Table 2.4 BMW global manufacturing networks

Country	Plant (scale in the employee number; main manufacturing activities)
Germany	Berlin plant (1,900 employees; producing motorcycle parts and BMW automobile components), Dingolfing plant (18,600 employees; producing BMW vehicles, body shells for the Rolls-Royce Phantom, and BMW chassis components), Eisenach (235 employees; producing large metalworking tools), Landshut plant (3,000 employees; producing engine components), Leipzig plant (a new plant that will hire 800 employees; producing BMW automobiles), Munich plant (6,800 employees; producing BMW automobile, internal combustion engines, and high-performance power units), Regensburg plant (9,000 employees; producing BMW automobiles), Wackersdorf plant (2,000 at the Wackersdorf Innovation Estate, producing components for BMW)
Italia	Cassinetta plant (260 employees; producing Husqvarna Motorcycles)
UK	Hams Hall plant, near Birmingham (260 employees; manufacturing four-cylinder petrol engines for both BMW and MINI), Oxford plant (3,800 employees; producing MINI automobiles), Swindon plant (800 employees; producing steel pressings and complex sub-assemblies), Rolls-Royce Motor Cars and its Goodwood plant in West Sussex, England (about 1,000 employees; producing Rolls-Royce cars)
South Africa	Rosslyn plant (1,700 employees; producing BMW 3 Series Sedan)
China	Shenyang, a joint venture (3,000 employees; producing BMW 5, X1, and 3 Series long-wheelbase version)
USA	Spartanburg (7,000 employees; producing BMW X3 and X5 Sports Activity Vehicle and the X6 Sports Activity Coupe)
Austria	Steyr plant (3,600 employees; engine manufacturing)

Case Example: BMW Global Manufacturing

BMW built the first production plant in Munich in 1916. From a small company it became one of largest automobile producers in the world. The BMW Group manufactures and sells three car brands operating in the premium segments: BMW, MINI, and Rolls-Royce. The group has a strong market position in the motorcycle sector and operates a successful financial services business.

Currently, BMW produces cars and motorcycles in plants in Germany, the UK, the US, China, Italia, South Africa, and Austria (see Table 2.4). BMW adopts contract production with production a partner in Graz, Austria. To respond to market demands around the world, and to enter markets with customs regulations governing the importation of complete automobiles, BMW manufactures automobiles from parts kits in assembly plants, called a completely knocked down (CKD) production process. The BMW Group uses CKD assembly to manufacture automobiles with partners in six locations including Thailand, Malaysia, Russia, Egypt, Indonesia, and India, and to manufacture motorcycles in Brazil.

Case Questions

1. Rolls-Royce has been a leading brand of luxury car. BMW acquired its assets and managed its manufacturing plants. What is this manufacturing globalization mode? Provide an example.

2. Shenyang plant is a joint venture between BMW and Brilliance China Automotive to produce the BMW long-wheelbase version, only for the local market. What is this manufacturing globalization mode? Provide an example.

3. Which manufacturing globalization mode has been used in BMWs CKD assembly plants?Provide an example.

4. What are different advantages achieved by BMW through various global production modes of wholly owned plants from origin (e.g., Munich plant), wholly owned plants by acquisition (e.g., Rolls-Royce plant), joint venture (e.g., Shenyang plant), and contract production (Graz plant)? Provide an example.