BBA, July 2014
BMW BRILLIANCE AUTOMOTIVE: SUSTAINABLE FUTURE GROWTH WITH STABLE PROFITABILITY. SHENYANG, JULY 2014.
OLAF KASTNER, PRESIDENT AND CEO. DR. ANTON HEISS, SVP TECHNOLOGY AND MANUFACTURING.
BMW BRAND EXPERIENCED FAST SALES GROWTH AND GREAT SUCCESS IN CHINA IN RECENT YEARS.
New car sales ‘000 units +20% BMW Region Sales 2013 BMW 391 MINI 326 No. 1 +45% 232 362 No. 2
66 No. 3 24 28 2005 2008 2011 2012 2013
BBA / July 2014 / Sustainable future growth with stable profitability Source: BMW internal Page 2 OVER TEN YEARS OF MARKET EXPERIENCE. BMW GROUP IN CHINA.
BMW Brilliance BMW China BMW BMW China Automotive Trading Automotive Services Ltd. Finance (China)
2003 2005 2010 2011
BBA / July 2014 / Sustainable future growth with stable profitability Page 3 BMW GROUP AND BRILLIANCE AUTO GROUP.
BMW Group
Three brands, one vision. Thanks to our uncompromising focus on premium, BMW Group automobiles and motorcycles inspire more people around the world today than ever before.
Brilliance Auto Group
Brilliance Auto Group was approved by the government of Liaoning province in 2002. This young growing automobile manufacturer has became a large scale enterprise of RMB 30 billion assets and 35,000 employees, which produce complete vehicles, automotive parts, core automotive parts R&D, design, sales and finance management.
BBA / July 2014 / Sustainable future growth with stable profitability Page 4 PARTNERSHIP AND BALANCE. THE ORGANIZATIONAL STRUCTURE OF BBA.
BMW Group: Brilliance China: 50% 50%
BMW Brilliance Automotive Board of Directors
President and CEO Olaf Kastner 康思远
SVP SVP Sales SVP Technology SVP acting Finance and Marketing and Manufacturing HR Xiaoyang Lei Peter van Binsbergen Dr. Anton Heiss Olaf Kastner 雷小阳 万博瑞 海森博士 康思远
BBA / July 2014 / Sustainable future growth with stable profitability Page 5 LOOKING BACK AT THE SUCCESSFUL DECADE.
11/2013 ZINORO 1E Launch
03/2012 BMW X1 Launch 09/2013 5 Series LCI Launch
05/2012 Tiexi Plant Grand 07/2013 Opening BBA 10th 12/2011 Anniversary 5 Series 1st Export Car
08/2010 All New 5 Series 06/2012 04/2013 Launch 11/2009 New Engine Plant An all-new Brand of BBA, 2003 2nd plant signing Project Signing ZINORO Launch Start production of ceremony 3 Series & 5 Series
04/2008 5th anniversary & 100,000th Car 07/2012 11/2006 01/2013 New3 Series launch Launch of All-new BMW 3 09/2005 5 Series Li 05/2003 Launch of Series Signing of JV Contract New 3 Series Standard Wheelbase Roll-off 11/2012 R&D Center Ground Breaking 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 BBA / July 2014 / Sustainable future growth with stable profitability Page 6 BMW BRILLIANCE AUTOMOTIVE AT A GLANCE. INTERNAL SUCCESS FACTORS.
PEOPLE Number of Associates: 13,000 (up to +10,000 in the last 4 years)
BBA / July 2014 / Sustainable future growth with stable profitability Page 7 BBA IS AN ATTRACTIVE EMPLOYER WITH DEVELOPMENT OPPORTUNITIES WITHIN BMW CHINA.
PURSUE YOUR PASSION, DRIVE YOUR CAREER.
BBA / July 2014 / Sustainable future growth with stable profitability Page 8 QUALIFIED PERSONNEL AND SUSTAINABLE MOTIVATION FOR ASSOCIATES BUILD THE BASIS.
Employer Branding and Attractiveness.
Systematic Creative HR Marketing and Retention Management. Recruiting Strategy.
Leadership as main success factor for all HR Challenges. Qualification, Training and Competitiveness and Young People Development. Sustainability
Open-minded workfoce with Diversity, Localization and Globalisation.
