Mini production stops for a month

News | November 7th, 2008 by 5

Like all the recent bad news weren’t enough, today workers at the BMW-owned factories in Oxford and Swindon have been told the around Christmas time, the …

Mini production stops for a month

Like all the recent bad news weren’t enough, today workers at the BMW-owned factories in Oxford and Swindon have been told the around Christmas time, the factory will be closing for four weeks.

There will be 4,700 workers affected at the Mini factory in Oxford, while BMW’s Hams Hall plant, which employs about 1,000 people, will shutdown for for a month also.

Even though for October MINI posted a 56.4% gain to 5,272 cars in the U.S, the Mini sales in the UK during October were down 40% compared with a year ago.

Tough time for everyone in the auto industry and the bad news seem to be coming out weekly now. Just a few days ago, the bimmer fans were disappointed by BMW’s decision to cancel the CS Project.

  • John Shansky

    yea, thank you USA to screw everything

  • http://www.bmwblog.com Horatiu B.

    @John Shansky: I don’t think the crisis started solely because of U.S, of course it had a major impact.

  • Lance

    It started with oil price increase, which lead to higher inflation, therefroe higher interest rates, which lead to the start o the financial crisis as people start to default on payment. Well you may then ask, who started the oil price increase/ well, it is BUSH who made up non-sense about attacking middle east countries because of some untrue weapons of mss destruction. This Bush has been wanting to fight since the day he got into his office, not only is he giving all American’s a bullish, bad image, he brought the entire world’s economy down as well. The crisis is not over, the fact that most American banks are now owned by the state means that there’s more trouble coming and could be even bigger than current. We would have to see what the new president can do.

    As for BMW’s management team who said that they were going to boost profits by dropping production and incresing prices, well I’d like to see you do that now. That plan could not have worked anyway. Firstly BMW is in a highly competitive market, you puch your price up, customer just goes to Lexus, Audi or Merc. except for a few – most people buyinig BMWs are company cars and company allowances are set within a certain limit. If your prices are too high compared to another similar products, people will jst go somewhere else. And with the situation now, BMw’s planned demand has droppedby more than 60%, push your prices up and it will fall by a further 30%. You lose market share and profits. BMW management has been rather arrogant in dealing with brand issues and is painting a bad name in the public’s eyes. Compare this to the previous CEO, Dr. Panke, who pushed BMW to be No.1 and huge expansions into new markets, giving the public the idea that BMW is a global company. Now this new CEo is shrinking the brand and saying to people that BMW is a pure German brand. It is a pity, this will be BMW’s downfall.

    Thirdly, take note, the cut in production will only save BMW the overhead costs. apparently they still have to pay the salaries of the workers.

  • Lance

    Just to add more explanation on Bush: The fact that he attacked the middle east countries and took over the oil supply there, means that he had control there and cut production. Why? Becasue he is closely associated with those oil companies in the US and by sutting supplies worldwide, they will be able to boost the price and the oil companies can make more millions. This was the plan all along. who suffered in the end, well, the Amaerican people and now the rest of the world. what implications next,? China will soon take over and people distance themselves from America and that will be the start of America’s downfall. This is what I have read in research papers produced by various universities. But whether this is good or not depends on you.

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