BMW 2009 Annual Report Download - page 232

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So, even during a global economic crisis, investment capital is
definitely still available?
Mr. Ebner von Eschenbach
At no point did we have a problem raising capital – that
is because we have such a good reputation on the
capital markets. However, it is important to tap liquidity
at the right time, with the right instruments, backed
by strong arguments. Our customers in Germany, for
instance, increased their deposits with the BMW Bank
by two billion euros during a crisis year, thanks to our
high level of creditworthiness. Our banking business
in the US also expanded considerably over the past
year
. We will use the insights we gained to continue
expanding our banking business in Germany and the
US and give our funding an even broader global base.
But, all the same, weren’t there moments over those dramatic few
months when you also felt a little nervous?
Mr. Eichiner
Of course. Back in late 2008, we were concerned, too.
We weren’t sure whether the global financial system
could withstand the pressure. No one had experienced
a situation like that with such a dramatic snowball effect.
Mr. Ebner von Eschenbach
The important thing to realise is that the BMW Group’s
core business is profitable and is financed from its own
resources. Our funding requirements originate solely
from our financial services business. That gives the
BMW Group an entirely different risk profile than com-
panies who are incurring operating losses and need to
fund these losses through borrowed capital.
Before the crisis you announced your aim of cutting costs by six billion
euros up to 2012. Is that still valid after the crisis?
Mr. Eichiner
Certainly. The crisis prompted us to take a more rigorous
approach to cost management than we had originally
intended. As a result, we will easily exceed our target of
six billion euros in savings.