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BMW

From Wikipedia, the free encyclopedia This article is about the German automobile and motorcycle manufacturer. For other uses, see BMW (disambiguation).

Bayerische Motoren Werke AG

Type

Aktiengesellschaft

Traded as

FWB: BMW

Industry

Automotive

Predecessor(s)

Bayerische Flugzeugwerke AG (BFW)[1]

Founded

7 March 1916

Founder(s)

Franz Josef Popp

Headquarters

Munich, Germany

Area served

Worldwide

Key people

Norbert Reithofer (CEO),Joachim Milberg (Chairman of the supervisory

board), Adrian van Hooydonk (Vice-President),Karim Habib (Director of Design)

Products

Automobiles, motorcycles, bicycles

Production output

1,481,253 Automobiles (2010) 112,271 Motorcycles (2010)

Revenue

68.82 billion (2011)[2]

Operating income

8.006 billion (2011)[2]

Profit

4.881 billion (2011)[2]

Total assets

123.42 billion (2011)[2]

Total equity

27.10 billion (2011)[2]

Employees

102,007 (2011)[3]

Divisions

Mini BMW Motorsport Rolls-Royce Motor Cars

Subsidiaries

List[show]

Website

bmwgroup.com

Bayerische Motoren Werke AG

pronunciation (helpinfo) (English: Bavarian Motor Works), commonly known as BMW, is a German

automobile, motorcycle and engine manufacturing company founded in 1917. BMW is headquartered in Munich, Bavaria, Germany. It also owns and producesMini cars, and is the parent company of Rolls-Royce Motor Cars. BMW produces motorcycles under BMW Motorrad. In 2010, the BMW group produced 1,481,253 automobiles and 112,271 motorcycles across all its brands. BMW is part of the "German Big 3" luxury automakers, along withAudi and Mercedes-Benz, which are the three best selling luxury automakers in the world.[4][5] Contents
[hide]

1 History 2 Shareholders structure 3 Production

3.1 Worldwide sales

4 Motorcycles 5 Automobiles

o o o

5.1 New Class 5.2 Current models 5.3 M models

6 Motorsport

o o o o o o

6.1 Motorsport sponsoring 6.2 Motorcycle 6.3 Formula One 6.4 Sports car 6.5 Touring car 6.6 Rally

7 Sponsorships 8 Environmental record 9 Bicycles 10 BMW nomenclature

10.1 Exceptions

11 Carsharing services 12 Community

o o o

12.1 BMW slang 12.2 The arts 12.3 April Fools

13 Overseas subsidiaries

o o o o o o o

13.1 South Africa 13.2 United States 13.3 India 13.4 China 13.5 Japan 13.6 Canada 13.7 Egypt

14 Marketing

o o

14.1 Roundel logo 14.2 Audio logo

15 Theft using OBD 16 See also 17 References 18 External links

History [edit]
Main article: History of BMW

BMW Headquarters in Munich. The towers and museum are visible in the back right.

BMW was established as a business entity following a restructuring of the Rapp Motorenwerke aircraft manufacturing firm in 1917. After the end ofWorld War I in 1918, BMW was forced to cease aircraft engine production by the terms of the Versailles Armistice Treaty.[6] The company consequently shifted to motorcycle production in 1923, once the restrictions of the treaty started to be lifted,[7] followed by automobiles in 1928 29.[8][9][10]

The first car which BMW successfully produced and the car which launched BMW on the road to automobile production was the Dixi, it was based on the Austin 7 and licensed from the Austin Motor Company in Birmingham, England.

BMW's first significant aircraft engine was the BMW IIIa inline-six liquid-cooled engine of 1918, much preferred for its high-altitude performance.[11] With German rearmament in the 1930s, the company again began producing aircraft engines for the Luftwaffe. Among its successful World War II engine designs were the BMW 132 and BMW 801 air-cooled radial engines, and the pioneering BMW 003 axialflow turbojet, which powered the tiny, 19441945era jet-powered "emergency fighter", the Heinkel He 162 Spatz. The BMW 003 jet engine was tested in the A-1b version of the world's first jet fighter, the Messerschmitt Me 262, but BMW engines failed on takeoff, a major setback for the jet fighter program until successful testing with Junkers engines.[12][13]

By the year 1959, the automotive division of BMW was in financial difficulties and a shareholders meeting was held to decide whether to go into liquidation or find a way of carrying on. It was decided to carry on and to try to cash in on the current economy car boom enjoyed so successfully by some of Germany's ex-aircraft manufacturers such as Messerschmitt and Heinkel. The rights to manufacture the Italian Iso Isetta were bought; the tiny cars themselves were to be powered by a modified form of BMW's own motorcycle engine. This was moderately successful and helped the company get back on its feet. The controlling majority shareholder of the BMW Aktiengesellschaft since 1959 is the Quandt family, which owns about 46% of the stock. The rest is inpublic float.

BMW acquired the Hans Glas company based in Dingolfing, Germany, in 1966. It was reputed that the acquisition was mainly to gain access to Glas' development of the timing belt with an overhead camshaft in automotive applications.[14] Glas vehicles were briefly badged as BMW until the company was fully absorbed.

BMW 3-Series (F30)

In 1992, BMW acquired a large stake in California based industrial design studio DesignworksUSA, which they fully acquired in 1995. In 1994, BMW bought the British Rover Group
[15]

(which at the time consisted of the Rover, Land Rover and MG brands as well as the rights to defunct

brands including Austin and Morris), and owned it for six years. By 2000, Rover was incurring huge losses and BMW decided to sell the combine. The MG and Rover brands were sold to the Phoenix Consortium to form MG Rover, while Land Rover was taken over by Ford. BMW, meanwhile, retained the rights to build the new Mini, which was launched in 2001.

Chief designer Chris Bangle announced his departure from BMW in February 2009, after serving on the design team for nearly seventeen years.
[16]

He was replaced by Adrian van Hooydonk, Bangle's former right hand man. Bangle was known for his radical designs such as the 2002

7-Series and the 2002 Z4. In July 2007, the production rights for Husqvarna Motorcycles was purchased by BMW for a reported 93 million euros. BMW Motorrad plans to continue operating Husqvarna Motorcycles as a separate enterprise. All development, sales and production activities, as well as the current workforce, have remained in place at its present location at Varese. In June 2012, BMW was listed as the #1 most reputable company in the world by Forbes.com.[17] Rankings are based upon aspects such as peoples willingness to buy, recommend, work for, and invest in a company is driven 60% by their perceptions of the company and only 40% by their perceptions of their products.

