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Supplying the BMW Group Supplierbusiness IHS AUTOMOTIVE Supplying the BMW Group SupplierBusiness 2015 edition supplierbusiness.com SUPPLYING THE OEMS BMW Group Julian Buckley Principal Analyst SAMPLE IHS Automotive | Supplying the BMW Group | 2015 edition Contents Overview 6 Modularisation strategy 61 Global market overview 7 Supplier parks 62 Financial data 7 Cluster of reference 63 Financial overview 8 Strategies for manufacturing efficiency 64 Product strategy 9 Purchasing strategy 65 Company history and strategy review 10 Purchasing strategy overview 66 Major model programmes 12 Levels of vertical integration and outsourcing 66 – 1. BMW 3-Series 12 Purchasing organisation 67 – 2. BMW 5-Series 17 Purchasing offices 68 – 3. BMW 1-Series 21 Key purchasing personnel 69 – 4. BMW X1 24 Purchasing budget 69 – 5. Mini 26 – 6. BMW X5 29 Supplier Selection 70 – 7. BMW X3 31 Supply base development 71 – 8. Mini Countryman 33 Major and strategic suppliers 72 – 9. BMW 4-Series 35 Supplier eligibility 78 – 10. BMW 3-Series GT 37 Supplier evaluation criteria 79 Working with the BMW Group 79 Vehicle Platforms 38 Platform strategy 39 Global Sourcing 80 Major platforms 40 Policy and plans 81 – 1. L7 40 – EMEA 82 – 2. L6 41 – NAFTA 82 – 3. LU 42 – APAC 83 – 4. L4 43 – LATAM 84 – 5. L2 43 Pricing Policy 86 – 6. L3 44 Cost reduction strategies 87 – 7. LI 44 Raw material price management 87 – 8. RR01 45 Payment terms 88 Component sharing 46 Volume planning 47 Quality Management 89 Quality level 90 Production Strategy 49 Quality management systems 90 Production strategy overview 50 Supplier integration into product development 92 Manufacturing network 51 Management of suppliers and sub-suppliers 92 – Germany 51 Supplier awards 94 – United States 53 – China 54 Technology 96 – United Kingdom 55 Technological positioning 97 – Austria SAMPLE57 Areas of focus 97 – South Africa 58 R&D organisation 99 – CKD assembly sites 59 R&D spending 100 Internal supply network 60 Access to supplier technology 100 IHS™ AUTOMOTIVE Copyright notice and legal disclaimer © 2015 IHS. No portion of this report may be reproduced, reused, or otherwise distributed in any form without prior written consent, with the exception of any internal client distribution as may be permitted in the license agreement between client and IHS. Content reproduced or redistributed with IHS permission must display IHS legal notices and attributions of authorship. The information contained herein is from sources considered reliable but its accuracy and completeness are not warranted, nor are the opinions and analyses which are based upon it, and to the extent permitted by law, IHS shall not be liable for any errors or omissions or any loss, damage or expense incurred by reliance on information or any statement contained herein. IHS and the IHS logo are trademarks of IHS. For more information, please contact IHS at www.ihs.com/CustomerCare. © 2015 IHS 2 2015 edition IHS Automotive | Supplying the BMW Group | 2015 edition Approach to alternative fuels, electrification and fuel – OEM level 118 cells 102 Pursuit of excellence 118 Special vehicle development 102 – OEM level 118 Outlook 118 Forward Model Programmes 104 – OEM Level 118 SuRe by region 118 Interviews 107 – North America 119 Franz Linner, vice-president BMW Supplier Network – Europe 119 America 108 – Asia 119 Dr. Jürgen Greiner, Head of Development for SuRe by company size 119 Passenger Car Transmission, ZF Friedrichshafen 110 SWOT Analysis 121 SWOT Analysis - BMW Group 122 Supplier Relations Survey 113 Global footprint 122 Introduction to the SuRe Index 114 Methodology 114 Future Model Programmes by Nameplate 123 Executive summary 114 Performance review – BMW 115 Major Suppliers 131 2014 SuRe survey results 115 BMW 2 SERIES [2013] (GERMANY, EUROPE, L7, F22) 132 – Top of the ranking: Trust and future potential drive BMW 7-Series (2015) (GERMANY, EUROPE, LG, G11) 134 harmony 115 BMW X6 [2014] (UNITED STATES, NORTH AMERICA, L4, – Middle of the ranking: OEMs push cost reduction 116 F16) 137 – Bottom ranking: Cost overrules quality 116 BMW MINI [2013] (UNITED KINGDOM, WEST EUROPE, Profit potential 117 LU, F56) 141 – OEM level 117 BMW X4 [2014] (UNITED STATES, NORTH AMERICA, L7, Organization 117 F26) 145 – OEM level 117 BMW i8 [2014] (GERMANY, WEST EUROPE, Li, I12) 147 Trust 118 Figures Figure 1: Global light vehicle production, 2009-2018 7 Figure 13: The BMW Efficient Dynamics X5 eDrive Figure 2: The BMW Eisenach plant in 1929 10 should help BMW meet CAFE emissions guidelines in Figure 3: The launch of the 1500 saloon in 1961 marked the United States 30 a turning point for BMW 10 Figure 14: The BMW X3, post 2014 facelift - otherwise Figure 4: BMW headquarters in Munich, Germany 11 known as a Life Cycle Impulse 31 Figure 5: The first 3-Series, introduced