GSA Business Report - BMWs 100th anniversary by Matthew Clark

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A look back. And forward.

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FROM THE EDITOR

MATT CLARK Editor, GSA Business Report

The last 22 years have been quite a ride for us here in the Upstate. It was 1994 that our corner of the world transformed from a center for woven cloth and fabric to that of an automobile center of excellence. For that, we all have the BMW Group and all of its subsidiaries to thank. It was September 1994 that a well-known German auto manufacturer with a track record of solid growth and over 80 years of production history decided to make the Upstate its home for North American production. Since that time, the Upstate has gone from a little-known corner of the American landscape to an area world-renowned for its workforce and ability to make vehicles for one of the most popular automotive brands in the world. We only have to look as far as our neighborhood to see how our lives and where we live have transformed over the years. Along with BMW Manufacturing Co. has come a myriad of other tier 2 and tier 3 automotive suppliers that have generated thousands of new jobs for the Upstate and billions of dollars of economic development for the state of South Carolina. BMW has also been a good steward of the community, giving back to non-profit organizations, educational institutions and many others … too many to list. Recently, Gov. Nikki Haley recalled a story where it was BMW that helped bring other companies like Volvo and Daimler to the Palmetto State, which might be a little strange considering they are competitors of BMW. However, when asked about that, Manfred Erlacher, president of BMW Manufacturing Co. told GSA Business Report that the company wants “to be part of the community where we live.” He went on to talk about the “friendly and supportive” people in the state that makes BMW want to be here. That says a lot about the climate of our state and why businesses come to be a part of it. Say what you will about no unions and tax incentives, but there is something about who we are and how we present ourselves that attract businesses to us. It is a basic view of quality of life. The BMW Group recognized 22 years ago what the quality of life was and what it had the potential to become. They are sharing that quality of life story with others too which creates a cyclical effect that has borne fruit for both businesses and residents of this state and this region for many years. This section shows what the BMW Group and BMW Manufacturing has accomplished over its history and the contents would not have been possible if not for BMW Classic based in Germany, BMW of North America and, of course, BMW Manufacturing Co. Our sincere thanks to those groups for providing information to make this section possible. We want to take this opportunity to congratulate the BMW Group for celebrating 100 years of business and also thank them for their investment in the Upstate as well as the state of South Carolina. On behalf of GSA Business Report and S.C. Business Publications, we hope for centuries of continued success.

CONGRATULATIONS, BMW. From your friends at

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Hitt reflects on state benefits of BMW by Teresa Cutlip tcutlip@scbiznews.com

.C Secretary of Commerce Bobby Hitt was on the front lines in 1992 when BMW Manufacturing Co. announced it would open a manufacturing facility in the Upstate. At the time he was a consultant for the Nelson Mullins Riley & Scarborough law firm in Columbia that represented BMW. He then worked for 18 years at the German automaker before S.C Secretary of Commerce becoming comBobby Hitt merce secretary. “There are a lot of great stories related to getting BMW here. It was a remarkable recruitment effort,” Hitt said. He remembers it all started with then Gov. Carroll Campbell making a cold call to BMW that resulted in the

development of a relationship. He recalls a particular story: “One of the people here from Germany back then came without any fanfare, and told the story of how well he was treated by a waitress in a pizza restaurant.” Hitt said that at the time BMW came to South Carolina, no European auto company had been successful in the U.S. “and BMW came at a time when car sales were dropping. That was a courageous decision.” Hitt credits BMW with helping the state attract other original equipment manufacturers, or OEM, such as Mercedes Benz Vans and Volvo. Also, according to Hitt, the last of the last 10 auto plants to open in North America, eight were in Mexico and two were in South Carolina. Without BMW there would be no Boeing, Volvo, or Mercedes, Hitt said. He added there is a clear indication BMW will continue to grow, prosper and benefit the state, and that the supply network will continue to grow. “BMW has not only given us great jobs, but put us in play as an automotive

state. We now have three OEMs in the state. No other state has a constellation like that,” Hitt said. According to Hitt, there are more than 250 suppliers in the state related to the auto sector, and auto suppliers are in 40 of the state’s 46 counties. Information provided by BMW Manufacturing Co. shows that as of 2013, BMW contributed $16.6 billion annually to the state economy. The company also impacts the community, education and philanthropy, according to Hitt. “There is a lot of numerical proof to the impact of BMW, but there are also a lot of intangibles. BMW changed the way we thought of ourselves as a state,” Hitt said. “We had never before had a company like BMW come to South Carolina. “We used to be the little engine that couldn’t. Now we’re seen as the little engine that can.” Hitt said BMW has a process in doing its business that has carried over to education. An example of this is the BMW Scholars apprentice program,

through which interns get part-time work and training with a guarantee of a job at the end of the program. BMW Scholars is for students enrolled in various two-year career paths related to manufacturing technology. The program offers the workplace benefits of a traditional apprentice program with the additional advantage of tuition and book assistance. The plant has placed more than 100 BMW Scholars in permanent, full-time positions and there are more than 80 BMW Scholars currently in the program. Globally, BMW Group has 4,700 apprentices throughout the world. “We are now at a point where students graduating are used to having automotive manufacturing as an option and can’t remember a time without BMW. It has become an integral part of not just the Upstate, but of South Carolina. BMW is a South Carolina company. Its talons reach out across the state,” he said. Reach Teresa Cutlip at 864-235-5677, ext. 103, or @SCBizTeresa on Twitter.

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Greer mayor says BMW’s community impact more than jobs by Bill Poovey bpoovey@gsabusiness.com

erkeley County elected officials and administrators have received some tips in Greer about what to expect from Volvo’s planned $500 million plant in the Lowcountry. Greer Mayor Rick Danner presented a wideranging report on the city’s strong economic growth since the BMW Manufacturing Co. plant opened in 1992 near the city in Spartanburg County. Danner said BMW’s community impact is more than economic growth and jobs. The mayor told the group that BMW’s impact is also about “how they have integrated themselves into the community.” He said there has been $36 million worth of corporate giving to Upstate communities for “educational institutions, cultural arts organizations, social and community involvement initia-

tives.” Danner said the BMW Charity Pro-Am golf tournament has generated more than $11 million for community programs. “That is something that is hard to quantify, but it gives you some idea of the kind of impact they can have on a community,” Danner said. “The one thing that I will say and always say about their presence is they have been good corporate partners in terms of working with the city,” Danner said during the presentation at Greer City Hall before a recent tour of the Spartanburg County plant. “That doesn’t always mean dollars, but it means volunteers. It means help with projects. It means introductions. It means meeting with legislators. It means all those kinds of things.” Reach Bill Poovey at 864-235-5677, ext. 104.

