· BMW will reorganize the global production network China Tiexi factory has the privilege

At the BMW Annual Conference in Munich, Germany on March 16th, the BMW Group announced that it will re-plan the global production network to build a factory that only produces rear-wheel drive vehicles and a factory that only produces front-wheel drive models. In order to reduce costs.

This plan is a key step in BMW's new production process called Manufacturing 4.0. The program also has higher requirements for digitization, which will improve logistics efficiency, and more automotive assembly processes will be done using robots.

“Our goal is to reduce production costs by 5 percentage points year-on-year,” said Oliver Zipse, production director at BMW Group. “Simplifying platform allocation is a key factor in achieving this goal.”

BMW currently has 10 complete vehicle assembly plants worldwide, including the UK and the Netherlands for the production of Mini.

In the future, BMW will build four plants to produce only front-wheel drive models, and five plants will only produce rear-wheel drive vehicles. The only exception is that at the Tiexi plant in China, it will continue to produce two types of vehicles at the same time. All plants will be able to produce four-wheel drive models, as the BMW front and rear drive platforms are also capable of producing four-wheel drive.

Zipse analysis, factory reorganization will simplify the assembly process and reduce the flow of inbound components.

The plan will mainly affect BMW's plants in Regensburg and Leipzig, Germany, which will only produce predecessors in the future. BMW's predecessors include the 2 Series Active Tourer, the Grand Tourer wagon, and the new X1 compact SUV, and a compact sedan that is only available in the Chinese market.

The Regensburg plant currently produces nine different models based on three platforms, the most complex of BMW's plants, from the Z4 sports car to the X1. In the next three years, the plant will be converted to a rear-wheel-drive model, Zipse said.

The Leipzig plant will be converted to a production of front-wheel-drive models in four years, but it will retain a dedicated production line for the BMW sub-brand i, which is expected to be launched after 2020.

BMW will continue to produce rear-wheel-drive models in Munich, Germany, Roslin, South Africa, Spartanburg, USA, and China's Dadong plant.

BMW's plants in Oxford, England and Bonn, the Netherlands, will continue to produce the predecessor Mini.

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