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BMW GROUP WINS PRIZE FOR "BEST FACTORY 2008"

Cologne/Munich. The jury's decision had already been made in spring 2008: the BMW Group's Production of Chassis and Driveline Systems division in Dingolfing was the winner of the industrial competition for "The Best Factory / Industrial Excellence Award 2008". At the presentation ceremony in Cologne on 16 September, Frank-Peter Arndt, BMW Board Member in charge of production, accepted the prize.

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Frank-Peter Arndt accepts European award for management quality.

Cologne/Munich. The jury's decision had already been made in spring 2008: the
BMW Group's Production of Chassis and Driveline Systems division in Dingolfing
was the winner of the industrial competition for "The Best Factory / Industrial
Excellence Award 2008". At the presentation ceremony in Cologne on 16
September, Frank-Peter Arndt, BMW Board Member in charge of production,
accepted the prize.

The award acknowledges outstanding production management which gives companies
a permanent competitive advantage. The BMW Group is the first car manufacturer
to receive this European award, which was introduced in 2002.
The jury mainly justified the award by citing the clearly defined strategy
which has achieved a very high level of penetration across all levels of the
organisational unit. This is evident from the high level of independent
improvement management carried out by the workforce. The other factor is the
high level of efficiency confirmed by the outstanding performance of indicators
for quality, time and costs.

Nikolaus Bauer, Director Chassis and Driveline Systems Production assesses the
effect of gaining the award: "Our application for the Industrial Excellence
Award has confirmed the route we have taken and sharpened our perspective on
strategy and customer focus. This award also provides confirmation of our
performance as an in-house manufacturer of components and all employees are
entitled to regard this achievement with a sense of pride. We perceive this
award as a motivation to meet the challenges of the future. I am particularly
pleased to receive this award in the year 2008 - the centenary year of
industrial production at the Dingolfing site. Living confirmation that age is
no restriction for innovation!"

The Industrial Excellence Award competition looks at how management quality
influences the excellence of a division. The jury looks at the operating unit
itself and assesses all the processes along the entire production and logistics
chain - from the supplier to the final customer. A key contribution is
consistent tracking of all stakeholder interests - including customers and
employees, as well as shareholders, business partners and other interest
groups. The Industrial Excellence Award highlights strategic customer focus and
a corporate culture directed towards sustainable, long-term development. The
award is based on a comprehensive questionnaire developed by academics at
INSEAD - one of the world's biggest and most prestigious business schools and
the WHU Otto Beisheim School of Management.

In addition to winning the Bavarian Quality Prize in 2003, Chassis and
Driveline Systems was also the first business in the automobile sector to gain
Germany's most important award for corporate quality in November 2005 - the
Ludwig-Erhard Prize 2005. In 2006, the division received the European Quality
Award - the highest European award for universal corporate excellence.

Chassis and Driveline Systems is part of the worldwide production network of
the BMW Group and has developed in Dingolfing as a centre of competence for
chassis and axle drives. The vehicle modules produced here are supplied to all
BMW plants in Germany and abroad.

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