Shareholders structure [edit]


by ownership[18]


by types

Stefan Quandt: 17.4% Johanna Quandt: 16.7% Susanne Klatten: 12.6% Free Float: 53.3%

Strategic investors: 46.7% Institutional investors:

North America: 15.8% United Kingdom and Ireland: 11.8% Other Europe: 5.7% Germany: 4.8% Rest of the world: 2.5%

Other investors: 12.7%

Production [edit]
This section includes a list of references, related reading or external links, but the sources of this section remain unclear because it lacks inline citations. Please improve this article by introducing more precise citations. (July 2012)

BMW plant in Leipzig, Germany: Spot welding of BMW 3 series car bodies withKUKA industrial robots.

In 2006, the BMW group (including Mini and Rolls-Royce) produced 1,366,838 four-wheeled vehicles, which were manufactured in five countries.[19] In 2010, it manufactured 1,481,253 four-wheeled vehicles and 112,271 motorcycles (under both the BMW and Husqvarna brands).[2]

The BMW X3 (E83) was made by Magna Steyr, a subsidiary of Magna of Canada, in Graz, Austria under license from BMW until 2010. More than 45,973 were produced in 2009. Starting October 2010, the new BMW X3 (F25) is produced at BMW US Manufacturing Co., Greer, Spartanburg County, South Carolina, USA

It is reported that about 56% of BMW-brand vehicles produced are powered by petrol engines and the remaining 44% are powered by diesel engines. Of those petrol vehicles, about 27% are four-cylinder models and about nine percent are eight-cylinder models.[20] BMW also has local assembly operation using complete knock down components in Thailand, Russia, Egypt, Indonesia, Malaysia, and India, for 3, 5, 7 series and X3.[18]

Annual Production

Year

BMW

MINI

Rolls-Royce Motorcycle

2005

1,122,308 200,119

692

92,012

2006

1,179,317 186,674

847

103,759

2007

1,302,774 237,700

1,029

104,396

2008

1,203,482 235,019

1,417

118,452

2009

1,043,829 213,670

918

93,243

2010[2] 1,236,989 241,043

3,221

112,271

Worldwide sales [edit]


Vehicles sold in all markets according to BMW's annual reports.

Year

BMW

MINI

Rolls-Royce Motorcycle

2000

822,181

2001

880,677

2002

913,225

2003

928,151

2004 1,023,583

2005 1,126,768 200,428

796

97,474

2006 1,185,088 188,077

805

100,064

2007 1,276,793 222,875

1,010

102,467

2008 1,202,239 232,425

1,212

115,196

2009 1,068,770 216,538

1,002

100,358

2010 1,224,280 234,175

2,711

110,113

Since 2008, motorcycle sales figures include Husqvarna models.

Motorcycles [edit]
This section does not cite any references or sources. Please help improve this section by adding citations to reliable sources. Unsourced material may be challenged and removed. (June 2008)

See also: BMW Motorrad and History of BMW motorcycles

The R32 motorcycle, the first BMW motor vehicle.

BMW began building motorcycle engines and then motorcycles after World War I.

[21]

Its motorcycle brand is now known as BMW Motorrad. Their

first successful motorcycle, after the failed Helios and Flink, was the "R32" in 1923. This had a "boxer" twin engine, in which a cylinder projects into the air-flow from each side of the machine. Apart from their single-cylinder models (basically to the same pattern), all their motorcycles used this distinctive layout until the early 1980s. Many BMWs are still produced in this layout, which is designated the R Series.

During the Second World War, BMW produced the BMW R75 motorcycle with a sidecar attached. Featuring a unique design copied from the ZndappKS750, its sidecar wheel was also motor-driven. Combined with a lockable differential, this made the vehicle very capable off-road, an equivalent in many ways to the Jeep.

In 1982, came the K Series, shaft drive but water-cooled and with either three or four cylinders mounted in a straight line from front to back. Shortly after, BMW also started making the chain-driven F and G series with single and parallel twin Rotax engines.

BMW R1200RT

In the early 1990s, BMW updated the airhead Boxer engine which became known as the oilhead. In 2002, the oilhead engine had two spark plugs per cylinder. In 2004 it added a built-in balance shaft, an increased capacity to 1,170 cc and enhanced performance to 100 hp (75 kW) for the R1200GS, compared to 85 hp (63 kW) of the previous R1150GS. More powerful variants of the oilhead engines are available in the R1100S and R1200S, producing 98 hp (73 kW) and 122 hp (91 kW), respectively.

In 2004, BMW introduced the new K1200S Sports Bike which marked a departure for BMW. It features an engine producing 167 hp (125 kW), derived from the company's work with the Williams F1 team, and is lighter than previous K models. Innovations include electronically adjustable front and rear suspension, and a Hossack-type front fork that BMW calls Duolever.

BMW S1000RR

BMW introduced anti-lock brakes on production motorcycles starting in the late 1980s. The generation of anti-lock brakes available on the 2006 and later BMW motorcycles pave the way for the introduction ofelectronic stability control, or anti-skid technology later in the 2007 model year.

BMW has been an innovator in motorcycle suspension design, taking up telescopic front suspension long before most other manufacturers. Then they switched to an Earles fork, front suspension by swinging fork (1955 to 1969). Most modern BMWs are truly rear swingarm, single sided at the back (compare with the regular swinging fork usually, and wrongly, called swinging arm). Some BMWs started using yet another trademark front suspension design, the Telelever, in the early 1990s. Like the Earles fork, the Telelever significantly reduces dive under braking.

BMW Group, on 31 January 2013 announced that Pierer Industrie AG has bought Husqvarna for an undisclosed amount, which will not be revealed by either party in the future. The company is headed by Stephan pierer (CEO of KTM). Pierer Industrie AG is 51% owner of KTM and 100% owner of Husqvarna.

Automobiles [edit]
Main article: List of BMW vehicles

New Class [edit]


Main article: BMW New Class

The New Class (German: Neue Klasse) was a line of compact sedans and coupes starting with the 1962 1500 and continuing through the last 2002s in 1977. Powered by BMW's celebrated four-cylinder M10 engine, the New Class models featured a fully independent suspension, MacPherson struts in front, and front disc brakes. Initially a family of four-door sedans and two-door coupes, the New Class line was broadened to two-door sports sedans with the addition of the 02 Series 1600 and 2002 in 1966.

