne revealed that Alfa will open a factory in the United States. This will be imperative to Alfa turning a profit in the U.S. Which will only happen after the first three to four years, once they are here.

In 1909 Fiat inaugurated a plant in Poughkeepsie, New York which it closed 1919.

Source: Automotive News.

Volkswagen hunting for North American factory

This has been in the rumormill for a few months now. Finally we have some inside news as to the possibility of a new VW factory in the United States. According to Automobilwoche, a German sister magazine to Automotive News. In an interview with VW production chief Jochem Heizmann, "Our scouts are looking full speed in Mexico and the United States."

Sounds pretty strong for a company that did not know if they were going to try another U.S. factory a few months ago. Insiders at VW are looking strongly at the southeastern U.S. for a plant location. VW current North American factory in Pueblo, Mexico is currently nearing on their full capacity of 450,500 units for this year. The plant currently produces the New Beetle and Jetta models. Pueblo was also the last factory still producing the original air cooled Beetle which ended production in 2003.

As part of Volkswagen's Strategy 2018. A new U.S. assembly plant would help to boost VW U.S. sales to 800,000 units a year. Up from 329,112 U.S. sales in 2006.

Volkswagen's last try at a U.S. based factory was from 1978-1988 in Westmoreland County, Pennsylvania.

Source: Automotive News

GM to halt production at three factories

GM has plans in place to cut production in the first quarter of 08 to help dealers control their excess inventories. Though today, The Detroit News announced that GM will halt production at three factories for two weeks. Production is limited to just the Chevrolet Silverado and GMC Sierra as of right now. The factories effected are, Pontiac, Michigan, Fort Wayne, Indiana and Oshawa, Ontario Canada. The factories will stop production effective December 31st.

Source: The Detroit News.