BMW Embraces “Belt and Road Initiative” and Upgrade Logistic Efficiency by
Kicking off Aftersales Parts Railway Importation

(CHENGDU, May 9, 2018) – Today, BMW Aftersales Spare Parts China-Europe Railway Express (Chengdu) Import Launching Ceremony wrapped up successfully at CRIntermodal Rail Container Terminal Chengdu. As the first premium car brand in China that adopts cross-border railway to import aftersales car parts, BMW, embracing China’s “Belt and Road Initiative” and taking advantage of Chengdu-Europe Express, is able to transport its aftersales parts from Germany to China. It will enhance the efficiency of BMW global supply chain and the logistics operations in western region of China, thus improving the service experience to Chinese customers.

Upgrade BMW’s localization strategy in western region by embracing Belt and Road Initiative

BMW has been pressing ahead with its localization agenda in China in order to adapt to the quickly evolving local market as China’s consumption evolving continues. The firm commitment of BMW has been embodied not only in BMW’s manufacturing, R&D, marketing strategy and human resources management, but also in its alignment with China’s social development. In 2013, Chinese president Xi Jinping proposed Belt and Road Initiative, where Chengdu, as an inland city with open economy, plays a vital role. RDC Chengdu adopting railway-based importation offers the latest example of BMW actively involving itself in the Belt and Road Initiative by leveraging its strong logistics capabilities in the region. The express railway is the bond that connects China and Germany, and the new model will also help Chengdu become an international comprehensive hub of logistics. Meanwhile, benefiting from the Belt and Road Initiative, BMW will have more opportunities to enhance its infrastructure of aftersales logistics and strengthen its presence in China’s automotive market.

BMW’s localization strategy is also shown in its effort in seeking harmonious development with the local community. The railway transportation, aside from developing product forces, will effectively reduce the consumption of land and energy, reduce environmental pollution, lower transportation costs of the entire society, therefore achieving balance development of economy, population, resources and environment.

Enhance customer satisfaction by improving logistic network

Sea shipping and air transportation used to be the main ways for aftersales parts importation in Chengdu due to its inland location. For sea transportation, cargo containers need to be shipped from Hamburg to Shanghai through international waterway and then shipped to Qingbaijiang in Chengdu by barge. The international waterway transportation takes as long as 60 days. Air transportation takes less time but at higher cost. BMW’s railway importation will replace most of time-consuming sea transportation, resulting in less than 20 days. With the railway transportation being implemented in Chengdu, the combination of air, sea and railway will boost the overall supply efficiency while reducing the costs.

BMW has, since 2006, established five Regional Distribution Centers across China respectively in Beijing, Shanghai, Foshan, Chengdu and Shenyang. The five RDCs in total are able to store more than 80,000 car parts and process 25,000 orders a day, with the capability of delivering parts to any dealers in the region within 24 hours. The well-established logistics network provides a reliable support for the sustainable increase of sales volume. As one of BMW’s regional distribution centers in China, RDC Chengdu has always been committed to ensuring timely and quick distribution of BMW car parts in the western region. The launch of the railway transportation will further increase the responding speed of supply in the region and help optimize the inventory management system. Besides, customer satisfaction will be enhanced due to less lead time. In addition to bringing benefit to the western region, the new model will influence BMW’s import and customs clearance practices in other regions, such as the Yangtze River Delta and the Pearl River Delta, enhancing satisfaction of more customers and dealers.

As a company with vision and social responsibility, BMW has kept innovating with services in China to satisfy customers, and it also contributes to China’s economic development by participating in its economic restructuring. Belt and Road Initiative, since it’s proposed, is a great facilitator of Asia-Europe economic, trade and cultural exchanges, as well as a continuation of the ancient Silk Road. In March this year, the first China-Europe Express arrived at Plant Tiexi of BBA, which demonstrates BMW logistics can be relied on railway transportation and makes GECP part of the Belt and Road Initiative. Thanks to the support of Chengdu Municipal Government, BMW is able to rely on Chengdu-Europe Express to improve its logistics network in western region and thus making contribution to China-Germany trade. This also reaffirms BMW’s determination to strike root in China. Going forward, BMW will remain committed, as always, to providing customers with even more satisfying aftersales services.