The German car maker has been building cars at Rosslyn, on the outskirts of Pretoria, for more than 40 years. But while successive generations of vehicles have required expansive new manufacturing systems and technologies, the company has been forced to shoehorn them into the same limited space.
A number of former MDs have admitted that the resulting constraints have complicated production flows and the manufacturing process. Despite this, Rosslyn has won a succession of global quality awards and last year its 3-Series cars were judged the best imports in the US.
At a ceremony on Thursday to mark the start of construction of a new vehicle body shop on the adjacent land, Abbott said the extra space offered a "unique" opportunity to modernise Rosslyn. By moving the body shop out of the existing plant, it freed up space to create a more modern, efficient production layout.
"We no longer have to make compromises," he said.
BMW SA had tried previously to buy the land. It finally clinched the deal late last year just before announcing a R6bn Rosslyn investment to replace the 3-Series with the X3 sports utility vehicle. The Rosslyn plant has been building 3-Series cars since 1983 and passed the 1-million production mark in 2015. Although no official date for the model changeover has been announced, the current 3-Series is due to reach the end of its lifecycle in 2019.
About 80% of the cars built at Rosslyn are exported but Abbott said production of the X3 would open new opportunities. BMW SA would shortly assume marketing responsibility for sub-Saharan Africa. Of the 11 main markets there, none currently import from BMW SA.
"But that's 3-Series," Abbott said. "With the X3, we believe we have a vehicle that resonates with these countries."
At 26,000m², the new body shop will be more than 50% bigger than the current one. Plant manager Stefan Huelsenberg said construction of the new building would be completed in 2017, to be followed by installation of equipment, then testing and commissioning. The number of body shop robots would double to about 300.
Of the R6bn investment committed to producing the X3, about half will be spent on upgrading Rosslyn and the rest on supplier support, employee training and preparation for the X3's launch. Huelsenberg had said previously that the company would have to "restructure and renovate the whole plant", including an improved paint shop, new technologies and improvements to assembly lines.
He said yesterday: "Preparation for the new model will be the biggest and most challenging project we have ever undertaken."
Source: Business Day
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