MINI Shutting Down Production for December
BMW AG has decided to take the step of completely stopping production at MINI’s Oxford plant from December 7th through January 5th. This is a two week increase from the usual time off for the holiday’s that plant workers have enjoyed.. Furthermore the BBC is reporting that MINI sales are down 40% in the UK for October (compared to a year ago) and the entire UK car industry is reeling in the wake of the current economic slow-down.
However it’s worth noting that we’re hearing from our sources at the plant that what is being reported on the BBC is a slightly more bleak picture than is necessary.
So even though MINI is the only car brand on the planet that is selling well, AND there’s still a backlog of customer orders here in the USA, BMW decides to axe production and piss off the customers that already have MINIs on order? If UK sales are down 40%, but USA sales are up 56%, wouldn’t that mean that [assuming all else is flat] production should be going up? If BMW is freaking out about the finaciapocalypse, they could start by dropping a shift and run the plant as a 2 shift instead of 24/7, or a 3 shift for 4-5 days/week. Completely shutting down will have a massive ripple effect that will forever tarnish the MINI name as suppliers.
The end is here, apparently.
I’m glad I got my mcs conv. when I did. Don’t know why they don’t continue production and send it to U>S> dealers.
Very tough times, no easy way for even successful companies to deal with this. I hope everybody at Mini that is affected by this knows that as a proud owner of many of their products I am both saddened for them and hopeful that the economy makes some solid gains to get them back to work soon.
Ryan, read the piece again. MINI sales are down 40% in the UK. The UK is still the biggest MINI market in the world followed by the US and Germany. MINI sales are generally down accross Europe as well.
I am sure US customers with vehicles on order will get their cars in time prior to the plant shutdown.
I’m pretty depressed to hear this- I mean, this is big news!! I know we’re in a pretty big financial crisis here, but I have to say I agree with Ryephile… somehow, if demand (globally) is exceeding production, I see no reason to completely shut down the plant. Cut back, maybe, or find other places to rethink the budgetary concerns of the brand, but cutting off production entirely? That’s upsetting.
Best of luck to BMW/MINI in the troubling times- may they only be temporary.
I just ordered a new MCS last week Friday. I haven’t gotten a production no. yet from the dealer, but when I ordered they gave me an anticipated delivery date of 12/20. I wonder if I’ll still get the car in December or if it will be delayed until January or something… should I call the dealer? How long does it take to get a production number?
PS – Of interesting note: I had requested the color to be “Midnight Black” as that is the Black on miniusa.com when you configure the car. However, the dealer says that it will be Astro Black instead of Midnight Blalck. The dealer didn’t have a swatch of the Midnight Black even at the showroom. They said I’d have to wait until after January if I wanted the Midnight Black…so I went with the Astro. What’s the difference anyhow?
BMW/MINI is basing this on their sales projections, and they have to balance sales of the cars across their global market. Costs them a lot more to build/ship a car for the US, than for the UK. Increase production for the US and decrease production for the UK = decreased revenue.
Perhaps the slow down in production will allow the Anthracite Headliners to catch up with the Production weeks 36,37,38,39,40…….. R-55 cars. Not complaining – just hopeing. 🙂
They always close for part of December. It seems though that they have added a week of vacation or so. they also close in August every year as well.
It’s a bit sensational to title this “Shutting Down Production for December”. It is only a two week extension to the annual two week holiday shutdown. Obviously BMW anticipates a slowdown in sales, and this is probably the least disruptive way to cut production. This article says workers pay is not affected: <a href="http://news.bbc.co.uk/2/hi/uk_news/england/7712766.stm" rel="nofollow">BBC: Mini production stops for a month </a>
<blockquote>They said I’d have to wait until after January if I wanted the Midnight Black…so I went with the Astro. What’s the difference anyhow?</blockquote>Midnight Black is a metallic true black. Astro is a very dark metallic blue/purple. Personally, I’d wait for the new color.