BBA / July 2014 / Sustainable future growth with stable profitability Page 9 CREATING OUR CULTURE. BBA’S 5 LEADERSHIP ELEMENTS.
BBA / July 2014 / Sustainable future growth with stable profitability Page 10 JOURNEY TO EXCELLENCE TARGETS BETTER IMPROVE PROCESSES AND ENABLE PEOPLE TO BUILD THE FOUNDATION TO ENABLE FUTURE GROWTH.
More efficient & effective processes JOURNEY TO EXCELLENCE Enhanced productivity Shorter throughput time Higher first time right ratio Better outcome
More enabled & satisfied employees
Enhanced team capabilities Motivated employees
BBA / July 2014 / Sustainable future growth with stable profitability Page 11 CSR ACTIVITIES IN CHINA.
BMW CHINA Corporate Citizenship
资源创新 / Resources 文化交流 & 社会融合 / 教育 / Education Intercultural Innovation & Social
Inclusion
Contribute to the sustainable Promote cross-culture understanding Provide engaging road safety development of China by promoting and social inclusion. and general safety education innovations for resource efficiency and sustainable resource use with social benefits via using company core . BMW China Culture Journey . BMW Children’s Traffic Safety competences. . BMW JOY Home Education . Yushu ecological environment . BMW JOY Future . BMW Brilliance Quality protection . Yushu Care Initiative Education Open Course . 5S dealership
BMW Warm Heart Fund BMW China Corporate Citizenship Platforms With Fund support, project initiation and process partners engagement
BBA / July 2014 / Sustainable future growth with stable profitability Page 12 BMW BRILLIANCE AUTOMOTIVE LTD. OVERVIEW PRODUCTS.
BMW 3 Series N20 Engine
BMW 5 Series
BMW X1
BBA / July 2014 / Sustainable future growth with stable profitability Page 13 HUGE SUCCESS OF 5 SERIES LI SEDAN LONG WHEELBASE.
BBA / July 2014 / Sustainable future growth with stable profitability Page 14 SUCCESSFUL 3 SERIES SINCE LAUNCH.
BBA / July 2014 / Sustainable future growth with stable profitability Page 15 BBA LOCAL BRAND ZINORO. COMMITMENT TO THE CHINESE MARKET.
ZINORO Symbolize commitment, cooperation and trust, within the future key market growth segment – the NEV
The 1st product, 1E, debuted on 2013/11/20 before Guangzhou Auto Show, with the first Chinese premium BEV locally produced in China
Rental as business model for the first product generation - with short- & long-term rental options
BBA / July 2014 / Sustainable future growth with stable profitability Page 16 BBA R&D CENTER. MARKET SPECIFIC DEVELOPMENT ESTABLISHED.
BBA / July 2014 / Sustainable future growth with stable profitability Page 17 BBA PRODUCTION CAPABILITIES. VEHICLE CUSTOMIZATION TO SUPPORT CUSTOMER SATISFACTION.
BBA / July 2014 / Sustainable future growth with stable profitability Page 18 BMW BRILLIANCE AUTOMOTIVE LTD. OVERVIEW SHENYANG PRODUCTION LOCATIONS.
Plant 19.87 Powertrain Plant 19.89 NEP Plant 19.10 Dadong
. Area: 90,000 m2 . Area: 900,000 m2 . Area: 270,600 m2 . Workforce: ~ 1,100 . SOP: 2016 . Workforce: ~ 6,000 . SOP: March 2012 . SOP: May 2004
Plant 19.10 Dadong
Plant 19.88 Tiexi Plant 19.87 Powertrain 2 . Area: 2,070,000 m Plant 19.89 NEP Workforce: ~ 4,500 . Plant 19.88 Tiexi . SOP: December 2011
BBA / July 2014 / Sustainable future growth with stable profitability Page 19 BMW BRILLIANCE AUTOMOTIVE A FULLY INTEGRATED PARTNER WITHIN BMW GROUP PRODUCTION NETWORK.
