BMW could build a second Mini production line in Germany
6 October 2009

BMW could build a second Mini production line at its Regensburg facility in Germany. German-built Minis are currently being considered ‘in the longer term’ according to Frank-Peter Arndt, head of car production at BMW. In an interview with the Independent on Sunday, Arndt say that ‘given the strong growth of the Mini brand, we will have to think about a further production site. We could imagine a German factory for the production of Mini-based models.’ It is expected that with the introduction of the new Roadster and Coupe Mini models that Oxford will reach full capacity. It’s thought unlikely that BMW will further expand the Oxford factory. BMW is planning to contract out the assembly of next year’s Mini R60 Crossover to the Magna plant in Graz, Austria. However, there is another reason why a Mini production line may be installed in a BMW factory. Reflecting Arndt’s comments about ‘Mini-based models’, recent reports from Germany suggest that BMW is actively considering a new BMW model based on the long wheelbase Mini platform. The reports suggest that BMW wants to compete directly with Audi’s 2010 front-drive A1 hatchback and Mercedes upcoming A-class replacement. Although it’s unlikely to appear before 2013, BMW looks set to build its first front-drive production car.

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21

6 October 2009

do they have to badge it BMW though? maybe they have other options.

6 October 2009

I think its unlikely they will bring out a fwd BMW badged model to compete with the forthcoming A1 and A-Class. They are prime rivals for the MINI in this brand new 'premium supermini' market segment.

6 October 2009

When are we going to join the euro???

6 October 2009

[quote 230SL]When are we going to join the euro???[/quote]

Where the hell have you been for the past 2 years? I'm pretty sure that the disastrous economic effects of not having a floating currency to devalue in Ireland, greece and spain have pushed euro membership off the table in every single country that hasn't yet adopted it.

6 October 2009

[quote zthomasz] have pushed euro membership off the table in every single country that hasn't yet adopted it.[/quote]

Iceland.

Iceland now wishes to apply for membership of the EU; presumably euro membership too.

As to the PIGS countries being smashed by the euro millstone, UK has just reported a collapse in industrial output(-2.5% in August). Weren't people told the 25% devalued pound would massively boost export competitiveness and drive the whole UK economy's recovery?

Spain's 20% unemployment figure is no different to UK's. Take UK's official 8% or so unemployment figure, add in those early-retired, on training schemes, extended education, on incapacity benefit, part-time working but wishing to be full-time employed, etc, and UK's true unemployment figure is around 5-6 million or 16-20%. Spain is just not as adept at lying and covering up its true, dire situation. By the way, America, like UK, with its own currency, has official unemployment at 9.8% but with the changes made to how the figures are recorded since 1980 taken out, unemployment in the US is around 20%, similar to Spain's and UK's.

6 October 2009

[quote rogerthecabinboy]

Iceland.

Iceland now wishes to apply for membership of the EU; presumably euro membership too.

[/quote]

Actually there is a massive majority against eu emembership in Iceland. Iceland has faired much better than most of the eurozone countries (including germany) and it has soley been down to a floating currency.

Ireland's economy contracted by 12%. Iceland's contracted by 6%, which is less than germany. Icelands exports are surging, Irelands are still plummeting. Unemployment in iceland fell by 8% in august alone. It is still rocketing in ireland.

[quote rogerthecabinboy]Spain's 20% unemployment figure is no different to UK's.[/quote]

Thats not really true, but you already know that so there is not much point in correcting you.

[quote rogerthecabinboy]As to the PIGS countries being smashed by the euro millstone, UK has just reported a collapse in industrial output(-2.5% in August).

[/quote]

It would have been comparable to Ireland's had we not have had a floating currency to take the blow.

[quote rogerthecabinboy]Weren't people told the 25% devalued pound would massively boost export competitiveness and drive the whole UK economy's recovery?[/quote]

Back when we had a rediculous strong pound exactly the same thing about the euro? I seem to remember the pounds value against the euro being the sole reason for membership.

Besides, the fact that we have not yet returned to growth isn't due to us retaining the pound, it is because the situation was so dire and exports were going to fall so much, that even a currency buffer coundn't prevent it, although it has helped. It would have been considerably worse without our own fiat currency to cushion the blow and increase exports.

You also fail to take into account the benefits of us controlling our own interest rates and the BoE's quantitative easing.

PS

You haven't countered my most salient point: Euro membership for the UK, and other countries that secured the opt-out in Maastricht, is not being considered by either the governments, oppositions, or central banks of these nations. Especially not our own labour party, conservative party and bank of england. Even people like Peter Mandelson (no eurosceptic, he) are currently against it. The only people in favour are those madcap europhiles like former minister for europe Denis Macshane, and ginger-bearded Timothy Garten-Ash who have been campaigning for it out of idealogical, not economic reasons.

6 October 2009

i vote for euro. we need it.

6 October 2009

OK, why?

If you can give me a reason, then that will be good enough for me.

6 October 2009

[quote zthomasz]Ireland's economy contracted by 12%. Iceland's contracted by 6%, which is less than germany. Icelands exports are surging, Irelands are still plummeting.[/quote]

Germany Q2 2009 year-on-year change in GDP: -5.9% - I make that less than a contraction of 6%

http://epp.eurostat.ec.europa.eu/cache/ITY_PUBLIC/2-02092009-BP/EN/2-02092009-BP-EN.PDF

Irish Industrial production increased 7.3% in June and 8.7% in July, month-on-month, and by +7.1% in July year-on-year.

http://epp.eurostat.ec.europa.eu/cache/ITY_PUBLIC/4-14092009-AP/EN/4-14092009-AP-EN.PDF

Ireland's exports increased by 1% between Jan-Jun 2008 and Jan-Jun 2009. UK's exports between Jan-Jun 2008 and Jan-Jun 2009 fell by 24%.

http://epp.eurostat.ec.europa.eu/cache/ITY_PUBLIC/6-17092009-AP/EN/6-17092009-AP-EN.PDF

that'll do. Life is much too short to enter into pointless arguments.

6 October 2009

Speaking personally, while there might be an argument for a single currency, there is no sensible argument for a single, pan-European interest rate.

Spain and Ireland both suffered huge house price bubbles which went bang. They really needed to raise interest rates to choke off the boom but, as members of the Euro, couldn't set a rate that was ideal for their particularly circumstances.

The interest rate is set by the European Bank and had to try and cover the circumstances in 16 different Euro Zone countries.

One of the ways that the UK tried to ameliorate the crash was to collapse interest rates down to 0.5 percent. Had we been a member of the Euro, we wouldn't have been able to do that. In July 2008 - 12 months after the housing market in the UK started to freeze and about the time Lehman crashed, the Euro Zone rates were put up to 4 percent because of rising inflation....

I liken the idea of single Euro interest rate to BMW selling cars with automatic gearboxes controlled by by men in Frankfurt Tower block.

No matter where you are in Europe, no matter what the current driving conditions you are encountering (up hill, down dale), the gear ratio will be selected in Frankfurt to suit the 'average' European driving conditions at that time.

I can't see how a single interest rate can ever work properly and I find it ironic that Ireland has voted for the Lisbon treaty when part of the reason for the collapse of the economy was an unsustainable property boom, stoked by Euro interests rates that were too low for the local conditions.

Just my personal opinion, as I say.

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