BMW Group South Africa today announced an additional R160 million to be pumped into the Rosslyn manufacturing facility to enhance production linespeed. The enhancement raises the maximum production capacity by almost 10%, from 71 000 units to 76 000 units, leaving the plant with excellent potential in the future to produce the highest volume ever in its 44 year history.
The additional investment comes on the back of R6bn announced in November 2015 for the preparation of BMW Plant Rosslyn to produce the new BMW X3.
Tim Abbott, CEO BMW Group South Africa and Sub-Saharan Africa says: “We are greatly encouraged by the amazing performance of our BMW X-models around the world. This growth trend supports our decision to produce the BMW X3 in South Africa. The potential for the future is exciting as ultimately production volume is determined by global demand for our products.”
BMW X-models, part of the brand’s Sports Activity Vehicle (SAV) range, accounted for more than 30% of total global sales for the brand in 2016. The BMW X3, in turn, accounted for more than 24% of the global BMW X-model range.
Production will start in the first half of 2018. The proudly South African BMW X3 will be produced for the local market and in addition will be exported to Europe.
BMW Group South Africa is now becoming a part of the global BMW X-model success story. BMW Plant Spartanburg in the USA will continue to produce the BMW X3 for their local market and export markets.
Plans to create a centre of production excellence at the company’s Rosslyn Plant is well under way with the largest infrastructure upgrade in the history of the facility completed and staff upskilled in state-of-the-art technologies. Supplier development and localisation strategies are in progress, and the company is confident that the BMW X3 will be more localised than the current BMW 3 Series.
BMW Plant Rosslyn will continue to build the BMW 3 Series until early next year.
BMW Group South Africa growth plans for the future includes investment in several business areas.
BMW Group South Africa has had a presence in South Africa for nearly 45 years, contributing to the upliftment of the country and its people. The company continues its passion for South Africa, with future plans including investment into several areas of the business.
Examples of this are the R400 million expansion of the Midrand Headquarters and doubling the size of the regional parts warehouse, as well as doubling the local Information Technology function, in an increasingly digitalised world, to nearly 800 staff.
“BMW Group South Africa continues to invest in our future, our employees and the country,” Abbott concludes