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BMW Stays Close to Its Home
High-cost Germany would appear to be the last place to open a new car plant. German car workers on average earn seven times more and work 10% fewer hours than their Eastern European counterparts.
But on Friday, Chancellor Gerhard Schroeder officially opened BMW's $1.7-billion factory in Leipzig in eastern Germany.
At a time when other European carmakers and manufacturers are moving production to low-cost countries in Eastern and Central Europe, BMW's futuristic factory, designed in part by award-winning Iraqi-born architect Zaha Hadid, looks like a big gamble.
BMW chose Leipzig for a plant to build its bestselling 3-Series model over a site in the Czech Republic after a sharply contested selection process.
At stake is whether Germany can compete against its lower-cost neighbors and remain a manufacturing powerhouse.
Industry analysts are doubtful. Many were stupefied by the decision. Some believe it could be the last large car plant to be built in Western Europe — a monument to the influence that politicians wield over an industry employing 1 in 7 Germans.
Jurgen Pieper, an analyst at private bank Metzler in Frankfurt, said there was little doubt that the decision by the Munich-based automaker to locate in Leipzig was a political one. Moving more jobs out of a country where unemployment is at postwar record levels would have been highly sensitive.
But Helmut Panke, BMW's chief executive, insists that the factory is a blueprint for how manufacturing in Germany can survive. Panke acknowledges that, even taking into account the 363 million euros ($455 million) of EU aid received for investing in Leipzig, a Czech factory would have been cheaper. The difference was "qualitative factors," he said.
Read more about this BMW story here
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The Bridgestone Potenza RE750 is an Ultra High Performance Summer tire that was developed for the drivers of sports cars and sporty coupes to provide traction on wet and dry roads. It uses Bridgestone's UNI-T network of technologies to improve three primary factors of the tire's performance: the bead, casing and tread compound.
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 "Deemed too dangerous for Italy’s open roads, the Mille Miglia was discontinued after its 1957 running. Today, though, the race lives on in a more reserved fashion.
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