BMW 2011 Annual Report Download - page 28

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of integrating the production of the new BMW 3 Series
into existing manufacturing structures was commenced
in summer 2011, involving capital expenditure in the
region of € 300 million.
At the Wackersdorf plant we expanded the scope of
operations for cockpit production. From now on, cock-
pits will be produced there for both the BMW 3 Series
and the BMW 1 Series and supplied to our production
sites worldwide.
At the beginning of December, the BMW plant in Leip-
zig celebrated the one-millionth vehicle to leave its pro-
duction lines since operations commenced there. Al-
most 200,000 units were produced at the Leipzig plant
in 2011, more than ever before. The site's efficient and
flexible structures enabled it to rise to the challenge
of meeting high worldwide demand for the BMW X1 and
BMW 1 Series models. The BMW 1 Series M Coupé is
also being produced at the Leipzig plant, the first time
a BMW M model has been produced at this location.
Preparations also commenced in 2011 for the future
production of electric cars. In October 2011 a “topping
out” ceremony was held to celebrate the extending of
facilities built for producing future BMW i models. Pro-
duction here will be done on a CO2-neutral basis and
all energy used will come from renewable sources. Four
wind turbines set up at the site will generate sufficient
amounts of electricity to produce the BMW i models. In
the year under report we invested some € 183 million.
By the end of 2013 the BMW Group will have invested
€ 400 million in the project and created 800 jobs in the
process. Parallel to the above activities, a test fleet of
approximately 1,100 BMW ActiveE cars was produced
up to the beginning of 2012.
We are currently expanding the existing CFRP produc-
tion facilities at the BMW plant in Landshut. In future,
up to 100 employees will process carbon-fibre layers to
form CFRP components for the BMW i 3 and BMW i 8
models. The BMW Group boasts more than ten years of
expertise in working with this lightweight construction
material at the Landshut site. In order to extend our ex-
pertise in the area, the BMW Group and the Technische
Universität Munich are working together closely on a
related research and development project. In Septem-
ber 2011 we provided a carbon braiding machine to
fur-
ther develop braiding technology for CFRP components
for future automotive applications and to work on solu-
tions
for producing CFRP components on an industrial
scale. As part of the measures being taken to expand
capacities, the smelter at the Landshut lightweight
metal foundry will be redesigned and production
pro-
cesses modified to make them even more sustainable.
In future, residual metals will be recycled in the site’s
own smelter. This concept promises to cut costs and at
the same time reduce CO2 emissions along the entire
value-added chain by 10 %.
In 2011 the BMW Group’s largest engine factory in Steyr
established a new record by producing 1.2 million en-
gines, easily surpassing the high level of 1 million units
achieved in 2010. The Steyr plant again set standards
in the automotive sector in 2011, winning two top places
in the international “Engine of the Year Awards”.
The
BMW 6-cylinder petrol engine with TwinPower
Turbo
and the BMW 4-cylinder diesel engine with TwinPower
Turbo were both voted winners in their categories.
More than 190,000 MINIs were manufactured at the
Oxford plant in 2011. Production of the MINI Coupé
commenced in July, with the MINI Roadster following
in November.
We invested some € 100 million in the
Oxford plant over the course of the year. Preparations
for the next MINI
generation were also set in motion.
The two-millionth MINI rolled off the production line
in Oxford in August
2011. The Hams Hall plant cele-
brated its tenth anni versary in 2011. Production of
engines for the new
BMW 1 Series and 3 Series started
during the course of the year. Al together, more than
430,000 engines were produced at Hams Hall in 2011,
a new record for the site. In June 2011 we announced
plans to further expand the Hams Hall plant to build
Vehicle production of the BMW Group by plant
in 2011
in 1,000 units
Dingolfing 343.2 Rosslyn 53.2
Spartanburg 276.1 Goodwood 3.7
Regensburg 260.0 Shenyang1 98.2
Leipzig 199.2 Graz (Magna Steyr)2 102.7
Oxford 191.5 Assembly plants 37.5
Munich 172.9
1 Joint venture BMW Brilliance
2 Contract production
Dingolfing
Munich
Regensburg
Oxford
Leipzig
Spartanburg
Rosslyn
Goodwood
Graz2
Assembly plants
Shenyang1
18 COMBINED GROUP AND COMPANY
MANAGEMENT REPORT
18 A Review of the Financial Year
20 General Economic Environment
24 Review of Operations
24 Automotive segment
29 Motorcycles segment
31 Financial Services segment
33 Research and development
36 Purchasing
37 Sales
38 Workforce
40 Sustainability
43 BMW Stock and Capital Market
46 Disclosures relevant for takeovers
and explanatory comments
49 Financial Analysis
66 Internal Control System and
explanatory comments
67 Risk Management
73 Outlook