BMW will invest more than EUR100m at its car assembly factory in Leipzig, in the former east Germany, to build a new press plant and facilities to produce doors, bonnets (hoods) and boot (trunk) lids. The investment will create around 150 new jobs.
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When production began in March 2005, Leipzig initially assembled only 3-series sedans using body panels pressed in BMW’s western German plants and engines built elsewhere. In his opening speech, chairman Helmut Panke did not rule out future investment in German plants. BMW has since added its new 1-series three-door hatchback and two-door coupe models to the Leipzig line, these new variants are currently being launched in Europe.
Speaking to industry newspaper Automobilwoche, BMW’s head of production, Frank-Peter Arndt, said that the decision had been made to build a new press plant and associated component manufacturing to support vehicle capacity expansion at the plant. Arndt said that BMW would not be damaging suppliers by taking business away from them as BMW would be generating new business overall because of its growth.
Arndt told Automobilwoche last March that he wanted to increase the level of vertical integration at BMW from 25 to 30%.
The cost of the investment is put at “more than EUR100m”. He said that when you see large press parts being stored and moved around you see that it is easy to see how you can generate cost benefits by having a press plant on site.
Construction of the press plant should start later this year and be completed by the end of 2009.
The Leipzig plant currently builds around 700 cars per day. It continues to build its original staple – the 3-series sedan as well as the new 1-series models.
