BMW baulks at becoming a leather exporter
16/05/2012
In October 2011, reports from Argentina said that in return for permission to continue bringing its high-end cars into the Argentinean market, BMW had agreed to produce leather upholstery in Argentina for several of its models, exporting the material to factories in other markets.
However, at the company’s annual general meeting on May 16, the chairman of the board of management, Dr Norbert Reithofer, said that while the company wanted to increase its sales figures in Latin America, it did not want to do so at any price.
“In order to continue selling vehicles [in Argentina], manufacturers have to export goods to the same value. I am sure you have been following this development in the media. As you can imagine, exporting rice or leather – another option would be red wine – is not exactly one of our core competencies.”
He said that BMW was in the process of choosing a location for a factory in neighbouring Brazil, although he also criticised the government there because a new sales tax has made its vehicles 30% more expensive in the Brazilian market overnight. “We are negotiating with the Brazilian government on ways of expanding our activities there. Our plans for a plant location continue,” he said.
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