BMW 2003 Annual Report Download - page 23

001 BMW Group in figures
004 Report of the Supervisory Board
008 Supervisory Board
011 Board of Management
012 Group Management Report
12 A Review of the Financial Year
29 Outlook
30 Financial Analysis
44 Risk Management
047 BMW Stock
050 Corporate Governance
054 Group Financial Statements
118 BMW AG Principal Subsidiaries
120 BMW Group10-year Comparison
122 BMW Group Locations
124 Glossary, Index
22
Construction work for phase VII of the extension
at the BMW Steyr plant commenced in April 2002.
One of the main items of investment here is a new
37,000 m2production hall, where core components
for engines such as crank cases and cylinder heads
will be manufactured using state-of-the-art pro-
duction techniques. This is the most extensive of
the various construction phases, which will be com-
pleted in 2004, and will increase the size of the plant,
in square metre terms, by a third.
At the end of September, production of the
updated BMW X5 was commenced at the BMW
Spartanburg plant. In 2003, the BMW Group also
tapped a hitherto unused source of energy for use
in Spartanburg. Up to 25% of the plant’s energy
requirements are now covered by methane gas,
supplied from a waste disposal site situated some
15 km away from the plant.
The body in white area was expanded at the
BMW plant in Rosslyn, South Africa in preparation
for new models. In addition, the flow of materials
throughout the plant was optimised in terms of
quality, speed and safety.
Series production of the MINI One D began at
the Oxford plant in March 2003. The overall high
demand for MINI cars resulted in a further increase
in production volumes. With the aid of flexible work-
time arrangements, more than 174,300 units were
manufactured.
Certified environmental management systems
have been in place at all of the BMW Group’s pro-
duction sites around the world since 1999. Working
together with centralised production divisions, these
systems have been further developed in the period
up to 2003 into an integrated environmental manage-
ment
system. The move to a certification matrix
covering both environmental care and quality issues
has therefore now been completed. Internal audits
and other measures are now managed centrally and
reported as part of the same reporting system.
The progress made in the area of production-
related environmental care is reflected by the quan-
tity of energy and water consumed and emissions of
CO2and volatile organic compounds: almost all of
the relevant key figures significantly improved in 2003,
and represent benchmarks for the whole industry.
Capital expenditure increased again
The BMW Group is laying the foundation for contin-
ued expansion in the years ahead with substantial
levels of capital expenditure. In 2003, the Group
invested euro 3,249 million in intangible assets and
property, plant and equipment. Together with devel-
opment costs of euro 996 million which are required
to be recognised as assets in accordance with
IAS 38, total additions to intangible assets and prop-
erty, plant and equipment amounted to euro 4,245
million. This represents an increase of 5.0 %.
Volatile organic compounds (VOC) per unit produced
(kg/unit)
4.50
4.25
4.00
3.75
3.50
3.25
3.00
2.75
99 00 01
3.80
3.21 3.07
02*03
3.23
2.70
Process effluent per manufactured car
(m3/unit)
1.30
1.25
1.20
1.15
1.10
1.05
1.00
0.95
99 00 01
1.15
1.06 1.07
02
0.92
03
0.93
*increase in 2002 due to the new computation basis in accordance with the Volatile
Organic Compounds Regulation (31st Federal Regulation on Gas Emissions)