BMW to build fewer MINI's?

The world's biggest premium carmaker, expects to build up to 10 percent fewer Minis this year due to the retooling and expansion of its plant in Oxford, Britain, the company said on Wednesday.

After selling just over 200,000 Minis in 2005, BMW estimates a production cut of between 15,000 and 20,000 units in 2006.

The company had already said early in November that it would build fewer Minis but had not given a figure at the time.

Source: Reuters

MercBasher - 1/19/2006 11:47:40 PM

+1 Boost

Masterful management of volume - US companies should also do this more often (instead of always trying to maximize output). By regulating supply, BMW is able to gain premium pricing for a tiny, unreliable (but fun) product.

Of course the decline in demand for Minis couldn't possibly have something to do with the decision to cut supply could it?