Just released yesterday, BMW announced that it had “intermittent” use of the Federal Reserve’s Commercial Paper Funding Facility in 2008 and 2009. How much use did they have exactly? 3.62 billion dollars. BMW used the money to invest into its South Carolina assembly plant and to help maintain sales of their new cars. BMW themselves invested 750 million into their plant to help assemble the new X3.
(BMW South Carolina plant)
With the US being BMW’s second biggest market, it is no wonder why they did this. BMW reported its lowest sales year in over a decade last year, with around 270 million in sales, but it had an excess of two billion in cash flow, thanks to the money borrowed from the feds.
In my opinion, even though this isn’t a domestic company, the fact that they invested into assembly plants in the US, and helped maintain jobs, makes this the right move by the Feds in my mind.