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News of  July 18, 2000
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Location Decision For New BMW Model Series: BMW To Expand Production Network Capacity
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BMW Regensburg plant

Photo: BMW

Munich, Germany - BMW will be launching a completely new model series in the upper segment of the lower middle class by the year 2004. This new model series is an important element of the reorientation of the company announced in mid-March. The development of the new BMW model series is moving forward at top speed, with a number of concepts being pursued at the moment. 

The BMW Group has decided to start production for the new model series in the Regensburg factory. However, the existing capacity within the BMW production network is not sufficient for the additional production volume required for the new model series. BMW is therefore planning to build a completely new factory. The decision in regard to the location will be of very long-term nature and will require thorough, comprehensive examination. A decision will probably be reached by mid-2001. It is not yet certain which models will be produced in the new plant.  

At today's works meeting in the Regensburg factory, Dr. Norbert Reithofer, Member of the Board of Management of the BMW Group, responsible for production, stated: "The Regensburg plant has excellent experience in production start-ups and can thus guarantee the high standards of the BMW quality for the new model from the very beginning. Flexibility in shifting models from one plant to another within the BMW production network will become even more important in the future, and this will then increase the agility of the entire company." 

There were several reasons for the decision to start production in the BMW plant in Regensburg. The active use of the BMW production network, with standardized production elements and sequences is efficient and ensures that the individual plants are utilized permanently. Increased flexibility in shifting models from one plant to another will also mean shorter delivery periods for customers. In addition, starting the production of a new model in an existing plant with proven experience will save time and mean that the new workforce can be given intensive training in the new factory.  

In the past weeks, the general requirements for a possible new location have been specified: A sufficiently large site, over two square kilometers; good traffic connections (motorway, railway, airport); trained staff and staff who can be trained; the ability to be linked with the BMW production network; the attractiveness of the local market and the overall costs are all important. The general political climate is also of crucial significance. The project will create several thousand jobs at BMW and its suppliers. 

BMW builds primarily 3 Series models at the Regensburg plant. 

(13. July 2000)

 

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