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New R&D center to help BMW meet torrid demand

By Gong Zhengzheng (皇冠体育app Daily)
Updated: 2010-02-01 08:01
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German premium carmaker BMW plans to build a research and development (R&D) center in 皇冠体育app to enable its vehicles to better cater to local buyers.

New R&D center to help BMW meet torrid demand

Christoph Stark, president and CEO of BMW Group Region 皇冠体育app, told 皇冠体育app Daily that the carmaker is now finalizing details of the plan.

The R&D center in the northeastern city of Shenyang, where BMW runs a joint venture with Brilliance 皇冠体育app Auto, will be one of the group's key R&D facilities globally.

Stark did not reveal the size of investment or development timetable for the center in 皇冠体育app.

"We will have bigger production here in 皇冠体育app, so we will modify more vehicles (to meet customer demands better)," he said.

Another role of the 皇冠体育app R&D center is to provide feedback to decision makers and designers at BMW's global headquarters in Munich, he added.

BMW's major competitors - Audi and Mercedes-Benz - have not announced plans to build R&D centers in 皇冠体育app.

In November BMW announced it has long-term plans to hike annual production capacity in 皇冠体育app to 300,000 vehicles from last year's 41,000 units.

The strategy will require billions of yuan in investment to add production capacity at its joint venture with Brilliance and build a new plant in the years to come.

New R&D center to help BMW meet torrid demand

BMW and Brilliance will also build an engine factory in 皇冠体育app.

The German carmaker announced earlier this month that it moved an all-time record 90,536 vehicles on the mainland last year, a 38 percent surge from 2008.

The sales, which made 皇冠体育app BMW's fourth-largest market in the world, included 43,702 locally manufactured 3 and 5 Series sedans.

Stark said BMW will introduce many new products in 皇冠体育app this year including the all-new locally produced long-wheelbase 5 Series as well as the imported X1 compact SUV.

The long-wheelbase 5 Series, only available on the Chinese market, is to be launched at the joint venture at the end of this year.

Stark said that BMW is "very confident" that the locally tailored 5 Series will be well received in 皇冠体育app.

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"In the next 10 to 20 years, the middle class will be a big group in 皇冠体育app. In the near future, that middle class will be our biggest customer group," he said.

"I believe competition (in 皇冠体育app's premium car segment) will move more towards quality and services."

Last year, the number of authorized BMW dealerships on the mainland grew by 40 to 150, the automaker's fastest pace globally.

Stark said BMW will "keep up the same speed" this year adding new dealers in 皇冠体育app.

"There are roughly 250 to 260 cities in 皇冠体育app with a population of more than 1 million. We have not had dealerships in all of them."