At a time when other car companies are moving out of country in an effort to save costs, BMW has chosen to stay close to home, opening its new $1.7 billion factory in Leipzig, Germany. Industry experts are doubtful that BMW can remain competitive in this plant while other car manufacturers are employing low-cost workforces around East Europe and other countries. High wages may put the company at a disadvantage.
See "BMW Stays Close to Its Home", Richard Milne and Hugh Williamson, Los Angeles Times, May 15, 2005