Table 2 4 BMW global manufacturing networks Country Plant (scale in the employee number main manufacturingactivities) Germany Berlin plant (1,900 employees producing motorcycle parts andBMW automobile components), Dingolfing plant (18,600 employees producing BMWvehicles, body shells for the Rolls R...

Table 2.4 BMW global manufacturing networks Country Plant (scale in the employee number; main manufacturingactivities) Germany Berlin

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Table 2.4 BMW global manufacturing networks

Country	Plant (scale in the employee number; main manufacturingactivities)
Germany	Berlin plant (1,900 employees; producing motorcycle parts andBMW automobile components), Dingolfing plant (18,600 employees; producing BMWvehicles, body shells for the Rolls-Royce Phantom, and BMW chassis components),Eisenach (235 employees; producing large metalworking tools), Landshut plant(3,000 employees; producing engine components), Leipzig plant (a new plant thatwill hire 800 employees; producing BMW automobiles), Munich plant (6,800employees; producing BMW automobile, internal combustion engines, andhigh-performance power units), Regensburg plant (9,000 employees; producing BMWautomobiles), Wackersdorf plant (2,000 at the Wackersdorf Innovation Estate,producing components for BMW)
Italia	Cassinetta plant (260 employees; producing HusqvarnaMotorcycles)
UK	Hams Hall plant, near Birmingham (260 employees; manufacturingfour-cylinder petrol engines for both BMW and MINI), Oxford plant (3,800employees; producing MINI automobiles), Swindon plant (800 employees; producing steelpressings and complex sub-assemblies), Rolls-Royce Motor Cars and its Goodwoodplant in West Sussex, England (about 1,000 employees; producing Rolls-Roycecars)
South Africa	Rosslyn plant (1,700 employees; producing BMW 3 SeriesSedan)
China	Shenyang, a joint venture (3,000 employees; producing BMW 5, X1,and 3 Series long-wheelbase version)
USA	Spartanburg (7,000 employees; producing BMW X3 and X5 SportsActivity Vehicle and the X6 Sports Activity Coupe)
Austria	Steyr plant (3,600 employees; engine manufacturing)

Case Example: BMW GlobalManufacturing

BMW built the first production plant in Munich in 1916. From asmall company it became one of largest automobile producers in theworld. The BMW Group manufactures and sells three car brandsoperating in the premium segments: BMW, MINI, and Rolls-Royce. Thegroup has a strong market position in the motorcycle sector andoperates a successful financial services business.

Currently, BMW produces cars and motorcycles in plants inGermany, the UK, the US, China, Italia, South Africa, and Austria(see Table 2.4). BMW adopts contract production with production apartner in Graz, Austria. To respond to market demands around theworld, and to enter markets with customs regulations governing theimportation of complete automobiles, BMW manufactures automobilesfrom parts kits in assembly plants, called a “completely knockeddown” (CKD) production process. The BMW Group uses CKD assembly tomanufacture automobiles with partners in six locations includingThailand, Malaysia, Russia, Egypt, Indonesia, and India, and tomanufacture motorcycles in Brazil.

Case Questions

1. Rolls-Royce has been a leading brand of luxury car. BMWacquired its assets and

managed its manufacturing plants. What is this manufacturingglobalization mode? Provide an example.

2. Shenyang plant is a joint venture between BMW and BrillianceChina Automotive to produce the BMW long-wheelbase version, onlyfor the local market. What is this manufacturing globalizationmode? Provide an example.

3. Which manufacturing globalization mode has been used in BMW’sCKD assembly plants? Provide an example.

4. What are different advantages achieved by BMW through variousglobal production modes of wholly owned plants from origin (e.g.,Munich plant), wholly owned plants by acquisition (e.g.,Rolls-Royce plant), joint venture (e.g., Shenyang plant), andcontract production (Graz plant)? Provide an example.