| BMW AG has officially announced that the next | | | | different automobile from Graz or not. At the Shanghai |
| generation BMW X3 SUV will be manufactured at its | | | | Auto show last month, the German auto maker was |
| plant in Spartanburg, South Carolina. This will be built | | | | said to be mulling over something along the lines of the |
| when its present contract of agreement is already | | | | Concept CS and based on the 7-series. The smaller |
| used up in 2010 to 2011. | | | | luxury sports tourer that is based on the 5-series could |
| The move, though not entirely unexpected, is a | | | | be considered. |
| surprising a blow for Magna International which | | | | Magna, a Canadian auto parts maker, also learned that |
| currently assembles the X3 for BMW at its Magna | | | | it lost out on its bid to acquire Chrysler Group. |
| Steyr factory in Graz, Austria. | | | | Expected to close sometime in July to September this |
| First introduced in January 2004, the next generation | | | | year, Cerberus Capital Management is acquiring an 80.1 |
| BMW X3 will be released soon with added innovative | | | | percent stake in the automaker in a deal. |
| features. In connection with this, Magna acquired its | | | | About BMW X3 |
| adjoining neighbor, Chrysler’s Euro star plant. The | | | | A compact luxury crossover SUV, the BMW X3 is |
| said plant was building minivans and PT Cruisers. | | | | produced by the German auto maker BMW. The |
| Minivan production will be moved to Magna’s | | | | company, though, is advertising the vehicle as an SAV |
| original plant once Magna owned the whole complex. | | | | or Sport Activity Vehicle. The X3 is based on the auto |
| At the plant in Toluca, Mexico, PT Cruisers were | | | | mobile platform of BMW 3-Series. The X3 3.0i won |
| merged. And the space vacated by Euro star was | | | | the 2005 Canadian Car of the Year Best New Sport |
| prepared to set up Magna as the only source for the | | | | Utility Vehicle. |
| new BMW. | | | | While the BMW X5 was being produced and doing a |
| The X3 had an estimated 45 percent of Graz’s | | | | great job in the automobile market, the Bavarian car |
| total automobile output in 2006. But the speculations | | | | maker decided during the early period of the year |
| began after BMW executives started suggesting that | | | | 2000 that it would compete with vehicles like the Free |
| the next generation X3 could share underpinnings with | | | | Lander and other small luxury SUVs (like what the X5 |
| the Z4 and both could end up having the new 3-series | | | | had previously done in its respective classes). As a |
| architecture and design. | | | | result of this decision, the X3, which is also known as |
| To expand plant capacity in Spartanburg, BMW is | | | | E83 when talking about the interior, was delivered in |
| spending $3 billion. The new plant capacity is expected | | | | the auto mobile market. |
| to convert 140,000 units to 200,000 annually. It already | | | | Resembles like an “X activity”, BMW, for the |
| fixed operations, substituting two separate assembly | | | | first time at the 2003 Detroit Auto Show, revealed to |
| lines with a single flexible one that builds the Z4 and | | | | the public what a smaller SAV that is based on a 3 |
| the midsize X5 SUV. Also to be sourced out next | | | | Series platform would look like. Though is has no |
| year from South Carolina is the new coupe-shaped | | | | windows, the car concept showed no roof for most |
| X6 (based on the X5). BMW pointed several reasons | | | | part so that natural air can be experienced while |
| for manufacturing more of the BMW lineup in the U.S, | | | | driving. It also featured a sleek futuristic interior. |
| and one of the main reasons is the continued strength | | | | However, only the primary shape of the vehicle would |
| of the euro versus the dollar. | | | | exist as the BMW X3. |
| Magna, on the other hand, a manufacturer that is more | | | | The vehicle is a front engine, four-wheel drive with 3.0L |
| focused in producing niche-vehicle, said that it is | | | | 260 hp I6 engine. It has 6-speed automatic and manual |
| appealing to customers to fill the excess capacity that | | | | transitions and a top of the line BMW header. In the |
| seems dismal in a couple of years. The said appeal or | | | | entry level class, the BMW X3 is similar to Audi Q5, |
| talking includes conference with BMW. This discussion | | | | Land Rover LR2, and Volvo XC60. |
| will comprise an analytic study on whether to source a | | | | |