Yesterday the stock was traded at 26.77 Euro. 4 weeks go, the price was 25.40 Euro. During this time the stock was within narrow limit and went even for a little while up to over 27 Euro. The stock was therefore pretty stable.
I personally would not invest in BMW's stocks. However, the company offers far more attractive investement opportunities at its bank!
BMW could be well used as an example of a company with a great diversification strategy on the business level.
Additionally, it is a frim that gradually build up an exceptional brand name. Wordwide a Bimmer is known and reflects luxury, quality and a lifestyle.
Lastly, BMW can be used as an example in class because of its high degree of innovations. BMW always has interresting new features which the company copies eventually. An example is the Road Safety System.
I would certainly like to work for BMW. My father is a mangager there and since I can remember, BMW is a huge topic in our family. I basically grew up with this company! However, despite this connection, BMW offer great job opportunities worldwide and pays very well. Therefore, this may be an option later on!
Saturday, June 27, 2009
Tuesday, June 23, 2009
"Funny" Commercial
BMW has a premium-brand. Therefore, the company mainly makes use of sophisticated advertisments. But this one is a little bit more relaxed!
Have a look and let me know whether you liked it...
Have a look and let me know whether you liked it...
Road Safety that makes Sense
In cooperation with the TU Munich, BMW has successfully developed an intelligent accelerator pedal.
It determines the ideal speed in each traffic situation and informs the driver accordingly, literally through the sole of his shoe. This “remarkable achievement in the enhancement of road safety” has earned the development department the renowned Joseph Ströbl Award.
As most already know, in Germany there are not a lot of speedlimits on the interstates. It is not a rare case that there's no speed limit at all. So it is left to the drivers judgement who fast it is still safe to drive. But most people have difficulties like the correct assessment of one’s own speed in comparison to other vehicles for instance, or the accurate judgement of distances in order to be able to adjust one’s own speed accordingly.
According to BMW's researcher, the onboard system must assist the driver without patronising him or overburdening him with information. Therefore, the BMW Group focuses on the development of ergonomic man-machine interfaces via which the onboard electronics evaluate recommendations and convey them to the driver in an “intuitive” way.
In close cooperation with BMW Forschung und Technik GmbH he joined other TUM institutes in developing the “haptic accelerator pedal”.
The accelerator pedal “marks“ the ideal speed
The basic idea is relatively simply: Whilst it was previously necessary to depress the pedal with linearly increasing force, the haptic accelerator pedal varies the required amount of pressure. In this way it is possible to set “pressure points” on which one can comfortably “rest” one’s foot. If the pressure point is to be exceeded, a slightly higher amount of force is then necessary. In this way the accelerator pedal “marks” certain speeds. “ The driver accelerates until he feels the pressure point, as he has then normally reached the ideal speed. Now, without further effort, he can, so to speak, rest his foot on the accelerator pedal. Or overrule the speed recommendation by slightly depressing the accelerator.
There is a further advantage: Because the onboard computer can identify road junctions, traffic lights and speed limits, the accelerator is able to recommend a gentle and hence economical manner of driving. BMW engineers have provided evidence of a possible fuel saving of up to ten percent. “In future it is quite conceivable – and also planned – that traffic lights, for instance, are intelligently linked to the vehicle via BMW ConnectedDrive so that the onboard computer is able to identify red phases. The haptic accelerator can react accordingly and either propose a premature reduction in speed or signify an ideal speed by means of the pressure point, so that the driver may fully utilise a progressive signal system as a matter of course.
I personally haven't tested this technology. I drove cars which brake for you if you don't have enough distance between the car in front. I very much enjoyed this assistant because in Germany heavy fines on having too little space between you and the car in front of you. This system calculates the exact distance you have to have by law. Especially at high speeds 100 miles and more, it is hard to assess what the right space is! Therefore, I am looking forward testing this futher imporved system.
It determines the ideal speed in each traffic situation and informs the driver accordingly, literally through the sole of his shoe. This “remarkable achievement in the enhancement of road safety” has earned the development department the renowned Joseph Ströbl Award.
