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!
Sunday, June 21, 2009
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!
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