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BMW SA invests in new warehouse, X3 production to start in 2018

Design impressions of the future BMW Group SA Midrand campus

Design impressions of the future BMW Group SA Midrand campus

Photo by Boogertman + Partners

22nd March 2017

By: Irma Venter

Creamer Media Senior Deputy Editor

     

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BMW Group South Africa (BMW SA) will, over the next two years, invest R400-million in a new regional distribution centre (RDC) and the expansion of its Midrand headquarters.

The R400-million investment is in addition to the R6-billion injection, announced in November 2015, to prepare the company’s Rosslyn plant, in Tshwane, to build the next generation BMW X3 sports-utility vehicle (SUV).

BMW SA currently builds the 3 Series for the local and exports markets.

Delivery of the first new X3s from Rosslyn to customers will happen in 2018, said BMW SA and sub-Saharan Africa CEO Tim Abbott on Wednesday.

Speaking in Midrand at a media briefing, he said South African production of the X3 had been brought forward owing to increasing global demand for BMW’s X-model range.

However, he noted that the company would not rush the first car off the assembly line.

He said “quality was key” and that BMW SA “didn’t want to drop the ball”, as X3 production at the Rosslyn plant signalled the first time that a BMW X-product would be produced outside the US.

BMW SA would not export the new X3 to the US, he added, but would target Europe as its main market, as well as possibly some of the company’s other traditional markets, such as Australia.

BMW SA currently exports the 3 Series to the US, as well as a host of other markets.

In a January interview US President Donald Trump criticised German carmakers for failing to produce more cars on US soil, threatening them with a 35% import duty. He especially targeted imports from Mexico.

New Warehouse
BMW SA’s new RDC, which is, in essence, a parts warehouse, will be located at the Waterfall Distribution Campus, with construction already under way.

This 32 000 m2 customised warehouse – twice as big as the current warehouse – will service customers of the BMW, MINI and BMW Motorrad brands in South Africa, and also possibly sub-Saharan Africa.

BMW SA’s current parts warehouse had been struggling to meet demand, said Abbott.

The relocation of the current warehouse, located at the BMW SA head office, in Midrand, to the new site in 2018, opens space on the Midrand campus for the revamping of the current warehouse into a new training centre for BMW SA dealer staff.

The Midrand Campus will, in future, also house the SAP Shared Services Centre and information technology (IT) operations, currently located in Pretoria.

Existing office space will be expanded and revamped to accommodate the growth of the IT function at BMW SA.

The company has been selected from the 140 countries in the BMW group network as a hub for SAP system development, owing to the unique skill set of its IT personnel. It services countries such as China and the US.

Once all of the construction work has been completed, the expanded Midrand campus will bring together staff for corporate services, sales and marketing, IT, dealer training and financial services.

The revamp of BMW SA’s Midrand headquarters and the new RDC would allow the company “to remain relevant to changing customer needs by bringing together cross-functional disciplines in one centralised powerhouse”, said Abbott.

 

 

Edited by Creamer Media Reporter

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