Greer Mayor Rick Danner (standing right) talks about BMW Manufacturing Co.’s impact on the community during a visit by Berkeley County officials. The session was arranged by the S.C. Department of Commerce. (Photo/Bill Poovey)

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The Greenville Chamber exists to inspire, inform and help businesses perform better and prepare for the future. If you’re in business, you have a partner in us. www.greenvillechamber.org

Manfred Erlacher, president of BMW Manufacturing Co., examines work being done on the production floor of the company’s plant located in Spartanburg County. (Photo/Provided)

Erlacher: ‘It has all worked out for us’ by Matthew Clark mclark@scbiznews.com

n the early 1990s, the BMW Group was looking for a place to expand. It had recently found success in South Africa with its Rosslyn plant as well as its facilities in Dingolfing (Germany), Steyr (Austria), Regensburg (Germany) and Eisenach (Germany), and it was looking for additional expansion capability. Enter South Carolina. On Sept. 8, 1994, the BMW Group started production at its first North American production facility, located in the Upstate of South Carolina. It has now grown into the largest auto manufacturing facility in the BMW Group chain, recently closing on $9.8 billion in exports in 2015. BMW Manufacturing Co. President Manfred Erlacher said, in an interview with GSA Business Report, that even though there were only “about 60,000” BMWs sold in North America, the company recognized “a lot of possibilities” with the location of a plant in Spartanburg County. “There was a highly-skilled workforce around and we recognized there is a really pro-business attitude in South Carolina,” Erlacher said. “The infrastructure with the highways and the port and Charlotte gave us really good possibilities to expand in the future.” Fast-forward more than 20 years later and the BMW Group is in the midst of completing a $1 billion expansion to the Upstate facility that will further increase vehicle production from its current 400,000 vehicles per year to approximately 450,000. Erlacher said construction is

expected to be complete in 2017 and the facility will be ready to welcome the new X7 model to add to the X series lineup exclusively produced in South Carolina. “I think no one dreamed that it would be possible,” Erlacher said. “We recognize that we are still growing and we will increase our employment by an additional 800 jobs by the end of this year.” Erlacher has been with the BMW Group for more than 30 years. He was appointed BMW Manufacturing Co. president in November 2013. He succeeded Josef Kerscher, who returned to Germany to head operations at the group’s Dingolfing plant in Bavaria. Prior to joining BMW Manufacturing, Erlacher was head of the group’s Leipzig, Germany plant and led the plant through expansion to produce the BMW i3 and i8. Over his career at BMW, Erlacher also led assembly and body shop operations at the Munich plant before being named the managing director of the plant. In the two full years since being named head of BMW Manufacturing Co., the facility has begun production of the second generation X6 coupe, underwent the $1 billion expansion – the fifth expansion of the plant since its opening, announced the future production of the X7 and has generated more than $16 billion in annual economic impact to the state. On top of all of that, Gov. Nikki Haley told a group of auto suppliers at the recent S.C. Auto Summit that it was BMW that helped attract other companies such as Daimler and Volvo to the state. Erlacher said the company believes it is all about being a good resident. see ERLACHER, page 24

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BMW Manufacturing records largest yearly production in 2015 by Matthew Clark mclark@scbiznews.com

ccording to figures released by BMW Manufacturing Co., the Greer facility became the company’s highest producing plant in the world. BMW North America said the S.C. plant rolled out 400,904 X models in 2015, which made the facility the largest producer in the company’s global production network. It was a 15% increase over 2014, when the plant produced 349,949 vehicles. The company also said the plant exported 70%, or 281,256 of BMW’s total volume for the year. The plant output 158,766 of the X5 models, more than any other X model for the year. There were 142,613 of the X3 models produced, along with 55,027 of the X4s and 44,498 of the X6 models. “We have an outstanding team of dedicated associates that are highly committed to delivering premium quality vehicles for our customers to enjoy,” said BMW Manufacturing Co. CEO Manfred Erlacher in a statement. The production totals come as BMW Manufacturing is in the middle of a $1

billion expansion to the facility. The expansion includes a new 527,000-squarefoot body shop, two new indoor test tracks, a 200,000-square-foot expansion to the X5 and X6 assembly hall, and a 105,000-square-foot warehouse expansion. The company plans to bring production of the new X7 model to the Upstate facility and, by the end of the year, the annual production of the facility is expected in increase to 450,000 automobiles. In November, BMW Group announced an investment of $420 million in its plant in Pretoria, South Africa so it can start production of the X3 model for sale primarily in South Africa and Europe. BMW North America released sales figures for 2015 as the company broke its previous yearly sales record with 404,527 BMW and Mini vehicles combined sold in 2015. The company said that “nearly one-third” of the brand’s U.S. sales were vehicles produced in South Carolina. The X5 model sold 54,997, setting a new sales record with a 17% increase over 2014. Reach Matthew Clark at 864-235-5677, ext. 107, or @matthewclark76 on Twitter.

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The history of BMW

Bayerische Flugzeugwerke A.G. was formed on March 6, 1916. In 1922, financier Camillo Castiglioni acquired engine production along with the workforce and production facilities, the company name and the logo in white and blue of ‘Bayerische Motoren Werke GmbH’ and transferred all these assets to ‘Bayerische Flugzeugwerke A.G.’ Since that point, the establishment of BFW has been recorded as the birthday of Bayerische Motoren Werke.