Sharing little in common with the rest of the line beyond power train, the sporty siblings caught auto enthusiasts' attention and established BMW as an international brand. Precursors to the famed BMW 3 Series, the two-doors' success cemented the firm's future as an upper tier performance car maker. New Class four-doors with numbers ending in "0" were replaced by the largerBMW 5 Series in 1972. The upscale 2000C and 2000CS coupes were replaced by the six-cylinder BMW E9, introduced in 1969 with the 2800CS. The 1600 two-door was discontinued in 1975, the 2002 replaced by the 320i in 1975.

Current models [edit]

BMW 5-Series (F10)

The 1 Series, originally launched in 2004, is BMW's smallest car. Currently available are the second generation hatchback (F20) and first generation coupe/convertible (E82/E88). The 3 Series, a compact executive car manufactured since model year 1975, is currently in its sixth generation (F30); models include the sport sedan (F30), and fourth generation station wagon (E91), and convertible (E93) and third generation coupe (E92). The 5 Seriesis a mid-size executive car, available in sedan (F10) and station wagon (F11) forms. The 5 Series Gran Turismo (F07), debuted in 2010, created a segment between station wagons and crossover SUV.[22]

BMW Z4 (E89)

BMW's full-size flagship executive sedan is the 7 Series. Typically, BMW introduces many of their innovations first in the 7 Series, such as the somewhat controversial iDrive system. The 7 Series Hydrogen, featuring one of the world's first hydrogen fueled internal combustion engines, is fueled by liquid hydrogen and emits only clean water vapor. The latest generation (F01) debuted in 2009. Based on the 5 Series' platform, the 6 Series is BMW's grand touring luxury sport coupe/convertible (E63/E64). A 2-seater roadster and coupe which succeeded the Z3, the Z4 (E85) has been sold since 2002.

BMW X3 (F25)

The X3 (E83), BMW's second crossover SUV (called SAV or "Sports Activity Vehicle" by BMW) debuted in 2003 and is based on the E46/16 3 Series platform. Marketed in Europe as an off-roader, it benefits from BMW's xDrive all-wheel drive system. The all-wheel drive X5 (E70) was BMW's first crossover SUV (SAV), based on the 5 series, and is a mid-size luxury SUV (SAV) sold by BMW since 2000. A 4-seat crossover SUV released by BMW in December 2007, the X6 is marketed as a "Sports Activity Coupe" (SAC) by BMW. The X1 extends the BMW Sports Activity Series model lineup.

1 Series (F20) (2011present) Hatchback 1 Series (E81) (2004present) Coupe and convertible 3 Series (F30) (2012present) Sedan, wagon 3 Series (E92) (2007present) Coupe, convertible 5 Series (F10) (2010present) Sedan, wagon 5 Series Gran Turismo (2009present) Progressive Activity Sedan 6 Series (F12) (2010present) Coupe, convertible, Gran Coupe 7 Series (F01) (2008present) Sedan X1 (2009present) Compact Crossover SUV/Sports Activity Vehicle (SAV) X3 (F25) (2010present) Compact Crossover SUV/Sports Activity Vehicle (SAV) X5 (E70) (2006present) Compact Crossover SUV/Sports Activity Vehicle (SAV)

M models [edit]
Main article: BMW M

X6 (E71) (2008present) Sports Activity Coupe Z4 (E89) (2009present) Sports Roadster

BMW M6 (F13)

BMW produce a number of high-performance derivatives of their cars developed by their BMW M GmbH (previously BMW Motorsport GmbH) subsidiary.

The current M models are:

1 Series M Coupe E82 Coupe (2011 model year only) M3 E90 Sedan, E92 Coupe, E93 Cabriolet (2007 to present) M5 F10 Saloon (2011 to present) M6 - F12/13 (2012 to present) X5 M E70 SAV (2010 to present) X6 M E71 SAV (2010 to present)

Motorsport [edit]
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Main article: BMW in motorsport

BMW has been engaged in motorsport activities since the dawn of the first BMW motorcycle in 1923.

Motorsport sponsoring [edit] Motorcycle [edit]


Formula BMW A Junior racing Formula category. Kumho BMW Championship A BMW-exclusive championship run in the United Kingdom.

BMW S1000RR

Isle of Man TT - Georg 'Schorsch' Meier won the 1939 running of the Grand Prix. Dakar Rally BMW motorcycles have won the Dakar rally six times. In 1981, 1983, 1984, 1985, 1999, and 2000.[23]

Superbike World Championship BMW returned to premier road racing in 2009 with their all new superbike, the BMW S1000RR.

Formula One [edit]


Main article: BMW in Formula One

BMW Sauber F1 Team Logo.

BMW first entered Formula One as a full-fledged team in 2006.

BMW has a history of success in Formula One. BMW powered cars have won 20 races. In 2006 BMW took over the Sauber team and became Formula One constructors. In 2007 and 2008 the team enjoyed some success. The most recent win is a lone constructor team's victory by BMW Sauber F1 Team, on 8 June 2008, at the Canadian Grand Prix with Robert Kubica driving. Achievements include:

Driver championship: 1 (1983) Constructor championship: 0 (Runner-up 2002, 2003, 2007) Grand Prix wins: 20 Podium finishes: 76

Pole positions: 33 Fastest laps: 33

BMW was an engine supplier to Williams, Benetton, Brabham, and Arrows. Notable drivers who have started their Formula One careers with BMW include Jenson Button, Juan Pablo Montoya, Robert Kubica and Sebastian Vettel.
[24]

In July 2009, BMW announced that it would withdraw from Formula One at the end of the 2009 season.

The team was sold back to the

previous owner, Peter Sauber, who kept the BMW part of the name for the 2010 season due to issues with the Concorde Agreement. The team has since dropped BMW from their name starting in 2011.

Sports car [edit]


Le Mans 24 Hours BMW won Le Mans in 1999 with the BMW V12 LMR designed by Williams Grand Prix Engineering. Also the Kokusai Kaihatsu Racing team won the 1995 edition with a BMW-engined McLaren F1 GTR race car.

Nrburgring BMW won the 24 Hours Nrburgring 19 times and the 1000km Nrburgring twice (1976 and 1981).

24 Hours of Daytona BMW won three times (1976, 2011, 2013) Spa 24 Hours BMW won 21 times McLaren F1 GTR Successful mid-1990s GT racing car with a BMW designed engine. It won the BPR Global GT Series in 1995 and 1996 and the 24 Hours of Le Mans in 1995.

American Le Mans Series BMW has won three (2001, 2010, 2011) GT Team Championships and GT Automobile Manufacturer titles. Twice (2010, 2011) with Team RLL in the Crowne Plaza V8 powered M3 GT coupe and once (2001) with the BMW Motorsport team in the V8 powered M3 GTR.

