The volcanic activity of Eyjafjalajokull has filled the skies around Iceland and Europe with an ash cloud that could halt the production of BMW automobiles at the company’s U.S. factory in Spartanburg, South Carolina, reports AutoNews.com. If trans-Atlantic flights continue to be delayed for two additional days, says BMW spokesman Mathias Schmidt, the German automaker can be unable to supply the necessary transmissions to assemble X5 and X6 sport utility vehicles.
BMW hurting because of ash cloud?
Just imagine what the ash clouds from Eyjafjalajokull are doing to the airline industry and just what a possible Hekla eruption could do if you think BMW’s bottom line would be hurt be a production layoff. As outlined by the BBC, the International Air Transport Association finds that airlines are losing around $ 300 million per day total due to flights canceled because of the ash cloud. If the trouble persists for weeks, numerous billions of dollars might be lost. Because of the eruption chain that created the ash cloud on April 14, as many as 63,000 flights are canceled. If the BMW plant in Spartanburg were to shut down, the company would be losing out on the production of about 600 autos per day, split between the X5 and X6 (numbers estimated by BMW). A press trip to a BMW factory in Shenyang, China was also called off because of restricted air travel.
In 2010, The US has been good to BMW
According to Bloomberg, the U.S. was BMW’s biggest market in the first two months of 2010, so shutting down X5 and X6 production could be noticed. The X5 line appears to be considered BMW's "luxury SUV" class. Variants contain the xDrive48i, X5 xDrive30i, and turbo diesel xDrive35d. The X6 line bears the honor of being the “first ever sports activity coupe,” according to BMW. Model production affected by the ash cloud involves X6 xDrive35i, ActiveHybrid X6, and X6 xDrive50i.
No comments:
Post a Comment