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- Title
BMW, Spartanburg, South Carolina: Drivers and Processes in the International Plant Location Decision.
- Authors
McDermott, Michael C.
- Abstract
By the early 1990s, BMW confronted strong "push" and "pull" factors that demanded it abandon its Pure Global Strategy based in Germany and establish its first international full manufacturing facility. In particular, it was necessary to establish this plant in the United States, its largest market where sales had been declining. This paper examines the international plant location decision of BMW. It reveals that once BMW determined that the plant would have sole responsibility for global production of one or more models, a location near the East Coast was critical. The plant location decision process was undertaken with considerable discretion, and the company appears to have avoided intense bidding from other states in the South. BMW chose to locate in Spartanburg, South Carolina, already home to many other German investors. This paper highlights the role of individual executives and politicians and the nature of their relationships in the international plant location decision.
- Subjects
SPARTANBURG (S.C.); SOUTH Carolina; AUTOMOBILE factory locations; BAYERISCHE Motoren Werke AG; DECISION making; STRATEGIC planning; BUSINESS expansion
- Publication
Southern Business & Economic Journal, 2011, Vol 34, Issue 1/2, p73
- ISSN
0743-779X
- Publication type
Article