The recent volcanic activity of Eyjafjalajokull filled the skies around Iceland and Europe with a huge ash cloud that could halt production of BMW automobiles at the US company’s factory in Spartanburg, South Carolina, reports AutoNews.com. If trans-Atlantic flights continue to be delayed for two additional days, says BMW spokesman Mathias Schmidt, the German automaker could be unable to supply the necessary transmissions to assemble X5 and X6 sport utility vehicles.
Think BMW is hurting because of the ash cloud?
Just imagine exactly what the ash clouds from Eyjafjalajokull are doing to the airline industry and just what a possible Hekla eruption could do if you think BMW’s bottom line would be hurt be a production layoff. As outlined by the BBC, the International Air Transport Association finds that airlines are losing around $ 300 million per day total due to flights canceled because of the ash cloud. Billions of dollars could be lost if this continues for weeks. Due to the eruption chain that created the ash cloud on April 14, up to 63,000 flights have been canceled. If the BMW plant in Spartanburg were to shut down, the company would be losing out on the production of about 600 autos per day, split between the X5 and X6 (numbers estimated by BMW). Also called off was a press trip to a BMW factory in Shenyang, China due to the restricted air travel.
In 2010, America has been good to BMW
According to Bloomberg, the U.S. was BMW’s biggest market within the first two months of 2010, so shutting down X5 and X6 production will certainly be noticed. The X5 line is considered to be BMW’s “luxury SUV” class. Variants consist of the xDrive48i, turbo diesel xDrive35d, and X5 xDrive30i. The X6 line bears the honor of being the “first ever sports activity coupe,” according to BMW. Model production affected by the ash cloud would include the ActiveHybrid X6, X6 xDrive35i and X6 xDrive50i.
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