BMW Group's MINI Production Triangle

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Case Details:

Case Code : OPER073
Case Length : 19 Pages
Period : 2006-2008
Organization : BMW AG
Pub Date : 2009
Teaching Note :Not Available
Countries : UK
Industry : Auto and Ancillaries

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Introduction Contd...

According to Oliver Zipse, Managing Director, MINI Plant Oxford, "Export is a key factor for the success and stability of our MINI Plant in Oxford. Since MINI was launched we have seen a significant increase in export from less than 60 per cent in 2001 to over 80 per cent this year [2008]. The high customer demand in almost 80 countries around the world, from Chile to China, has driven MINI's success over the last seven years."⁴

BMW reintroduced the MINI, an iconic British brand, in July 2001 as a premium vehicle in the small car segment.

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Since its launch, the MINI redefined the premium small car market segment with its worldwide presence. The production of the MINI started at the Oxford plant in April 2001.

About 2,400 associates worked in single shift operations at Oxford to build 300 MINIs a day. The MINI's worldwide success encouraged BMW to invest heavily in its manufacturing operations in the UK.

The BMW Group invested £380 million in Plant Oxford since 2000 to increase the production capacity for the MINI and to launch new models.⁵

Between 2001 and 2007, BMW sold more than 880,000 MINIs worldwide and production units doubled to more than 200,000 units per year in 2005 from about 100,000 units per annum in 2001...

Excerpts >>

4] "A Million MINIs Exported from Plant Oxford," www.mini2.com, July 18, 2008.

5] "The Success Story Continues: Mini Makes a Million," www.mini2.com, April 4, 2007.

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