BMW Landshut plant takes the “Best Factory 2012” award

Article by Christian A., on May 8, 2012

The Exterior Plastics Production Department of the BMW Landshut plant was named the "Industrial Excellence Award / Best Factory 2012.” The expert jury behind the European awards-giving body named this factory as the best in Germany for the year.
INSEAD -- one of largest and most respected business schools in the world -- the trade journal Wirtschaftswoche and WHU – the Otto Beisheim School of Management, gave the award to the plant that has excellent production management.

As a result, the company gets a permanent competitive advantage. BMW has been running a plastics production unit at its Landshut site since the 1960s.

The Exterior Plastics Production Department, which has about 500 employees, makes about 12 million plastic components for the vehicles’ exterior annually. This means that each day, around 2,500 exterior components are built in the plant.

These include bumpers, side panels and spoilers. The BMW Landshut site then paints the finished components in 32 different standard colors and 200 optional colors. These are then sent to BMW Group vehicle plants in Germany and overseas.

Johannes Haider, head of the Exterior Plastics Purchasing, Production and Technology division, said that being the overall German winner of the Industrial Excellence Award is a reflection of its focus on value creation and has improved its focus on strategy, customer orientation and sustainability even further. He applauded the employees for the win, saying that he is proud of every one of them. He said that this award motivates the company to resolve future challenges.

BMW managed to post a record profit margin in its core automotive business in 2011. This, however, wasn’t enough to overtake rival Audi. The EBIT (earnings before interest and tax) of the automotive segment of BMW surged as a percentage of revenue to 11.8 percent. This compares to 8.0 percent the previous year. However, it still failed to outperform Audi in this aspect, as Volkswagen’s luxury marque posted 12.1 percent of profit margin.

With new models coming in 2012, BMW is expecting that its sales this year will surpass those of last year with a record 1.67 million cars. BMW has seen its vehicle deliveries in 2011 jump by 14 percent, with the momentum to continue in 2012 as new models arrive.

Thanks to record profits, BMW raised its cash payout to stockholders by a full euro to EUR2.30 per share, which translated to a 3.3 percent dividend yield. BMW is targeting for a sustainable EBIT margin of between 8 percent and 10 percent in its cars business beginning in 2012.

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Topics: bmw, award

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