BMW 2013 Annual Report Download - page 34

34
18 COMBINED MANAGEMENT REPORT
18 General Information on the BMW Group
24 Report on Economic Position
24 Overall Assessment by Management
24 General and Sector-specific
Environment
27
Financial and Non-financial
Performance Indicators
29 Review of Operations
29 Automotive Segment
35 Motorcycles Segment
36 Financial Services Segment
38 Research and Development
40 Purchasing
41 Sales and Marketing
42 Workforce
44 Sustainability
47 Results of Operations, Financial
Position and Net Assets
56 Events after the End of the
Reporting Period
63 Report on Outlook, Risks and
Opportunities
81 Internal Control System and Risk
Management System Relevant for the
Consolidated Financial Reporting Process
82
Disclosures Relevant for Takeovers
and Explanatory Comments
85 BMW Stock and Capital Markets
primary function is to serve the corresponding regional
markets – also remained on growth course in 2013, pro-
ducing a total of 51,504 units in all. The BMW Group
will also soon be producing BMW motorcycles at its as-
sembly plant in Rayong, Thailand, exclusively for the
growing local market. The Rayong plant is therefore the
only one in the Group’s worldwide production network
to manufacture for three brands: the BMW, the MINI
and BMW Motorrad. Moreover, in December the BMW
Group laid the foundation stone for a new plant in
Araquari, Brazil (in the state of Santa Catarina). The
plant is scheduled to commence operations in autumn
2014 and produce up to 30,000 units per year.
In November, the production of the third generation of
MINI models began at the Oxford plant to coincide with
the plant’s 100th anniversary. The British production
triangle comprising the MINI plant in Oxford, the com-
ponents plant in Swindon and the engine production
facility in Hams Hall is a key part of the BMW Group’s
production network. The pressing plant in Swindon
introduced tactile laser welding technology during the
reporting period. This highly innovative process offers
advantages in terms of corrosion protection and will be
utilised for the first time in producing the third MINI
model generation.
In order to secure further capacities for the planned
growth of the MINI, the BMW Group simultaneously
made preparations for producing the MINI under con-
tract with the Dutch carmaker VDL NedCar bv, Born.
Contract production of the MINI will commence in
the
second half of the coming year. The MINI models
Countryman and Paceman are already being produced
under contract by the company Magna Steyr Fahr zeug-
technik
in Graz, Austria.
The Rolls-Royce plant in Goodwood, England, celebrated
its tenth production anniversary during the year under
report. Series production of the Rolls-Royce Wraith began
at the plant in summer 2013.
Flexible, standardised production system for
engines introduced
Preparations were made to manufacture a new genera-
tion of low-consumption petrol and diesel engines at
the Munich, Hams Hall (UK) and Steyr (Austria) plants.
For this purpose a highly flexible, demand-oriented
production system was introduced at all three locations.
In September, production began of the 3- and 4-cylinder
engines for the new Efficient Dynamics engine family
deployed in BMW and MINI brand cars. At the Hams
Hall plant, measures were implemented to take over pro-
duction
of drive systems for the BMW i8 as from 2014.
The production start-up of the latest generation of modu-
lar
engines was also high on the agenda at the BMW
Group’s largest engine-making plant in Steyr. Since the
beginning of series production at the site, no fewer
than 16 million engines have been manufactured. Cur-
rently, the Steyr plant handles production of the BMW
4- and 6-cylinder diesel engines, 6-cylinder petrol en-
gines and MINI diesel engines. Since switching to the
use of electricity generated from renewable sources and
eco-friendly, climate-neutral process heat from the
near by biomass power plant in 2013, the engine plant
has reduced its annual carbon emissions by more than
30,000 tons.
Due to the strong demand for 4-cylinder petrol engines
worldwide during the period under report, engine-
building activities at the Munich plant ran at full
capacity, with up to 2,000 engines produced per day.
In addition, the Munich plant also manufactures 8- and
12-cylinder petrol engines as well as 6-cylinder diesels
for our M Performance models.