BMW reorganizes fwd and rwd production, Plan aims for 5% annual reduction in costs

MUNICH - BMW Group will organize its global network of production in factories that build only cars and plants that produce only front-wheel drive models as it seeks to reduce costs RWD.

The change is a key element in the new BMW production process called "Manufacturing 4.0." The plan also requires more scanning, improved logistics and vehicle assembly plus the use of robots."Our goal is to reduce costs of production per year from 5 percent over the year," said Oliver Zipse, head of BMW Manufacturing. "The rationalization of allocation platform is a crucial element in achieving this goal," he said on the sidelines of the presentation of the financial results of the company on March 16.

BMW has 10 assembly plants exhaustively its global network, including plants in England and the Netherlands to build Mini vehicles.In the future only four floors built front wheel drive vehicles only five built rear-wheel drive vehicles. An exception to the rule fwd / RWD be the BMW plant in Tiexi, China, which will continue the construction of both types of vehicles. All factories are capable of producing four-wheel drive cars because front-wheel drive platform and rear-wheel drive BMW are also capable 4WD.The reorganization will streamline the assembly process and the flow of incoming components, Zipse said.

The change primarily affects BMW factories in Regensburg and Leipzig in Germany which produce only front wheel drive vehicles in the future. fwd drive cars include BMW 2 Active Tourer-series gran turismo and minivans as well as the new X1 compact SUV and China-only compact sedan.Currently Regensburg build nine different models based on three platforms from the Z4 roadster for the SUV X1. It is the BMW plant of the highest complexity. After three years, the factory will change to build models simply fwd, Zipse said.

The Leipzig plant will become the front-drive models only within four years, but will maintain a dedicated to the construction of models for i sub-area. Zipse refused to comment on whether Leipzig also build a new model called i inext, scheduled from 2020.BMW factories in Munich, Germany; Rosslyn, South Africa; Spartanburg, U.S.; and Dadong, China will continue to build rear-wheel drive cars.