Hams Hall Engines Oxford MINI Swindon Components Kaliningrad Goodwood Rolls-Royce Moses Lake Steyr Engines
Components Graz MINI Countryman, MINI Paceman Shenyang Spartanburg - Tiexi X1, 3 Series, 3 Series LWB X3, X5, X6 Kairo - Dadong 5 Series LWB
Chennai Rayong
Kulim Manaus BMW Motorräder Jakarta Berlin BMW Motorcycles
Eisenach Rosslyn Components Leipzig 3 Series 1 Series, X1, BMW i3, i8 Regensburg Wackersdorf 1 Series, 3 Series, Z4 Components Dingolfing Production Plants Assembly Plants Landshut 3 Series, 5 Series Components 6 Series, 7 Series Joint Ventures Contract Production München 3 Series, Engines Page 20 OVERVIEW PLANT DADONG. BBA FIRST PLANT IN SHENYANG.
Direct delivery Assembly Press shop Body shop Paint shop Brilliance
Central building
Logistics
Distribution
BBA / July 2014 / Sustainable future growth with stable profitability Page 21 PLANT DADONG TECHNOLOGY. BODY SHOP.
BBA / July 2014 / Sustainable future growth with stable profitability Page 22 PLANT DADONG TECHNOLOGY. PAINTSHOP.
BBA / July 2014 / Sustainable future growth with stable profitability Page 23 PLANT DADONG TECHNOLOGY. ASSEMBLY.
BBA / July 2014 / Sustainable future growth with stable profitability Page 24 BBA PLANT TIEXI. OPENING IN 2012.
Container yard Distribution
Logistics Assembly Pressshop Direct Central building Body shop delivery Paint shop
BBA / July 2014 / Sustainable future growth with stable profitability Page 25 PLANT TIEXI TECHNOLOGY. PRESS SHOP.
BBA / July 2014 / Sustainable future growth with stable profitability Page 26 PLANT TIEXI TECHNOLOGY. BODY SHOP.
BBA / July 2014 / Sustainable future growth with stable profitability Page 27 PLANT TIEXI TECHNOLOGY. PAINT SHOP.
BBA / July 2014 / Sustainable future growth with stable profitability Page 28 PLANT TIEXI TECHNOLOGY. ASSEMBLY.
BBA / July 2014 / Sustainable future growth with stable profitability Page 29 BBA PLANT POWERTRAIN. OPENING IN 2012.
Cold Area
Logistics Crankshaft
Assembly Logistics
Assembly
Office
BBA / July 2014 / Sustainable future growth with stable profitability Page 30 BBA PLANT “NEP” – NEW ENGINE PLANT. START OF PRODUCTION IN 2016.
RENDERING
Foundry
Foundry Machining Assembly Machining Assembly
Logistic
Key figures
BBA / July 2014 / Sustainable future growth with stable profitability Page 31 WITH CURRENT ACTIVITIES WE ARE SETTING THE GROUND FOR OUR FUTURE.
5 years ago Now Future
2013 2014
3 Series 3 Series LWB 3 Series 3 Series LWB
X1 X1
5 Series LWB 5 Series LWB 5 Series PHEV
1E
2 derivatives 4 derivatives 6 derivatives more derivatives
Processes were We optimize our As we grow, scale and complexity designed when we processes to support grows. were small. future growth.
BBA / July 2014 / Sustainable future growth with stable profitability Page 32 STABLE GOOD QUALITY RESULTS AND HIGH DIRECT RUNNER DUE TO HIGHLY MOTIVATED WORKFORCE, LOWER COMPLEXITY AND PRODUCTION NETWORK. • Young, open, flexible • High motivation to learn and grow • Benefits of NWS, PDCA, JDPower quickly understood. MOTIV ATED • Cultural discipline = Potential for Standard Work WORK FORCE • VPS & CIP = Mindset
LOWER COMPLEXITY
BMW PRODUCTION • Plants with only 1 or 4 Models NETWORK • Low option flexibility • Automation level partly lower • Model launches after launch in AG Plant • BMW Production Standards implemented • AG Expat team for growth and competence build up • BMW processes NWS, PDCA, JDPower, etc. • Further Network Integration with Resident Teams (W2 & W10)
BBA / July 2014 / Sustainable future growth with stable profitability Page 33 THE APPROACH CONFIRMED BY J.D. POWER.
BMW X1 Series Ranked No. 1 BMW 3 Series J.D. Power IQS 2013 Ranked No. 1 BMW 5 Series Li J.D. Power IQS 2011 Ranked No.1 J.D. Power IQS 2010
BBA / July 2014 / Sustainable future growth with stable profitability Page 34