BMW Group South Africa (BMW SA) will invest an additional R160-million into its Rosslyn manufacturing facility to enhance production linespeed.
The enhancement raises the maximum production capacity by almost 10%, from 71 000 units to 76 000 units, leaving the plant with potential in the future to produce the highest volume in its 44-year history.
The additional investment comes on the back of a R6-billion investment announced in November 2015 for the preparation of the plant to produce the BMW X3.
“We are greatly encouraged by the amazing performance of our BMW X models globally. This growth trend supports our decision to produce the BMW X3 in South Africa,” BMW SA CEO Tim Abbot said on Monday.
BMW X models accounted for more than 30% of the total global sales for the brand in 2016. The BMW X3, in turn, accounted for more than 24% of sales of the global BMW X-model range.
Local production of the BMW X3 will start in 2018. The vehicles will be sold in South Africa, as well as exported to Europe.
Plans to create a centre of production excellence at the company’s Rosslyn plant are under way with the largest infrastructure upgrade in the history of the facility completed and staff upskilled in state-of-the-art technologies.
Supplier development and localisation strategies are in progress, and the company is confident that the BMW X3 will be more localised than the current BMW 3 Series.