Staff Report

gsanews@scbiznews.com

hrough the end of World War I, BMW produced just one thing: The BMW Illa aircraft engine. It was a six-cylinder inline engine that once carried a human more than 30,000 feet in the air in 1919. However, after the end of the war, Germany was barred from making aircraft, and BMW had an emergency production program it relied on until 1922 when it started making aircraft engines again. Shortly afterwards, the company launched its first motorcycle with the BMW R 32 in 1923. The basic concept with a two-cylinder boxer engine and cardan drive has carried into the design of BMW motorcycles to the present day. Things changed in 1928 when BMW acquired Fahrzeugfabrik Eisenach. BMW initially started up production of a small English car under licence and followed up with its own production in 1932. Just a few years later, the product range was expanded with a sporty car in the midrange. Aircraft manufacturing continued, however, to define BMW into World War II. In 1941, the company shut down in motorcycle and automobile manufacturing and focused exclusively on aircraft and, after 1942, criminals, prisoners of war from Eastern Europe, forced workers mainly from Western Europe and detainees in concentration camps had to work in BMW’s factories. It wasn’t until 1983 that the company raised the issue in the pub-

lic domain for the first time with publication of a book entitled The BMW Story: A Company in its Time by Horst Moennich. In 1999, BMW joined forces with other companies in the German economy to establish the foundation “Remembrance, Responsibility, Future” for paying compensation to former forced laborers and also engaged with its own past in numerous publications.

HARD TIMES FOR BMW

Following the end of World War II in 1945, BMW lost its production site in Eisenach in the Soviet zone of occupation. This meant that the company also lost its expertise in automobile and motorcycle manufacturing. It wasn’t until 1948 that the company put its first postwar motorcycle on the road in the form of the BMW R 24. The company began producing highend automobiles, but manufacturing costs were not offset by sales, forcing the company into, what it called a “financial crisis.” It was helped when some shareholders banded together to push back a purchase attempt by Daimler-Benz A.G. in 1959 and, from there, Herbert Quandt formulated a plan to move the company from exclusive luxury vehicles to small and midrange cars.

pany Hans Glass GmbH was purchased in 1967, BMW vehicles have also been rolling off the assembly lines in Dingolfing and Landshut. Motorcycle production was also transferred from Munich to the Berlin-Spandau plant in 1969. In 1973, the company opened its new head office and BMW Museum which created the iconic “bowl” design. The BMW Tower is still a recognizable figure in the Bavarian skyline. Growth expanded greatly in the 70s and 80s, when the product ranges for cars and motorcycles demanded gradual expansion of production capacities and the sales network. Important milestones in production were the startups of the production facilities in Regensburg in 1986, Leipzig in 2005 and the Spartan-

INTERNATIONAL EXPLOSION

Production capacities at the parent plant in Munich soon began to reach their limits due to the high level of demand for the new products. After automobile com-

The BMW Group headquarters in Munich, Germany. (Photo/Provided)

burg plant in 1994, as well as the 1979 startup of the engine plant in Steyr, Austria. The company purchased the Rover Group in England in 1994 with the intent of expanding the product range, but sold the subsidiary in 2000 because “development options were overestimated at the outset.”

NEW MEMBERS OF THE FAMILY

BMW retained the Mini brand in 2001 and had already purchased rights to the brand and name of Rolls-Royce in July 1998. The new Rolls-Royce Phantom has been rolling off the production line at the Goodwood production facility in the United Kingdom since 2003. Sports motorcycles of the Husqvarna brand have complemented the product range of the BMW Group since October 2007. As of 2015, BMW employs more than 115,000 people worldwide, including 8,000 at the company’s largest facility located in the Upstate of South Carolina. In 2015, the company hit nearly 2.3 million in group sales and set a fifth consecutive sales record. The BMW brand delivered 1.9 million vehicles to customers in 2015, an increase of 5.2% from the previous year. Editor’s note: A bulk of the above history was taken from the story The BMW Group: A Story of Mobility, which was released in 2012.

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The history of automobiles and BMW Staff Report

gsanews@scbiznews.com

he BMW Group has been in the business of manufacturing automobiles for over 80 years. In 1928, the company purchased automotive facility Fahrzeugfabrik Eisenach. Initially, licensed production of the Austin Seven continued under the brand name Dixi.

GETTING STARTED

The advanced development BMW 3/15 PS was launched on the market in 1929 and was the first automobile to bear the BMW emblem. In 1932, the first BMW automobile developed by the company rolled off the assembly line with the designation BMW 3/20 PS. Two years later the Munich automaker presented the BMW 303 as the first model powered by a 6-cylinder inline engine. The BMW 326 was considered a â&#x20AC;&#x153;classic mid-rangeâ&#x20AC;? and nearly 16,000 units of this car were sold, making it the most successful BMW to be produced before World War II. In 1936, the BMW 328

The BMW 335. (Photo/Provided)

The BMW 3/15 PS. (Photo/Provided)

was launched with a production run of just 464 units. The legendary roadster became the most successful sports car in the late 1930s and â&#x20AC;&#x153;was instrumental in establishing the sporty image of the BMW brand.â&#x20AC;? The most luxurious BMW to roll off the assembly line before the war was the BMW 335 from 1939. The 3.5 litre 6-cyl-

inder inline engine was a completely new development. It had a maximum output of 90 hp and luxurious interior equipment â&#x20AC;&#x201C; this car in the luxury class is regarded as the forebear of the BMW 7 Series. According to various historical interpretations, BMW manufactured aircraft engines and motorcycles during World War II. Later in the war, the company stopped producing automobiles. Following the war, the company made pots, pans and bicycles until 1948 when it started its

motorcycle production back up. Then, in 1952, BMW went back to its automotive production at its plant in Bavaria.

POST-WORLD WAR II

The BMW 501 was launched on the market with a 6-cylinder engine in 1952 as the first post-war model (also known as the â&#x20AC;&#x153;Baroque Angelâ&#x20AC;?) followed by the BMW 502 version. The worldâ&#x20AC;&#x2122;s first allalloy V-8 engine for volume production was installed in this car with an output of 100 hp. The BMW 507 and BMW 503

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of the BMW 5 Series, the BMW 02 Series models laid the ground for the subsequent BMW 3 Series. A total of more than 800,000 of the sleek BMW 02 Series cars were sold.

