BMW 2009 Annual Report Download - page 74

72
12 Group Management Report
12 A Review of the Financial Year
14 General Economic Environment
18 Review of Operations
42
BMW Group – Capital Market
Activities
45 Disclosures pursuant to § 289 (4)
and § 315 (4) HGB
48 Financial Analysis
48 Internal Management System
50 Earnings Performance
52 Financial Position
54 Net Assets Position
56 Subsequent Events Report
56 Value Added Statement
58 Key Performance Figures
59 Comments on BMW AG
63 Internal Control System
64 Risk Management
70 Outlook
written very highly of the new model. The real benefit will
be felt from the second half of 2010 onwards, after the
BMW 5 Series Sedan has become available worldwide.
We will continue to revitalise our range over the course of
2010 with more worldwide firsts and model revisions.
These include the BMW ActiveHybrid 7 and the model re-
visions of the BMW X5 as well as the BMW 3 Series Con-
vertible and Coupé. The new MINI Countryman is also due
to be launched during the current year.
The services and spare parts business is of great strategic
importance to us. Putting our worldwide initiatives into
action is enabling us to systematically exploit further profit-
able growth potential in this field.
Rigorous cost management will be continued in 2010 as
part of our overall endeavour to improve efficiency and
productivity, a key element in the strategic reorientation
of the BMW Group. Measures taken to date are already
having a marked effect. A good example of this is the new
BMW 5 Series, the first major production model to be
developed fully in line with our modular strategy. The use
of identically constructed parts in all of the main models
allows us to derive greater benefit from the significantly
higher volumes produced. The new BMW 5 Series there-
fore signalises the beginning of a new, efficient develop-
ment strategy. Future BMW, MINI and Rolls-Royce brand
models will also be increasingly developed with the use of
modular and industrial standards in mind, enabling us to
reduce production costs significantly over the coming
years. The modular approach fits in entirely with
profita-
bility targets set in conjunction with the Strategy Number
ONE. Customers also benefit from this approach as many
high-value items of equipment and options will no longer
be exclusively available to the major series production
models.
We have continued to make progress in managing and re-
ducing fixed costs. Stringent working capital management
is a further key parameter for managing the business.
During the year under report, for instance, we successfully
reduced inventory levels, which we will endeavour to con-
tinue in the current year. Further improvements in produc-
tivity will also bring benefits in 2010.
Whilst continuing to implement measures to bring us
closer to the profitability levels targeted in our Strategy
Number ONE, our main focus will be on developing new
vehicles and technologies for the future. The BMW Vision
EfficientDynamics
concept car – presented on the world
stage for the first time at the International Motor Show (IAA)
in Frankfurt in September – includes a whole array of
technological innovations developed in conjunction with
the Efficient Dynamics measures package. The outcome
is a vehicle with the CO2 emission values of a compact car
and the dynamism of a sports car. This concept car sets
new standards and is further proof of our outstanding inno-
vative and technological expertise.
We remain committed to the use of state-of-the-art tech-
nologies to reduce the fuel consumption and emissions
of combustion engines. At an early stage we recognised
the pressure being brought to bear within society towards
down-sized, more efficient drive systems that can never-
theless deliver powerful performance as well as the trend
towards CO2-emissions-based taxation. We evaluated the
impact of these changes on our model range and planned
accordingly. With framework conditions becoming clearer,
we can now go on to sharpen the innovative edge we have
gained through our Efficient Dynamics strategy.
We will continue to invest in the future of the BMW Group
and extend our competitive lead. One aspect of this
strategy
will be to develop alternative drive systems and
innovative mobility concepts in line with our forward-looking
“project i”. Our MINI E fleet now comprises some 600 test
cars. Field trials are currently being performed under real
conditions in the USA, the UK and Germany and are helping
us gain valuable knowledge with respect to electromobility.
The BMW Concept ActiveE, a purely electrically driven
concept study based on the BMW 1 Series Coupé, is also
demonstrating that electromobility is a real possibility in
keeping with the flair of the BMW brand. Based on this con-
cept
study, we will be handing over another fleet of elec-
trically powered cars to customers for testing in 2011, en-
abling us to gain further important knowledge about the
use of electrically driven BMW vehicles for everyday pur-
poses. This concept vehicle will also be used to test the
electric drivetrain of the Megacity Vehicle at a pre-series
stage.
This groundwork is seen as an important factor in our
efforts to open up new opportunities in the medium and
long term. It will also enable us to fulfil the future needs
of customers with our premium products and premium
services.
The knock-on impact of the international economic and
finan cial crisis will continue to be felt in 2010. However,