Touring car [edit]


BMW has a long and successful history in touring car racing.

European Touring Car Championship (ETCC) Since 1968, BMW won 24 drivers' championships[citation needed] along with several manufacturers' and teams' titles.

World Touring Car Championship (WTCC) BMW won four drivers' championship (1987, 2005, 2006 and 2007) and three manufacturers' titles (20052007).

DTM (Deutsche Tourenwagen Meisterschaft) the following won the DTM drivers' championship driving BMWs:

1989: Roberto Ravaglia, BMW M3 1987: Eric van der Poele, BMW M3 2012: Bruno Spengler, BMW M3 DTM

The DRM (Deutsche Rennsport Meisterschaft) was won by Harald Ertl in a BMW 320i Turbo in 1978

British Touring Car Championship (BTCC) BMW won the drivers' championship in 1988, 1991, 1992 and 1993 and manufacturers' championship in 1991 and 1993.

SCCA Pro Racing World Challenge Touring Car Series(WC) BMW won the manufacturer's championship in 2001 and Bill Auberlen, driving a Turner Motorsport BMW 325i, won the 2003 and 2004 Driver's Championships.

Japanese Touring Car Championship (JTCC) BMW (Schnitzer) flew from Europe to Japan to compete in the JTCC and won the championship in 1995.

Mille Miglia BMW won the 1940 Brescia Grand Prix with a 328 Touring Coup. Previously in 1938 the 328 sport car won the Mille Miglia 2000 litre class.

BMW announced on 15 October 2010 that it will return to touring car racing during the 2012 season. Dr. Klaus Draeger, director of research and development of the BMW Group, who was in charge of the return to DTM racing (Deutsche Tourenwagen Masters), commented that The return of BMW to the DTM is a fundamental part of the restructuring of our motorsport activities. With its increased commitment to production car racing, BMW is returning to its roots. The race track is the perfect place to demonstrate the impressive sporting characteristics of our vehicles against our core competitors in a high-powered environment. The DTM is the ideal stage on which to do this.[citation needed]

Rally [edit]
RAC Rally The 328 sport car won this event in 1939. Paris Dakar Rally BMW motorcycles have won this event 6 times total including 1981, 1983, 1984, 1985, 1999, 2000.

Tour de Corse The BMW M3 E30 won this event in 1987.

Sponsorships [edit]

BMW sponsors Bundesliga club Eintracht Frankfurt

In football, BMW sponsors Bundesliga club Eintracht Frankfurt.[25] It is an official sponsor of the London 2012 olympics providing 4000 BMWs and Minis in a deal made in November 2009.[26] The company also made a six-year sponsorship deal with the United States Olympic Committee (USOC) in July 2010.[27]

BMW has sponsored various European golf events such as the PGA Championship at Wentworth, the BMW Italian Open and the BMW International Open in Germany.[28]

Environmental record [edit]

The company is a charter member of the U.S. Environmental Protection Agency's (EPA) National Environmental Achievement Track, which recognises companies for their environmental stewardship and performance. It is also a member of the South Carolina Environmental Excellence Program and is on the Dow Jones Sustainability Group Index, which rates environmentally friendly companies.
[29]

BMW has taken measures to

reduce the impact the company has on the environment. It is trying to design less-polluting cars by making existing models more efficient, as well as developing environmentally friendly fuels for future vehicles. Possibilities include: electric power, hybrid power (combustion engines and electric motors) hydrogen engines.
[30]

BMW offers 49 models with EU5/6 emissions norm and nearly 20 models with CO2 output less than 140 g/km, which puts it on the lowest tax group and therefore could provide the future owner with eco-bonus offered from some European countries.

However, there have been some criticisms directed at BMW, and in particular, accusations of greenwash in reference to their BMW Hydrogen 7. Some critics claim that the emissions produced during hydrogen fuel production outweigh the reduction of tailpipe emissions, and that the Hydrogen 7 is a distraction from more immediate, practical solutions for car pollution.
[31]

Bicycles [edit]
BMW has created a range of high-end bicycles sold online and through dealerships. They range from the Kid's Bike to the EUR 4,499 Enduro Bike.[32] In the United States, only the Cruise Bike and Kid's Bike models are sold.

BMW nomenclature [edit]

BMW M5 (F10)

BMW 650i (F12)

BMW 730d xDrive (F01)

BMW X5 (E70)

BMW X6 (E71)

BMW vehicles follow a certain nomenclature; usually a 3 digit number is followed by 1 or 2 letters. The first number represents the series number. The next two numbers traditionally represent the engine displacement in cubic centimeters divided by 100.[33] However, more recent cars use those two numbers as a performance index, as e.g. the 116i, 118i and 120i (all 2,0L gas-powered), just like the 325d and 330d (both 3,0L diesel) share the same motor block while adjusting engine power through setup and turbocharging. A similar nomenclature is used by BMW Motorrad for their motorcycles.

The system of letters can be used in combination, and is as follows:

A = automatic transmission C = coup, last used on the BMW E46 and the BMW E63 (dropped after 2005 model year) c = cabriolet d = diesel e = eta (efficient economy, from the Greek letter '') g = compressed natural gas/CNG h = hydrogen i = fuel-injected L = long wheelbase s = sport, also means "2 dr" on E36 model sDrive = rear-wheel drive T = touring (wagon/estate) Ti = hatchback for the BMW 3 Series hatchback x / xDrive = BMW xDrive all-wheel drive

historic nomenclature indicating "td" refers to "Turbo Diesel", not a diesel hatchback or touring model (524td, 525td)

typically includes sport seats, spoiler, aerodynamic body kit, upgraded wheels and Limit Slip Differential on pre-95 model etc.

For example, the BMW 750iL is a fuel-injected 7 Series with a long wheelbase and 5.4 litres of displacement. This badge was used for successive generations, E65 and F01, except the "i" and "L" switched places, so it read "Li" instead of "iL".

When 'L' supersedes the series number (e.g. L6, L7, etc.) it identifies the vehicle as a special luxury variant, featuring extended leather and special interior appointments. The L7 is based on the E23 and E38, and the L6 is based on the E24.

When 'X' is capitalised and supersedes the series number (e.g. X3, X5, etc.) it identifies the vehicle as one of BMW's Sports Activity Vehicles (SAV), their brand of crossovers, featuring BMW's xDrive. The second number in the 'X' series denotes the platform that it is based upon, for instance the X5 is derived from the 5 Series. Unlike BMW cars, the SAV's main badge does not denote engine size; the engine is instead indicated on side badges.