THE BREAKTHROUGH

The BMW 501. (Photo/Provided)

from the pen of Albrecht Graf Götz were produced in parallel from 1956. In the period from 1955 to 1962, BMW produced a total of more than 160,000 units of the BMW Isetta and launched an extended four-seater version with the BMW 600. However, this success was unable to solve the deep-seated financial crisis besetting the Group. The support from Herbert Quandt and a new product concept enabled BMW to chart a roadmap to profitability with the advanced small car BMW 700. In 1961, BMW developed what they called the “New Class.” The cars in the “New Class” were among the first BMW models to feature BMW’s signature “Hofmeister kink” in the C-pillar. While these automobiles are regarded as the forebears

1972 marked a milestone in the company’s history. Alongside pioneering design, the BMW Turbo study presented innovations like ABS or radar-based distance warning devices which gradually went into series production. BMW laid the foundation stone for today’s model series – also in 1972 – with the first BMW 5 Series. In six generations, more than 5.5 million cars in this series have been sold. The BMW 3 Series came along in 1975 and this has remained the best-selling BMW model to this day. The BMW 6 Series rolled off the assembly line for the first time in 1976. When the classic BMW 7 Series was launched in April 1977, all the BMW model series had undergone a process of renewal. In 1987, BMW tackled the apogee of engine construction. For the first time since the 1930s, a German manufacturer once again presented the market with a 12-cylinder engine, in the second generation of the BMW 7 Series with the BMW 750i. The BMW 8 Series came along in 1987 and BMW conquered a completely new

The BMW M5 E34 (front), M5 E28 (middle) and the BMW M1 (background). (Photo/Provided)

segment with the BMW 1 Series in 2004.

THE M CLASS

BMW Motorsport GmbH was established in 1972 and it produced the BMW M1, the grandfather of all BMW M models, in 1978. The BMW M535i was presented in 1980. It was the first sports car to be developed by Motorsport GmbH and the precursor of the BMW M5. The M3 series model rolled off the assembly line in 1986. Apart from the

BMW M6, two representatives of the BMW X family were also being marketed along the same lines as the BMW M: the BMW X5 M and the BMW X6 M were the first four-wheel drive BMW M models.

BMW X MODELS

In 1999, BMW opened a new market with the creation of its “Sport Activity Vehicle” or X models. The intent of the X model is to combine the “quintessen-

TH We’re proud to be BMW’s partner in achieving top status in 2015 as the #1 vehicle exporter in the US. Here’s to a talented workforce at BMW for making this growth happen and continuing to trust SC Ports to deliver SC-made BMWs to the world. SCSPA.com

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The 2005 MINI One D. (Photo/Provided)

This is the BMW X5 4.4i. (Photo/Provided)

tial sheer driving pleasure with the allterrain character of an off-road vehicle.” There are now five X models – the X1, X3, X4, X5, X6 – with the release of the new X7 planned soon. With the exception of the X1, the X models are exclusively produced at BMW’s Upstate plant.

THEN COMES THE Z

BMW reconnected with its roadster

X models..(Photo/Provided)

Rolls-Royce Black Badge. (Photo/Provided)

tradition when it launched the BMW Z1 in 1988. The BMW Z1 was the first complete development by the “ideas factory” BMW Technik GmbH and was built between 1988 and 1991. The second representative of the BMW Z Series, the Z3, was presented in 1995 as a roadster and as a coupé. Ultimately, the BMW tradition of sporty two-seaters found its most modern interpretation in the BMW Z4.

The 1988 BMW Z1. (Photo/Provided)

SOME ADDITIONS FOR BMW

Since 2001, the Mini brand has complemented the product portfolio of the

BMW Group – the first premium vehicle in the small-car segment. The Mini Hatch made a start in 2001 – and by 2011 the Mini family had grown to six model versions: Mini Convertible, Mini Clubman, Mini Countryman, Mini Coupé and Mini Roadster. After the BMW Group acquired the rights to the brand and the name for Rolls-Royce cars in July 1998, the newly developed Rolls-Royce Phantom rolled off the assembly line at Goodwood, England, from 2003. In September 2009, the new Rolls-Royce Ghost heralds the arrival of a second model family.

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BMW HISTORY TIMELINE Timeline of events is courtesy of BMW Classic. March 7, 1916 Bayerische Flugzeugwerke AG is established as the successor to aircraft manufacturer GustavOtto-Flugmaschinenfabrik with registered office at Lerchenauer Straße in Munich.

Oct. 1, 1928

June 17, 1919

BMW takes over automaker Fahrzeugfabrik Eisenach in Thuringia where the Dixi 3/15 PS small car is manufactured as a licensed version of the British Austin Seven. This makes the company a manufacturer of automobiles.

Test pilot Zeno Diemer reaches an altitude of 9,760 meters in his aircraft manufactured by Deutsche Flugzeugwerke and powered by the BMW IV inline six-cylinder engine, setting up a new world altitude record.

Sept. 28, 1923 Dec. 10, 1917

July 6, 1922

The round brand logo with the letters BMW and the stylized propeller designed in the Bavarian national colors of blue and white is entered under the number 221388 in the Trademark Registry of the Imperial Patents Office. At the end of the 1920s, this livery appears for the first time in advertising as a stylized rotating propeller, which has since then formed the basis for the interpretation of the logo.

Bayerische Flugzeugwerke AG takes over the company name of Bayerische Motoren Werke, the brand logo and engine construction from the current owner, Knorr-Bremse AG.

Dec. 17, 1948 Motorcycle production is started up again in Munich. A BMW R 24 powered by a singlecylinder engine is manufactured there as the first vehicle from BMW AG in the post-war era.

At the German Motor Show in Berlin, the BMW R 32 is presented: the first motorcycle produced under the brand, developed under the management of Max Friz, powered by a horizontally opposed twin-cylinder, four-stroke Boxer engine.

March 22, 1929 The first BMW 3/15 PS rolls off the assembly line in the production building rented from coachbuilder Ambi-Budd at the old Berlin-Johannisthal airfield.

June 9, 1959

Sept. 21, 1961

The Board of Management of BMW AG presents the new BMW 700 Coupé to international journalists at a press launch. This car was to lay the foundations for profitable large-scale production of automobiles.

June 18, 1965

BMW AG sells its remaining shares in BMW Triebwerkbau GmbH to MAN AG and brings its involvement in aero-engine production to an end for the time being.

The BMW 1500 celebrates its world premiere at the International Motor Show in Frankfurt – the start of the trailblazing success of the “New Class”.

March 7, 1966

The two-door BMW 1600 is presented to guests in front of the Bavarian State Opera House on the occasion of the celebration of the 50th anniversary of the company.

March 11, 1954

The BMW 502 presented at the Geneva Motor Show is powered by an eight-cylinder engine, the world’s first V8 all-alloy engine to be fitted in a volume-produced automobile.

June 13, 1983 BMW presents the first series of automobiles in the company’s history powered by a diesel engine, the BMW 524td with an inline six-cylinder turbo diesel engine generating 85 kW/115 hp.

