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BMW chooses Leipzig for speed; Selection of plant site hinged on worker training, not wages.(News)

Automotive News Europe,  October, 2003  

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BMW AG chose local culture ahead of low wages for the company's new [euro]1 billion assembly plant in east Germany.

The German luxury carmaker will bring the plant for manufacturing 3-series models on line in Leipzig in early 2005.

BMW preferred the location to sites in Arras, France, and Kolin, Czech Republic, where wages are 50 percent and 75 percent lower, respectively, than in Leipzig.

Ernst Baumann, BMW's board member for human resources, said the decisive factor was being able to train unskilled workers quickly.

"Of course, low salary rates were interesting ...

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