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Report: BMW sees long-term productivity shrinking |
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FRANKFURT (Reuters) ¨C BMW, the world's largest premium carmaker, sees productivity gains shrinking over the long term from its current annual target of 5 percent, a senior executive told German daily Die Welt."At some time, I assume we will perhaps reach a situation, regarding value creation for example, where productivity gains could be only another 3 percent per year," BMW production head Frank-Peter Arndt said in an interview published today.He reaffirmed that BMW remained open to further cooperation in terms of developing and manufacturing joint components that make up 80-90 percent of the production work done on a car that is not directly connected to the assembly line.Due to logistics costs, however, the group was increasing its stamping capacity, mainly at its Leipzig factory but also in other assembly plants.He also said capacity utilization throughout all of BMW's production network was at around 100 percent this year, compared with 97 percent in 2005.When asked about adding a possible fourth brand to the group's portfolio, Arndt replied: "We will answer this question at the appropriate time, but that will not be in the coming years."
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