First BMW Plant opens in Asia

BMW Manufacturing (Thailand) Co., Ltd., the first wholly-owned BMW plant
in Asia, was officially opened today at Amata City Industrial Park in
Thailand, thus joining BMW's worldwide network of production
facilities. The new plant, which has a capacity to make 10,000 cars a
year, will initially assemble the new 3 Series sedan for the Thai car
market. In the future, it can be expanded to export BMW cars to ASEAN
countries. "As a second step, only if the ASEAN Free Trade
Agreement (AFTA) will be implemented as planned, we do plan to export
these cars to neighbouring countries and beyond in the future",
said Dr Helmut Panke, Member of the Board of Management, BMW AG at the
opening ceremony, which was presided over by Thailand's Prime Minister
Mr Chuan Leekpai. Dr. Panke noted that the Thai government had a
far-sighted automobile policy and encouraged Thailand to continue
leading the process of trade liberalisation in ASEAN. "On paper,
AFTA looks promising, although many details remain open, including how
it will be implemented. With AFTA in effect, it will support and
increase free and open trade within the entire region", he said.
Built at a cost of Baht 1 billion (US$26.3 million), BMW Manufacturing
Thailand has created 200 direct jobs, with many more indirectly
employed in the automobile supplier industry. In addition, the transfer
of technical know-how and cooperation between German and Thai
technicians will benefit both parties in the long run. The decision to
go ahead with the plant was announced in 1998, in the midst of
Thailand's recession - a clear commitment by the BMW Group to Thailand
and Asia. BMW's first quarter sales this year in Asia have surged 20%
to 13,811 cars, compared with the same period in 1999. Sales in
Thailand during the first quarter have raced ahead even more by 43% to
558 cars. In 1999, BMW became the top brand in Thailand's luxury car
segment for the first time with deliveries of 1,840 units. "Our
strong commitment is now being rewarded by the customers. Such BMW
achievements were possible because of our consistent faith in Asia's
recovery and our determination that Asia remains a cornerstone in our
worldwide plans", said Mr Lueder Paysen, Director, Overseas Sales,
BMW AG. BMW Manufacturing (Thailand) is located in Amata City
Industrial Park, which is in Rayong province on the Eastern Seaboard of
Thailand. It has a total usable space of 21,000 square metres. Although
the plant will initially produce two models of the new 3 Series sedan -
the BMW 318i and 323i - it has the flexibility to produce the full
range of BMW models. The new manufacturing facility in Thailand is also
exceeding the quality standards set for it in the start-up phase - when
BMW technical experts are training and developing the skills of their
Thai counterparts. These quality figures are applicable to BMW's
worldwide production network, thus ensuring the same high quality
levels for every BMW car produced. "We are all very proud of our
Thai workers in achieving this quality standard. Now, with a firm
quality-based foundation, we envision that our production will
gradually accelerate", said Dr Ralph-Rainer Ohlsen, President, BMW
Manufacturing (Thailand) Co., Ltd. The plant's opening ceremony was
also witnessed by the German Ambassador to Thailand, H.E. Hermann
Erath, Pol. Gen. Chavalit Yodmani, Chairman of Amata Group of
Companies, and Gen. Yuthasak Sasiprapha, Chairman of the Industrial
Estate Authority of Thailand as well as other high-ranking government officials.