The 'Z' identifies the vehicle as a two-seat roadster (e.g. Z1, Z3, Z4, etc.). 'M' variants of 'Z' models have the 'M' as a suffix or prefix, depending on country of sale (e.g. 'Z4 M' is 'M Roadster' in Canada).

Previous X & Z vehicles had 'i' or 'si' following the engine displacement number (denoted in litres). BMW is now globally standardising this nomenclature on X & Z vehicles by using 'sDrive' or 'xDrive' (simply meaning rear or all-wheel drive, respectively) followed by two numbers which vaguely represent the vehicle's engine (e.g. Z4 sDrive35i is a rear-wheel-drive Z4 roadster with a 3.0 L twin-turbo fuel-injected engine).[34]

BMW last used the 's' for the E36 328is, which ceased production in 1999. However, the 's' nomenclature was brought back on the 2011 model year BMW 335is and BMW Z4 sDrive35is. The 335is is a sport-tuned trim with more performance and an optional dual clutch transmission that slots between the regular 335i and top-of-the-line M3.[35][36] The 'M' for Motorsport identifies the vehicle as a high-performance model of a particular series (e.g. M3, M5, M6, etc.). For example, the M6 is the highest performing vehicle in the 6 Series lineup. Although 'M' cars should be separated into their respective series platforms, it is very common to see 'M' cars grouped together as its own lineup on the official BMW website.

Exceptions [edit]
There are exceptions to the numbering nomenclature.[37]

The M version of the BMW 1 Series was named the BMW 1 Series M Coupe rather than the traditional style "M1" due to the possible confusion with BMW's former BMW M1 homologation sports car.

The M versions of the Sports Activity Vehicles, such as the X5 M, could not follow the regular naming convention since MX5 was used for Mazda's MX-5 Miata.

For instance in the 2008 model year, the BMW 125i/128i, 328i, and 528i all had 3.0 naturally aspirated engines (N52), not a 2,500 cc or 2,800 cc engine as the series designation number would lead one to believe. The '28' is to denote a detuned engine in the 2008 cars, compared to the 2006 model year '30' vehicles (330i and 530i) whose 3.0 naturally aspirated engines are from the same N52 family but had more output.

The 2008 BMW 335i and 535i also have 3.0-litre engine; however the engines are twin-turbocharged (N54) which is not identified by the nomenclature. Nonetheless the '35' indicates a more powerful engine than previous '30' models that have the naturally aspirated N52 engine. The 2011 BMW 740i and 335is shares the same twin-turbo 3.0 engine from the N54 family but tuned to higher outputs, although the badging is not

consistent ('40' and 's'). The 2013 BMW 640i Gran Coupe's twin-scroll single turbo 3.0L inline-6 engine makes similar output to the older twin turbo inline-6 engines.
[38]

The E36 and E46 323i and E39 523i had 2.5-litre engines. The E36 318i made after 1996 has a 1.9 L engine (M44) as opposed to the 1.8 L (M42) used in the 1992 to 1995 models. The E39 540i had a 4.4 L M62 engine, instead of a 4.0 L as the designation would suggest.

The badging for recent V8 engines (N62 and N63) also does not indicate displacement, as the 2006 750i and 2009 750i have 4800 cc (naturally aspirated) and 4400 cc (twin-turbocharged) engines, respectively.

Carsharing services [edit]


In June 2011, BMW and Sixt launched Drivenow, a joint-venture that provides carsharing services in several cities in Europe and North America. As of December 2012, DriveNow operates over 1,000 vehicles, which serve five cities worldwide and over 60,000 customers. [39]

Community [edit]

BMW logo sign in Dsseldorf

From the summer of 2001 until October 2005, BMW hosted the "BMW Films". Archived from the original on 27 September 2007. website, showcasing sporty models being driven to extremes. These videos are still popular within the enthusiast community and proved to be a groundbreaking online advertising campaign.

Annually since 1999, BMW enthusiasts have met in Santa Barbara, CA to attend Bimmerfest. One of the largest brand-specific gatherings in the U.S., over 3,000 people attended in 2006, and over 1,000 BMW cars were present. In 2007, the event was held on 5 May.

BMW slang [edit]


The initials BMW are pronounced [be m ve] in German.[40] The model series are referred to as "Einser" ("One-er" for 1 series), "Dreier" ("Three-er" for 3 series), "Fnfer" ("Five-er" for the 5 series), "Sechser" ("Six-er" for the 6 series), "Siebener" ("Seven-er" for the 7 series). These are not actually slang, but are the normal way that such letters and numbers are pronounced in German.[41] The English slang terms Beemer, Bimmer and Bee-em are variously used for BMWs of all kinds,[42][43] cars and motorcycles.[44][45]

In the US, specialists have been at pains to prescribe that a distinction must be made between using Beemer exclusively to describe BMW motorcycles, and using Bimmer only to refer to BMW cars,[46][47][48] in the manner of a "true aficionado"[49] and avoid appearing to be "uninitiated."[50][51] The Canadian Globe and Mail prefers Bimmer and calls Beemer a "yuppie abomination,"[52] while the Tacoma News

Tribune says it is a distinction made by "auto snobs."[53] Using the wrong slang risks offending BMW enthusiasts.[54][55][56] An editor of Business Week was satisfied in 2003 that the question was resolved in favor of Bimmer by noting that a Google search yielded 10 times as many hits compared to Beemer.
[57]

The arts [edit]

1975 BMW 3.0CSL painted by Alexander Calder.

Manufacturers employ designers for their cars, but BMW has made efforts to gain recognition for exceptional contributions to and support of the arts, including art beyond motor vehicle design. These efforts typically overlap or complement BMW's marketing and branding campaigns.[58] Theheadquarters building, designed in 1972 by Karl Schwanzer has become a European icon,[59] and artist Gerhard Richter created his Red, Yellow, Blueseries of paintings for the building's lobby.[60][61] In 1975, Alexander Calder was commissioned to paint the 3.0CSL driven by Herv Poulain at the 24 Hours of Le Mans. This led to more BMW Art Cars, painted by artists including David Hockney, Jenny Holzer, Roy Lichtenstein, and others. The cars, currently numbering 17, have been shown at the Louvre, Guggenheim Museum Bilbao, and, in 2009, at the Los Angeles County Museum of Art and New York's Grand Central Terminal.[59] BMW was the principal sponsor of the 1998 The Art of the Motorcycle exhibition at the Solomon R. Guggenheim Museum and other Guggenheim museums, though the financial relationship between BMW and the Guggenheim was criticised in many quarters.
[62][63]

In 2012 BMW brought out the BMW Art Guide by Independent Collectors, which featured amongst others the Dikeou Collection. It is the first global guide to private and publicly accessible collections of contemporary art world wide.

