Today the share was treaded on the German DAX fore 26.97 Euro.
This is a slight increase since I started watching this company!
Friday, June 19, 2009
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?
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