June 29, 1964 Dec. 9, 1959

At the Annual General Meeting of BMW AG, a group of small shareholders prevents the takeover by Daimler-Benz AG. Major shareholder Herbert Quandt decides to make a bigger commitment which secures the independence of BMW.

Sept. 11, 1987 The BMW Z1 roadster developed by BMW Technik GmbH is presented at the International Motor Show in Frankfurt.

Sept. 12, 1985

May 22, 1987 The new BMW Plant Regensburg is officially opened. The first model that was manufactured there from the end of 1986 is the BMW 3 Series.

Jan. 29, 1994 With the signing of the purchase contract, BMW AG takes over the British Rover Group, which includes the brands Rover, MG, MINI and Land Rover.

Vehicle production at the BMW Plant Spartanburg in the US state of South Carolina starts up – a BMW 318i is the first model to roll off the production line. The official opening of the new location is held on Nov. 15.

March 5, 1987 The BMW 750i is presented at the Geneva Motor Show, the first 12-cylinder model to roll off a German production line since the end of the war.

Positive business development encourages the Annual General Meeting of BMW AG to pass a resolution on paying a dividend to the shareholders for the first time since the end of the war.

Sept. 8, 1994

BMW presents the first all-wheel drive model at the International Motor Show, the BMW 325i all-wheel drive, and the BMW M3.

March 10, 1992 The new plant of BMW Fahrzeugtechnik GmbH is opened at the traditional heritage site in Eisenach. Pressing tools are manufactured there for the company’s production network.

Dec. 31, 1968

BMW AG concludes a record year as more than 100,000 automobiles are produced for the first time in one year.

May 13, 1969

Motorcycle production at the BMW main plant in Munich comes to an end. Production is relocated to the site in Berlin where the new BMW /5 Series starts rolling off the production line from September 1969.

June 8, 1998 The company announces the continuation of the MINI brand, acquired through the purchase of the Rover Group, in an independent design.

Jan. 10, 1999

BMW presents the vehicle concept of the Sports Activity Vehicle at the Detroit Auto Show. The BMW X5 establishes a new market segment with this concept.

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June 22, 1931 The “Rail Zeppelin” powered by the BMW VI twelve-cylinder aero-engine built by railway designer Franz Kruckenberg reaches a speed of 230 km/h and achieves a new world speed record for rail vehicles.

June 14, 1936 Feb. 11, 1933 The BMW 303 is presented at the International Motor Show in Berlin as the brand’s first six-cylinder automobile and also the first model to be styled with the BMW signature kidney-shaped radiator grille.

The two-liter BMW 328 sports car is presented in public for the first time racing in the Eifel Race at the Nürburgring – Ernst Jakob Henne achieves a start-to-finish victory driving the new model.

April 28, 1940 Fritz Huschke von Hanstein and Walter Bäumer achieve overall victory in the Mille Miglia endurance race in Italy driving the BMW 328 Touring Coupé, and they also win the team placing in all classes for BMW.

April 30, 1945

Sept. 30, 1939

Soldiers from the U.S. Seventh Army reach the so-called shadow plant and the camp in Allach near Munich. From December 1939, prisoners of war, convicts, forced laborers and inmates of concentration camps have been used there and at other locations to produce aero-engines.

BMW AG takes over all the shares in Brandenburgische Motoren Werke GmbH in Berlin-Spandau. BMW had already been cooperating with the company on the development of air-cooled aircraft engines.

Aug. 31, 1972 BMW AG founds BMW (South Africa) (Pty) Ltd and has a majority shareholding in this sales and production company. This makes the plant at Rosslyn in South Africa the first production facility outside Germany.

Sept. 10, 1972

Sept. 12, 1972

June 30, 1975

BMW launches a new structure for model designations with the first BMW 5 Series as the successor to the “New Class”. This gives BMW clearly defined model designations, and the principle underlying the system continues to this day. The first digit represents the series and the two subsequent digits specify the model based on the capacity of the engine.

In Munich’s Olympic Stadium, the Board of Management of BMW AG presents the BMW 3 Series which is launched as the successor to the successful BMW 02 Series with new technology and new model designation.

At the Olympic Games in Munich, a BMW 1602 Elektro is used as a support vehicle for the marathon race. This is the first pure electrically powered automobile under the BMW brand.

Oct. 5, 1978

June 21, 1979

The BMW M1 is presented at the Mondial de l’Automobile in Paris. This is a mid-engine sports car generating 277 horse power developed by BMW Motorsport GmbH.

Ground-breaking ceremony for the engine plant in Steyr, Austria, which today serves as a center of competence for the development and production of a variety of engines including BMW diesel power units.

Sept. 27, 1973 Production starts up in the extensively expanded and modernized Dingolfing Plant. Initially, the models of the BMW 5 Series are manufactured there.

April 26, 2001 A few months after the relaunch of the brand, the first MINI rolls off the assembly line at the comprehensively modernized production plant in Oxford, United Kingdom, the original home of the classic Mini.

Jan. 3, 2003

Since the beginning of the year, the Rolls-Royce brand has been officially part of the BMW Group. Rolls-Royce Motor Cars Limited goes on to present the first model of the new era at the company’s new registered office in Goodwood: the RollsRoyce Phantom.

Nov. 19, 2008

The MINI E is presented at the Los Angeles Auto Show. This is a pure electrically powered small car for field tests in routine everyday traffic. It is a product of the “i” project created by the BMW Group for the development of sustainable mobility solutions.

The company uses the study BMW i Vision Future Interaction as the basis to present pioneering innovations in the areas of control and autonomous driving at the Consumer Electronics Show (CES) in Las Vegas. The 100th anniversary of the company is celebrated at a gala event in Munich’s Olympiahalle multipurpose arena.

The BMW Plant Leipzig designed by architect Zaha Hadid is opened. The first cars produced there are vehicles in the BMW 3 Series, and other models follow.

The BMW Group closes the business year with a new sales record. For the first time, more than 1 million cars of the BMW and MINI brands are sold within one year.

Jan. 6, 2016

March 7, 2016

May 13, 2005

Dec. 31, 2002

June 5, 2014

The first units of the BMW i8 plug-in sports car hybrid are handed over to customers at BMW Welt in Munich.

