As reported by Engineering News Online on October 14, luxury vehicle company BMW Group South Africa officially started production of the fourth-generation BMW X3 at its Rosslyn plant in Tshwane, following a R4.2-billion investment. This facility is now the only one in BMW’s global network dedicated to producing the X3 as a plug-in hybrid electric vehicle (PHEV).

The article noted that the transition to the new model marked a significant milestone, as BMW continued its electrification journey.

“We have finally arrived at the start of production of the next-generation BMW X3,” BMW plant director Dr Niklas Fichtmüller noted.

It was suggested that the new X3 underscored BMW’s “technology-open approach” and enabled modular production lines to build both electrified and internal combustion engine vehicles. BMW had already delivered more than two-million electrified vehicles globally, with over one-million being fully electric.

The company also expanded its South African line-up to include electric and hybrid options across all model segments. The Rosslyn plant’s production capabilities align with BMW’s global sustainability goals, joining several other automotive manufacturers, including Toyota, Mercedes-Benz and Ford, in investing in hybrid production.

BMW South Africa had already ceased production of the third-generation X3 at it Rosslyn plant, as reported by Engineering News Online in September.

The final unit of the series was completed in late August and shipped to a customer in Germany. Over a seven-year period, the Rosslyn facility produced 403 114 third-generation X3s, with about 96% of the output exported to more than 50 markets across Africa and the rest of the globe.

Rosslyn has a capacity to produce 76 000 units a year and was BMW’s first production plant outside Germany, established in 1973. Since then, it has built over 1.7-million vehicles.

“Having worked closely with the third-generation BMW X3, the last of its kind rolling off the production line was a particularly sentimental moment,” BMW Plant Rosslyn assembly GM Tshepo Khoza commented at the time.

“The continuation of the BMW X3 story in South Africa demonstrates the BMW Group’s commitment to South Africa – its people and communities – after 50 years of operation,” added Fichtmüller.

Meanwhile, as reported by Engineering News Online on November 15, the Automotive Industry Transformation Fund (AITF), which was established in 2020, has invested R596-million in 67 companies in the automotive value chain, according to AITF CEO Jabu Selumane.

“Our goal is to support 90 companies by 2029 and we are well on our way to achieving that,” said Selumane, adding that around 30% of the funding was allocated to women-owned businesses.

The AITF was created as a collective equity-equivalent investment programme by BMW, Ford, Isuzu, Mercedes-Benz, Nissan, Toyota and Volkswagen. It aims to promote transformation in the sector by providing market access, funding and business support to black-owned enterprises.

Despite experiencing economic challenges and limited market growth, the AITF commits to equipping black-owned businesses to succeed in a competitive landscape. The fund diversified its financial offerings to include long-term funding, equity-type investments and preferential loans.

Additionally, the AITF expanded its focus to include Tier 1 component manufacturers and new-energy-vehicle opportunities, including charging infrastructure and battery production.

Among its beneficiaries is steel construction company Steel Best Manufacturing, which supplies automotive components to Volkswagen, BMW and Ford.