It's Official: BMW to Boost MINI Production

Sections: In the Press | R56 (Hatch) Feb 14th, 2005 32 Comments

Here’s an excerpt from Automotive News Europe:

BMW this week will announce an investment of about $280 million in its Oxford, England, factory, allowing for a sharp increase in Mini production.

The expansion sets the stage for the automaker to build new variants of the next-generation Mini, expected late next year.

BMW officials decline to discuss future derivatives, but a sport wagon and roadster have been under study.

The investment will enable BMW to increase Mini capacity to 250,000 to 300,000 units per year. The factory made 189,490 cars in 2004.

mini

The additional capacity will come online in 2007, soon after BMW launches the next-generation Mini on a re-engineered platform that will allow more derivatives.

…Global Insight Analyst Nigel Griffiths predicts the launch of the next generation will occur late next year.

The new platform is designed to accommodate new gasoline engines jointly engineered by a BMW partnership with French carmaker PSA/Peugeot-Citroen SA.

“That’s only a five-year life cycle on the current generation,” Griffiths says. “The new one is going to have the same silhouette, just on widened track and more flexible platform.

“They need it more flexible to make derivatives off and also to make it cheaper.”

You can read the entire article at Automotive News Europe’s sister publication, Autoweek.

[ BMW will boost Mini volume ]

MF Analysis: There you have it, as we predicted the R56 will come on line late next year as a 2007 model. And if anyone questions the success of the MINI all you have to do is point them to the fact that BMW expected to make no more than 100,000 cars annually. The thought that production could get close to 300,000 cars a year with this expansion is truly amazing.

Written By: Gabe

BrantV

Fabulous news.

Looking forward to seeing more of em on the roads. If only they could pull a Henry Ford and put one in every driveway. Just hope the increase in numbers doesn’t equalize supply/demand so much that dealers become hesitant to let us do custom orders.

And wider track? Will there be a possibility to shoehorn some 235 or 245 sneakers without spacers?
petsounds

An alternate title to this article might be, “BMW To Reduce MINI Resale Values.”

I like seeing a lot of MINIs around (far better than the swarm of lumbering SUVs), but it’s bittersweet since that also reduces the great resale values we’ve come to expect from MINI.

On a different note, what is the general consensus about buying a 2007 model versus waiting a year to get the kinks out?
johnsocal

Mini’s resale will remain high regardless since Im willing to the bet that the next-gen 2007 Mini will have a MSRP that will be $2000 higher then todays cars.
Grumpygills

Big retooling time.
Mini2go

Although there are always price increases (and never decreases), I would be quite surprised to see that much of a jump ($2,000) – especially since they should achieve better economies of scale with both the new engines and the new platform. I think MINI realizes that there is a bit of a “sweet spot” with the base price noticeably under $20K. Also, keep in mind that MINI has started to bleed black ink before anyone’s projections – so with additional output they should recoup the expansion costs even faster.

OTOH, I do expect the top end of the price range to continue to spiral into (and beyond?) the $30K+ range with the new variants and possible new features (like all-wheel-drive).
Angael

I think the resale value of our current MINI’s will be fine, as it has been stated all too often that there will be changes to the new MINI’s to make them more cost-effective in the long run for BMW.. So in short what we currently have is a spare no expense quality vehicle. Not to say the newer models won’t be..
BrantV

$2000? Perhaps $1000 ($500/year). Although I also predict MINI will give us ample opportunity to add options and push the car well past 30K.

More cars could also make it easier to replace due to accidents or theft.

As for reduced resale value, I’m entertained daily by the number of people discouraged about MINI’s plans to switch from a supercharger to a turbocharger. It seems detrimental to point out that the new engine delivers more torque than the current 2005 MCS Works kit below about 3500 RPM.

I think if we time it right, there is going to be a good window of opportunity for us to find loving homes for our existing MINIs.

Another angle to consider. If MINI can split future production into different forms (i.e. 3dr, 5dr, coupe, clubman, estate, ect…) then there will be less pressure to homogenize the MINI into a form that tries to address everyone but fails to satisfy anyone.
http://www.gbmini.net/ Ian

Here around MINI Peabody there are quite a few owners trading up to the ’05 and so quite a few older MINIs – especially some JCWs (presumably because their owners want the new LSD). As a result, trade-in value is down about 10% since new year; I don’t know if that is a temporary or permanent effect.
http://motoringfile.com Gabe

Mini2go – you are 100% correct. MINI (and BMW for that matter) know what they’re doing in when it comes to hitting a price point.

Ian – I think we’ll see the same thing right around early 2007 as many current MINI owners will be upgrading I’m sure. I would imagine I will be ;)

Petsounds – I’ll be most likely buying a first model year car, just like I did with the current MINI. I’ve had no serious issues and absolutely love my car. I can’t imagine that being any different with the R56.
johnsocal

Considering that the next-gen 07 mini’s will have larger and better quality interiors, engines with more HP, and most likely come with larger wheels as standard and combine all that with a rising euro to US dollar a $2000 price hike is likely.

