hekla eruption, Eyjafjalajokull , ash cloud, volcano, bmw, X5, X6Volcanic ash cloud could halt U.S. BMW production 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 will be to supply the necessary transmissions to assemble X5 and X6 sport utility autos.
Ash cloud hurting BMW?
If you think BMW's bottom line would be hurt be a production layoff, imagine what the ash clouds from Eyjafjalajokull are doing to the airline industry and exactly what a possible Hekla eruption could do. According to 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. Many billions of dollars could possibly be lost if the trouble persists for weeks. 63,000 flights were canceled since the eruption chain started on April 14. If the BMW plant in Spartanburg shut down, the company would miss out on the production of about 600 cars 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 because of the restricted air travel.
BMW was treated well by Americans in 2010
According to Bloomberg, the U.S. was BMW's biggest market in the first two months of 2010, so shutting down X5 and X6 production will certainly be noticed. The X5 line seems to be considered BMW’s “luxury SUV” class. Variants consist of the X5 xDrive30i, xDrive48i and turbo diesel xDrive35d. The X6 line is the "first ever sports activity coupe," according to BMW. Model production affected by the ash cloud involves X6 xDrive35i, ActiveHybrid X6, and X6 xDrive50i.
Sources http://www.crainsnewyork.com/article/20100415/FREE/100419907http://www.autonews.com/apps/pbcs.dll/article?AID=/20100419/COPY01/304199921/1424