BMW – rezultate 2008 şi previziuni 2009

Autor: Dan Vache acum 12 ani Știri
BMW – rezultate 2008 şi previziuni 2009

Today, I would like to comment on three main points:

  • What is important to consider in the current situation?
  • How does Strategy Number ONE secure our future success?
  • How do we view the business development for the rest of the year?

Let’s get straight to the first point:

We took the necessary steps to enable us to soften the impact of the crisis much earlier than any other car manufacturer. At the same time, we have been focusing our efforts on consistently implementing our Strategy Number ONE, charting our course for the future. Our goal is to maintain the BMW Group’s independence.

The following eight points show the BMW Group’s position in this challenging environment:

  1. First: In 2008, the BMW Group achieved an EBIT of € 921 million. Adjusted for the provisions for residual value risks and credit losses and additional expenses for headcount reductions, our 2008 result would have been significantly higher.
  2. Second: The group’s financial footing is absolutely sound. At the end of 2008, our liquidity was approx. € 8.1 billion.
  3. Third: We managed to reduce costs, investments and capital expenditure per vehicle. I instructed all divisions and areas to do their very best to save costs. As a result, our fixed costs in 2008 were lower than in 2007. We also managed to reduce our costs of materials significantly—thanks to our successful cooperation with suppliers. As you may know, we want to reduce material costs by € 4 billion by 2012. It is already clear that we will clearly exceed this target.
  4. Fourth: We reduced our fourth-quarter inventory below the third-quarter level. Compared to 2007, our inventories remained stable while competitors’ stocks increased noticeably. In late 2008, we curbed production at our German plants. In the beginning of 2009, employees at certain locations worked short-time. This was a joint solution the Board of Management and the Works Council agreed upon in due time.
  5. Fifth: In 2008, we sold more than 1.43 million cars. This is the second-best result in our company’s history. We still remain the number one in the premium segment. Nevertheless, we think this is not the time to get caught up in a race for maximum volumes. Our goal is to strengthen and expand our market share in the individual markets.
  6. Sixth: We are the industry leader in terms of CO2 emission reductions. Once again, we invested in Efficient Dynamics and new technologies last year. As announced, the amount was lower than the year before. We are now harvesting the fruits of our previous € 1.2 billion investment in environmentally friendly technologies. Efficient Dynamics is now working for us.
  7. Seventh: Regarding job reductions, we exceeded our target. Between the end of 2007 and the end of 2008, our permanent staff decreased by 7,498 to 100,041. Approximately 4,000 employees signed mutual termination agreements by December 31, 2008. On the other hand, we will recruit several hundred new employees, primarily engineers, in 2009. There is no hiring freeze. In 2008, we created 226 new jobs. We will also continue to train a large number of young people—sometimes beyond our own demand. In 2009, there will be approx. 1,100 new trainees at our company.
  8. Eighth: A profit-sharing program for our board members, executives and all employees is an important element of our compensation system. We apply this system in good times as well as in challenging times. Another important principle is that the amount of the profit-sharing bonus increases according to a person’s management level within the company. The members of our Works Council agree with this approach.

So the significant decrease in the 2008 operating result will have the following financial effect:

  • a Board Member’s remuneration will decrease by 40 percent,
  • a senior executive’s by about a third,
  • and non-management employees will earn about 10 percent less.

I am convinced that our employees understand the difficulty of the current situation and are willing to accept this hardship. Various activities initiated in 2008 have provided us with a solid basis for the challenging year 2009. Our business activities are and will remain focused on the long term.

How can we guarantee our future success in light of the changes and new challenges in our business environment?

You all know our strategy structure. We have implemented specific projects supporting all four pillars.

1. Growth

The global car market will continue to grow, and along with it the demand for premium products and services. Sustainability will definitely play a key role in defining premium. This applies to both environmentally friendly drive systems and production processes. The BMW Group is already the world’s most sustainable car manufacturer. 2008 marked the fourth consecutive year the Dow Jones Sustainability Indexes ranked us as the global industry leader.

We currently see certain changes and shifts between individual segments of the auto market.

Our premium brand MINI is very successful in the small-car segment.

