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New investment by BMW in the Brazilian automotive market: the German brand announces a billion-dollar mega-investment and is preparing to produce its first plug-in hybrid SUV in Brazil, reinforcing its commitment to innovation and sustainability in the national market.
In 2025, BMW will complete 30 years since its arrival in Brazil. Based on this, the company maintains its production unit in the country, located in the city of Araquari, in Santa Catarina. Last Wednesday (2), the unit celebrated ten years in operation. As part of the celebrations, BMW announced an important piece of news: a mega investment of R$ 1,1 billion.
Understand where BMW's new investment will be redirected
According to the brand, the Brazil to receive R$1,1 billion in investments. To this end, BMW's new investment will take place over the period from 2025 to 2028. In this way, the focus is to bring greater digital technological capacity to the country, according to João Veloso, BMW Communications Director for Latin Americaa. The announcement was made during a meeting of company executives and journalists last Friday (5) at the Brazilian branch office in São Paulo.
This mega-investment will be used to modernize the Araquari plant. The plant currently manufactures 11 vehicles per year. BMW's new investment will also be used to hire and develop personnel, as Milan Nedeljkovic, member of the brand's board of directors.
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Furthermore, the company is seeking to strengthen its local engineering area and develop new technologies. In this way, it will be able to contribute to the group's global activities, according to Nedeljković and Maru Escobedo, CEO of BMW Group for Latin America.
Executives highlighted that BMW will focus on new developments in decarbonisation. To this end, the brand intends to make a huge investment in electrified vehicles. In the same vein, the brand reaffirmed its commitment to producing the new BMW X5 at the Araquari factory soon.
BMW's mega-investment will bring production of the SUV X5 plug-in hybrid
According to the company, in a few weeks the BMW X5 PHEV, a plug-in hybrid SUV, will begin production at the Santa Catarina plant. According to Nedeljkovic, the company is beginning a new era of production of electrified models in Brazil. BMW X5 PHEV model will be the first plug-in hybrid model produced in South America. Production had already been announced in April, but without a start date being announced.
According to BMW, the choice of the X5 is linked to its good sales volume in Brazil. Currently, the Santa Catarina unit already produces the BMW 3 Series sedan and the X1, X3 and X4 SUVs, sales leaders in their segments, according to information from the manufacturer. According to the company, these models guarantee sales leadership among premium brands in Brazil.
BMW's new investment also includes new software and technologies needed for future BMW cars. The development of these innovations has already yielded results, such as a system that allows drivers to use their cell phones as a digital key for their vehicles.
Other BMW investments in Brazil
Before this new mega-investment, BMW had already invested R$1,8 billion in Brazil. This amount was distributed over the 10 years of operation of the plant in Santa Catarina. There, the company has 700 direct employees and has already manufactured 100 vehicles.
The Araquari factory's capacity is 32 vehicles per year, however, current demand has led BMW to work with the production of only 11 cars in 2024.
BMW has no plans to turn this plant into an export hub, but it understands the importance of the unit for its fleet electrification plans throughout Latin America. According to Escobedo, hybrids are important and electrification is already happening. The market is adjusting and so is the company.
May it come with certainty and desire for total production of the integrated components of the MWM engines and the equipment of the models that were announced! And much more!!