BMW 2014 Annual Report Download - page 40

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18 COMBINED MANAGEMENT REPORT
18 General Information on the BMW Group
23 Report on Economic Position
23 General and Sector-specific
Environment
26 Overall Assessment by Management
26 Financial and Non-financial
Performance Indicators
29 Review of Operations
29 Automotive Segment
35 Motorcycles Segment
36 Financial Services Segment
38 Research and Development
40 Purchasing
41 Sales and Marketing
44 Workforce
45 Sustainability
49 Results of Operations, Financial
Position and Net Assets
61 Comments on Financial Statements
of BMW AG
64 Events after the End of the
Reporting Period
65 Report on Outlook, Risks and
Opportunities
82 Internal Control System and Risk
Management System Relevant for the
Consolidated Financial Reporting Process
83
Disclosures Relevant for Takeovers
and Explanatory Comments
87 BMW Stock and Capital Markets
licensing fees nor transmission costs. Via the SIM card
built into the car, the new map data are sent to the
vehicle via the mobile network (LTE), without having
to take the longer route via an external data carrier and
manual installation.
Outstanding technology and design
In the most recent competition for the prestigious “In-
ternational Engine of the Year Award”, the BMW Group
was awarded prizes in two different categories. For the
fourth time now, the 3.0-litre in-line 6-cylinder petrol
engine featuring BMW TwinPower turbo technology was
among the main prizewinners. The engine powers
numerous current BMW models. The 1.6-litre 4-cylinder
turbo engine, which is fitted in models such as the MINI
Cooper S Countryman and the MINI Cooper S Paceman,
was winner in its class for the eighth consecutive time.
The BMW Group won as many as eight prizes at last
year’s “Red Dot Award for Product Design”. The “Red
Dot” went to seven BMW models. Apart from the
BMW i3, which took the “Red Dot: Best of the Best”
award and thus the highest accolade for trendsetting
design, the BMW i8, the 2 Series Coupé, the 3 Series
Gran Turismo, the 4 Series Coupé and Convertible and
the BMW R nineT all received prizes. Furthermore,
the
new MINI received an “Honourable Mention”. With
the “iF product design award”, the BMW i8 was pre-
sented with a prize by Industrie Forum Design e. V. for
its innovative design. The greatest appreciation,
how-
ever, was accorded to the BMW i3, which won the “iF
product design award Gold”. Further awards went to
the X5, the 2 Series Coupé, the 4 Series Coupé, the 3 Se-
ries Gran Turismo and the BMW R nineT in the cate-
gory “Product, transportation design / special vehicles”.
The primary focus of the BMW Group’s purchasing and
logistics activities is to achieve an optimal balance of
quality, innovation, flexible supply structures and com-
petitive cost. In this context, we therefore go to great
lengths to design the supply chain with our business
partners, thus ensuring that we can react rapidly and
flexibly at all times to fluctuations in order volumes, even
within a volatile environment.
Numerous model start-ups
2014 saw the start-up of 13 new BMW and MINI brand
models. Most of the BMW start-ups were concentrated
on Europe and the NAFTA region. The production start
of the new X4 at the Spartanburg plant resulted in a
broader supplier base within the NAFTA region. Close
collaboration with external business partners and the
BMW Group’s own in-house component production
team resulted in the introduction of numerous innova-
tions,
many of them relating to the BMW i8.
Increasing importance of NAFTA region
During the year under report, the construction of a new
plant in San Luis Potosí (Mexico) with a planned annual
manufacturing capacity of 150,000 units was announced.
This move is in line with the strategy of ensuring glob-
ally balanced growth. For the BMW Group, it will also
entail a further increase in NAFTA-based purchases in
the coming years, whilst at the same time contributing
to currency hedging. In view of these developments,
the BMW Group’s decentralised organisational struc-
tures
in the NAFTA region have been strengthened and
newly aligned.
PURCHASING AND SUPPLIER NETWORK
Regional mix of BMW Group purchase volumes 2014
in %, basis: production material
Germany 47.2 NAFTA 14.5
Eastern Europe 17.2 Asia / Australia 3.7
Rest of Western
Europe 15.9 Africa 1.5
Germany
Rest of
Western Europe
Eastern Europe
NAFTA
Asia / Australia
Africa