I would think that with a plant going 24/7 for 11 months of the year, that some downtime would be useful just for maintenance on the machinery and maybe some retooling. Is it possible that the staff there needs a much deserved Christmas break?
Economic downturn sounds like a good reason for anything right now….
Even though MINI has reported increased sales in the US for October, they must be seeing a downward trend to take such action. Perhaps there has been a drop in dealer traffic and orders over the past few weeks in the US. I have been skeptical of the sales numbers reported in the US as everything seems to be slowing down. I’m sure that the September and October sales were still orders from 2-4 months ago being delivered.
rhawth99, the exchange rate makes a difference too. US sales are “subsidised” by European sales – i.e. even with shipping, the MINI sells for a lot less in the US, so there is a significant drop in the profit-margin made on each MINI sold. For example the base MINI in the UK is 13,325 British Pounds, which is $21,000 converted to US dollars. The base price of the same car in the US is $18,550. So to keep from seeing a large drop in revenue, they balance sales, and reduce everywhere.
How many cars a week from that plant? Recent sales are down, lots of cars outside the factory waiting for buyers. Makes so much more sense to shut down for two weeks more than to run the factory halfway for 4 weeks.
This horrid economy is catching up with everybody. MINIs are not a first necessity item for most people.
To all of you who want production high to meet, or even exceed demand, buy a GM, Ford, or Chrysler product. Mindless production does wonderful things for resale value (not to mention image). Kudos to BMW for using their heads over their hearts.
Pues al igual que muchos de vosotros,encuentro fatal que paralicen la producción,existiendo mercados,como el de USA,que ha incrementado sus ventas en un 56%.no comprendo esa actitud,pero sie es por el bién de la marca MINI,adelante.
VIVA MINI!!!!!!!!!!!!!!
BMW has begun to shutter a variety of plants. Leipzig was the first to go for a week; Munich, Regensburg, Dingolfing and even the Landshut foundry will be closed this month for a week. The Spartanburg Plant in the US will see layoffs and closure for a period this and next month.
Rumors are that all BMW plants will have extended holidays.
In Germany employees bank “overtime”/ “Shift differential hours. They do not receive additional pay in their regular check for this time but will be paid during times of closure and can cash it in after a certain period. This is only valid for full-time employees of the company. Temporary workers do not usually qualify for these terms. BMW employs temporary workers as a percentage of the workforce in case their are downturns in demand and they have to slow production or let people go…. easier to let non-union employees go.
I feel for these people and their families, not really the time to complain about a car not getting a particular part or the fact it may be produced early so you have less time to change the order….. real people build these cars and some will no longer be employed. The global markets are in big trouble and BMW while still in good shape is being proactive in making decisions like this; they are also setting up methods of protecting the independent interest of the company through investment conglomerates so that the likes of Porsche etc. do not gobble them up in a hostile take over.
BMW/MINI will weather this storm by making adjustments in advance. They are shutting things up so that if things get worse they do not have a stockpile of cars. Better to do enough to keep your head above water (small profit) and ride it out than to go for the shore (shoot for all the profit) and realize the tide has changed and you over did it and are going to drown (built too many cars and can’t move them.)
Just my personal opinion…
MINI is bumping up production of customer sold cars with the intention of only delaying cars that are lower in status. Nothing to get anybody’s knickers in a twist over. Calm down, take a deep breath and be grateful for BMW/MINI’s proactive approach to the current economic difficulties. The sky is not falling.
just think of all the little plant problems management and bmw can fix with an extra 2 weeks shutdown. as pay is not affected by shutdown, this will probably help worker morale. i wish my job offered a month off in december with pay as fulltime employee. as a previous non full time employee, many plants in u.s go through shutdowns and refurb every year.
Ryephile-
What is wrong with you? Are you smoking banana peels? Sales may be down 40% in Europe and up 56% in USA but you cant use your logic…So far USA sales are 46,000. Europe is 118,000!!!!!!!!!! its apples to oranges…nice try, you are not a glass half full guy i take it.