CELEBRATING

What is produced by BMW in the Upstate? by Matthew Clark mclark@scbiznews.com

has the same xDrive transmission as the X3. BMW Group has reported selling 250,000 of the X4 units since production began.

he BMW Manufacturing Co. facility in Greer has been producing vehicles since 1994, when the first BMW 318i rolled off the production line. But, it was in May 1998 that the production facility changed when the BMW Group announced a $600 million, 1 million-square-foot expansion to the Upstate facility in order to start production of the new X5. That started to mold what the plant does today: Be the global producer of most of the BMW X models. Norbert Reithofer, then-BMW Group chairman, told a crowd at the State Capitol building in Columbia “it’s a mature facility with a mature workforce ready to take on larger and more complex tasks” when he announced the expansion. Since its first 318i came off the production line, BMW Manufacturing’s Upstate facility has produced more than 3.3 million vehicles. Today, the Upstate facility produces the X3 sports activity vehicle, X4 sports activity coupe, X5 sports activity vehicle, X5 M sports activity vehicle, X6 sports activity coupe, X6 M sports activity vehicle and, coming soon, the new BMW X7. Here is a look at the different vehicles produced today by the nearly 8,000 employees at the Upstate factory.

The X3 was first introduced in 2003 and was BMW’s first foray into the sport vehicle genre. In over a decade, more than 1 million X3 vehicles came off the production line in the Upstate. The second

generation of the X3 was introduced in 2010. The BMW X3 featured a new kind of permanent power transmission to all four wheels, BMW xDrive. The first generation of the X3 sold nearly 600,000 models before being replaced with the second generation.

The BMW X4 launched in 2014 in a coupe model, different from its other X model cousins. The X4 is offered with six different engine variants and also

engine with 265 horsepower and an ability to go 585 miles on a single tank of gas. However, BMW rolled out one more X5 model in the X5 M, which includes a newly developed 4.4-liter V-8 M engine that delivers a reported 575 horsepower at 6,000-6,500 rpm. In 2005, the Upstate plant rolled off the 500,000th first generation X5. In just a few years after starting second-generation production, sales of the X5 grew to nearly 800,000.

The Upstate plant started production of the second generation X5 model in 2006. Now BMW offers several variants of its X5 model including the xDrive50i, xDrive30d, xDrive35d, xDrive40e, M50d and the X5 M. At its launch, the X5 had three different types of engines available: • 330-kilowatt, 450-horsepower V-8 for the BMW X5 xDrive50i. • 190-kW, 258-horsepower six-cylinder in-line diesel for the BMW X5 xDrive30d. • 280-kW, 381- horsepower sixcylinder in-line diesel with M Performance three-stage turbocharging for the BMW X5 M50d. BMW added the xDrive40e and its 230-kilowatt, 313-horsepower four-cylinder engine. In 2008, the xDrive35d entered the North American market from the S.C. plant. It included a 3.0-liter, inline six-cylinder

In 2008, BMW launched the first sports activity coupe in the X6. The next year, the company introduced the ActiveHybrid X6 which was powered by an eightcylinder petrol engine and two electric motors and transferred via the fourwheel drive system BMW xDrive to the front and rear axles. It has a system output of 357-kilowatt, 485-horsepower. Also in 2009, the X6 M was developed with its 4.4-liter V-8 engine and an eight-speed Steptronic transmission. Reach Matthew Clark at 864-235-5677, ext. 107, or @matthewclark76 on Twitter.

March 21 - April 3, 2016

www.gsabusiness.com 23

CELEBRATING

Industry 4.0: Trying new technologies A smartwatch supports assembly work at various BMW plants around the globe. (Photo/Provided)

Staff Report

gsanews@scbiznews.com

ncreasing production efficiency is a goal for any manufacturing company. The BMW Group is no different. In 2015, the company began looking at ways to use digitization to optimize production processes at its plants worldwide. Using tools like smartwatches, robots, logistics and advanced analytics, BMW said it was helping the “company to respond even more individually to customers’ wishes and to step up the flexibility of the production chain.” “Our top priorities are reliable processes and high quality in production, and digital technologies can help us with that,” said Oliver Zipse, member of the Board of Management of BMW AG, responsible for production, in an August 2015 press release. Additionally, Zipse said there are benefits for workers in using the new technologies and production methods. “In the long term, these developments will modernize our work enviERLACHER, continued from page 12 “We want to be a part of the community where we live,” Erlacher said. “In South Carolina, there are very friendly and supportive people and we want to be a part of that. “The attitude BMW Manufacturing Co. President Manfred Erlacher of the government, the Department of Commerce, the Ports Authority and the colleges has been great and we want to give back a little bit. We think this is a game changer to show what is possible here in South Carolina.” Heading into a future filled with talk of

ronment at the plants even further,” Zipse said. “Digitalization gives us new leeway and greater efficiency in some processes, and this provides a sustainable benefit to our workforce. In the future, people in production will be creators of their work environment to an even greater extent than they are today. Plus, they benefit from the declining share of physically strenuous tasks.” According to the BMW Group, it is focusing on six areas of production: • Context-sensitive assistance systems. In a pilot project, the BMW Group’s Munich and Leipzig plants tested smart watches that alert workers when a car with special requirements is approaching. The display lights up and the vibration alarm is triggered as a reminder to workers that the next process step requires, for instance, a different number of screws to be fitted. • Innovative robot systems. As early as 2013, the BMW Group started to use lightweight robots for a variety of tasks, such as fixing the sound insulation to the inside of the doors under precise and steady high pressure or applying adhesive to windscreens. Lightweight new technology, Erlacher said the Upstate plant will remain focused on helping to implement things like alternative power engines, hybrids and increased connectivity to the Internet. Autonomous driving will also be in the mix and Erlacher said “it will be a challenge to innovate those changes in our plant.” “We have to make sure all these things work properly,” Erlacher said. “In the next 10 years, we have to have the right qualifications here and, we want to really have perfect products for our customers.” For the immediate future, he said the increase in demand for the cars being produced continues to increase – global sales of the X models have trended up over the last six months according to the BMW Group – and the associates at Plant Spartanburg “are doing a really good job to get out that volume.” The company does not expect to see that trend slow down as re-

