M3 Coupe

The Ultimate Driving Machine returns to Argentina, but Brazil wins the foreign investment race.

How many sacks of rice for an M3 coupe? How many leather hides for a Mini Cooper Cabrio? It may sound strange, but BMW Argentina will soon find out. After an eight-month embargo, the company finally reached an agreement with the government to allow the resumption of its luxury imports.

Earlier this year the federal government told foreign automakers they had to choose an Argentine product and export an equal value of said product to compensate for their imports to Argentina. While Porsche opted to swap Cayennes for Cabernet Franc, BMW plans to export Argentine rice, leather and auto parts.

BMW was on the verge of launching the new X3 and Mini Countryman when Argentina shut down the import of Audis, BMWs and Mercedes-Benz back in February. Cronista’s David Cayón says BMW becomes the 17th automaker to reach an agreement with the government. Collectively, the deals are expected to generate an additional US$4.2 billion to Argentina’s annual export numbers.

In the final analysis, the real winner won’t be Argentine Bimmer buyers or the government. It’s Brazil. On the same day the agreement was reached with Argentina, BMW announced it will build its first Latin American plant in São Paulo. (Full Story in Spanish)

BMW X3 in Buenos Aires

BMW is one of the global brands choosing BA for a backdrop as sexy as their product line.

“The beautiful thing about living out of town…is that you get to drive for an hour and a half before getting to work.” Such is the conclusion of a recent BMW commercial, as a BMW X3 leaves the lush countryside and rolls into an urban jungle which could easily be L.A. or Manhattan. The spot, which was actually filmed in rural Tandil and downtown Buenos Aires, highlights BA’s draw for global companies like BMW and ING needing sexy, affordable backdrops for their products.

In 2010 alone, the Buenos Aires Film Commission (BAFC) assisted dozens of projects ranging from feature-length films to TV shows to commercials for companies from as far away as Denmark and Germany. BAFC serves as a vital link for foreign directors and producers needing location scouting, logistics assistance, permit acquisition, legal counsel and Customs facilitation among other services.

Also working in BA’s favor is the recent Variety ranking of Buenos Aires among the World’s Top 5 Destinations for Making Movies; the other four being Paris, London, Prague and Morocco. In order to build on that momentum in 2011, the Buenos Aires Ministry of Economic Development is creating an Audiovisual Industry Guide to identify all BA companies involved in the sector including producers, videogame developers, animation studies and others providing services to foreign crews scouting and filming in Buenos Aires. Once completed, the Guide will be available both online and on DVD. (GCBA Industria Audiovisual)

For more information about BA’s Creative Class, download the new issue of InvestBA Privada.

Gama BMW: The X1 is one of 16 models BMW currently sells in Argentina.

Gama BMW: The X1 is one of 16 models BMW currently sells in Argentina.

Latin America Poised to Recover From Crisis Faster Than U.S. The week got off to a bullish start with that takeaway headline from the FELABAN Banker’s Conference in Miami.

FELABAN President Ricardo Marino summarized, “Latin America was one of the last regions to be affected by the crisis. It will be one of the first to recover.” Now some corporate earnings reports are offering validation, especially in the uber-sensitive luxury car market.

BMW’s October sales numbers released yesterday showed a 52% increase in BMW and MINI units sold in Latin America over 2008. “The joy of driving is our key value,” said Gernot Volkmer BMW Latin America Group CEO in explaining strong demand in Argentina and other LatAm countries. It’s even more impressive when you consider roughly 70% of vehicle sales in Argentina are all cash deals.

Vehicles are seen as an investment for many Argentines worried about high inflation at a time when local banks offer low interest rates for savings accounts,” according to Reuters’ Karina Grazina. And “the product offensive will continue,” according to BMW, “with the launch of the first premium compact SAV (Sports Activity Vehicle) in the region, the new BMW X1, as well as with the new BMW 5 Series Gran Turismo scheduled to arrive in Latin America by early 2010.” As the BMW ads say in Argentina…Placer Tiene Muchas Formas.

 

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