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BMW Recognizes Auto Technician Shortage And Does Something About It.


BMW THINKS OUT OF THE BOX, LOOKS UNDER THE HOOD TO SOLVE INDUSTRY PROBLEM

Innovative Program Helps Alleviate 
Shortage of Skilled Automotive Technicians

WOODCLIFF LAKE, New Jersey, June 17, 2002... College graduates are facing a
tight job market, but one industry is struggling to meet the demand for
skilled employees.  Opportunities for automotive service technicians trained
to repair today's sophisticated vehicles have skyrocketed and due to this
demand, and the advanced skill set required to do the job, well-trained
service technicians are a hot commodity.  

According to the U.S. Bureau of Labor Statistics, more than 60,000
automotive service jobs in the U.S. are going unfilled as automakers compete
for skilled labor with other high tech industries.  

Ahead of the Curve
Recognizing the importance of well-trained service technicians, BMW of North
America, LLC initiated a program in 1996 to help keep pace with its dealers'
burgeoning demand - a demand fueled by the tremendous growth in sales of BMW
vehicles in the U.S.  (Sales have quadrupled in the past 10 years; there are
now more than 1.4 million BMWs on the road.)  Called STEP, for Service
Technician Education Program, the successful initiative has expanded over
the past six years to turn out nearly 1,200 graduates.  

STEPping up to the Challenge
Students accepted into the program pay no tuition for the advanced training
in automotive services.  The placement for graduates has been consistently
100 percent.  Only the top students at post-secondary automotive schools
throughout the country are accepted into the program; candidates must be
bright, highly motivated, drug free, and receive the highest grades and
references.

A Good Deal for Dealers
Customer service - before, during and after the purchase - is a top priority
for BMW and the driving force behind the STEP initiative.   Delivering a
high level of customer service is imperative and so the company underwrites
much of the cost of the additional training needed to service its vehicles. 

When hiring a STEP graduate, dealers reimburse BMW for a portion of the
training costs.  In return, they get a highly skilled and competent worker
and can count on a good measure of employee loyalty; the attrition rate for
service technicians who completed STEP is about 7 percent since the program
began in 1996, compared to an industry average about 15 percent a year.

Reducing the Stigma
As automotive technology becomes more sophisticated, the perception of
automotive technicians changes too, says Brian Nelson, BMW's STEP Manager.
"A service technician today has more technical knowledge than an automotive
engineer 15 years ago.  We need to do more at all levels to continue to
change mindsets."

One area of emphasis is on secondary schools, where a partnership of auto
manufacturers, dealers and qualified high schools offering career and
technical training is working to change attitudes and open doors.  The
Automotive Youth Education Systems (AYES) was created to encourage young
people to consider careers in retail automotive service, and to prepare them
for entry-level career positions or advanced studies in automotive
technology. 

"Our mission is to change the connotation of the automotive industry among
parents and students," says Karen Seman, the AYES manager working full time
with BMW.  "We bring together the schools, automobile dealers and
manufacturers to generate interest at the high school level and provide
educational and occupational opportunities."

BMW is an active participant in AYES; this year, about 40 students will be
getting hands-on experience at BMW dealerships across the country, and Tom
Purves, chairman and CEO of BMW (US) Holding Corp. is on the AYES board.  In
addition to providing mentoring experiences and paid internships, dealers
also take part in career days at the schools. Upon high school graduation
and AYES certification, participating students are prepared to begin
entry-level employment or continue their technical education through
programs like STEP.

A STEPping Stone to a better future
While the average annual salary for a STEP graduate is $55,000, once the
graduate gains on-the-job experience, it can run as high as $75,000 -
$100,000 in some parts of the country. And the opportunities don't end
there. Indeed, many students have moved on from their initial technician
positions - into service management, field service engineering, and even as
a head instructor at one of the STEP training facilities. 

BMW offers seven regional programs in Orlando; Phoenix; Houston; Cleveland;
Fremont, California; Upper Saddle River, New Jersey; and Ontario,
California, for 27 weeks of intensive, hands-on training on all BMW models.


BMW Group In America
BMW of North America has been present in the United States since 1975.
Since then, the BMW Group in the United States has grown to include
marketing, sales and financial service organizations for the BMW and MINI
brands; a South Carolina manufacturing operation; DESIGNWORKS/USA, an
industrial design firm in California; a technology office in Silicon Valley
and various other operations throughout the country.  The BMW Group is
represented in the U.S. through networks of 340 BMW car, 327 BMW Sports
Activity Vehicle, 148 BMW Motorcycle retailers and 59 MINI car dealers.  BMW
US Holding Corp., the Group's headquarters for North, Central and South
America, is located in Woodcliff Lake, New Jersey.

Information about BMW Group products is available to consumers via the
Internet at http://www.bmwusa.com http://www.bmwmotorcycles.com and
http://www.miniusa.com