As most already know, in Germany there are not a lot of speedlimits on the interstates. It is not a rare case that there's no speed limit at all. So it is left to the drivers judgement who fast it is still safe to drive. But most people have difficulties like the correct assessment of one’s own speed in comparison to other vehicles for instance, or the accurate judgement of distances in order to be able to adjust one’s own speed accordingly.
According to BMW's researcher, the onboard system must assist the driver without patronising him or overburdening him with information. Therefore, the BMW Group focuses on the development of ergonomic man-machine interfaces via which the onboard electronics evaluate recommendations and convey them to the driver in an “intuitive” way.
In close cooperation with BMW Forschung und Technik GmbH he joined other TUM institutes in developing the “haptic accelerator pedal”.
The accelerator pedal “marks“ the ideal speed
The basic idea is relatively simply: Whilst it was previously necessary to depress the pedal with linearly increasing force, the haptic accelerator pedal varies the required amount of pressure. In this way it is possible to set “pressure points” on which one can comfortably “rest” one’s foot. If the pressure point is to be exceeded, a slightly higher amount of force is then necessary. In this way the accelerator pedal “marks” certain speeds. “ The driver accelerates until he feels the pressure point, as he has then normally reached the ideal speed. Now, without further effort, he can, so to speak, rest his foot on the accelerator pedal. Or overrule the speed recommendation by slightly depressing the accelerator.
There is a further advantage: Because the onboard computer can identify road junctions, traffic lights and speed limits, the accelerator is able to recommend a gentle and hence economical manner of driving. BMW engineers have provided evidence of a possible fuel saving of up to ten percent. “In future it is quite conceivable – and also planned – that traffic lights, for instance, are intelligently linked to the vehicle via BMW ConnectedDrive so that the onboard computer is able to identify red phases. The haptic accelerator can react accordingly and either propose a premature reduction in speed or signify an ideal speed by means of the pressure point, so that the driver may fully utilise a progressive signal system as a matter of course.
I personally haven't tested this technology. I drove cars which brake for you if you don't have enough distance between the car in front. I very much enjoyed this assistant because in Germany heavy fines on having too little space between you and the car in front of you. This system calculates the exact distance you have to have by law. Especially at high speeds 100 miles and more, it is hard to assess what the right space is! Therefore, I am looking forward testing this futher imporved system.
Monday, June 22, 2009
Stock price
Today's stock price has slighlty decreased compared to the last post. Today the BMW stock was traded for 25.81 Euro!
This might be an reaction to the request of the loan offer!
This might be an reaction to the request of the loan offer!
Sunday, June 21, 2009
Loan for BMW?
According to "Spiegel Online Wirtschaft", a German magazine, Porsche and BMW asked for a loan from the KfW-Bank.
KfW website describles the bank's actions as giving impetus to economic, social and ecological development worldwide. As a promotional bank under the ownership of the Federal Republic and the Länder (federal states), it offers support to encourage sustainable improvement in economic, social, ecological living and business conditions.
Prorsche requested a loan for 1 billion Euro. BMW just asked for an offer but there is no official request so far.
However, both companies don't want to take out any money from the economic stimulus package which consists of 115 billion Euro. They aim to survive this crisis without any governmental support.
I am very interested how long the German automobile manufactrer are able to do it on their own without asking the government.
I will keep you updated on BMW's request for an offer!
KfW website describles the bank's actions as giving impetus to economic, social and ecological development worldwide. As a promotional bank under the ownership of the Federal Republic and the Länder (federal states), it offers support to encourage sustainable improvement in economic, social, ecological living and business conditions.
Prorsche requested a loan for 1 billion Euro. BMW just asked for an offer but there is no official request so far.
However, both companies don't want to take out any money from the economic stimulus package which consists of 115 billion Euro. They aim to survive this crisis without any governmental support.
I am very interested how long the German automobile manufactrer are able to do it on their own without asking the government.
I will keep you updated on BMW's request for an offer!
Friday, June 19, 2009
Stock price
Today the share was treaded on the German DAX fore 26.97 Euro.
This is a slight increase since I started watching this company!
This is a slight increase since I started watching this company!
