Production at BMW Plant Rosslyn secured

The investment announcement follows the signing of a Letter of Commitment with the

Department of Trade and Industry (

new support scheme for the motor industry, the Automotive Production and

Development Programme (APDP).

The APDP will replace the current support programme for the automotive industry, the

Motor Industry Development Programme (MIDP), in 2012.

At the same time, the German automaker announced a training program for 1,100

associates at Plant Rosslyn. The training program commenced in early September and

will run for the next 18 months, providing a MERSETA-accredited qualification to the

associates. It also serves to avoid a ‘no work, no pay’ situation, during scheduled Plant

shutdown periods, for associates who have not opted into BMW’s flexible Working

Time Account. BMW is confident that this program will be given the support of

government’s well-timed Training Scheme, announced in August.

The BMW Group has a long history in South Africa, rich in major milestones, and has

had a local presence since 1968. BMW Plant Rosslyn became the BMW Group’s first

manufacturing facility outside of Germany in 1975. The company was also the first

South African car maker to adjust its entire production configuration to begin an export

programme in 1994, ahead of the announcement of the MIDP. This was followed, five

years later, by a decision to move Rosslyn to a two-shift production model focussed on

producing almost three-quarters of its volume for export markets.

That decision 10 years ago led to production volumes at Plant Rosslyn increasing by

some 220% and export volume by 400%. BMW South Africa now indirectly employs

42,000 people (2,500 Associates, 3,780 Dealer Staff and 36,000 first-tier Supplier

employees) and is the country’s leading exporter of passenger cars year to date.

The current investment decision follows in a similar vein and gives a clear message

about the BMW Group’s ongoing commitment to the South African economy and the

confidence the company has in the country’s future despite difficult market conditions.

The local Premium Segment is currently trading 18% below 2008 levels, whilst the

local vehicle market is facing its biggest decline in 15 years.

“The BMW Group has never shied away from making decisions for the future in spite of

the current tough conditions the motor industry is facing,” explains BMW South Africa

Managing Director, Bodo Donauer. “By making an announcement of this magnitude

during the worst known crisis the automotive industry has faced in recent times, we not

only send a positive message to our staff about the long-term sustainability of BMW

South Africa, but also a positive message about the future of South Africa as a whole.”

However, Donauer stresses that it is important for the open issues with regard to the

APDP to be resolved quickly.

“We have experienced that Government is certainly willing to support the entire

automotive industry but this willingness seems to be overshadowed by the many

hurdles encountered in creating a program that fits all stakeholders,” says Donauer. “It’s

high time that all of these stakeholders – the OEMs, the suppliers and government – get

beyond these hurdles quickly, in a unified effort, so that the automotive industry can

concentrate on its core business. And by doing so, and maintaining and growing our

operations, fulfil the most important prerequisite to support government’s call to sustain

and create decent jobs in the process.

With 56 local first-tier suppliers, Plant Rosslyn currently produces the BMW 3 Series in

both left- and right-hand drive derivatives at quality levels on par with those of plants in

Germany. Almost 75% of this production volume is exported to customers in the USA,

Japan, Taiwan, Singapore, New Zealand, Hong Kong, Sub Sahara and Australia.

“Maintaining the high standards demanded by these markets is only possible with the

commitment of our highly skilled and highly motivated workforce. For this reason, BMW

South Africa has remained 100% committed to safeguarding our workforce. We have

not resorted to retrenchment, even in these tough times, and this gives us a distinct

advantage to flexibly ramp-up the Plant as market demand may require in future,”

Donauer continues. “The government Training Scheme will support our noretrenchment

policy and increase the skills base of our workforce at the same time.”

The MERSETA-accredited training program will equip production associates with a

National Qualification Level One certificate. Furthermore, the content of the training

focusses on a better understanding of the BMW business and therefore an even clearer

grasp of the quality requirements of a premium manufacturer.

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For media enquiries:

Guy Kilfoil

General Manager: Group Communications & Public Affairs

BMW (South Africa) (Pty) Ltd

Email: guy.kilfoil@bmw.co.za

Tel: +2712 522 2201

Fax: +2711 805 2775

Mobile: +2782 583 6262

On the internet:

www.press.bmwgroup.com

www.motorpics.co.za

www.bmw.co.za