Investment into facilities, the release of new models and an ongoing marketing push look set to deliver positive results for BMW in South Africa.
BMW’s work in South Africa has been a huge driver behind economic development and technology advancement in a country which has a strong history in the global automotive business. The German car maker opened its doors in SA in 1973 and produced the 3-, 5-, and 7-series models in low volume for the local market. In the 1990’s, following the country’s emergence from international isolation, BMW’s plant in Rosslyn received investment and became fully automated for high-volume production, mainly of the E46 3-series model, which is now sold in SA and also international markets including Japan, Australia, New Zealand and various Asian territories. The plant has also started supplying vehicles to South America and more recently NAFTA.
In February last year, the company celebrated one million 3 Series Sedan’s made in SA and this prompted BMW CEO and member of the Management Board of BMW AG responsible for production, Harald Krüger to say that the South African production site represents a cornerstone of BMW’s global production network of 30 sites in 14 countries, remaining a vivid example of a successful market entry through local production.
Despite challenges faced in recent times – not least industrial action, currency depreciation and economic slowdown – BMW remains stout, and is still a respected and important part of the SA community. This was reinforced when the company announced in November that it would invest significant resources in expanding its operations. This would involve a R6 billion spend on modernisation that will see BMW stop building the 3-Series and replace it with the X3 sports utility vehicle. This transition will be complete by 2019.
Oliver Zipse, chairman of BMW SA said: “At the BMW group, we constantly evaluate our plant allocation to ensure it reflects and accommodates market demand. With the decision to produce the next generation of the BMW X3 in Rosslyn, we strengthen the position of SA in our global production network. It also follows our strategy that production follows the market.”
NEW MODELS FOR SA
In other positive news for the company that builds the ‘ultimate driving machine’, announcements were made recently detailing how the exciting new 7-series, M2, M4 GTS and X5 plug in hybrid models will be released in South Africa.
The luxury 7-series is being hailed as “best BMW ever built” by industry critics and is described as opulent, spacious and built for the pleasure-loving driver.
Popular with politicians and business leaders, the 7-series boasts lightweight design; first-class powertrains, chassis, operating systems and intelligent connectivity and pleasing interior ambience.
“The primary objective in the development of the new car was to create a vision of modern luxury and to exceed our customers’ expectations. In BMW’s eyes, modern luxury is rooted in the most advanced technologies and extremely fine attention to detail. This generation of the BMW 7 Series is the most luxurious, most comfortable and – all round – the best car we have ever built in this class,” said Adrian van Hooydonk, Senior Vice President BMW Group Design.
And it has certainly made an impact on local experts like Janine Van der Post of Wheels24 who said: “Is it the best car BMW has ever built? In terms of technology and engines, yes. The drive in the 7-series is thrilling…” However, it’s important to remember that all models of the 7-series cost well over R1 million so choose wisely.
The eagerly-awaited M2 will go on sale in South Africa, in a choice of four colours (blue, white, silver and black) in April. This sporty creation will cost approximately R800,000, which is more expensive than its rivals from Audi and Mercedes-Benz, but if you look at the performance of the car at a recent launch event at the Laguna Seca racetrack in California, you can see that you’re getting a lot of bang for your buck.
CLEAN ENERGY PRODUCTION
Away from vehicle sales, in October, BMW made the announcement that its Rosslyn plant would get 30% of its power needs from renewable resources. This would be the result of a biogas project where about 40,000 tonnes per annum of cattle manure and around 20,000 tonnes of organic waste will be fed into digesters that will produce biogas to drive a gas engine for power.
South African renewable energy project company, Bio2Watt, will be responsible for the development of the plant and this is just one step in the company’s journey towards becoming 100% powered by renewable sources by the year 2020.
“Our vision is to draw 100% of our energy requirements from renewable sources with the help of partners such as Bio2Watt,” said BMW SA Managing Director, Tim Abbott.
Bio2Watt CEO Sean Thomas explained some of the benefits of using a biogas plant including; a reduction in the volumes of waste to landfill, thereby helping local municipalities to meet their zero-waste commitments; creating localised employment opportunities and generation of a storable form of renewable energy, capable of being transported and utilised 24 hours a day, seven days a week.
While all corporate organisations are becoming more watchful of their environmental footprint, this is one of the first steps by a major international player in the automotive sector to drive forward with renewable energy action.
ON-GOING MARKETING DRIVE
BMW has one of the world’s innovative and creative marketing departments and its efforts, all over the world, ensure that the brand is held in the highest regard; as it has been for the past six decades.
In South Africa, the auto company made the move to become the Title Partner to the SA Open Championship. The Open is the oldest golfing tournament in South Africa and the world’s second oldest Open Championship. It will now officially be known as the BMW SA Open Championship. Held in Johannesburg in January, at the Glendower Golf Club in Johannesburg, 2016 was the 105thanniversary of this legendary competition.
“Sports such as motorsport, sailing and golf are key global sponsorship pillars for the BMW brand. With this in mind, this local sponsorship initiative – which mirrors the brand’s global sponsorship strategy – sees BMW become the overall naming rights partner of the SA Open Championship. In addition, it gives the brand the opportunity to consolidate its position in golf with a signature event that we hope will grow over time to become the biggest professional event in South African golf,” said Tim Abbott.
BMW also announced in November that it would become the official vehicle partner to the Sunshine Tour with Abbott saying: “We will be providing vehicles for the tour officials to deliver a world-class professional golf series in South Africa, as well as the opportunity to activate our brand at all Sunshine Tour official tournaments should we wish to do so.”
With all of this effort, it looks certain that BMW will thrive in South Africa, and its production facilities are set to become even more advanced thanks to the large investment. All things considered, it would be a brave person to bet against BMW claiming a bigger market share in the next 12-24 months – it looks like life in the fast lane will continue for this German automotive giant.