BMW 2010 Annual Report Download - page 24

22
12 GROUP MANAGEMENT REPORT
12 A Review of the Financial Year
14 General Economic Environment
18 Review of Operations
41 BMW Group – Capital Market
Activities
44 Disclosures relevant for takeovers
and explanatory comments
47 Financial Analysis
47 Internal Management System
49 Earnings Performance
51 Financial Position
53 Net Assets Position
55 Subsequent Events Report
55 Value Added Statement
57 Key Performance Figures
58 Comments on BMW AG
62 Internal Control System and
explanatory comments
63 Risk Management
70 Outlook
followed by the new BMW 5 Series Touring in June. These
two models together account for some two-thirds of the
Dingolfing plant’s output. In response to increased de-
mand, we raised the daily production volume from Octo-
ber onwards from 1,200 to 1,400 units, a new record for
aBMW Group plant. In February 2010, the foundation
stone was laid at the Dingolfing component plant for a
factory building destined to house the production of axle
drives. This new facility will come on line in early summer
2011. The project has been planned with a strong em-
phasis on sustainability. For example, energy consump-
tion in the new building will be 25% lower than the level
prescribed by the relevant energy-saving regulations.
Energy requirements for welding processes will also be
reduced by 20%. Moreover, the design of the new axle
drive assembly will comply in all respects with the prin-
ciples of the BMW Group’s “Today for Tomorrow” pro-
gramme, which takes appropriate account of the demo-
graphic aging of the population.
At the beginning of December, the 50,000th BMW Z4
since production of this vehicle was transferred to Ger-
many
came off the production line at the BMW plant in
Regensburg. The building expansion and equipment
modernisation measures that began in 2009 were also
continued, involving expenditure of approximately euro
300 million. The expansion will be completed in the
course of 2011 and includes the construction and com-
missioning of new and expanded assembly finishing
facilities, new robot equipment for chassis construction
as well as process changes and modernisation in the
paint shop. Thus the foundation has been laid for re-
fitting production facilities to accommodate the manu-
facture of future models.
Mid-July saw the official start of production of SGL
Carbon Automotive Carbon Fibers GmbH, a joint
ven-
ture between the BMW Group and the SGL Group
atthe BMW plant in Wackersdorf. Composite layers
usedincarbon-fibre reinforced plastics (CFRP) produc-
tion will be produced there for the planned Megacity
Vehicle.
Due to very high demand for the BMW X1 worldwide,
the BMW plant in Leipzig raised the production volume
for this model by more than 26% to over 475 units per
day, bringing total production up to more than 720 units
per day. As a result of the strong order-book situation,
wegave approximately 100 temporary staff at the Leipzig
plant permanent employment contracts with effect from
the beginning of 2011. Under the motto “We are building
the future”, on 5 November 2010 the go-ahead was given
to expand the Leipzig plant as the production location
for the future Megacity Vehicle. In the period up to 2013,
the BMW Group will invest some euro 400 million on
new buildings and equipment in Leipzig for the large-
scale series manufacture of this electric vehicle with a
CFRP-constructed passenger compartment.
We are currently expanding the existing CFRP production
facilities at the BMW plant in Landshut. On an area
covering approximately 7,000 square metres, up to 100
employees will process carbon-fibre layers to form CFRP
components for the Megacity Vehicle in the future.
TheBMW Group can
boast more than ten years of CRFP-
related process know-how and materials expertise gained
through experience at the Landshut site. The material
ispresently being used to construct components for
BMWM models.
In 2010 the light-metal foundry at the Landshut plant
won the prestigious “Automotive Lean Production Award”
in the category “Overall System Excellence”. The prize
isone of the most important in the automobile industry.
The “Overall System Excellence” award pays tribute to
the focus of production systems on value created by the
production workforce across all areas and levels.
Since the beginning of 2010, plastic components have
been cleaned in the exterior production at the BMW plant
in Landshut using the new and innovative resource-
saving “snow cleaning” system. The BMW Group is one
of the first companies in the world to employ this inno-
vative system for large-surface parts such as bumpers
orside panels. Under this system, the plastic components
are no longer cleaned in a conventional washing plant
Vehicle production of the BMW Group by plant in 2010
in 1,000 units
Dingolfing 287.4 Rosslyn 49.0
Regensburg 244.0 Goodwood 3.2
Oxford 216.3 Shenyang1 55.6
Munich 205.7 Graz (Magna Steyr)2 54.9
Leipzig 186.8 Assembly plants 19.1
Spartanburg 159.3
1 Joint venture
2 Contract production
Dingolfing
Munich
Regensburg
Oxford
Leipzig
Spartanburg
Rosslyn
Goodwood
Graz2
Assembly plants
Shenyang1