German automakers have stepped their investment in new plants and equipment, according to a new report from the German Trade and Investment Agency – but much of the money is flowing overseas, particularly to China, as well as the United States.
The new Volkswagen plant in Chattanooga, Tennessee is only the latest example of how German makers are globalizing their investments, as is a new BMW plant in China. Many of the new projects are geared at sustainable mobility projects, according to the report.
“With several world-renowned automakers, Germany has long been a top location for automotive innovation. The paradigm shift to sustainable mobility again confirms Germany’s position as a launch pad for new technologies that can reach markets around the globe,” said Dr. Juergen Friedrich, Chief Executive of Germany Trade & Invest in Berlin.
BMW investments in China have recently doubled and construction of a new $600 million BMW plant in Leipzig is underway. The facility will soon see electric BMWs rolling off the assembly line, Friedrich said.
Volkswagen inaugurated its $1 billion plant in Tennessee less than two weeks ago and the maker appears to be giving serious consideration to adding a second U.S. plant for its Audi brand.