The BMW group will invest over £100 million ($US188 million) in its Plant Oxford Mini assembly facility between now and 2007, creating around 200 new production jobs in the process.
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Most of the investment is destined for a new body shell production building and further modernisation of the paint shop to increase production flexibility at the plant.
A foundation stone for the new 15,000 m² body shop was laid on Wednesday by Norbert Reithofer, member of the board for production at BMW AG.
Reithofer said the move signalled the start of preparation for Mini production to meet the future needs of the brand and the market.
“These measures will allow us to react even more flexibly to the high demand for Mini throughout the world. At the same time, we are increasing our flexibility as regards the production of the various Mini model variants,” said Reithofer.
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By GlobalDataSo far, since its launch in mid-2001, the Mini has been offered only as a three-door hatchback and a two-door convertible, launched last summer. There have been many speculative reports that further versions, such as a pickup or station wagon have also been planned but neither has been announced so far.
Such derivatives were available as part of the original Alec Issigonis-designed ‘classic’ Mini model line sold world-wide between 1960 and the 1980s and BMW officials have, in recent years, hinted that further derivatives of the new Mini line are still under wraps. Reithofer’s comments regarding production of “various Mini model variants” and “flexibility” again hints that more versions may be on the way, but perhaps only when the range is redesigned.
Since the 2001 launch, the Mini, originally planned at a rate of around 100,000 vehicles per year, reached a record level of 189,492 in 2004 making the Oxford plant the fourth largest vehicle producer in the UK. The total number of employees has risen to 4,500 including 128 apprentices.
BMW said the growth has been based on continuous efficiency improvements in production processes including ideas from the plant’s employees which have led to savings of £17.2 million since 2002.
The automaker claims the plant operates one of the most flexible working time models in the UK automotive industry – the current three-shift working pattern enables the plant, in response to demand, to run seven days and up to 134 hours per week using the remaining time for maintenance and cleaning.
From 2007, over 80 people and 160 computer-controlled welding robots will be assembling body shells in the new building. The paint shop will be equipped with new, highly efficient and flexible paint technologies to improve both capacity and flexibility.
The links between the Oxford plant and the BMW Group’s plants at Hams Hall near Birmingham (engines) and Swindon (the one-time Pressed Steel/Rover group body plant now supplying pressed steel parts) will also be strengthened.
BMW currently buys petrol engines for the Mini from a Chrysler plant in Brazil while diesels come from Toyota in Japan but motor industry observers expect the automaker to use its own in-house-made engines in future Mini models, with the petrol units most likely produced at Hams Hall and the diesels in Europe.
Between 2000 and 2004, the BMW Group invested £280 million in production in Oxford.
The Mini is now sold in more than 70 different countries and worldwide sales reached 529,921 vehicles by the end of 2004.
The UK remains the largest market followed by the US and Germany. Over 70% of the cars built at Oxford are exported.
