Several days ago we reported that BMW would shut Leipzig for almost a week at the end of this month, well there are more closures now planned.
Regensburg and Munich will be shut for up to 5 days in November. The possibly Dingolfing and the foundry at Landshut being shut is very strong.
With declining demand and the “pull ” strategy in full swing in the US BMWAG has little reason to keep churning out cars. BMW is producing fewer cars and keeping pace with the demand. The US auto makers have begun to do similar things as opposed to in years past when they would just discount cars they over produced; killing residuals and brand image.
Let us hope that BMW can remain an independent company in these difficult times by making smart decisions such as described. While it is never a good thing to close a factory for these reasons it is far better than creating more cars than demand requires.
BMW To Idle Several Plants Amid Slumping Demand FRANKFURT (AFP)–The German luxury car maker BMW AG (BMW.XE) said Monday it would close several domestic plants as it reduces output to meet slowing demand for automobiles. “Leipzig will be idle for four days at the end of October, Regensburg five days in early November and Munich between four and five days in early November as well, ” a spokesman told AFP. Two more sites in Dingolfing and Landshut would also be affected, he said. “Factories abroad might also be hit, ” the spokesman said without providing details. BMW had already said it was reducing its production target for 2008, with a decrease of 25,000 vehicles from a schedule established at the beginning of the year. “This is the application of measures announced in early August, ” the spokesman explained. Dow Jones Newswires