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Construction Begins on New BMW Group Engineering and Testing Center

29 April 1999

Construction Begins on New BMW Group Engineering and Testing Center
                 - Approximately 100 New Jobs Move to Oxnard,
                    Joining Nearly 140 Workers Now There -

    OXNARD, Calif., April 29 -- Construction began today on BMW
Group's $28 million North American engineering and vehicle emission testing
center on Arcturus Avenue near the Port of Hueneme.  The new center, which
will serve the product engineering needs of both BMW and Land Rover in North
America, will be built on an 11-acre site next to the company's Vehicle
Preparation Center and will replace the current facility in Marina del Rey,
California.  At the same time, the BMW Group began a $1.2 million expansion
and renovation of the existing Vehicle Preparation Center.
    When complete next spring, BMW Group employment in Oxnard will increase by
an additional 100 jobs, making it the largest BMW Group site in California and
one of the largest in North America.  Currently, about 140 people -- full time
and temporary -- work in the existing Vehicle Preparation Center in Oxnard.
    "We are expanding our operations in the U.S. to meet increasing customer
demand for BMW and Land Rover vehicles, and our additions here in Oxnard will
provide both direct and strategic support as we move into the 21st Century,"
said Victor Doolan, president of BMW of North America, Inc., who was in Oxnard
for the ground breaking ceremony this morning.
    Both BMW and Land Rover just reported the best first quarter U.S. sales in
their respective histories.
    Oxnard Mayor Manual Lopez welcomed Doolan and the BMW construction project
noting that Oxnard continues to be recognized by a number of world-class
companies as an excellent place to work, live and play.  "With its easy access
to the deep water Port of Hueneme, proximity to Los Angeles and competitive
land costs, Oxnard is an ideal site," said Mayor Lopez.  "And our
Mediterranean climate and eight miles of uncrowded beaches make it a place
families like to call home," he added.  "We are excited along with BMW and
Land Rover and look forward to sharing in the benefits of the advanced
automotive technology that is coming to Oxnard."

    Satellite Engineering Center
    The new engineering center, the North American satellite of the main BMW
Group research and development center in Munich, will be the base for all
Group engineering in the U.S.  It will house engineering and research
functions and perform vehicle emissions testing related to engine development
and long-term engine performance.  Earlier this year, Rover Engineering North
America moved its engineering operations from Phoenix to the existing BMW
Group engineering facility in Marina del Rey.
    "Our decision to locate this facility in Oxnard underscores the importance
of California to the automotive industry," Doolan said.  "Many companies have
engineering and emissions testing operations in the Midwest, but California is
setting nation and worldwide trends in vehicle emissions, design and other
areas, so we believe it is important to be in the midst of such integral
progress."
    The new one-story building with tilt-up concrete walls will also have a
small administrative office constructed of metal and glass.  The building will
include engineering offices; 30 work spaces for vehicle testing and product
engineering; as well as a state-of-the-art emission test laboratory.  When
completed early next year, it will house about 100 employees -- primarily
engineers and technicians -- supported by administrative personnel.
    Doolan explained that the Oxnard location was an ideal base for North
American vehicle testing.  As part of the development process, a team of
engineers and technicians test vehicles on-road and off-road over thousands of
miles, seeking out extreme weather and driving conditions found in different
locations throughout the American continent.

    Advanced Emissions Testing
    An important part of the engineering center will be its emissions testing
laboratory containing nearly $7 million worth of state-of-the-art equipment.
This investment underscores the BMW Group commitment to California clean air
demands.
    The advanced equipment includes seven new test cells for monitoring tail
pipe, evaporative and refueling emissions.
    "The objective of the laboratory," Doolan explained, "is to support our
research and development activity providing the best possible emissions
control technology for internal combustion engines.  With this laboratory, we
will be planning and designing for future challenges as we will be able to
meet future challenges for stricter emissions regulations in California.  It
is worth noting," he added, "that for many years all BMW vehicles sold
throughout North America have met the trend-setting strict California
emissions standards."
    In addition to development testing, the emissions laboratory also will do
in-use emissions testing to confirm BMW and Land Rover vehicle compliance with
Environmental Protection Agency and California state emissions requirements.

    The Technical Training School
    While the engineering center is being constructed, the adjacent BMW
Vehicle Preparation Center will be refurbished and expanded to include space
for a new paint and body training school.  When completed next year, it will
be the third such specialized BMW school for BMW paint and body shop
apprentices.  The best graduates from recognized technical schools are
selected for this elite nine-month training program.  While training in
Oxnard, they will receive salaries and live locally.  Ultimately, they will be
hired by BMW retailers.
    The existing Vehicle Preparation Center serves as the final quality
inspection point for BMW and Land Rover vehicles arriving on the west coast.
Approximately 200 vehicles arrive daily by ship or rail from England, Germany
and Spartanburg, S.C.  In Oxnard, they are inspected for any damage that might
have occurred in transit.  They also receive a thorough quality control
inspection before distribution to retailers throughout California and the
Western states.

    A Commitment To The United States
    The biggest BMW Group site in North America is its manufacturing plant in
Spartanburg, S.C., where BMW vehicles are built for worldwide export.  It
employs 2,000 people, a figure that will grow to 3,000 when a $600 million
expansion is completed late this year.  When complete, the manufacturing plant
will have doubled in size, to 2.1 million square feet.  Reinforcing the global
nature of the BMW Group, BMW Manufacturing Corp. is the first plant in the
U.S. to export the majority of its production (to 120 countries.)
    "While South Carolina is the BMW manufacturing center in North America,
California has become our design and technology center," Doolan noted.
    Last year, BMW opened a technology office in Silicon Valley, Designworks
USA, BMW Group's wholly-owned worldwide industrial design subsidiary, is
located nearby in Newbury Park.
    Other BMW facilities in California include BMW's Western Region Office in
Marina del Rey and the Group's regional Parts Distribution Center in Ontario.
    Design architects for the project are S+P Planungsgruppe, Berlin with
American counterparts Anshen and Allen of Los Angeles.  WPW Ingenieure, of
Saarbruecken is the planning firm, along with Ove Arup + Partners, Los
Angeles.  General contractor is Rudolph and Sletten, Inc. of Irvine.