COMPANY PROFILE
2014
BMW
Yes, we make great cars...
But we are, first and foremost, a committed and engaged corporate citizen
company profile
Yes, we make great cars...
But we are, first and foremost, a committed and engaged corporate citizen
Editorial: Colin Renton Production: Chris Bolderstone
BMW’s are often described as ‘the ultimate driving machine’ and it is said they are ‘designed for driving pleasure’ but what is it that gains the brand these tags? It is, of course, the people that put these cars together. BMW South Africa invests heavily in its people and their families and Managing Director, Bodo Donauer says that this has been the way for the past four decades. When BMW chose South Africa as the base for its first factory outside Germany, only the most optimistic of the company’s managers could have predicted what huge success that decision would bring for the firm – and its new host. The move to create BMW South Africa was made in 1973 when the firm took over the Rosslyn vehicle assembly plant of Praetor Monterdeers in Pretoria. Within just three years, with demand soon outstripping supply for its vehicles, BMW had staked its claim as the leading manufacturer of high-performance luxury passenger cars in the country. And the success has continued apace. The Rosslyn plant now produces more than 80,000 BMW 3 -Series sedans every year and South African-built cars are exported to some of the largest markets in the world, including the USA, Canada, Japan, Korea, Taiwan, Hong
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Kong, Singapore and Australia. BMW South Africa now employs some 3,500 people, 2,400 of them at Rosslyn, where there are three shifts that keep the plant running and cars rolling off the line 24 hoursa-day. The market coverage achieved by BMW South Africa is clear testimony to the skills and dedication of its huge and multi-cultural workforce in creating BMW’s market-leading products, and the expertise and vision of its management. But there is another factor crucial to BMW’s success in South Africa. The company has totally immersed itself in the country, its communities, their culture and their values and BMW is now seen as a major investor in its people. The BMW Group was one of the pioneers during the politically instable years of the slow break-up of apartheid. It took specific measures against racial segregation, job discrimination, and unjust compensation. Despite the
BMW South Africa
occasionally precarious situation, BMW was always able to provide jobs. Now BMW’s social commitment in schools and high-schools, co-operation with local governments and government agencies have become a permanent part of daily operations. It’s an ethos that Bodo Donauer, BMW South Africa Managing Director, is rightly proud of. He says: “For the past 40 years, BMW South Africa has been a major investor in South Africa and its people. The company ensures through its first and second tier suppliers, and its dealer network, that thousands of South Africans are employed and can provide for their families. “Given the length of time we have been engaged in South Africa, we have certainly employed grandfathers, fathers and sons of the same family! “This sort of long-term investment leads to real
community upliftment in the process. Our success in this regard has made BMW an integral part of this country’s social fabric; we are first and foremost, a committed and engaged corporate citizen.” This manifests itself in a variety of Corporate Social Responsibility programmes that are deliberately focused away from marketing and brand building and towards the sustainable development of communities and the people of South Africa. Mr Donauer adds: “BMW believes in the long-term development and future of the South African economy, and supports more than100 individual Corporate Social Investment projects across the country. “The company’s CSR projects are rooted in three key areas: HIV and AIDS, Local Community Development and Education, particularly in maths, science, technology and the environment.