in 1975, was the Figure 15: The original Austin Mini Countryman 33 successor to the 2002 12 Figure 16: Mini unveiled the Countryman Park Lane Figure 6: The facelifted F30 3-Series was presented at edition at the 2015 Geneva motor show 33 the 2015 IAA Frankfurt motor show 15 Figure 17: The BMW 428i Gran Coupé in the M Sport Figure 7: A first-generation 5-Series, with the trim package 35 Hofmeister kink visible on rear C-pillar 17 Figure 18: MW introduced the F34 3-Series Gran Figure 8: The new BMW 5-SeriesSAMPLE Edition Sport Touring Turismo in 2013 37 19 Figure 19: LG body structure of the 2016 7-Series, Figure 9: Revised in 2015, this will be the last rear- featuring Carbon Core technology 41 wheel drive 1-Series hatchback 22 Figure 20: Bodyshell of the new five-door Mini Figure 10: The latest BMW X1 is based on a native advancing through the bodyshop at Plant Oxford 42 front-wheel drive platform 24 Figure 21: Cutaway of the LifeDrive architecture which Figure 11: Larger headlight units in the new Mini remain comprises the i3 44 located in fenders, requiring bonnet openings 27 Figure 22: All-aluminium chassis structure for the Figure 12: The Mini JCW - as with all new variants, Rolls-Royce Phantom 45 basic instrumentation has been moved from the round Figure 23: Signing of the contract for the cooperation central feature to a small cluster above the steering between BMW Group and Toyota Motor Corporation 47 wheel 27 © 2015 IHS 3 2015 edition IHS Automotive | Supplying the BMW Group | 2015 edition Figure 24: At publication, the latest model to enter investment at Spartanburg plant 83 production at Plant Dingolfing was the new 7-Series Figure 36: BMW Brilliance has elected to lease, not sell, saloon 51 the China-only Zinoro 1E EV 84 Figure 25: Conveyor for completed car bodies at the Figure 37: Assembly at the new Araquari plant in Brazil Leipzig plant 52 started with the 3-Series saloon 85 Figure 26: The BMW plant in Spartanburg, South Figure 38: BMW supplier integration process 92 Carolina 53 Figure 39: The new BMW 7-Series 750Li xDrive with Figure 27: Assembly line for the BMW X1 at the Tiexi Display Key fob for remote parking 99 plant 55 Figure 40: Authority Vehicles - BMW X3 xDrive20d as a Figure 28: Production of modular engines at the Hams marked police car, with blue lightbar and decals 103 Hall plant in 2015 56 Figure 41: Unveiled in 2014, the Toyota FT 1 concept Figure 29: Located in park land, there is little room to serves as a reference point for the next BMW Z4 106 expand the Goodwood facility 57 Figure 42: OEM Supplier Relations - Top of the Ranking Figure 30: Rosslyn produced its one millionth 3-Series 116 saloon in March 2015 58 Figure 43: OEM Supplier Relations - Middle of the Figure 31: The first 3-Series saloon produced at the Ranking 116 new facility in Araquari, Brazil was delivered in October Figure 44: OEM Supplier Relations - Bottom of the 2014 59 Ranking 117 Figure 32: Dr. Klaus Dräger, BMW Group 69 Figure 45: OEM Supplier Relations - North America 119 Figure 33: BMW 2014 Global Supplier Network (by Figure 46: OEM Supplier Relations - Europe 119 region) 72 Figure 47: OEM Supplier Relations - Asia 119 Figure 34: Scherm Group electric-powered truck now Figure 48: BMW Global manufacturing facilities 122 delivering parts to Munich Assembly 82 Figure 49: BMW Future Model Programmes by Figure 35: Double celebration - start of X4 production Nameplate 124 in 2014 was followed by announced USD1 billion Tables Table 1: BMW Group Top 10 best-selling global models Table 10: BMW 4-Series global sales (by Sales Brand, (by Sales Parent, Global Nameplate) 2004-2009-2014- Sales Nameplate) with segment competitors 2010- 2019 12 2020 36 Table 2: BMW 3-Series global sales (by Sales Brand, Table 11: BMW 3-Series GT global sales (by Sales Sales Nameplate) with segment competitors 2010- Brand, Sales Nameplate) with segment competitors 2020 16 2010-2020 37 Table 3: BMW 5-Series global sales (by Sales Brand, Table 12: BMW Group Top 10 most used platforms (by Sales Nameplate) with segment competitors 2010- Sales Parent) 2004-2009-2014-2019 40 2020 20 Table 13: BMW Global Production (by Country) 2005– Table 4: BMW 1er and 2er and Mini sales (by Sales 2020 48 Parent, Sales Brand) 2010-2020 23 Table 25: BMW Group Global Top 10 production plants Table 5: BMW X1 global salesSAMPLE (by Sales Brand, Sales with annual output (by Sales Parent and Country) Nameplate) with segment competitors 2010-2020 25 2004-2009-2014-2019 50 Table 6: Mini global sales (by Sales Brand, Sales Table 14: Magna part deliveries to the BMW Group Nameplate) with segment competitors 2010-2020 28 - by plant (2014-’10 specific vehicles covered in Who Table 7: BMW X5 global sales (by Sales Brand, Sales Supplies Whom from IHS SupplierBusiness) 73 Nameplate) with
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