robots have been integrated into series production at the plants in Spartanburg, Regensburg, Dingolfing and Leipzig. • Simulation and factory digitalization. It only took one weekend to measure the Rolls-Royce plant in Goodwood, UK, and to record it down to an accuracy of two millimeters with a special 3D scanner and high-resolution digital cameras. So as a first, the site now has a three-dimensional likeness of its production facility for planning purposes; the need for a laborious CAD reconstruction of actual structures and manual recording on-site is eliminated. Contrary to the traditional twodimensional plans, any spatial change can now be intuitively simulated and assessed. • Planning and control systems. At the BMW Group Plants Dingolfing and Landshut, data matrix codes identify and record the entire production process of carbon parts for the new BMW 7 Series. In addition, the square, camerareadable bar code also comprises information about the processing chain. • Smart logistics. On a larger scale,

smart data technologies provide realtime information on the entire supply chain. In case of problems on the transit route, the parts supply unit can respond immediately. These ‘radar’ functionalities increase the transparency in the BMW Group’s international supply network and optimize supply chains. • Advanced analytics. When standard process curves are analyzed, the data of an individual screw bonding process can be automatically structured and assessed. Deviations from the standards are immediately remedied before process disturbances occur. Christian Dunckern, head of technical planning for the BMW Group, said digitization will allow the company to move its production “to the next level.” But, he said it is important for the company to keep perspective when it comes to what is important. “Not everything that is technically feasible also makes sense,” Dunckern said. “The point is to consider the added benefit to the company – and this can best be done by our workers who actively and continuously shape our production.”

Manfred Erlacher, president of BMW Manufacturing Co., on production floor of the company’s plant located in Spartanburg County. (Photo/Provided)

cent sales forecasts by the company are for more sales records to fall in 2016. And, Erlacher said the company still believes locating its first North American plant in the Upstate was the best decision for the BMW Group. “Now, more than 20 years later, we can

say ‘yes, it was all that we predicted’ and all of this has worked out perfectly with positive results,” Erlacher said. “It was the best to come to the Spartanburg area.” Reach Matthew Clark at 864-235-5677, ext. 107, or @matthewclark76 on Twitter.

March 21 - April 3, 2016

www.gsabusiness.com 25

BMW works toward shedding weight in auto production Staff Report

gsanews@scbiznews.com

or almost 90 years, BMW said it has been out to zap every superfluous kilogram carried by its cars. Shedding weight is the watchword, and not without reason. It is only lighter cars, after all, that can deliver enhanced efficiency and dynamics. BMW said it has always subscribed to the rigorous and intelligent use of light metals and materials such as aluminum, magnesium and carbon. Even new production methods have traditionally had those extra pounds in their sights: Electric gas-shielded welding or the bonding of materials allow for more innovative designs that can save a substantial amount of weight.

LIGHTLY DOES IT

1917 signaled the start of a new lightness of being in engine construction. With the BMW IIIa, the company not only produced the most powerful aircraft unit of all time, but also the lightest in weight of its day. The company was the first to use aluminum pistons. In 1924 the BMW R 37 sports motorcycle was the world’s first two-wheeler to feature light-alloy cylinder heads, while 1936 marked the debut of electric gasshielded welding in the construction of the BMW R5, allowing the frame to be made of conical oval tubes. The featherweight BMW Kompressor motorcycle built in 1938 was taken to a historic victory in the 1938 Isle of Man Senior TT by Georg “Cast Iron Schorsch” Meier, making him the first non-British competitor to win the 500-cubic-centimeter class.

LIGHTNESS GOES INTO PRODUCTION In 1954, the weight-watching movement made inroads into volume production when the world’s first V-8 lightalloy engine came off the production line at the BMW plant. In the years following, BMW made further advances shedding excess pounds. In 1971, for example, the BMW 3.0 CSL made an impression with a lightweight engineering that shaved up to 550 pounds off the vehicle’s weight. In 1995 the BMW 5 Series set another milestone. Thanks to the world’s first light-alloy chassis for a volume-production vehicle, the new model tipped the scales at 66 pounds lighter than the outgoing model.

BMW IN THE BLACK

2003 saw the increased use of carbon in BMW production. This black material allows the design of more lightweight, efficient and dynamic cars, vehicles such as the current BMW i3 and BMW i8. With this concept, BMW Group combines lightweight construction, vehicle design and crash safety.

LIGHTWEIGHTS GO LIVE

From February to July 2014, the BMW Museum showed an exhibit about lightweight construction. “Leichtgewichte” put the spotlight on carbon. A delicate and aesthetic carbon installation provided a demonstration of tensility, rigidity and light weight. Another area focused on the potential uses of carbon, from construction of cars to household and sports items year. Information courtesy of BMW Classic.

For 50 years – 20 of those in the Upstate of South Carolina – we have been connected by a strong innovative partnership with the goal of developing automobiles with character. Individual, ambitious and trend-setting. www.draexlmaier.com

The BMW Group started work on lightweight designs in 1917. (Photo/Provided)

CELEBRATING

BMW sustainability: Making more, using less by Matthew Clark mclark@scbiznews.com

n 2015, the BMW Group said that 51% of its electricity used as its plants worldwide was being supplied by renewable sources. The company said it has a goal of reaching 100% renewable “in the coming years.” During its Annual Account press conference in Munich, BMW officials laid out a plan to transition to 100% renewable source electricity that included improving its energy consumption at all of its plants, installing systems that will generate electricity from alternative sources and purchasing renewable source electricity from

energy companies. “We have a clear objective and a concrete plan for the transition to renewable energy. However, economic viability is essential for implementation,” said Ursula Mathar, BMW’s head of sustainability and environmental protection, at the 2015 press conference. “Only under the right framework conditions can we put our plans into action step by step in individual markets worldwide.” In 2003, BMW Manufacturing Co. started using four turbines to turn methane gas from the Palmetto Landfill into electricity. Now, that methane gas is used to turn the turbines that supply approximately 50% of the total energy needs for

the Upstate facility. Six years later, BMW replaced the four original turbines with two new turbines that increase the electrical output from 14% to nearly 30%, according to BMW Manufacturing Co. BMW officials said the new program reduces carbon dioxide emissions “by 92,000 tons per year or the equivalent to the benefit of planting over 23,000 acres of trees annually (roughly 30 times the size of New York’s Central Park).” The company said the landfill gas program has saved BMW an average of $5 million annually in energy costs. At other BMW plants: • Leipzig, Germany — The BMW

Group is using wind power. In mid-2013, four wind turbines started operation on the premises of the plant, with 100% of the power produced going into the production of the BMW i3 and BMW i8. • Rosslyn plant in South Africa — The foundation stone for a combined heat and power unit fired by biogas was laid at the end of 2014. The gas used is sourced from the waste products created on cattle and chicken farms. Commissioning of this system will already enable the company to cover more than 25% of the energy required by the production plant in 2015. Reach Matthew Clark at 864-235-5677, ext. 107, or @matthewclark76 on Twitter.

