The BMW Group recently announced their plans to invest a total of R6 billion in the BMW Rosslyn Plant in Pretoria in the coming years. This will see the plant moving from production of the BMW 3 Series, to the BMW X3.
The R6 billion investment from BMW Group in Plant Rosslyn is one of the largest deals in the South African Automotive sector to date, and it will definitely go a long way in developing the industry. The reason behind it all is the BMW X3 which will be produced at BMW Plant Rosslyn, sold locally and exported to various countries around the world.
Not just any BMW plant
Plant Rosslyn was the very first BMW Plant to be situated outside the borders of Germany. In fact, production dates back to as far as 1968. But it was in 1973, when BMW AG took over full shareholding and established BMW Group South Africa (Pty) Ltd with BMW, that Plant Rosslyn was officially opened.Over the years, the plant has grown considerably. In 2014, BMW 3 Series Sedan exports rose to a record 61,735 units.
It secured BMW South Africa’s position as the country’s leading exporter of premium vehicles. But the plant was also awarded for its dedication to quality, winning the J.D. Power Platinum Plant Quality award in 2015. These successes have only affirmed why the investment in the future of BMW Plant Rosslyn is so vital.
Why the BMW X3?
BMW X models have proved to be very desirable, ever since the BMW X5 founded the Sports Activity Vehicle segment in 1999. The X-range accounts for 28% of BMW global sales, and it’s exciting to know that BMW South Africa and Plant Rosslyn will be able to share in this incredible success story.
A win for the country
More than three billion Rands (R3bn) will be invested in new state-of-the-art facilities and operations of the plant. An additional R3bn will be for suppliers, launch costs and training of associates. This exciting new chapter for BMW Plant Rosslyn is not only and important step for BMW South Africa but for the country as a whole. Minister of Trade and Industry, Mr Rob Davies, said that the investment is testament to the important partnership that exists between business and government as well as the role that business is playing in the development of the economy.
He added “It is our expectation that the new generation X3 programme will make a telling contribution to the long term development of the sector through higher production volumes, local value addition and inclusion of previously excluded groups in the sector.”
The next generation
Now, looking to the future, BMW South Africa has the chance to contribute to the global success story of BMW X models. “Our passion for perfection at BMW Plant Rosslyn has demonstrated that we are highly competitive within the global BMW production network both in terms of cost of production and quality. We are excited about the future prospects of Plant Rosslyn and cannot wait to start with the production of the next generation BMW X3”, said Mr Tim Abbott, Managing Director of BMW Group South Africa.
The production of the next generation BMW X3 at Plant Rosslyn will replace the BMW 3 Series Sedan, which will now be allocated to other plants within the global BMW production network. It marks the end of an era of excellence, and the beginning of an exciting journey ahead.
What did you think of the official announcement video? Let us know what you think in the comments below: