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VW to BMW Plan $25 Billion Hedge by Building Autos Abroad: Cars

With the yen weakening and Europe’s debt crisis spreading, Volkswagen AG and its German peers are planning to spend more than $25 billion by 2017 to expand production outside their home region and insulate themselves from currency convulsions.

Bayerische Motoren Werke AG, already among the largest U.S. car exporters, says it will start producing the new X4 sport-utility vehicle at its factory in South Carolina, in addition to the other three SUVs it makes there. Daimler AG is expanding a Mercedes-Benz plant in Alabama, and VW’s Audi is building a $1.3 billion factory in Mexico.