Wikimedia Commons has media related to: BMW Art Cars

The 2006 "BMW Performance Series" was a marketing event geared to attract black car buyers, and featured the "BMW Pop-Jazz Live Series," a tour headlined by jazz musician Mike Phillips, and the "BMW Blackfilms.com Film Series" highlighting black filmmakers. [64]

April Fools [edit]


BMW has garnered a reputation over the years for its April Fools pranks, which are printed in the British press every year. In 2010, they ran an advert announcing that customers would be able to order BMWs with different coloured badges to show their affiliation with the political party they supported.

Overseas subsidiaries
South Africa

BMWs have been assembled in South Africa since 1968,

[65]

when Praetor Monteerders' plant was opened in Rosslyn, near Pretoria. BMW initially

bought shares in the company, before fully acquiring it in 1975; in so doing, the company became BMW South Africa, the first wholly owned subsidiary of BMW to be established outside Germany. Three unique models that BMW Motorsport created for the South African market were the E23 M745i (1983), which used the M88 engine from the BMW M1, the BMW 333i (1986), which added a six-cylinder 3.2-litre M30 engine to the E30,
[66]

and the E30 BMW 325is (1989) which was powered by an Alpina-derived 2.7-litre engine.

Unlike U.S. manufacturers, such as Ford and GM, which divested from the country in the 1980s, BMW retained full ownership of its operations in South Africa. Following the end of apartheid in 1994, and the lowering of import tariffs, BMW South Africa ended local production of the 5-Series and 7-Series, in order to concentrate on production of the 3-Series for the export market. South Africanbuilt BMWs are now exported to right hand drive markets including Japan, Australia, New Zealand, the United Kingdom, Indonesia, Malaysia, Singapore, and Hong Kong, as well as Sub-Saharan Africa. Since 1997, BMW South Africa has produced vehicles in left-hand drive for export to Taiwan, the United States and Iran, as well as South America.

BMWs with a VIN starting with "NC0" are manufactured in South Africa.

United States [edit]

BMW Spartanburg factory

BMW Manufacturing Co (the factory opened in 1994) has been manufacturing all Z4 and the X5 (even those on Bavarian roads) and, more recently, the X6 on the same assembly line in Greer near Spartanburg, South Carolina, USA.[67] In an average work day the company builds 600 vehicles: 500 X5s and 100 Z4s. Though, BMW engines are made in Munich, Bavaria, Germany. The smaller X3 has began production in Greer. BMWs with a VIN starting with "4US and 5US" are manufactured at BMW US Manufacturing Co., Greer, Spartanburg County, South Carolina, USA.

In 2010 BMW announced that it would spend $750 million to expand operations at the Greer plant. This expansion will allow production of 240,000 vehicles a year and will make the plant the largest car factory in the United States by number of employees. [68] USA market is BMW's biggest single market.

India

BMW Chennai plant, Tamil Nadu, India

BMW India was established in 2006 as a sales subsidiary in Gurgaon (National Capital Region). A state-of-the-art assembly plant for BMW 3 and 5 Series started operation in early 2007 in Chennai. Construction of the plant started in January 2006 with an initial investment of more than one billion Indian Rupees. The plant started operation in the first quarter of 2007 and produces the different variants of BMW 3 Series and BMW 5 Series.
[69]

In 2011, The Brand Trust Report, India study, ranked BMW as the 33rd most trusted brand in India.

[70]

China [edit]
Main article: BMW Brilliance
[71]

Signing a deal in 2003 for the production of sedans in China,

May 2004 saw the opening of a factory in the North-eastern city


[72]

of Shenyang whereBrilliance Auto produces BMW-branded automobiles

in a joint venture with the German company.

[73]

Japan [edit]
Yanase Co., Ltd. is the exclusive retailer of all imported BMW (passenger cars and motorcycles) products to Japanese consumers, and has had the exclusive rights to do so since the end of World War II.

Canada [edit]
In October 2008, BMW Group Canada was named one of Greater Toronto's Top Employers by Mediacorp Canada Inc., which was announced by the Toronto Star newspaper.[74]

Egypt [edit]
Bavarian Auto Group is a multinational group of companies established in March 2003 when it was appointed as the sole importer of BMW and Mini in Egypt, with monopoly rights for import, assembly, distribution, sales and after-sales support of BMW products in Egypt. Since that date, BAG invested a total amount of US$100 million distributed on seven companies and 11 premises in addition to three stores.

Currently, the facility enables Bavarian Auto the opportunity to offer a full range of locally assembled models; including the BMW 3 Series, 5 Series, 7 Series and X3 which. In combination with a new range of imported models; including the BMW 1 Series, 6 Series, X5, X6 and various Mini models.

Marketing [edit]
Roundel logo [edit]
The circular blue and white BMW logo or roundel evolved from the circular Rapp Motorenwerke company logo, from which the BMW company grew, combined with the blue and white colors of theflag of Bavaria.[75] The logo has been portrayed as the movement of an aircraft propeller with the white blades cutting through a blue skyfirst used in a BMW advertisement in 1929, twelve years after the roundel was createdbut this is not the origin of the logo itself.[76]

Audio logo [edit]


In 2013, BMW replaced the 'double-gong' sound used in TV and Radio advertising campaign since 1998 with to represent the future identity of BMW, which was described as introduced by a rising, resonant sound and underscored by two distinctive bass tones that form the sound logos

melodic and rhythmic basis.[77] The new sound was first used in BMW 4 Series Concept Coupe TV commercial.[78] The sound was produced by Thomas Kisser of HASTINGS media music.
[79]

Theft using OBD [edit]


In 2012 BMW vehicles were stolen by programming a blank key fob to start the car through the on-board diagnostics (OBD) connection.
[80][81][82]

The primary causes of this vulnerability lie in the lack of appropriate authentication and authorization in the OBD
[83]

specifications, which rely largely on security through obscurity.

Strategic Analysis (PESTEL, Porter and SWOT) of BMW


rodrigo | November 17, 2012

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Table of Contents [show]

Introduction
When there prevails high level if dubiety due to intricacy or brisk changes, it becomes difficult to predict the external environmental that might affective the firms strategies. Thus scenario analysis is done to evaluate the likely views to predict the organizations future business environment (Heijiden, 2006). In order to reach this conclusion PESTEL analysis is done to identity the key drivers of change that can be used to predict the scenarios for the future. PESTEL stands for political, economical, social, technological, environmental and legal and forms of analysis of the macroenvironment of the organization (Thomas, 2007).