The Future of the Company
"The big question is how long the crisis will last, and there are no really reliable statements on that," Chief Financial Officer Friedrich Eichiner said.
Due to the crisis the whole automobie industry is facing, BMW started to cut cost in the begining of 2008. During this year they cut ccording to the BusinessWeek 13,000. Curretly around 100,000 people are employed. Most "lay-oof" were temps whos contracts expired and employee who left on their own will.
As long as the situation betters, BMW will be fine in the future. The CEO said that by 2012 he targets a sales volume of 1.8 million compared to 1.4 million in 2008 (includinf motorcycles, MINI and Rolls-Royce brands).
Currently, the company cannot cut more cost without endangering the future of the firm which means they can't risk loosing any engineers or designers.
And it would be risky for the company to lean too heavily on suppliers for savings. They are already suffering from the downturn and could only cut costs by reducing quality which would be bad for BMW's hard-won reputation for reliability.
However, Dr. Reithofer said in an interview:"We took measures to absorb the effects of the economic crisis much sooner than other carmakers."
Overall, I am confident that BMW will survive this crisis and that they will rise again in a few years!
What is you opinion about that?
Due to the crisis the whole automobie industry is facing, BMW started to cut cost in the begining of 2008. During this year they cut ccording to the BusinessWeek 13,000. Curretly around 100,000 people are employed. Most "lay-oof" were temps whos contracts expired and employee who left on their own will.
As long as the situation betters, BMW will be fine in the future. The CEO said that by 2012 he targets a sales volume of 1.8 million compared to 1.4 million in 2008 (includinf motorcycles, MINI and Rolls-Royce brands).
Currently, the company cannot cut more cost without endangering the future of the firm which means they can't risk loosing any engineers or designers.
And it would be risky for the company to lean too heavily on suppliers for savings. They are already suffering from the downturn and could only cut costs by reducing quality which would be bad for BMW's hard-won reputation for reliability.
However, Dr. Reithofer said in an interview:"We took measures to absorb the effects of the economic crisis much sooner than other carmakers."
Overall, I am confident that BMW will survive this crisis and that they will rise again in a few years!
What is you opinion about that?
Wednesday, June 17, 2009
A car becomming "human"?!
With the development of the BMW GINA Light Visionary Model the BMW Group presents trendsetting solutions. Chris Bangle, former director of desing at the BMW Group (left the company in the 2009), gives us a first impression of the ideas behind the process of sculpturing an experimental study. This is the story behind this innovation!
I think that is soooo impressive. I really wonder somehting like this is possible to produce and whether the future car will look like this!
Unbelievable...
GINA Light Visionary Model
I think that is soooo impressive. I really wonder somehting like this is possible to produce and whether the future car will look like this!
Unbelievable...
GINA Light Visionary Model
Monday, June 15, 2009
Strategic Alliance
Daimler and BMW work together in the development of hybrides.
Just a month ago Daimler's CEO, Dieter Zetsche, said in an interview that he would like to have a closer relationship with BMW. Norbeit Reithofer, BMW's CEO, has a different opinion about that. He doesn't want to a too close bond.
BMW and Daimler have discussed joint-ventures for small cars and financial activities, but BMW’s CEO warns those move could dilute the brand’s image.
Accoding to the Frankfurter Allgemeine Zeitung, he said "There are clear limits.The BMW brand, which one study has valued at $24 billion, must not be diluted or the brand identity damaged.”
However, Reithofer hasn't ruled out any alliances with other car manufacturers. BMW and Daimler will continue to talk about a possibility and soon BMW could engane in a partnership with PSA/Peugeot-Citroen due to the sharing in engine technologies.
Just a month ago Daimler's CEO, Dieter Zetsche, said in an interview that he would like to have a closer relationship with BMW. Norbeit Reithofer, BMW's CEO, has a different opinion about that. He doesn't want to a too close bond.
BMW and Daimler have discussed joint-ventures for small cars and financial activities, but BMW’s CEO warns those move could dilute the brand’s image.
