BMW threatened on Tuesday to give up plans to build a auto assembly plant in Brazil if the new measures imposed by the government prevent a profitable production operation in the country. And it’s not the first time it complains.
“We’re not willing to invest in Brazil and book losses,” BMW’s Frank-Peter Arndt told journalists at the group’s annual meeting. Currently, plans for the luxury carmaker involve the construction of a factory in Sao Paulo or Santa Catarina.
In January, a source in Brazil said the company was in the final stages of choosing a site for its first plant in Latin America, with a decision expected by February. Since last year the company has been negotiating the installation of a production facility in the country. At the time, the automaker said that it expected a decision by the end of 2011, but the tax hikes imposed by the government on imported vehicles (IPI) delayed the process.
BMW’s sales in Brazil in 2011 totaled 12,074 units, jumping 42 percent over the 8,534 vehicles it sold in 2010, amid a growing economy and the rising income of the population.