BMW’s Upstate plant used intelligent energy data management for sustainable production in its car assembly line. (Photo/Provided)

IEMDS helps BMW reach goal of sustainable production Staff Report

gsanews@scbiznews.com

ince 2012, the BMW X assembly at the BMW Manufacturing Co. plant in Greer has been equipped with smart meters to measure the energy consumption of production facilities and robots and align them with a larger data network The intelligent energy management data, or iEMDS, was initially installed on more than 80 production facilities and robots in vehicle assembly at the Upstate plant. According to the BMW Group, the smart meters look for excess consumption that can be found early in the pro-

duction process. The company said the data “helps to prevent imminent disruptions or even breakdowns of individual production facilities or robots, thus ensuring the required premium quality of the vehicle production.” In 2014, the company applied the iEMDS at its plants in Leipzig, Regensburg, Munich and Landshut with plans to roll the network out to 30 sites in 14 countries. The company said the goal was to decrease consumption by at least 45% across the company by 2020. According to the BMW Group, the implementation of the iEMDS at the Greer facility could generate energy cost savings of more than $27.7 mil-

lion through 2024. After it was installed, the company said the system located nearly a quarter of the energy costs that could be saved in the facility. The system identified a roller dynamometer that required nearly double the electricity as two of the exact same unit. In the examination of the unit, the iEMDS found a program error in the ventilation’s run-time management. The system also found the dynamometers used high amounts of energy during breaks. This was discovered to be caused by vehicles remaining on test rigs during breaks, forcing the dynamometers from shutting off. After fixing the issue, the total energy savings

to the Greer plant for that one error was more than 100,000 kilowatt-hours in the first year. The data from the iEMDS is sent to the BMW Group’s information technology headquarters in Munich. The information from the system includes vehicle-related information like programming and diagnosis results and production-related data such as where a vehicle was completed and how long it took. The company said it has found energy demand information that has been used in concept development for new robot generations used at new plants in Araquari, Brazil, and San Luis Potosi, Mexico.

CELEBRATING

Robots active in BMW’s Upstate plant Staff Report

gsanews@scbiznews.com

n 2013, the BMW Group began the use of robots on its production line inside the company’s manufacturing facility in the Upstate. It was the first usage of robots working alongside people for the BMW Group, and it became part of series production. All told, BMW added four robots to work on the door production of the X3 models, specifically focusing on sound and moisture installation. According to BMW, the process begins as “foil with the adhesive bead is put in place and slightly pressed on by assembly line workers.” The company said that, prior to the robots, workers would fix the foil on with a manual roller. The robots use a roller head to roll the foil, which protects electronics inside the door, as well as the vehicle interior from moisture. In a statement, Harald Kruger, BMW A.G. Management Board member, said the decision to place the robots in the Upstate facility was “mainly based on

ergonomic considerations.” “Robots that assist production workers by assuming labor-intensive tasks will characterize the factory of the future. Their benefits are strength and mechanical accuracy, and they perfectly complement humans’ flexibility, intelligence and sensitivity,” Kruger said. BMW also said security standards were implemented because robots were working in the direct surroundings of workers. The company said robots “run at a low speed within a defined environment and are stopped immediately in case their sensors detect an obstacle in their way.” “We regard the successful implementation of an ergonomically optimized human-robot cooperation in series production as a major step toward future automotive engineering and the world of industry 4.0,” said Stefan Bartscher, head of the Innovation Management Production team at BMW’s Research and Innovation Center in Munich, in a press release. “Collaborative robots enable us to create new forms of design in the process layout.”

Robots started working side-by-side with production assembly workers at BMW’s Upstate plant in 2013. (Photo/Provided)

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CELEBRATING

What does the future hold for BMW? by Matthew Clark mclark@scbiznews.com

ot looking for a lot of pomp or circumstance, the BMW Group did celebrate its 100th anniversary in Munich by looking ahead to the future of the company. During an event at the company’s corporate headquarters in Bavaria, it unveiled plans for a BMW Festival in Munich called The Next 100 Years. “At the BMW Group, we are always on a quest for the best solution. It’s part of our DNA,” said Harald Krueger, chairman of the Board of Management of BMW A.G., at the anniversary event in Germany. “It’s also the spirit of our collaborations, a recurring theme that permeates our corporate and leadership culture. With that, the BMW Group also announced the BMW Vision Next 100, a new vehicle that the company said “focuses on the driver, offering the support needed to maximize the driving experience.” The new concept incorporates “indicating the ideal driving line, steering point and speed.” It also includes retractable steering wheel and console and turning headrests. Another element of the new concept is merging door trim allowing the driver and front-seat passenger to turn toward each other. “If, as a designer, you are able to imagine something, there’s a good chance it could one day become reality,” said Adrian van Hooydonk, head of BMW Group Design. “So our objective with the BMW Vision Next 100 was to develop a future

scenario that people would engage with.” The BMW vision vehicle was unveiled at the anniversary celebration in Munich in front of approximately 2,000 guests. For those not able to see the new concept, BMW A.G. is planning a world tour called “Iconic Impulses” where the vehicle will make stops in China, the United Kingdom and the United States. After premiering in Beijing, the tour will stop in London where Vision Vehicles for Mini and Rolls Royce will be unveiled. The final stop will be in Los Angeles where BMW Motorrad will add its vision vehicle to the collection, amounting to four vision vehicles. Krueger said another focus of the new vision vehicles is on connectivity. He said with time being in shorter supply, connectivity will be more common in the automobile and technology will adapt to the people using it. “Future mobility will connect every area of people’s lives. And that’s where we see new opportunities for premium mobility,” Krueger said. In addition to showing off the new vision vehicles, BMW said it will host the BMW Festival, The Next 100 Years, Sept. 9-11 at Munich Olympic Park. The company also plans to release a 13-volume publication that outlines the history of the company with essays, reports, studies and interviews. The BMW Welt will open an exhibition in the spring dedicated to the “Iconic Impulses” tour, and the BMW Museum will host a temporary display called “100 Masterpieces,” which will present milestones in BMW Group history. The milestones display opened March 10.