"The used sand cores are recycled in Landshut. The plant sells the sand to infrastructure constructors to reuse in cement or refill into the land. We are considering the same practice and contacting partners," Kastner said.

Chinese media reported that BMW Brilliance is about to expand its new engine plant in Shenyang to a projected capacity of 600,000 units. Three new BMW models are also in the joint venture's future localization plan.

Dong Yang, secretary general of the China Association of Automobile Manufacturers, said it is a good time for automakers to develop their production capability and elevate their quality, while the growth of Chinese auto demands is waning.

FAW-Volkswagen's Changchun engine plant went into production in May with a 450,000-unit capacity, which will be doubled by 2017.

Guangqi Honda's engine plant started production in Guangzhou with a capacity of 120,000 units, which will also be doubled in the future.