Industry Trend Analysis - BMW Contract To Send Car Production Skyward - MAR 2017


BMI View: Production of passenger cars in 2017 will receive strong support from BMW's deci sion to award an assembly contract for its X1 SUV to the Netherlands' largest car manufacturer , VDL NedCar. Over 2017 to 2019, VDL will benefit from a continued rise in SUV popularity and the particular success of the X1 model.

We are revising our passenger car production growth forecast for the Netherlands upwards from 4.5% to 19.7% in 2017 and from 4.0% to 9.0% in 2018. This upwards revision is in response to BMW Group's announcement in January 2017 that it would start the contract assembly of BMW X1 SUVs at the Netherlands' dominant car manufacturing company, VDL NedCar, in August 2017.

BMW Strength A Positive For Netherlands

VDL Contract Win Raising 2017-2018 Output
Netherlands - Passenger Car Production, Units
e/f = BMI estimate/forecast. Source: OICA, BMI

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