BMW wants to further reduce its dependence on Germany’s production image

Frank-Peter Arndt, BMW’s production, stated recently that BMW Group wants to further reduce its dependence on Germany’s production. The increased sales, estimated at 2 million cars by 2020, will be covered by the increased output of company’s plants in Brazil, China, the United States, India and Russia, while German plants will remain a rhe “backbone” of BMW’s production.

While in 2002, BMW’s Germany plants produced 70% of the total output, the figure decreased to 62% at the end of 2010 and is estimated at 58% for 2001. The company produced last year 1.46 million cars and is estimating an increase up to 2 million vehicles by 2020.

For 2011 and 2012, BMW plans to invest a total of 2 billion euros in its greman plants. The company’s eight Germany manufacturing sites are: four vehicle assembly plants (Dingolfing, Leipzig, Munich, Regensburg), three components factories (Eisenach, Landshut, Wackersdorf) and one motorcycle assembly plant (Berlin).

Together with this production relocation efforts, the company wants to improve the overall productivity.

“Manufacturing makes its own contribution to the company’s success. Our goal is to increase our productivity by 7 percent to 8 percent a year on average. We achieved more than 15 percent in 2010. In 2011, we will see a double-digit increase of more than 10 percent” also stated Frank-Peter Arndt.