The end of the SA made 3 series

[Coisman]

Exactly!! I can already see guys buying that monster

 

[jcwdrop]

I think it's big blow for the country in that the volumes of the 3 series made a lot of local tier 2 and 3 suppliers competitive. This change could be a reduction in volumes for them (or increased export costs) which means that those business will be in trouble. I also worry about what that means for our aluminium production. There has been a lot of talk about manufacturing automotive grade aluminium. I think the X3 uses signficantly less aluminium than the next gen 3 series.

 

[Coisman]

...and what would be the pricing implications for us??

 

[jcwdrop]

...and what would be the pricing implications for us??

should be no pricing implications.

 

[Coisman]

...and what would be the pricing implications for us??

should be no pricing implications.

But if the 3 series will now be imported, then surely it will have to play a part in the pricing :dunno:

 

[phantom]

Trade assist has always been the highest on the 3er due to it being produced locally.Expect this advantage to fall away.Whether the trade assist will increase on the X3, only time will tell.:YesNo:

 

[moranor@axis]

3 series global production:

2004 449,732
2005 434,342
2006 508,479
2007 555,219
2008 474,208
2009 397,103
2010 399,009
2011 384,464
2012 406,752
2013 500,332

X3 global production:

2004 92,248
2005 110,719
2006 114,000
2007 111,879
2008 84,440
2009 55,634
2010 46,004
2011 117,944]
2012 149,853
2013 157,303

globally much less X3 are built
so the question is what % of the 3 series did we produce in SA? and what % will we produce of the X3

my guess is short term we will loose little to nothing but long term it will cause stunted growth from making the X3 and not the 3 series

this new production line switch over will probably also be much more automated

 

[jcwdrop]

...and what would be the pricing implications for us??

should be no pricing implications.

But if the 3 series will now be imported, then surely it will have to play a part in the pricing :dunno:

It won't have a price implication specific to one model. We did not see a benefit in the 3 series being produced locally i.t.o. pricing in that it just allowed for the subsidisation of the pricing on the other imported models. This is espcially evident if you consider the pricing of a 3 series in SA vs australia or another country which doesn't produce the vehicle. It might actually effect the pricing of all BMWs because it reduces the rebates that BMW will receive for cars manufactured locally which will increase import taxes overall. You also have to keep in mind that local assembly doesn't mean the components are not being imported.

 

[cOlDFuSiOn]

Trade assist has always been the highest on the 3er due to it being produced locally.Expect this advantage to fall away.Whether the trade assist will increase on the X3, only time will tell.:YesNo:

I agree the trade assist will get interesting.. They pushed 3 series models like crazy with this..

 

[Blue Shirt]

3 series global production:

2004 449,732
2005 434,342
2006 508,479
2007 555,219
2008 474,208
2009 397,103
2010 399,009
2011 384,464
2012 406,752
2013 500,332

X3 global production:

2004 92,248
2005 110,719
2006 114,000
2007 111,879
2008 84,440
2009 55,634
2010 46,004
2011 117,944]
2012 149,853
2013 157,303

globally much less X3 are built
so the question is what % of the 3 series did we produce in SA? and what % will we produce of the X3

my guess is short term we will loose little to nothing but long term it will cause stunted growth from making the X3 and not the 3 series

this new production line switch over will probably also be much more automated

According to the article, Plant Rosslyn only built 68000 3-series cars in 2014, of which most were exported. Global production was around 500000, so we built around 14% of all 3-series cars.

3-series cars are built in Munich, Regensburg, Dingolfing (all in Germany), Rosslyn RSA and Shenyang (China).

X3 (and X4, X5 and X6) cars are only built in Spartanburg USA. If I read the article correctly, Spartanburg will now also build the new X7, meaning that they will have to move a portion of the production of the X3 to Rosslyn.

Plant Rosslyn could now build a far bigger portion of the X3 cars, meaning production volumes will have to increase (157000 sales in 2013) compared to 3-series production locally.

This can only be seen as a good thing no matter how you look at it. All 2nd and 3rd tier suppliers will benefit, as will the workforce and BMW itself.

 

[jcwdrop]

3 series global production:

2004 449,732
2005 434,342
2006 508,479
2007 555,219
2008 474,208
2009 397,103
2010 399,009
2011 384,464
2012 406,752
2013 500,332

X3 global production:

2004 92,248
2005 110,719
2006 114,000
2007 111,879
2008 84,440
2009 55,634
2010 46,004
2011 117,944]
2012 149,853
2013 157,303

globally much less X3 are built
so the question is what % of the 3 series did we produce in SA? and what % will we produce of the X3

my guess is short term we will loose little to nothing but long term it will cause stunted growth from making the X3 and not the 3 series

this new production line switch over will probably also be much more automated

According to the article, Plant Rosslyn only built 68000 3-series cars in 2014, of which most were exported. Global production was around 500000, so we built around 14% of all 3-series cars.

