BMW Group
is to begin production of the Mini hatch this summer at VDL Nedcar, according
to board chairman Norbert Reithofer.
He added that the parent company is expecting even more
from the brand this year with the launch of the new generation model this
spring and additional volume from the Netherlands in the summer.
The company said Mini set a new sales record last year
with worldwide sales edging up 1.2 percent to 305,030 vehicles, up from
301,526,
More volume from Mini will also push the BMW Group
towards its target of 2m vehicles a year, two years ahead of plan, claimed Reithofer.
He said: "We have previously announced that we
would sell over 2m cars by 2016. We are going to meet this target earlier than
planned."
"We are confident. In the first two months of the
year we have already sold around 274,000 cars – more than any of our
competitors. This is the best start to the year we have ever had,"
Reithofer added.
But global issues can change matters quickly.
"We closely follow global political and economic
developments. The world is very fragile and only one thing is certain: Things
can change very quickly at any time so it is important to have a long term
strategy,” he noted.
"Our strategy enables us to clearly assess the
numerous risks and uncertainties in our business and to respond
accordingly."
BMW's planned growth in sales should also be reflected
in group profit before tax - €7.9bn (£6.6bn) last year.
Reithofer added: "We expect this to rise
significantly in the current year despite ongoing volatile business conditions.
The pace at which earnings increase will, however, be affected by high levels
of expenditure for new technologies and by rising personnel expenses."
BMW's fleet, which includes Mini and Rolls-Royce now
has 39 models with CO2 emissions of less than 120 g/km, down from 210 g/km in
1995. By 2020 BMW is targeting a figure closer to 105g/km.
Contract
production
Meanwhile, the new Mini Hatch, which celebrated the start of production
start at Plant Oxford in November 2013, appears to be on schedule at VDL Nedcar
in Born, Netherlands.
Mini then will be the only automotive manufacturer that
has series production vehicles built through a contract production in the
Netherlands.
BMW stands to benefit from the favourable location of
the VDL Nedcar site in terms of logistics and its proximity to Mini production
network with its locations in Oxford, Swindon and Hams Hall in the UK, Hams
Hall being a crucial link in the BMW supply chain. Over 1,000 people are
employed at the Coleshill plant which supplies engines to the Mini production
plant Plant Oxford and well as to BMW plants in Munich, Regensburg, Leipzig and
Dingolfing (Germany), MSF (Magna Steyr Fahrzeug) in Graz (Austria), Rosslyn
(South Africa) and Spartanburg (USA) for the BMW 1 Series, 3 Series, 5 series,
Z4 Roadster and X3 model ranges.
Meanwhile, BMW Group will be stepping up its presence
at VDL Nedcar (below) in the Netherlands significantly, making the plant the new fourth leg of the Mini
supply chain stool.
“Contract production is a vital flexibility tool for
us, and our experience gathered over the past ten years has been nothing but
positive. Splitting production of the new Mini Hatch between Oxford and Born
will give our global production network additional leeway. We appreciate the
reliable, open and trustful cooperation with our Dutch partner, VDL Nedcar,”
stated Dr. Klaus Draeger during his visit to the plant in Born earlier this year. Draeger is BMW AG’s board
member for purchasing and supplier network.
Head of production Harald Krüger added: “The Mini brand
is showing substantial growth. This is why we need additional, external
production capacity on top of the capacity of Plant Oxford, which stands at
about 260,000 units a year in the medium term.
He claimed VDL Nedcar “has many years of experience in
producing high quality vehicles”, so he sees the company as an ideal partner
for BMW. VDL Nedcar is BMW’s second contract supplier for Mini. MSF (Magna
Steyr Fahrzeug) being the other.
“At the same time, the UK production network is and
will remain the heart of Mini production. Splitting production of the Mini
Hatch between Plant Oxford and Born will give us greater flexibility for other
models,” he said.
A workforce of around 1,500 people will be responsible
for building the new Mini from summer 2014. This year it is expected that Mini
production volumes at VDL Nedcar will reach the five-digit range.
The same demanding quality standards will apply to Mini
production in Oxford and Born, according to BMW, in effect making the plant a
mirror image of Plant Oxford.
To ensure these quality standards, VDL Nedcar staff have
been receiving in-depth training on the BMW Group production system at the BMW
plants in Leipzig, Oxford and Regensburg.
At the time of the plant visit, it was noted that in 2013, 303,177 Mini vehicles were
produced. Of these, Plant Oxford produced 175,986 Mini Hatch, Convertible,
Clubman, Clubvan, Roadster and Coupé models.
An additional 125,559 Mini Countryman and Mini Paceman
models were built by the contract manufacturer MSF in Graz, Austria plus
additional 1,632 units “in other plants”. Since the relaunch of the brand in
2001, some 2.8 million Mini vehicles have been produced. ∎
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