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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"Our new MINI production triangle has established a lean, efficient, and flexible production network and allows us to continue to offer MINI customers unrivalled built-to-order flexibility in the small car segment." ¹

- Norbert Reithofer, Chairman of the Board of Management, BMW Group, in 2009.

Introduction

In April 2007, German automobile manufacturer BMW AG (BMW Group) delivered the one-millionth² MINI Cooper, its small premium car model, from its Oxford production plant in the UK.

The MINI³ was sold in over 80 countries worldwide with the UK, the US, Germany, Italy, and Japan being the top five markets. There were different models of the MINI available like the MINI One, the MINI Cooper, the MINI Cooper S, and the MINI Clubman. With the rising global demand for the British-built car, almost 80 percent of the MINIs produced were being exported.

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BMW Group's MINI Production Triangle - Next Page>>

1] Anna Rooke, "BMW Invests in MINI Production Hub," www.ukinvest.gov.uk, February 7, 2009.

2] The one millionth customer of the MINI Cooper was the BMW Group's heritage division, Mobile Tradition. The pepper white car was customized with a specially painted almond green roof accentuated with one million tiny MINI graphic cars that extended onto the bonnet. The interiors matched with the roof as the leather seats, steering wheel, and gear knob were in almond green color.

3] Mini was considered the biggest British car brand and it achieved iconic status in the 1960s. After coming under the control of BMW, the German carmaker reinforced the image of the Mini brand with a new badge - MINI.

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