October 15, 2020
16:22
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From 2023, the German car manufacturer BMW will be leaving the production of the X1 and MINI models at VDL Nedcar in Born in the Netherlands. The factory, close to the Belgian border, employs nearly 5,000 people, many of them Belgians.
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Since mid-2014, VDL has been building NedCar Minis for the German car manufacturer. The BMW X1 was also added in 2017. Last year, nearly 175,000 BMWs and Minis rolled off the production line in Born, generating a turnover of 3 billion euros. This means that the capacity of VDL NedCar is almost completely used up, because the factory can handle a maximum of 200,000 vehicles per year.
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But that fairytale with BMW has now come to an end. In June, the Munich car manufacturer had already announced that production of the X1 would move to its own German factories. The Limburg company then still had the hope that the production of the successor of the Mini Countryman would come to Dutch Limburg. That hope was dashed on Thursday.
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Own factories first
VDL NedCar emphasizes that BMW’s decision to remove production from Born has nothing to do with the quality of the work delivered, but with market conditions.
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The automotive sector is going through a serious crisis because of the corona pandemic. In the spring, showrooms and car manufacturers were forced to close their doors, causing sales to take an immense blow.
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Due to lower demand, most carmakers are struggling with overcapacity, and outsourced production is being brought back to their own factories. At VDL NedCar, turnover fell by 44 percent in the first half of the year. ‘We have done everything to bind BMW with a new follow-up order for more than ten years. Due to the spirit of the times, this match was unfortunately not to be won ‘, Willem van der Leegte, CEO of the VDL Groep, says.
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The departure of BMW was a bombshell for the 4,600 employees of VDL NedCar. ‘Many hoped that it would still fizzle out, that BMW production in Born would still be able to continue. Now the end of BMW is final, ‘says trade unionist Ron Smeets (CNV) to Het Financieele Dagblad.
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Dark clouds over future
It remains to be seen whether with the departure of the Mini and BMW production the goal also falls over the factory in Born. Because VDL Nedcar will continue to build the current models for BMW for the next three years, the company says there is ‘time to arrive at a healthy and sustainable future for the car factory in Born’.
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The Dutch company is looking for other clients in the car industry in the hope of maintaining as much employment as possible. VDL Nedcar had already started the search for a new client in order to become less dependent on BMW.
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The company can count on the support of the Dutch Minister of Economic Affairs Eric Wiebes. He has offered to deploy the investment agency Netherlands Foreign Investment Agency (NFIA), as well as embassies and consulates. “It is important to safeguard employment and activity in Born and the region for a long time,” says Wiebes.
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Already different owners
The car factory in Born has been part of the VDL Groep since 2012. Then the family business bought the branch for a symbolic euro from the Japanese Mitsubishi. In addition to Mitsubishi, DAF and Volvo also previously owned the facility, which has produced 5.5 million vehicles since its inception in 1967.
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VDL Groep is also active in our country. Buses are built at VDL Roeselare. Within the Dutch family business, the West Flemish site is regarded as the center of expertise in electromobility. Last year, VDL Roeselare accounted for almost 200 million euros in turnover and a net profit of 6 million euros. It was the first time since 2012 that the factory remained out of the red.
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VDL Group
- Founded in 1953 by Pieter Jan van der Leegte
- Current CEO: Willem van der Leegte
- Turnover: 5.8 billion euros (2019)
- Net profit: 156.2 million euros (2019)
- It employs 15,700 people in 20 countries
- Active in: car assembly, construction of buses, supplies for, among others, the metal sector, and end products (such as sunbeds and roof boxes)
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