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Table 2.4 BMW global manufacturing networks Country Plant (scale in the employee number; main manufacturingactivities) Germany Berlin plant (1,900 employees; producing motorcycle parts andBMW automobile

Table 2.4 BMW global manufacturing networks

Country

Plant (scale in the employee number; main manufacturingactivities)

Germany

Berlin plant (1,900 employees; producing motorcycle parts andBMW automobile

components), Dingolfing plant (18,600 employees; producing BMWvehicles, 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 thatwill hire 800

employees; producing BMW automobiles), Munich plant (6,800employees;

producing BMW automobile, internal combustion engines, andhigh-performance

power units), Regensburg plant (9,000 employees; producing BMWautomobiles),

Wackersdorf plant (2,000 at the Wackersdorf Innovation Estate,producing

components for BMW)

Italia

Cassinetta plant (260 employees; producing HusqvarnaMotorcycles)

UK

Hams Hall plant, near Birmingham (260 employees; manufacturingfour-cylinder

petrol engines for both BMW and MINI), Oxford plant (3,800employees; producing

MINI automobiles), Swindon plant (800 employees; producing steelpressings and

complex sub-assemblies), Rolls-Royce Motor Cars and its Goodwoodplant in West

Sussex, England (about 1,000 employees; producing Rolls-Roycecars)

South Africa

Rosslyn plant (1,700 employees; producing BMW 3 SeriesSedan)

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 SportsActivity Vehicle

and the X6 Sports Activity Coupe)

Austria

Steyr plant (3,600 employees; engine manufacturing)

Case Example: BMW GlobalManufacturing

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

Currently, BMW produces cars and motorcycles in plants inGermany, the UK, the US, China, Italia, South Africa, and Austria(see Table 2.4). BMW adopts contract production with production apartner in Graz, Austria. To respond to market demands around theworld, and to enter markets with customs regulations governing theimportation of complete automobiles, BMW manufactures automobilesfrom parts kits in assembly plants, called a “completely knockeddown” (CKD) production process. The BMW Group uses CKD assembly tomanufacture automobiles with partners in six locations includingThailand, Malaysia, Russia, Egypt, Indonesia, and India, and tomanufacture motorcycles in Brazil.

Case Questions

1. Rolls-Royce has been a leading brand of luxury car. BMWacquired its assets and

managed its manufacturing plants. What is this manufacturingglobalization mode? Provide an example.

2. Shenyang plant is a joint venture between BMW and BrillianceChina Automotive to produce the BMW long-wheelbase version, onlyfor the local market. What is this manufacturing globalizationmode? Provide an example.

3. Which manufacturing globalization mode has been used in BMW’sCKD assembly plants? Provide an example.

4. What are different advantages achieved by BMW through variousglobal 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), andcontract production (Graz plant)? Provide an example.

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Manufacturing Globalization Mode for RollsRoyce Acquisition BMWs acquisition of RollsRoyce assets and management of its manufacturing plants represents a mode of manufacturing globalization known as Full Ownership or Wholly Owned Plant by Acquisition In this mode BMW fully owns and controls the acquired facilities and operations Example The acquisition and management of RollsRoyce Motor Cars including its Goodwood plant in West Sussex England by BMW is an illustration of this manufacturing globalization mode Manufacturing Globalization Mode for Shenyang Plant Joint Venture The Shenyang plant which is a joint venture between BMW and Brilliance China Automotive for producing the BMW longwheelbase version exclusively for the local market is an example of Joint Venture Manufacturing In this mode BMW collaborates with a local partner to establish and operate a manufacturing facility Example The Shenyang plant in China producing longwheelbase versions of BMW models is a joint venture between BMW and Brilliance China Automotive Manufacturing Globalization Mode for BMWs CKD Assembly Plants BMWs CKD Completely Knocked Down assembly plants represent ... blur-text-image
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