BMW AG: The Digital Car Project
BMW AG: The Digital Car Project
BMW AG: The Digital Car Project
DIGITAL CAR
PROJECT
Automotive History
1885 First automobiles powered by internal combustion engines
developed in Germany by engineer Karl Benz (followed in 1886 by
compatriot Gottlieb Daimler).
1916 BMW founded to manufacture aircraft engines.
1923 Treaty of Versailles leads BMW into manufacturing ground-based
transportation, starting with motorcycles.
1959 BMW's weak financial position, after several marketing errors,
almost leads to a takeover by its traditional rival Mercedes. German
industrialist Herbert Quandt rescues firm with personal investment.
Early 90s Entry of the Japanese (such as Lexus) as serious contenders
in the luxury car market.
1995 For the first time ever, BMW's unit sales overtake Mercedes.
Reengineering Project
Mid-90s Decision to reengineer current 60-month development
process because of changes in competitive landscape. Task force
identifies five key process areas (body, climate control, fuel supply,
engines, accoustics) that account for 90% of critical path activities.
1997 Dassault visit in Paris: decision made to use real project to drive
changes towards a new 50% faster development plan. Project codenamed "Digital Car".
Decision point: should a derivative (3-Series Touring station wagon) or
platform project (7-Series sedan) be selected for the new "Digital Car"
development system?
In 1996, the European market sported some 50 car brand names, with
1990s
about 300 different base models.
The European market production capacity of 20 million overwhelmed
the total yearly sales of 14 million.
Customers demanded more choices while wanting to pay less. This
led to a rise in second-hand and almost new car sales.
The Japanese had reduce their traditional 50 months development
lead time by 30%.
The first time in history, BMW unit sales surpasses that of Mercedesbenz.