Accoding to the Frankfurter Allgemeine Zeitung, he said "There are clear limits.The BMW brand, which one study has valued at $24 billion, must not be diluted or the brand identity damaged.”
However, Reithofer hasn't ruled out any alliances with other car manufacturers. BMW and Daimler will continue to talk about a possibility and soon BMW could engane in a partnership with PSA/Peugeot-Citroen due to the sharing in engine technologies.
Sunday, June 14, 2009
BMW Bank
BMW’s Bank has seen deposits jump almost 70% over the past five months and the cash infusion is helping the company cope with the frozen credit markets as WNYC reported on March 26th.
This development is not just observable with the BMW bank but also with the bank from Volkswagen, AUDI, etc
Traditionally, the German car banks offered financing opportunitites for normal car loan and for their dealers. Around 10 years ago those car banks recieved the banking license and where from now operating as any other bank.
But how is it possible that the deposits of the BMW banks increased so much in past few months?
Jonathan Rosenthal argues that the German population thinks that this bank is saver than the "normal" banks because they have tangible assets such as plants. Additionally, the interest rates are currently between 5 to 5.5% on deposits whereas the majority in Germany offers 2 to 2.5%.
The perception that these banks are less risky is not supported by the ratings. These car banks are actually rated more risky. Jonathan Rosenthal advices the German government to keep an eye in this development!
The interest rates are so high because the firm use it to keep the company and its dealers running.
I have a time-deopsit at the BMW bank and I get 5.25% interest currently. This contract expires this August but due to these exellent interest rates, I probably will open again a time-deposit. I might even be able to recieve an even higher interest! And I am not really concerned about the risk because, the German government promised that they'll make sure everyone gets their deposits back in the case of bankruptcy due to bailouts!
This development is not just observable with the BMW bank but also with the bank from Volkswagen, AUDI, etc
Traditionally, the German car banks offered financing opportunitites for normal car loan and for their dealers. Around 10 years ago those car banks recieved the banking license and where from now operating as any other bank.
But how is it possible that the deposits of the BMW banks increased so much in past few months?
Jonathan Rosenthal argues that the German population thinks that this bank is saver than the "normal" banks because they have tangible assets such as plants. Additionally, the interest rates are currently between 5 to 5.5% on deposits whereas the majority in Germany offers 2 to 2.5%.
The perception that these banks are less risky is not supported by the ratings. These car banks are actually rated more risky. Jonathan Rosenthal advices the German government to keep an eye in this development!
The interest rates are so high because the firm use it to keep the company and its dealers running.
I have a time-deopsit at the BMW bank and I get 5.25% interest currently. This contract expires this August but due to these exellent interest rates, I probably will open again a time-deposit. I might even be able to recieve an even higher interest! And I am not really concerned about the risk because, the German government promised that they'll make sure everyone gets their deposits back in the case of bankruptcy due to bailouts!
Thursday, June 11, 2009
Stock Price
The closing price per share was today 29.41 Euro!
A slight increase since I started looking at BMW ( around 25 Euro)...
A slight increase since I started looking at BMW ( around 25 Euro)...
Tuesday, June 9, 2009
Board of Directors
Here is a little posting on the Board of Directors of the BMW AG:
The BoD has one Chairman, 3 Deputy Chairman and 15 more members. The board therefore, consists of 19 members. This is a very large numbers regarding that it is suposed to be 12 members or less!
Looking through their other board memberships, it can clearly be said that these people are ver busy.
However, there doesn't seem to be a restriction on how long they are allowed to serve.
I want to point out 2 members:
Prof. Dr.-Ing. Dr. h.c. Dr.-Ing. E.h. Joachim Milberg
Chairman of the Supervisory Board BMW AG, Munich, Germany
Elected to Supervisory Board: 2004
Current term expires: 2012
Until May 2002, he was chairman of the managment board.
Other board memberships*: Supervisory Board, Bertelsmann AG, Gütersloh, Germany; Supervisory Board, Festo AG, Esslingen, Germany; Board of Directors, Deere & Company, Moline, Illinois, USA; Supervisory Board, ZF Friedrichshafen AG, Friedrichshafen, Germany
Manfred Schoch serves as a Deputy Chairman and Member of Supervisory Board of BMW Group. Mr. Schoch is Chairman of the Central Works Council.
