One of the most luxurious four-wheeler manufacturers of the globe, BMW had an excellent business previous year, 2011. And now with the first quarter of 2012 almost coming to an end, BMW is determined to set a better record compared to previous year. Chairman, Board of Management, BMW AG, Norbert Reithofer commented that they are aiming to reach new heights in the pre-tax revenue earnings and sales volume for the year 2012. Company has started the new year with a book packed with orders with a very attractive range of new models of its vehicles. Rolls-Royce, Mini and BMW brands are going to set new records in the sale volume for the BMW group this year, that’s what the group, believes and it is determined to achieve it.
The group’s financial services were managing 3,592,093 portfolio of credit financing contracts and lease which were more 12.6 per cent more the previous year. The volume in the credit financing was more by 4.6 per cent and leasing improved to 25 per cent more. With the new BMW 3 Series, BMW 6 Series and BMW 7 Series the company expects a rapid growth in 2012. The Group will also widen its product range in the two-wheeler segment with the introduction of Husqvarna (street motorcycle) and BMW scooters which will create a good momentum for sales revenues, volume and earnings.
With the focus on the premium segment by the group, it is very clear that to take over the Premium segment market vehicles is and remains their business model and the foundation of the BMW Group’s success in future. The confidence and determination in setting standards in terms of design, innovation, efficiency and sustainability in the premium segment vehicle seems to be the only focus of BMW this year. A plan to engage in new markets with a long term sales target seems to be met midway, with more than two million units of vehicles being targeted to be sold in 2016 in present market condition, is impressively before the actual planned year of 2020. Although the group is committed to its long-term goals of profitability and targets to get a sustainable EBIT difference of between eight per cent to ten per cent in the sector of automobile but it also depends on the economical and political developments, where, real margins may end up in being below or above the aimed range. The capital expenditure ratio will remain still below 7 per cent when the expenditure on expansion of the production network and technologies will go up in future.
The main factor which contributed immensely in improving the earning of segment was a sharp and sudden rise in the volume of sales and on the other hand it was an improved structure on costs. The commendable earnings of 2011 assisted in generating strong free flow of cash within the automobile segment. With all the above, the employees increased immensely in numbers during the past one year. There were 95,453 employees in the beginning of year 2011, after an increase of 5.1 per cent happened, the worldwide workforce reached to 100,306 employees. More skilled workers were hired to keep up with the high demand for vehicles of BMW group vehicles. BMW Group has taken in more apprentices to make sure that when BMW Group will need skilled staff in Germany and overseas, can be easily met without any delay. This resulted in a good rise of 2.7 per cent to make a total of 3,899 apprentice worked till December 31, 2011. BMW will make a record again this year for sure.