BMW outsourcing production to U.S. to cut costs

The luxury carmaker BMW has announced it will invest $750m (£373m) as part of plans to increase production in the US.

The investment at the Spartanburg plant, South Carolina, is aimed at increasing capacity from 160,000 to 240,000 units by 2012.

The move is set to create 500 new jobs and comes after the firm recently said it would cut 7.5% of its German workforce in 2008.

The firm is facing both rising costs in Europe as well as slowing US demand.

Since last September, the dollar has tumbled against the euro, hurting firms that pay their costs in euros but receive payment in dollars.

The euro touched an all-time high of $1.546 last week after punching through the $1.50 level at the end of February.

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