While recognising that countries like China will challenge South
Africa’s automotive strength in the future, automaker BMW SA
is confident that investments already made here give the company
some form of security
BMW SA logistics GM Dr Tim Kaps says that the local plant in Rosslyn is an established production site of BMW and is closely aligned to the standards of its German sister plants and other production facilities elsewhere in the world
“We have shown that we are up to scratch; we can launch a product in three months’ time, we have the same quality levels as our German counterparts and we can export without any problems. That said, there is always room for improvement. We need to look into our efficiency and resolve issues around the Motor Industry Development Programme, due to come to an end in 2012
“Having a production base in South Africa, without a doubt, has some disadvantages; we are far away from a lot of our parts and most of our customers. The normal strategy would be for the production to follow the market, but this clearly is not the case in South Africa
“If one looks at our volumes, we sell only 20% of our vehicles locally and export the remaining 80% to countries like the US, China, East Asia, Australia, New Zealand and sub-Saharan Africa. It definitely would be nice to have it the other way around – sell 80% locally and export 20%,” Kaps notes
BMW SA manufactures the BMW 3-series (left-hand and right- hand drive in all engine derivatives and in any colour) at its Rosslyn plant. The 3-series was launched in the first half of 2005 and last year some 55 000 units were produced, with 13 000 cars sold in South Africa and 42 000 exported
Worldwide, BMW produces 700 000 3-series vehicles a year, which means that, with a production output of between 50 000 and 55 000 units a year, BMW SA has a 7% to 8% share of the total 3-series market
In terms of BMW’s total vehicle production, BMW SA’s market share is about 4%
Some R2-billion was invested in the Rosslyn plant and today it is the most sophisticated and automated vehicle-production plant in the south- ern hemisphere. Depending on which production shift model is run, the plant, which has 2 300 employees, can produce between 1 250 and 1 500 cars a week
BMW South Africa has 47 first-tier suppliers and about 70 local suppliers providing components to the production line
Local suppliers are located throughout the country in Johann-esburg, Cape Town, Port Elizabeth, East London, Pretoria and the Ros-slyn Automotive Supplier Park
While large investments have been poured into increasing the efficiency of the automaker’s logistics network, Kaps concedes that some challenges still exist to improve it even further. From a broader South African perspective, Kaps says the reliability of harbour and rail infrastructure needs to be improved to ensure better just-in-time parts delivery
Looking forward, BWM SA’s continued focus will be to increase productivity, broaden its local supplier base and develop local skills and qualifications.
BMW SA logistics GM Dr Tim Kaps says that the local plant in Rosslyn is an established production site of BMW and is closely aligned to the standards of its German sister plants and other production facilities elsewhere in the world
“We have shown that we are up to scratch; we can launch a product in three months’ time, we have the same quality levels as our German counterparts and we can export without any problems. That said, there is always room for improvement. We need to look into our efficiency and resolve issues around the Motor Industry Development Programme, due to come to an end in 2012
“Having a production base in South Africa, without a doubt, has some disadvantages; we are far away from a lot of our parts and most of our customers. The normal strategy would be for the production to follow the market, but this clearly is not the case in South Africa
“If one looks at our volumes, we sell only 20% of our vehicles locally and export the remaining 80% to countries like the US, China, East Asia, Australia, New Zealand and sub-Saharan Africa. It definitely would be nice to have it the other way around – sell 80% locally and export 20%,” Kaps notes
BMW SA manufactures the BMW 3-series (left-hand and right- hand drive in all engine derivatives and in any colour) at its Rosslyn plant. The 3-series was launched in the first half of 2005 and last year some 55 000 units were produced, with 13 000 cars sold in South Africa and 42 000 exported
Worldwide, BMW produces 700 000 3-series vehicles a year, which means that, with a production output of between 50 000 and 55 000 units a year, BMW SA has a 7% to 8% share of the total 3-series market
In terms of BMW’s total vehicle production, BMW SA’s market share is about 4%
Some R2-billion was invested in the Rosslyn plant and today it is the most sophisticated and automated vehicle-production plant in the south- ern hemisphere. Depending on which production shift model is run, the plant, which has 2 300 employees, can produce between 1 250 and 1 500 cars a week
BMW South Africa has 47 first-tier suppliers and about 70 local suppliers providing components to the production line
Local suppliers are located throughout the country in Johann-esburg, Cape Town, Port Elizabeth, East London, Pretoria and the Ros-slyn Automotive Supplier Park
While large investments have been poured into increasing the efficiency of the automaker’s logistics network, Kaps concedes that some challenges still exist to improve it even further. From a broader South African perspective, Kaps says the reliability of harbour and rail infrastructure needs to be improved to ensure better just-in-time parts delivery
Looking forward, BWM SA’s continued focus will be to increase productivity, broaden its local supplier base and develop local skills and qualifications.
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Edited by: Zonika Botha
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