Political factors
Political factors highlight the probable government laws and regulations, security measures and restrictions that can apply to the industry as a whole. The probable factors that affect the automobile industry are: 1. Laws and regulations had affected the automobile industry since its outburst. These laws generally revolved around the environmental norms that were to be fulfilled by any car industry. Thus the car manufacturers had to take care of the environmental issues during manufacturing of cars. Taxes and government foreign policies are critical for the automobile industry. The foreign policies help to us decide the probability of success in the global market. Introduction of new schemes in the US and Europe automobile industry wherein regulations led to produce high mileage cars along with increase in automobile sales and production (Hill, 2008).

2. 3.

Economical factors
Economical factors related to the exchange rates, economic growth globally and the business setting prevailing in the industry. Economic factors for the industry are: a) There was excess capacity of cars produced thus giving rise to high amount of revenue in marketing and new product designs. Thus there was lot of revenue withheld even though demand was less than supply. For example the UK auto market had excess 80% capacity in 2003 which freeze 1.3 billion euro of the automobile industry (autofacts, 2004).

b) c) d)

Total increase in the GDP globally from 2.0% to 3.1% in the year 2008 (statistics, 2008). Decrease in the exchange rate if euro has hampered the European car makers in a big way (Allen, 2006). Economic downturn in the US market (Copper, 2008)

e) Surplus capital and buying power in the developing economies like India and China and their personal emergence in the global market place.

Social factors
Social factors include the changes in cultures and demo graphics globally apart from change in buying pattern and capacity of the consumer. Social factors having an impact on the auto industry are:

Changes in the customer predilection from car being a status symbol to fuel efficiency and low emission cars. Changes in buying pattern of the consumers due to recession in mature markets. Environmental issues and awareness of the harmful emissions through automobiles

Technological factors
Increase in use of technology to gain a clear competitive ad vantage Use of new and sophisticated design to overcome the decreased margins in the industry. Modifications or restriction on technology causing environmental pollution

Environmental factors
Increasing effect if awareness of global warning, greenhouse effect and burnout among patrons (organization, 2008) Shift in consumers tastes and preferences towards use of more eco-friendly cars, hybrid cars, fuel cell cars etc. Stern application of the EURO norms set up to curb pollution in developing countries.

Legal factors
Restrictions and strict pollution norms set up in European and US markets Strict implications of the EURO norms in developing countries e,g, formation of BHARAT norms on the lines of EURO norms in India(CEN, 2006)

PORTERS FIVE FORCES ANALYSIS

Threats of new entrants:


Threat of new entrant is dependent on the challenges faces during entry into the industry or entry barriers. The threat of new entrants in case of automobile industry is less as large capital cost is required to set up a manufacturing plant and assembly liner. Also it takes time for new entrants to get a place and the reputation in the minds of the consumers.

Threats of substitutes:
BMW has a brand image of being powerful and luxurious. It is positioned in the exclusive car range where there exist many substitutes for BMW like mercedes, GM and Toyoto. Thus the threat of substitutes for BMW is high.

Bargaining power of buyers:


BMW and its competitors are positioned as in exclusive product range. Here the bargaining power of buyers is high because the consumers can decide the product according to the price range and buy the products accordingly. Also with environmental issues hovering over the industry the buyers have the last say with sample substitutes available.

Bargaining power of suppliers:


BMW has good supply chain management system and had long relationship with suppliers. The bargaining power of suppliers is high in this industry as the suppliers can dedicate the price tag for the raw materials. Though long time associations with suppliers can prove fruitful, the final word lies more or less with the suppliers.

Competitive rivalry
Industry has cut thoat comptetion for its products, with its products targeting the segment and postioned in a similar way. Competitive rivalry was high in the industry with the dominant US and European markets facing stiff competition from the Asian market.

KEY DRIVERS OF CHANGE


From the PESTEL analysis and the five forces analysis, the key drivers of change are:

Huge deployment of infrastructure and manpower concentrated on automobile industry after the dusk of the second world war Consumer preferences for product excellence and cost of ownership Use of design as a chief asset Technological advancements Environmental issues Increase in the implication an brand management rather than product excellence

PRODUCT LIFE CYCLE

The implications of the five forces analysis varies with the industry life cycle. The elements that underline the industry life cycle are development stage, growth stage, shake-out stage, maturity stage and decline stage. During start up the company is the development stage with high differentiation and innovation as its assets followed by growth stage where the firm experiences high growth with low bargaining power of buyers and less threat of new entrants. In the shakeout stage the growth is slower and the key assets for the firm are its managerial and financial activities. In the maturity stage the growth is almost stagnant with high entry barriers, high competition but less unit costs and higher market share. Finally in the decline stage the firm is likely to face extreme rivalry with the rational and emotional approach key for the firm. BMW was in the maturity stage of the industry life cycle. The growth of BMW was stagnant but its products like the 1, 3, 5, 7 series having huge market share and brand identity in mature as well as developing markets. There were high entry barriers in comparison with BMW. But BMW had considerable market share and reputation for being an engineering excellence, an asset of BMW in the maturity stage.

CYCLE OF COMPETITION
Cycle of competition underlines the various drifts between competitors with time. BMW, the German carmaker had a consistent increase in its annual sales and had the technology at its behest to counter its competitors in the market. BMWs competitive advantage lies in its integral processes and its designs. The use of scientific technology that BMW restore s to, can be implemented to gaining higher economies of scale. In terms of competition BMW has Lexus, Mercedes, Toyoto, GM, Volvo group etc. as its rivals in the automobile industry. BMW has its product range from a MINI to a Rolls Royce. Thus its product range varies from a luxury segment to a premium segment in the auto industry. In the cycle of competition any core competencies or competitive advantage is temporary and in this scenario the closest competitor or BMW is the Toyota group. Toyota group has technology, production capacity; profit margins and product range that can give BMW run for their money. It is also a proved product in immature market territory. Thus BMW can strive in the cycle of competition through its core competencies and competitive advantage.

STRATEGIC DRIFT
Drift is trying to go towards a direction however fail to do that. This could be good or bad. Strategic drift is when a company fails to work in line with environmental changes however incremental development is evidenced but there is a strong influence of the cultural and historical factors. BMW and its emphasis on brand development incrementally with the changes in the environment when it outsmarted competition. However the path way dependency paved way for the acquisition of Rover an English brand. This could be due to the companies need for huge production and the consideration happened during that time. This would be the strategic drift. The company beaded with the English brand when it was in the flux phase of the strategic drift. But when the new CEO was appointed BMW went for transformation and Rover was sold to Ford. After this BMW started to working in tandem with the changes in the environment and developed incrementally.