A few years ago, we launched the BMW 1 Series as our premium offering in the compact class. In 2008, sales of the BMW 1 Series increased by about 36 percent to more than 225,000 units. Today, BMW 1 Series models make up almost 19 percent of our portfolio. And 2009 will see the launch of a new model in the compact class—the BMW X1. This car combines the versatility of an SAV with the flexibility of a compact car and BMW’s characteristic driving dynamics.

2. Innovation

Our new BMW 7 Series is a clear statement for the further innovation development of automobiles in general and the new benchmark for all competitors. We are convinced that the new BMW 7 Series is the best car on the market right now. Our flagship model and its innovations have received enthusiastic feedback from the media—also thanks to the car’s efficiency. The 730d only uses 7.2 liter of Diesel per 100 km. This makes it very popular with customers as well: The new 7 Series was launched in Europe only a few months ago, but it is already the segment leader.

In 2009, we are launching a versatile and highly variable vehicle: the BMW 5 Series Gran Turismo. It is the near-series implementation of the Progressive Activity Sedan. Once again, we are defining an entirely new segment. For me, the BMW 5 Series Gran Turismo is premium at its most innovative.

3. Premium is also a matter of design

Design is and will remain a key factor in people’s buying decision. It is one of the major trends in the automotive future.

We plan to focus strongly on design in the years to come, and plan to continue to be a trendsetter in the area of design. The new BMW Z4, due out in May, is a perfect example of the direction we want to take.

Our strategy’s second pillar: Shaping the Future

Shaping the future of the automobile – this can only be achieved by reducing fuel consumption and emissions.

No other car company has reduced emissions as much as the BMW Group.

We even exceeded the ACEA voluntary commitment: Between 1995 and 2008, our EU fleet consumption decreased by 27 percent. And let me add:

  • We will also be able to meet the new EU emission performance requirements for 2012 and 2015
  • Excess penalties will not be an issue for the BMW Group

The MINI E is the first result of project i and our first milestone towards electric mobility. Once again, we are ahead of our competitors. The MINI E is currently being tested by 500 customers in California in everyday city life. Customers in Berlin and Munich are about to join the project.

This field test makes us the car company with the largest fleet of electric cars. But euphoria is not called for—not yet anyway. It will take years and years before electric cars will be a common sight on our roads.

The second specific result of project i will be our Megacity Vehicle. This vehicle will be the first of a range of near-zero emission vehicles. Customers will have the choice between a fully electric drive and a high-efficiency combustion engine. Large-scale production could start in the first half of the next decade.

With the Megacity Vehicle, we are also pursuing a radical approach toward establishing a truly sustainable value chain—from development to production and sales.

The customer will continue to be an integral part of Strategy Number ONE

We want to continue to set our own course. Nevertheless, we will continue to cooperate with other car manufacturers—whenever necessary and reasonable. Obviously, a win-win situation is the key to a successful cooperation.

At present, we are developing our MINI engines together with PSA. And we have entered into a purchasing cooperation with Daimler which will soon be expanded. We plan to gradually increase the number of parts and components we purchase together.

Last but not least, my third point for the day: What is our forecast for the business year 2009?

2009 will be a transition year. We expect the recovery period to start in 2010. Unfortunately, the current downturn in business still continues. And as a result there still exists uncertainty in the overall market. Therefore it makes no sense to offer a reliable forecast for 2009 right now. We do not expect to match our 2008 retail level this year.

For this reason, we have developed several action scenarios depending on market development. At present, we expect automotive sales to decline by 10 to 20 percent in 2009. From 2010 on, our sales will pick up pace thanks to our new product portfolio. This momentum will increase with the high-profit contribution models to be launched between 2010 and 2012. Some of our competitors might enjoy a model-cycle advantage right now.

So we remain confident. And our profitability targets for 2012 remain unchanged. I stated at various occasions that the biggest challenge is the crisis has filtered into people’s mind. We think and act differently at the BMW Group. Our Strategy Number ONE is a clear roadmap to the future and because of this the BMW Group is well positioned to stay the course and meet successfully the challenges ahead. That’s premium as well.

And this is why we will continue to be a strong and sustainable company with three outstanding brands: BMW, MINI and Rolls-Royce.

Thank you for your attention!