Do you really think a $19,995 turbo’d 140 HP MC with a higher qaulity and larger interior with 16inch wheels is over priced in 2007 dollars?
TooLShack

Cue the crying about resale value!!
TJKonarski

I’m happy MINI is a success, I really am. However, I’m dissappointed that there will be such a saturation of MINI’s on the roads. I rather like having an ‘exclusive’ car that not everyone else has discovered and is driving. Here in SE Michigan it seems like everyone drives a Pontiac Grand Prix. They are literally EVERYWHERE!!! I once had to drive one as a rental for a few months — I was absolutely miserable! If MINI ever got way to crazy-popular by the masses I think it might make me want to go back to driving a Honda S2000 again.
TJKonarski

Hmmm… The Solstice will be on sale by fall of this year… So far it’s getting excellent reviews on performance, styling and engineering. That Bob Lutz… He loves his rear-wheel drive performance cars… And for only around $20k… This ‘boost’ in MINI’s production has got my heard turnin’ in a different direction.
http://motoringfile.com Gabe

Here in Chicago I probably pass 3-4 MINIs every morning during my five minute commute… And I love it. None of the drivers wave, yet I welcome seeing them driving MINIs. Why? Because if they’ve found the MINI then they’ve found a great alternative to something boring and or dangerous.
TJKonarski

That’s very true, for the car’s price-point there is no questioning MINI’s superior safety technology and design features. I guess if you’re a fraternal person who enjoys the communal sense of belonging, then the ‘boost’ will be a big thumbs up from you. But if you’re someone who enjoys the fun that comes with owning something somewhat rare or at the very least doesn’t feel so completely mass-produced, then this news is disappointing.
http://motoringfile.com Gabe

In that case I’ve got two words for you: Chrome Roof ;-)
TJKonarski

??? I must really be a MINI newby or an automotive slacker… I have no idea what Chrome Roof means. (I know on a person Chrome Dome is bald — Any relation?)
http://motoringfile.com Gabe

No – I was just suggesting a way to make your MINI completely and utterly standout from the crowd :-)
TJKonarski

Well, that was in a way my thought process when I bought my ’05 MCS… I got the convertible… In a color that can only be ordered on the convertible… Cool Blue. I guess I’m just really stuck on having a car that is as unique and unusual as I possibly can. But also choose a car that is fun, well made, stylish, safe, pushes the envelope, blazes new trails — You know, all those buzz-words and phrases that stick to historical and evolutionary cars with great reputation like Mini and MINI. To date, MINI is filling the bill for me. I’m just concerned about the date in 2007 — Will too many of the driveways in my neighborhood have a MINI parked in it? I’m hoping not.
http://motoringfile.com Gabe

I guess I wouldn’t worry too much. The MINI will never reach mass consumption levels in the US compared the numbers that even BMW or Mercedes put out annually. Not with such a small dealer network located only around major metropolitan areas.
Mike S

You can’t really expect to be one of the only cars on the road at the $20,000 to $30,000 pricepoint. Obviously that is affordable to many people. If you really want a car that only a few people have in your state you’ll have to spend a little more. Perhaps $300,000+ on a Ferrari or Lambo?
Vanwall
Personally, I like the prospect of more MINIs on the road. Beats all the other chaff out there. I don’t see that many MINIs when I’m out & about compared to say, Camrys, or Hondas, so there’s a ways to go until they are considered even fairly numerous, and that would take a LOOOONNNG time. As for residual value, it’s always been a fortuitous extra, and since I’m in for the long haul, it’s not germaine to my particular reasons for owning a MINI.

I have yet to pull up to a filling station and meet another MINI owner, let alone one that is almost identical, something which happened to me when I was in a rental Toyota – 4 identical ones, including mine, and NOBODY even looked at the other cars. Someday in the far future we old-timers will reminisce about how exlusive our MINIs were back in Ought Four, but until then, I’m all for ramping up!
```
            BCNU,
          Rob in Dago
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C W

High sales don’t automaticaly equate to low resale values. What causes low resale vales are poor long-term reliability, massive discounts off MSRP, fleet sales, and indistinct product.

Here in Canada, the Honda civic has been a perennial Top 5 seller, yet it has rock solid resale values because it ticks few (if any) of the above boxes.
Rob Livesey

For owners who are concerned with MINI’s getting too common (as is starting to be the case here in the UK) the owness is then on you to make your MINI unique. There are a lot of Silver Coopers around in England so I got a MINI one in British Racng Green with white viper stripes. Have yet to see another example on the road.

MINI is a truly unique car so make it look that way. Simple.
Chris

Hi!

A very nice computergenerated picture of the 2007 MINI MkII…

http://www.auto-motor-sport.de/d/76535

I guess, there will be more pictures soon…

Regards, Chris
TJKonarski

You absolutly do not have to spend hundereds of thousands of dollars to own a more exclusive car. For example, the Honda S2000 — $33,000 base. The Lotus Elise — $43,000 base. And of course, the ever wonderful MINI — $18,000 base. Now, I am obviously not comparing apples to apples here. But on the rareness or exclusivity factor these cars, on one level or another, fit the profile. I’m just saying it’s that current aspect of MINI that I really enjoy.
ME

TJK, get over it. Power to the masses. Long live the MINI Republic!
James

I vote for All-Wheel Drive in 2007.
ME

Yes, a MINI in every driveway by 2010. With or without All Wheel Drive, your choice. Got my vote. Tax credit for buying a MINI would be nice too.
TJKonarski

MINI Republic… Actually, wouldn’t that be cool?! MINI — It becomes it’s own country. The slogan could be, “The big, MINI country.”
Eric

MINI resale values might go down a little bit, but will still big extremely high. Need proof? Take a look at BMW’s biggest volume seller, the 3er. It’s resale values are very high and have consistently been. We have no worries.
http://chicagominiclub.com Victoria

AWD Hybrid Clubman, baby. I am so ready!

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