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BMW boosts output in SA

Johannesburg - BMW South Africa will increase its export volumes by some 5 000 units this year.

Earlier this year the group, which manufactures its 3-Series sedan at its Rosslyn plant north of Pretoria, expanded its portfolio and now also manufactures the 3-Series xDrive four-wheel drive models for export to left-hand drive markets.

These models were previously manufactured only at the BMW plant in Munich.

Their production will add 3 000 units to current volumes.

BMW SA has also begun exporting 3-Series bodies and contingent parts to other BMW markets for completely knocked down (CDK) assembly. Initial estimates are that about 1 800 bodies will be produced a year.

BMW SA managing director Bono Donauer said in a statement that the group’s export programme was a critical part of operations.

He said that for BMW to expand its business the group also had to exploit opportunities outside the local market.

These new opportunities would enable the company to enlarge its export footprint, although initially only in limited numbers. It would then also be able to expand its skills base.

BMW has also streamlined its export programme and locally manufactured 3-Series sedans are now shipped directly to the West Coast or East Coast of the United States. Vehicles destined for the North American Free Trade Agreement (Nafta) region were previously first shipped to Bremen and then to the US.

The new shipping route shortens delivery times by up to 16 days, said BMW.

Donauer reckons the shorter delivery times will help the group to boost its export volumes to this region in future.

This week BMW manufactured the 300 000th 3-Series sedan of the current generation at its Rosslyn plant.

This is considerably up on the production of previous generations. The third-generation 3-Series sedan manufactured between 1990 and 1998 had a run of only 92 589 units.

Its successor between 1998 and 2005 saw 269 810 vehicles being produced.

The Rosslyn plant manufactures an average of 250 3-Series sedans a day, more than 80% of which are for export markets.

- Sake24

For business news in Afrikaans, go to Sake24.com.
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