I think Mr. Schoch is important to mention becasue as Prof. Busija mentioned in class, one mamber of the board has to be an employee (member of the union)or 2 members have to be independent ambassadors from the union.
Overll, this board seems to work well regarding the performance of BMW compared to other firms in this industry, although it doesn't fulfill our characteristics!
The BoD has one Chairman, 3 Deputy Chairman and 15 more members. The board therefore, consists of 19 members. This is a very large numbers regarding that it is suposed to be 12 members or less!
Looking through their other board memberships, it can clearly be said that these people are ver busy.
However, there doesn't seem to be a restriction on how long they are allowed to serve.
I want to point out 2 members:
Prof. Dr.-Ing. Dr. h.c. Dr.-Ing. E.h. Joachim Milberg
Chairman of the Supervisory Board BMW AG, Munich, Germany
Elected to Supervisory Board: 2004
Current term expires: 2012
Until May 2002, he was chairman of the managment board.
Other board memberships*: Supervisory Board, Bertelsmann AG, Gütersloh, Germany; Supervisory Board, Festo AG, Esslingen, Germany; Board of Directors, Deere & Company, Moline, Illinois, USA; Supervisory Board, ZF Friedrichshafen AG, Friedrichshafen, Germany
Manfred Schoch serves as a Deputy Chairman and Member of Supervisory Board of BMW Group. Mr. Schoch is Chairman of the Central Works Council.
I think Mr. Schoch is important to mention becasue as Prof. Busija mentioned in class, one mamber of the board has to be an employee (member of the union)or 2 members have to be independent ambassadors from the union.
Overll, this board seems to work well regarding the performance of BMW compared to other firms in this industry, although it doesn't fulfill our characteristics!
Sunday, June 7, 2009
"Project i"
BMW refers to "Project i" to its push into electric cars.
BusinessWeek published an article on March 12th on this topic.
Currently, BMW is spending more than $1 billion on the development of a small car for urban drivers that will be electrically powered.
In New York and Los Angeles, BMW started a test market on such all-electric vehicles. BMW is leasing 500 MINI Sedans that have been modified to run on batteries. Daimler is currently testing eletric SMARTs in London.
This test project shall help to eliminate the industry's biggest fear that only few would be willing to pay a higher price for a car that only can drive 150 miles between charges.
Despite all the prejudices, BMW had no problems finding customers eager to pay $850 per month to lease such a mdifies MINI, although only 2 seats are usable because the batteries are displaced in the rear seats.
The moto of "you drive the future" seems hip!
Despite these great news, the indusrty still faces many problem that have to be solved. Even if the prices in battery fall to a third of its currnet price, the batteries per car still cost $14,000, as Boston Consulting Group estimated.
More optimistic consultants such as Consultant Bain & Co argue that by 2020 the costs of batteries will have fallen to $4,000 per car which would allow the car manufacturers to offer a showroom price of $20,000.
Especially BMW should be in a better position with this innovation than its rivlas becasue the well-heeled people who drive Bimmers might be just the kind of buyers who would want a sporty electric for commuting and short trips around town!
I really hope that this innovation becomes a great and not too costly alternative. It would help to solve many environmental problems. I would definitively consider buying such a car!
Would you be a potential customer?
BusinessWeek published an article on March 12th on this topic.
Currently, BMW is spending more than $1 billion on the development of a small car for urban drivers that will be electrically powered.
In New York and Los Angeles, BMW started a test market on such all-electric vehicles. BMW is leasing 500 MINI Sedans that have been modified to run on batteries. Daimler is currently testing eletric SMARTs in London.
This test project shall help to eliminate the industry's biggest fear that only few would be willing to pay a higher price for a car that only can drive 150 miles between charges.
Despite all the prejudices, BMW had no problems finding customers eager to pay $850 per month to lease such a mdifies MINI, although only 2 seats are usable because the batteries are displaced in the rear seats.
The moto of "you drive the future" seems hip!
