News of December 27, 2001
BMW Group backs product and market offensive with a wide range of investments
3.4 billion euro approved in the past year for the development and expansion of the plant structure
Munich - The BMW Group is backing its product and market offensive with a wide-ranging investment program. In the past year alone, a volume of 3.4 billion euro has been approved for the development and expansion of the plant structure, some of which has already been spent. These funds are part of the planned investment total of 16 billion euro over the next six years. Development expenditure in the sum of 10 billion euro is planned during the same period.
"The investments of 3.4 billion euro approved in 2001 have created a solid basis for our product and market offensive. The development of the plant structure is the precondition for the further increases in turnover and sales that we are aiming to achieve over the next six years", explained Dr. Norbert Reithofer, Member of the Board of Management of BMW AG responsible for Production.
Wide-ranging investment program in the BMW Group's factory network The highest single investment - around 1.3 billion euro - has been approved for the new plant in the Leipzig/Halle region. BMW 3 Series models will be made in the new production center as from 2005 onwards. In addition to body shell construction, a paint shop and a final assembly line, a supply center and a test track will also be built there.
In addition to the construction of this new plant, the BMW Group continually invests in expanding its existing factories. 500 million euro, for example, is being spent on expanding capacity in the Regensburg plant, where annual production capacity will be increased from 180,000 to 240,000 vehicles.
In the Dingolfing plant, around 500 million euro were invested in alteration and expansion measures in 2001. These relate in particular to production equipment for the new BMW 7 Series and future models.
In addition, a good 250 million euro of investments have been allocated to the modernization of the paint shop in the Munich plant and expansion of the light alloy foundry in Landshut. In order to adapt capacity in the Steyr engine plant to the increasing level ofautomobile production by the BMW Group, 500 million euro are being invested in expanding the factory there.
In Berlin, another 120 million euro are being invested in expanding motorcycle production. This expenditure covers a new production building including paint shop and the expansion of mechanical manufacture and modernization of assembly equipment. Around 210 million euro are also being invested in Rosslyn in South Africa for the modernization and expansion of production equipment.
(December 21, 2001)