BMW Leipzig Plant Breaks Ground

Press Release

Munich/Leipzig. The BMW Group, together with representatives of German public life, performed the ceremony of breaking ground for the new Leipzig plant. As already announced a number of times, the BMW Group decided in July last year to build its new factory in the Leipzig/Halle region. Leveling the site and clearing the building area have largely been completed. Building work will begin at the end of the second quarter. The first building to be erected will be the paint shop and central energy unit, followed in stages by body shell construction, final assembly, the logistics and supply centre and the central building. The major above-ground work will be completed by the beginning of 2004. Once these buildings have been finished, installation of the production equipment will be started in 2003. In 2004, the individual production areas and thus the entire plant will begin trial operations. Spring 2005 will see the start of the planned production of customer vehicles. In the medium term, 650 BMW 3 Series vehicles will be coming off the production lines each day. The ceremony was attended by German Chancellor Gerhard Schröder, the Prime Minister of the Free State of Saxony Professor Georg Milbradt, the Prime Minister of the Free State of Bavaria Dr. Edmund Stoiber and the Mayor of the City of Leipzig Wolfgang Tiefensee, plus many other figures from German public life. The BMW Group was represented by the Chairman of the Board of Management Professor Joachim Milberg, Board Member, Finances, Dr. Helmut Panke and Board Member, Production, Dr. Norbert Reithofer. In his address, Professor Milberg emphasised that "this plant will enhance capacities for our product offensive over the next few years. The expansion of our worldwide production network will create lasting structures which will continue to exist over many decades." The Federal Chancellor emphasized that "BMW's major investment in Leipzig is impressive proof of the attractiveness of the new Federal States in the international competitive environment, the high level of qualification of the staff and the quality of the infrastructure in East Germany." In the future, around 5,500 new jobs will be created on the new factory site, mainly for skilled workers in the vehicle, metalworking and electrical/electronics sectors. Experience has shown that a similarly large number of jobs will be created in addition in service and supplier companies. Over the next few years, over a billion euros will be invested here in Leipzig and further investments will follow with every future product decision. The decision to choose Leipzig for the new plant was made possible by constructive cooperation with employee representatives, which lead to the production of the "BMW Formula for Work". Under this formula, the plant can be used - depending on production volume and customer demand - for between 60 and 140 hours a week. Various coordinating work time models mean that the employee's personal working hours can be separated from the overall operating time of the factory. Other factors that influenced the company's decision were the possibility of subsidies to balance out the existing structural and costs disadvantages, the existing or planned infrastructure for traffic, supply and connections and the possibility that the plant will be able to make use of the tried and tested supplier structure in southern and central Germany.