Despite these great news, the indusrty still faces many problem that have to be solved. Even if the prices in battery fall to a third of its currnet price, the batteries per car still cost $14,000, as Boston Consulting Group estimated.
More optimistic consultants such as Consultant Bain & Co argue that by 2020 the costs of batteries will have fallen to $4,000 per car which would allow the car manufacturers to offer a showroom price of $20,000.
Especially BMW should be in a better position with this innovation than its rivlas becasue the well-heeled people who drive Bimmers might be just the kind of buyers who would want a sporty electric for commuting and short trips around town!
I really hope that this innovation becomes a great and not too costly alternative. It would help to solve many environmental problems. I would definitively consider buying such a car!
Would you be a potential customer?
Friday, June 5, 2009
Wednesday, June 3, 2009
Mission Statement
This statement is retireved from the annual report 2008:
"Today, the BMW Group is one of the ten largest car manufacturers in the world and possesses, with its BMW, MINI and Rolls-Royce brands, three of the strongest premium brands in the car industry.
The BMW Group also has a strong market position in the motorcycle sector and operates successfully in the area of financial services.
The Number ONE strategy, adopted in 2007, has set the BMW Group on course for a successful
future.
The business has been given a new strategic direction with the emphasis on profitability and
long-term value growth. The BMW Group’s activities will remain firmly focused on the premium
segments of the international automobile markets.
The mission statement up to the year 2020 is clearly defined: The BMW Group is the world’s leading provider of premium products and premium services for individual mobility."
I am a bit disappointed by this mission statement. It is not adressing any stakeholders and it is pretty broad in its "goals". However, it seems as if they wnat to concentrate of increaseing market share. This is actually consistent with the previous post.
Also, it does not mention any difficulties the whole industry faces. This statement could be several years old! What do you think?
"Today, the BMW Group is one of the ten largest car manufacturers in the world and possesses, with its BMW, MINI and Rolls-Royce brands, three of the strongest premium brands in the car industry.
The BMW Group also has a strong market position in the motorcycle sector and operates successfully in the area of financial services.
The Number ONE strategy, adopted in 2007, has set the BMW Group on course for a successful
future.
The business has been given a new strategic direction with the emphasis on profitability and
long-term value growth. The BMW Group’s activities will remain firmly focused on the premium
segments of the international automobile markets.
The mission statement up to the year 2020 is clearly defined: The BMW Group is the world’s leading provider of premium products and premium services for individual mobility."
I am a bit disappointed by this mission statement. It is not adressing any stakeholders and it is pretty broad in its "goals". However, it seems as if they wnat to concentrate of increaseing market share. This is actually consistent with the previous post.
Also, it does not mention any difficulties the whole industry faces. This statement could be several years old! What do you think?
Monday, June 1, 2009
Increased market share globally
In the first quarter of 2009, the BMW Group delivered 21.2% less cars to dealers and consumers.
Howeve, the company has a positive perspective about 2009 which the chairman Dr. Reithofer descibes as a transition year where new strategies have to implemented in order to cut cost and stabalize its current position in the premium segments.
According to Dr. Reithofer, the BMW group was able to maintain a solid postion among the international competitors in the first quarter of 2009. The corporation increase its market share slightly in the premium segment to 20.7%.
Even in its largest market but heavily affected by the recession, the United States, It was possible for the company to increase market share as well.
Dr. Reithofer emphesised that due to weak purchasing power, the company will focus on gaining and maintaining market share.
The share was traded today for 26.92 Euro!
Howeve, the company has a positive perspective about 2009 which the chairman Dr. Reithofer descibes as a transition year where new strategies have to implemented in order to cut cost and stabalize its current position in the premium segments.
According to Dr. Reithofer, the BMW group was able to maintain a solid postion among the international competitors in the first quarter of 2009. The corporation increase its market share slightly in the premium segment to 20.7%.
Even in its largest market but heavily affected by the recession, the United States, It was possible for the company to increase market share as well.
Dr. Reithofer emphesised that due to weak purchasing power, the company will focus on gaining and maintaining market share.
The share was traded today for 26.92 Euro!
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