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Volcanic ash cloud could halt U.S. BMW production

Posted May 04 2010 1:12am
hekla eruption, Eyjafjalajokull , ash cloud, volcano, bmw, X5, X6Volcanic ash cloud could halt U.S. BMW productionThe recent volcanic activity of Eyjafjalajokull has filled the skies around Iceland and Europe with a tremendous ash cloud that could halt production of BMW automobiles at the company's U.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 can be to supply the necessary transmissions to assemble X5 and X6 sport utility cars. Think BMW is hurting because of the ash cloud? If you think BMW's bottom line would hurt a production layoff, imagine what the ash clouds from Eyjafjalajokull are possibly doing to the airline industry and what a possible Hekla eruption might 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. If the trouble persists for weeks, many billions of dollars might be lost. 63,000 flights were canceled given that the eruption chain started on April 14. If the BMW plant in Spartanburg shut down, the business would miss out on the production of about 600 cars per day, split between the X5 and X6 (numbers estimated by BMW). A press trip to a BMW factory in Shenyang, China was also called off because of restricted air travel. America has been good to BMW in 2010 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 contain the xDrive48i, X5 xDrive30i, and turbo diesel xDrive35d. The X6 line is the "first ever sports activity coupe," according to BMW. Model production affected by the ash cloud would consist of the ActiveHybrid X6, X6 xDrive35i and X6 xDrive50i. Sources http://www.crainsnewyork.com/article/20100415/FREE/100419907http://www.autonews.
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