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company profile
“Importantly, the emphasis is placed on social investment; not charity. BMW South Africa does not adopt a cheque book approach. “Instead it contributes to sustainable development, working with employees, their families, the local community and society at large to improve quality of life. “As one example, the BMW Maths Science and Technology Excellence Project encourages learners to pursue careers in the field of science and technology, while at the same time addressing the skills gap that exists in the country in this critical field.” Certainly, no way can this project be seen as tokenism from a global corporation towards its host country. The results speak volumes for the validity and value of BMW’s approach. Donauer says: “Last year the performances of schools in this programme exceeded our expectations once again and have improved on the pass rate from 2012 by more than 13% and 25% for physical science and mathematics respectively. “More significantly, physical science pass rate was 11% higher than the national average. At the same time, the mathematics pass rate 19% higher than the national average.” One of the most exciting community projects is the multipurpose community centre at Soshanguve, known as the
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Soshanguve Health and Wellness Centre, which is near the Rosslyn plant and opened in 2005. Here the residents of Soshanguve receive medical and psychological assistance and are offered continuing education programs. The centre offers a health service, a computer and technology centre, a training centre and a community garden for growing vegetables. For the 700,000 residents of Soshanguve, the centre has developed into a counselling centre for all questions relating to HIV / AIDS. One of long-term goals of the project is to further reduce the rate of HIV infection among young people. Then there’s the Baan Gerda children’s village, home to HIV-infected orphans, giving them the opportunity to lead a normal life. Here, they live together with HIV-positive foster parents and other children in a house and visit pre-school and school – a prerequisite for their integration into society later on. The BMW Group has been supporting the project since 2002. Internally, the company’s Employment Equity Programme supports South African transformation and democracy with its objective to achieve an equitable representation in all occupation levels and categories. The company is BBBEE Level 4 accredited – the highest rating of all OEMs in the Grain Silo
BMW South Africa local industry. Furthermore, the company’s remuneration strategy compares competitively with the best remuneration practices on offer in the automotive industry, the national market and the BMW Group internationally. It’s an impressive list of projects and initiatives that clearly benefits BMW workers and the wider community, but employee/employer relations are not always smooth in South Africa, as was seen in a crippling four-week strike that hit the sector last year. A three-year wage agreement eventually ended the walk-out and it is hoped that this will bring long-term stability to the South African motor manufacturing industry. During the strike, and the subsequent three-week strike in the supplier industry, which lost the company around 13,000 cars, Donauer said BMW would ‘not panic’ and remained committed to the company’s existing long-term investments in South Africa. But he says all sides must be aware of the damage such action can cause to a business operating and competing globally. Asked if he had seen signs of stability, Donauer says: “It’s far too early to tell. South Africa, unfortunately, has a history of a high number of strike days regardless of long-
term wage agreements. “With concerted commitment from all parties we’re sure that this will change in the future. It needs to because South African manufacturing is struggling to compete with the productivity offerings of Eastern Europe and China.” It’s a crucial message to get out there, because it seems there is no stopping the demand for South African-built BMWs. In 2009, BMW invested R2.2 billion in Plant Rosslyn, allowing it to compete for the production of future models and continue to expand its production capacity to satisfy an eager export market. As well as this, the company has initiated a dual port export model, using the port of Maputo in Mozambique in conjunction with traditional outlet of Durban to get cars to their overseas customers. “As the number of BMW vehicles exported from South Africa increases, we have had to look carefully at our export logistics and using Maputo in conjunction with our export supply chain in Durban makes sound business sense,” Donauer says. “To play on a world stage we need to ensure we are competitive in all elements of the manufacturing process, including supply chain and logistics,” he adds..
LEATHER - THE ULTIMATE RECYCLED MATERIAL Established in 1997, GST / Seton AutoLeather is regarded as a pioneer of automotive leather in South Africa, and remains fully committed in creating a sustainable work environment by maximising the use of local raw materials, with leather types including light-embossed, medium-embossed and deep-embossed leathers, available in full or corrected grain, chrome or chrome-free, throughout its operations which in turn supports the local community and beyond.
Seton’s hard work and dedication to becoming a leader in the automotive leathers market was recognised, when the company was awarded the Tannery of the Year Africa 2013 after being judged on our sustainability, green initiatives, production capabilities, product and personnel development, product enhancement and overall business leadership. ACCREDITATION AND AWARDS • ISO 9001(General Quality Standards) • ISO 14001 (Environmental) • ISO/TS 16949 (Automotive) • OHSAS 18001 (Occupational Health and Safety)
Contact 15, Second Avenue, Vorsterkroon, Nigel, South Africa 1490 Phone: (27) 11-360-7500
E-mail Marketing & Sales Nikki.Wilson@SetonAutoLeather.com (Daimler/Toyota/Ford/Other) Vanessa.Record@SetonAutoLeather.com (BMW/MINI)
www.gstautoleather.com MAR 14 PAGE 5
0800 600 555 www.bmw.co.za
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