bmw gives long-overdue development programme a welcome thumbs up
12 September 2008   
 
German motor company BMW has agreed in principle to build the next 3-Series sedan in SA for export, following the unveiling of government's new support scheme for the motor industry.
However, the decision is dependent on government signing a memorandum of understanding that confirms the terms of the new automotive production & development programme (APDP), says BMW chairman Norbert Reithofer.

The APDP will replace the motor industry development programme (MIDP), which has steered the industry since 1995. Though the APDP is due to start only in 2013, some investment rules will change next year. Details of the new programme have to be finalised, so the APDP will be gazetted only in mid-2009. BMW's management board is due to make a final decision on assembly locations for the next 3-Series "within the next couple of weeks". Reithofer told the FM during a visit to SA this week that at a meeting with President Thabo Mbeki and trade & industry minister Mandisi Mpahlwa he was promised the memorandum guaranteeing investment terms.

Terms of the APDP were due to be announced in 2006. Reithofer says a decision on global production of the next 3-Series should have been made months ago but was postponed because of SA. But he is now "comfortable" with the new programme.  The next 3-Series sedan is due to go into production in Germany in 2011. If BMW SA wins approval, it will probably start the following year. Reithofer says the preference is for three plants two in Germany, plus SA to meet all export demand.

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David Furlonger, http://secure.financialmail.co.za