RESOURCES
Every organization or a firm need and possess certain resources and competences required to endure and thrive globally. In other words every firm has its own strategic capability to survive against all odds (Gerry Jonhson, Kewan Scholes, Richard Whittington, 2008).

The resources consist of-

Tangible resources underlining the physical chattels like plant, people and finance of the organization Intangible resources underlining non-physical chattels like information, reputation and knowledge (Gerry Johnson, Kevin Scholes, Richard Whittington, 2008)

Resources based analysis of BMW:

SOURCES OF COST EFFICIENCY

Supply cost
Supply cost play in important role and can influence the firm in the bigger way. Supply costs revolves around the raw material supply, production units efficiency etc. supply costs can prove to be an important asset where input cost prove to be critically important for success (Gerry Johnson, Kevin Scholes, Richard Whittington, 2008). BMW managed its supply costs by setting up manufacturing units at various locations round the globe namely Germany, USA, South Africa, UK and China wherein they employed 104000 workers (Gerry Johnson, Kevin Scholes, Richard Whittington, 2008). This ensured that the supply costs are reduced with assembly units operating more flexibly and reducing the transportation costs of raw materials.

Economic scale
Economies of scale play a big part in manufacturing organizations or firms since the need is to recover the high capital costs through high volume of output. BMW achieves economies of scale by increasing its production capacity. BMW had the capability to swing its operations for 60 hours a week during limp demand and whooping 140 hours a week when the demand is at its peak. BMW also had produced an impressive 1.1 million cars in fiscal year 2003 (Gerry Johnson, Kevin Scholes, Richard Whittington, 2008), thus demoing economies to scale to gel with its manufacturing units worldwide.

Product/process design
Product/process design is also a key costs driver. Product design meliorations can help in labour productivity, better yield and maximum utilization of working capital. Product design can also be used to gain competitive advantage over its rivals with simple use of marketing intelligence. BMW was considered to be the best when it came to product/process design and was tipped as an engineering excellence. It was highly dependable, influential and lavish. BMW also restored new and modern technology for its products thus marketing maximum utilization of the working capital available.

Experience

Experience must prove to the key asset of control costs and attaining cost efficiency. Through experience the firm should generate competitive advantage through the collective understanding attained by the firm and its unit costs. The experience curve for BMW is as shown:

The unit costs of BMW are supposed to decline due to the gain of cumulative experience (Gerry Johnson, Kevin Scholes, Richard Whittington, 2008). BMW has been in the automobile sector since the dusk of the Second World War. With the number if units produced increasing per year with the setup of new assembly units, there needs to happen continental reduction of costs in the competitive market situation. This may not provide the necessary competitive advantage, but is proves to be a threshold capability for survival.

Value of network

It is difficult for a single organization to manage all the value based activities right from the design of the product to delivering the final product or service to customer. This process is generally carried out with the help of a value network. A value network can be termed as a combination of inter-organizational process that proves beneficial to create a product or a service (Timmers, 2008). The value of network of is as shown. BMW has various assembly locations as well as manufacturing units with each assembly unit having its own supplier of raw materials needed to create a product. Also there exist an internal value chain of the assembly liners themselves. The finished product is again reciprocated to the suppliers and collectively it gives rise to the organizations or the firms own value chain. The organization has its own channel value chain. The channel value chain for BMW offers its potentia l customers products ranging from a MINI to the higher end Rolls Royce. These products are priced differently and segmented effectively in response to the target market. BMW also has price variations according to the locations it is striving in. For example BMW is priced in a slight lower side in the Asian markets as compared to the UK or US market. The consumer value chain is based on the channel value chain BMW offers namely price, design and location.

SWOT ANALYSIS OF BMW


Strength:

BMW is a renowned company with a high position in terms of branding and gratitude factor. BMW is able to sustain its market position lucratively with its hub of exclusive cars. BMW had exceedingly qualified labour force(Gerry Johnson, Kevin Scholes, Richard Whittington, 2008) that could qualify as a source for gaining competitive advantage BMW used advanced technology for its products that embarked its products design, quality and price BMW had strong relationship with its suppliers which propagated BMW in maintaining a brawny supply chain management.

Weakness

BMWs overall image was too serious and conventional in comparison with its competitors Low cost products of its competitors Overdependence on US and Europe market

Opportunity

The increase in number of products sold in spite of the economic downturn Use of advanced technology for the products Popularity in developing countries like India and china Flexibility in development and manufacturing Low interest rates

Threats

Strong competition in the luxury segment of cars Economic downturn New entrants in the automobile industry Increase in fuel costs Rising supply costs e.g. steel

Critical success factor of BMW:

The above graph is used to identify the critical success factors of BMW. The y-axis represents the value and the x-axis represents the elements of critical success factor. According to the graph, the critical success factors for BMW are:

Product quality Cost of product that justifies product quality Experience Product quality is an inevitable and distinguishing factor for customer satisfaction. The brand is identified by its product excellence and cost of ownership. BMW has a status of being number when it comes to qualify, and thus it is one of the critical success factors for BMW. Though the cost of the product i.e. BMW automobile is high it evidently justifies this through its product quality. The experience of BMW in the industry also is a critical success factor for BMW. With its years of experience it has developed a brand identity for its products and very integrated and sophisticated supply chain that ensures its products are delivered at the right time and right place.

KEY SUCCESS FACTORS OF BMW

The key success factors thus of BMW can be summarized as

Business model of BMW Technology Brand image Sustainability Helmut Panke, CEO of BMW

FACTORS THAT MAY CAUSE ULTIMATE DAMAGE DEMISE OF FIRM



Rising raw material prices and high fuel prices Change in customer tastes and preferences Decrease in economies of scale Extreme rivalry and price wars in the maturity stage Stagnation of technology Unfavourable currency effects Stricter regulatory norms paving way for alternatives like hybrid cars, fuel-cell cars. Electric cars etc. Mobility precincts emergent urban areas

Probable strategies BMW can restore to redirect profits and to retain endurance for the future are:
1) Market development 2) Market penetration 3) Product development 4) Restructuring 5) Retrenchment 6) Liquidation 7) Vertical integration

This may help BMW achieve a safer tomorrow and help to sustain its BMWness for years to come.

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