Potentially big news for the BMW Group (and even MINI enthusiasts) was tucked away in today’s future strategies presentation given by BMW CEO Norbert Reithofer:
>The BMW Group explored all of the options for future growth during the strategic review, including potential acquisitions or the creation of a fourth brand. However, this would require the new automotive brand to be a perfect fit for the company and its strengths. Moreover, rising unit figures would have to result in a decline in unit costs and thus lead to economies of scale. The new brand would have to at least make the same positive contribution to earnings as the existing automobile business. However, an in-depth analysis found that none of the evaluated automotive brands currently meets these requirements.
>Nevertheless, the BMW Group does not generally rule out further acquisitions. Accordingly, the successful acquisition of the tradition-rich Husqvarna brand and its sporty profile have enabled the BMW Group to attract new and younger target groups in the Motorcycles segment.
>”In principle, we will keep acquisitions on our agenda. We defined clear criteria for potential acquisitions within the scope of our strategic review. This will allow us to act swiftly whenever necessary,” according to Reithofer.
>As always, the BMW Group will focus on its inherent strengths and thus on the market for premium vehicles and services, a segment that will continue to grow much faster than the mass market. The company expects the premium segment to increase by about 40 percent between 2005 and 2019, compared to an increase just under 20 percent for the mass segment.
>The BMW Group will continue to invest heavily in future technologies with a view to developing entirely new individual mobility solutions, thus guaranteeing the company’s innovation leadership for the next decade as well. With its EfficientDynamics development strategy, the BMW Group has gained a significant edge over competitors, for example in reducing carbon emissions.
>”I am firmly convinced that this strategy will lead us to continued business success,” Reithofer stated.
So while BMW isn’t ruling out acquisitions, it looks like everything out there currently doesn’t meet the financial requirements BMW is looking for.
I didn’t know BMW took over Husqvarna. I wonder if BMW makes chainsaws now =)
“Husqvarna. The ultimate cutting machine.”
Not that Husqvarna – this <a href="http://www.husqvarna.it/" rel="nofollow"> Husqvarna</a> (or at least that division of it).
I’m a lumberjack, and I’m OK. Husky Beemers – who’da thunk it?
The BMW Motorcycle division is going to make a “dirt bike” version smaller than the F650 version so it makes sense to add the Husqi to the fold.
Thank goodness BMW is not going to buy any other motor company again. The last fiasco (Rover/LandRover) nearly bakrupted it. The only positive out of that marriage was MINI. Volvo is platforming Ford models.
I don’t know why people seem to keep coming back to this obsession about BMW acquiring Volvo. The Volvo brand does NOT bring anything new or advantageous to the BMW group (well, other than buying out one of its competition). The Volvo brand competes basically in the exact same market as BMW’s 3, 5, 7 and X series (now also somewhat in the Mini market with the C30).
People may like the idea of BMW acquiring Volvo, purely based on similarity of the model lineup and perhaps a fantasy of the marriage of the interior design of Volvo and handling characteristics of BMW. However, businesswise, it makes no sense to buy another brand based on “styling.”