BMW Adds to the Leipzig Shutdown

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
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  • TBeam

    Perhaps an odd question, but any details on what will happen to employees during the shutdown? Toyota has used shutdown time at some of their US facilities while retooling for smaller cars recently to continue training full time employees. I hope that BMW also chooses to invest in their future despite a decline in sales relative to forecasts.

  • That is a great question, I will try to see if I can get some answers on this.

    The other interesting point is that BMW closes factories for the holiday season during December so there are already dates built in for them being closed.

  • lee

    Maybe they could use this time to train the sales people at dealerships so they know something about the cars on sale?

  • No official word on what is going to occur to the employees during these closures, it appears they still will be paid.

  • Til

    BMW worker have houres accounts. In busy times they can save till 300 houres. They are doing overtime without beeing payed immiedently. In difficult times or for long holidays they can use this houres. they can make also minus 300 h. and then recover afterwards.This system allows to survive difficult times without decreasing staff. This system is quite common in Germany.