New MINI and the MINI production triangle

Press Release

Page 1 - Overview
Page 2 - Flexible and efficient
Page 3 - Plant Hams Hall
Page 4 - Plant Oxford
Page 5 - Plant Swindon
Page 6 - Associates
Page 7 - Sustainable Production
Page 8 - Community involvement
Page 9 - History
Page 10 - Contribution to UK

Overview

The start of series production of the new MINI in September 2006 signals the start of a new production network for MINI comprising three UK-based BMW Group manufacturing facilities.

The MINI production triangle in the UK with its plants at Hams Hall, Oxford and Swindon has received substantial investment of nearly £200 million to build the new model and to increase MINI production capacity by up to 20 percent. The new production triangle employs in total 6,350 associates, a number set to increase by 450 to 6,800 in the medium-term as production nears the maximum capacity of 240,000 MINIs per annum.

Plant Hams Hall received around £30 million to build a new, advanced family of petrol engines especially for MINI. Previously all petrol engines had been supplied from a joint venture in Brazil. Output of the plant is set to increase significantly with the addition of MINI engines to its existing production of 1.6 to 2.0 litre BMW four-cylinder petrol engines. As output at the Oxford plant reaches full capacity at least 250 new jobs will be created bringing the total employed at Hams Hall to 1,000.

Plant Oxford received over £100 million to expand production capacity to 240,000 units a year in the medium-term, from 200,000 in 2005. The plant has invested in technology throughout the body shell production, paint and final assembly areas to increase production and become highly flexible in responding to customer choice with a range of options unrivalled in the small car sector of the market. A new paint process, introduced at the start of 2006, carries over to the new model and the body shop unveils its 15,000m² extension announced in February 2005. Up to 200 new jobs will be created at the plant as volumes increase towards the plant's maximum capacity bringing the total workforce to 4,700. The existing MINI Convertible will continue to be produced alongside the new model.

Plant Swindon received £60 million for MINI body pressing and sub-assembly technologies. The facility, which employs 1,100 associates, has passed through an extensive modernisation programme over the past three years and is now a fully integrated part of the MINI production triangle working with
the very latest press and seam technology to the BMW Group's high quality standards. Building on its 50 year expertise of producing exterior body pressings such as bonnets, doors, side and rear panels, Swindon is now responsible for virtually all the body shell sub-assembly work, which is delivered directly from the Swindon plant to the body shop at Oxford.

In addition to higher production capacities, the integration of the locations in the MINI Production Triangle with their efficient logistics networks also results in increased flexibility. All pressings and body components are delivered just-in-time from the Swindon plant directly to the body production at the Oxford plant, without intermediate storage and, if necessary, within fours hours of issuing the parts call-up. The engines from the Hams Hall plant are delivered just-in-sequence to the assembly in Oxford.

In addition to this efficient synchronisation of processes, the sophisticated logistics concept also enables a high degree of flexibility even after an order has been made. Customer requests for changes can be taken into account regarding colour, engine type or options up to seven days prior to the start of assembly. The underlying "Customer Oriented Sales and Production Process" (KOVP) is unique in this form within the automotive industry. MINI customers therefore enjoy the benefit of being able to specify their cars in line with the extensive range of options available even after their order has been finalised.

In order that the three plants respond together to changes in demand and to customer requirements, flexible working and complementary shift patterns have been implemented across the three plants with up to seven day working and up to 140 hours production time per week.

As well as bringing a significant investment to the BMW Group's UK operations, the UK-based supply industry will also benefit with key, large-scale components, such as the seats and the cockpit - known as modules - being sourced from within the UK. Three major suppliers have relocated their operations to be within one hour of the Oxford plant to respond flexibly to the requirements of customers. About 60 percent of components delivered to the Oxford plant are from UK-based suppliers.