BMW 2006 Annual Report Download - page 19

18 Group Management Report
10 Group Management Report
10 A Review of the Financial Year
12 General EconomicEnvironment
15 Review of operations
38 BMW Stock and Bonds
41 Disclosures pursuant to §289 (4)
and §315 (4) HGB
43 Financial Analysis
43 – Internal Management System
44 – Earnings performance
46 – Financial position
48 – Net assets position
50 – Subsequent events report
50 – Value added statement
53 – Key performance figures
54 – Comments on BMW AG
58 Risk Management
62 Outlook
Car production volume at all-time high level
The BMW Group manufactured a total of 1,366,838
cars in 2006, 3.3% above the previous year’s level
and thus an all-time high.
This includes 1,179,317 BMW brand cars, 5.1%
more than in the previous year. Capacity expansion
measures at the Oxford plant resulted in a reduc-
tion in the production volume of MINI brand cars.
186,674 units were manufactured in 2006, 6.7%
fewer than in the previous year. 847 Rolls-Royce
Phantom left the Rolls-Royce plant in Goodwood in
2006, 22.4% more than one year earlier.
Production network underlines high level of
efficiency
In 2006, the BMW Group worldwide production
network once again demonstrated its high level of
efficiency by its handling of eleven production start-
ups. The planned daily production volume was
reached within an average period of three months
following production process changeover to a new
model, thus ensuring fast availability of new products
on the market.
The BMW 3 Series Sedan and Touring models
are both manufactured at the BMW Munich plant.
Due to high demand for the BMW 3 Series
Touring,
which is manufactured exclusively in Munich, daily
production of this model was increased from 450 to
530 vehicles.
It is especially worth mentioning that the inte-
grated series production of a limited edition of the
BMW 320si (2,600 units) was also carried out at
the Munich plant during 2006. Based on this special
model, BMW Motorsport GmbH went on to develop
a powerful 275 bhp racing car for the FIA World
Touring Car Championship (WTCC). Andy Priaulx of
the BMW Team UK subsequently became touring
car world champion in this competition for the second
time in succession.
In addition the assembly of V-engines at the
BMW Munich plant was completely redesigned in
2006 with a view to optimising efficiency, added-
value and flexibility. The highly flexible assembly line
enables all types of V8 and V10 engines to be con-
structed within a single cycle, as and when required.
The pilot phase of this “Vflex” line began in October
2006 and series production is due to commence in
April 2007.
At the BMW plant in Dingolfing, the new axle
drive technology centre was commissioned in April
2006. This has further strengthened the BMW
Group’s position as leader in the field of innovative
chassis and powertrain components.
Furthermore, the BMW Dingolfing plant also
saw the production start of several new models
spread over the course of 2006. In May, the produc-
tion of parts sets for the BMW 5 Series extended
version began. This vehicle is being developed ex-
clusively for the Chinese market. Series production
of the BMW M6 Convertible commenced in Sep-
tember. Shortly after that, in October, production of
the BMW M5 started, equipped with a manual gear
shift to cater to the US market. Towards the end
of the year, the BMW Hydrogen 7 went into small
series production at the Dingolfing plant.
At the BMW Regensburg plant, a one-line pro-
duction system is used to manufacture vehicles
for all of the following models: the BMW 1 Series;
the Sedan, Coupé and Convertible models of
the BMW 3 Series; and the BMW M3 Coupé and
BMW M3 Convertible.
In 2006, the main focus of attention was placed
on production start-ups for the various BMW 3 Series
models. Series production of the new BMW 3 Series
Coupé began in June, and that of the new BMW 3
Series Convertible in December. For the first time
in the history of the BMW Group, a convertible fea-
turing a retractable hardtop is being manufactured in
Regensburg. Special engineering systems and testing
procedures have been put in place in this context.
In 2006, the BMW Regensburg plant celebrated
20 years of production and marked this historic
event by opening its doors to the public at an open
day held in the summer. Since production began in
1986, more than 3.5 million BMW brand vehicles
have come off the production line at the Regensburg
plant.
Following the series production start of the
BMW 3 Series at the BMW Leipzig plant, production
volumes increased continually during 2006. By the
end of the year, more than 600 vehicles were being
manufactured each day. Halfway through 2006, the
Automobile production of the BMW Group by plant in 2006
in1,000 units
Dingolfing
Regensburg
Munich
Oxford
Leipzig
Spartanburg
Rosslyn
Goodwood
Shenyang (joint venture)
Contract production MagnaSteyr
120.8
186.7
105.2
31.1
0.8
196.6
269.9
286.6
114.3
54.8