Bayerische Motoren Werke Ag · XETR:BMW
Bayerische Motoren Werke — BMW Group — Investor Presentation (March 2015)
11 slides from Bayerische Motoren Werke's investor presentation, Mar 26, 2015
Slide 1: Production@BMW
March 26, 2015 PRODUCTION@BMW DR FRANZ DECKER HEAD OF PRODUCTION NETWORK STRATEGY.
Slide 2: Premium OEMs have to manage sophisticated customers, individualization and dynamic markets
PREMIUM OEMS HAVE TO MANAGE SOPHISTICATED CUSTOMERS, INDIVIDUALIZATION OF PRODUCTS AND DYNAMIC MARKETS. 1 Sophisticated customers and quality claim. 2 Increase of number of derivatives and customizing elements. Uncertainty because of volatility regarding customer / segment structure, 3 regional dema
Slide 3: BMW Group applies four core elements to its one globally aligned network
BMW GROUP SUCCESSFULLY APPLIES FOUR CORE ELEMENTS TO ITS ONE GLOBALLY ALIGNED NETWORK. BMW Group is best in managing BMW Group balances global growth customers' individual needs in and optimizes risks. production Our instruments: Our instruments: A• Flexibility management • Production follows market
Slide 4: We manage our flexibility with various instruments at network, structure and employee level
A WE MANAGE OUR FLEXIBILITY WITH VARIOUS INSTRUMENTS AT NETWORK, STRUCTURE AND EMPLOYEE LEVEL. FLEXIBILITY MANAGEMENT BMW Group success stories Levers • Fast reaction to global automotive crisis Architecture: Product and process modular system and Euro crisis Network Splits of derivatives 3rd party
Slide 5: Modular products, lean systems and efficient processes enable strong complexity management
B MODULAR PRODUCTS, LEAN SYSTEMS AND EFFICIENT PROCESSES ENABLE STRONG COMPLEXITY MANAGEMENT. COMPLEXITY MANAGEMENT BMW Group success stories Levers • Broad market coverage through high number of derivatives Modular product & production strategy • Almost endless number of options and Architecture In
Slide 6: Investments outside Europe and third party manufacturers are strategic elements for balanced growth
C INVESTMENTS OUTSIDE EUROPE AND THIRD PARTY MANUFAC- TURER ARE STRATEGIC ELEMENTS FOR BALANCED GROWTH. GLOBAL BALANCED GROWTH – PRODUCTION FOLLOWS MARKET As-Is 2014 Third party RoW manufacturer China Global production 3% 7% 13% Our activities: NAFTA allocation 17% • Production follows market • Rece
Slide 7: Our motivation for investment into NAFTA US is market penetration, risk hedging and brand shaping
OUR MOTIVATION FOR INVESTMENT INTO NAFTA US IS MARKET PENETRATION, RISK HEDGING AND BRAND SHAPING. US sales,1990 – 2014 Invest NAFTA – USA – Spartanburg CAGR Market penetration of growing US market. Sharp increase of sales after local SOP +7% Dollar hedging for financial optimization. Shape customer
Slide 8: Further investments into Mexico and Brazil are based on sales and cost arguments
FURTHER INVESTMENTS INTO MEXICO AND BRAZIL ARE BASED ON SALES AND COST ARGUMENTS. Further NAFTA market penetration due to Marketability to South American market. increasing sales figures. Local content due to protectionism and Realization of production cost advantages. high import taxes. Extension o
Slide 9: Our core elements are visible at every step of our value chain
OUR CORE ELEMENTS ARE EVEN VISIBLE AT EVERY STEP OF OUR VALUE CHAIN. FLEXIBILITY MANAGEMENT BODY SHOP PAINT SHOP SUSTAINABILITY • Up to 9 derivatives per • Continuous innovation to line1) meet sustainable production claim (e.g. IPP2)) • Use of high-tech, sustainable finish INNOVATION ASSEMBLY LOGIST
Slide 10: BMW Group is best prepared to apply future trends and meet future risks in production
BMW GROUP IS BEST PREPARED TO APPLY FUTURE TRENDS AND TO MEET FUTURE RISKS IN PRODUCTION. VALUE ORIENTED PRODUCTION SYSTEM PROVEN INNOVATIVE TRACK RECORD GLOBAL BALANCED AUTOMATION GROWTH EXPERIENCE GLOBAL SUPPLY CHAINS CONNECTIVITY & INDUSTRIAL Outsourcing to low-cost areas. INTERNET New data proce
Slide 11: Summary
SUMMARY: BMW Group production acts as one global network with smart allocation of value creation. We apply flexibility and complexity management to efficiently provide individualization for our customers. Success factor is coherence of architecture, sourcing and production at all levels. Mexico & Br