BMW Begins Sedan And SUV Production In Vietnam

BMW is expanding its global production network with the addition of a new factory in Asia. The Bavarian company announced a new partnership with Truong Hai Auto Corporation (THACO) for local vehicle production in Vietnam. This is BMW’s sixth factory on the continent after production sites in Thailand, Malaysia, China, Indonesia and India.

The Munich-based automaker launched back in Vietnam five years ago and has had new agreements with local THACO to manufacture the 3 Series, 5 Series, X3 and X5 in the country. With the new location, BMW’s worldwide production network has expanded to more than 30 locations and includes not only vehicle assembly sites but also powertrain plants. The manufacturer operates standard processes throughout its plants to ensure consistent quality.

“This is an important milestone for the BMW Group in Asia Pacific as we look to strengthen our geographic footprint in the region,” Michael Nikolaides, Senior VP at BMW responsible for production and supply chain networks. “With this decision, the BMW Group has re-applied the strategic principle of production following the market. There is long-term growth potential in the Vietnamese market, and we are excited to take the next step with THACO to produce locally some of our most popular models.”

THACO was founded in 1997 and today is one of the nation’s largest and pioneering companies in the automotive business. The company operates a joint venture with Kia at its main plant and also manufactures and manufactures Mazda passenger cars through its VinaMazda subsidiary.

The BMW Group formally entered the Asian continent in 1985 and currently has an office in Singapore overseeing 14 markets across East Asia for BMW and Mini. These markets include Singapore, Vietnam, Philippines, Indonesia, Brunei, Bangladesh, Sri Lanka, Nepal, Tahiti, Guam, New Caledonia, Laos, Cambodia and Myanmar.

Recently, BMW started production of the XM at the Spartanburg plant in the United States. The high-performance SUV will be assembled in South Carolina alongside the brand’s other SUV models, including the X5, X6 and X7.

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