3-series cars are built in Munich, Regensburg, Dingolfing (all in Germany), Rosslyn RSA and Shenyang (China).

X3 (and X4, X5 and X6) cars are only built in Spartanburg USA. If I read the article correctly, Spartanburg will now also build the new X7, meaning that they will have to move a portion of the production of the X3 to Rosslyn.

Plant Rosslyn could now build a far bigger portion of the X3 cars, meaning production volumes will have to increase (157000 sales in 2013) compared to 3-series production locally.

This can only be seen as a good thing no matter how you look at it. All 2nd and 3rd tier suppliers will benefit, as will the workforce and BMW itself.

I forgot to factor in that we dont build all 3 series. Thanks for the info. I wonder what portion of X3 production will come to SA.

 

[///M-Powered]

I heard 3 series will be built in china


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[Ebrahim Mayat]

they investing 6 billion in the plant I don't know if such a god idea with strkes

 

[Philip Foglar]

This is not great news! The 3 Series is BMW's most popular selling car and often regarded as the benchmark for other manufacturers to follow - taking it away from the Roslyn plant is really sad news. Sure, the X3 is a good model, but it is nowhere near as popular as the 3 Series, simple as that!

To sum this all up:

:thumbdo:

 

[Blue Shirt]

I heard 3 series will be built in china


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It already is built in China, see my post above. 3-series is currently built in Deutschland, South Africa and China.

Rosslyn only ever built a portion of the 4-door sedan version of the 3-series. If you drive a 2-door coupe or M3/M4, is was built elsewhere.

My view is that Rosslyn and SA will benefit from this move, as long as their production volumes are maintained or increased. It is somewhat possible that the entire X3 production might move to Rosslyn, but the article is not clear on this. If so, production might increase to 160000 units per year, compared to the 68000 units of 3-series that they built.

How can that be a bad thing?:dunno:

 

[Clownshoe]

6 Billion is just retooling costs. The new 3 series would have had a similar cost. I agree this is a major vote of no confidence.

 

[Mr. C]

6 Billion is just retooling costs. The new 3 series would have had a similar cost. I agree this is a major vote of no confidence.

Finally someone who sees the bigger picture..

In fact, with the 3 series being larger in production runs, the re tooling would have probably been even higher, so this R6B is actually a "cheap" buyout under the elusive cover of an "investment" in order to minimize their risk on their top selling model.

Very smart business move from BMW AG.
If they want to make a really smart financial move to benefit themselves, they should remove assembly plants all together from Africa and simply use the dealerships as distribution centers.

Spartanburg in the US should be able to absorb and compensate any shortfall of SA production on the X3, so again, minimal risk.

These striking monkeys are slowly but surely putting themselves out of business.

 

[Blue Shirt]

6 Billion is just retooling costs. The new 3 series would have had a similar cost. I agree this is a major vote of no confidence.

Please explain how this is a vote of no confidence if production volumes at Rosslyn might actually increase in future?

Yes, they would have invested the same amount in re-tooling for any other model, they could have chosen any model in the lineup and it would make no difference. Most cars produced in Rosslyn are exported anyway, so this will have no effect on the local market for any model. The upside in my view is that Rosslyn will now build a bigger car in higher volumes, so every supplier down the chain also benefits.

There is just no arguing with all the negativity.

 

[Boosted]

6 Billion is just retooling costs. The new 3 series would have had a similar cost. I agree this is a major vote of no confidence.

Please explain how this is a vote of no confidence if production volumes at Rosslyn might actually increase in future?

Yes, they would have invested the same amount in re-tooling for any other model, they could have chosen any model in the lineup and it would make no difference. Most cars produced in Rosslyn are exported anyway, so this will have no effect on the local market for any model. The upside in my view is that Rosslyn will now build a bigger car in higher volumes, so every supplier down the chain also benefits.

There is just no arguing with all the negativity.

Thank you ! These are the negative opinions I referred to when I said" u are reading this all wrong " when I posted the article, but u are correct, there is no point arguing this further. Time will tell.

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[dvst8]

I also dont see anything negative the the move. In fact it can only be postitive.