The BMW Group has set course for a successful future with its strategic realignment. “We will consistently align the BMW Group to achieve profitability and increase value over the long term,” said Norbert Reithofer, Chairman of the Board of Management of BMW. This company is focused on its production, and the desire to offer an "ultimate driving experience" to drivers.
The new strategy focuses on increasing value. Also, it focuses on ensuring the company's long-term success and safeguarding its independence. How? Its return on sales is projected to target 8% to 10% in the automobile segment. To be more specific, the BMW Group has set ambitious interim targets for the next fives years: Automobile retail is supposed to rise to more than 1.8 million vehicles by 2012. During this time the company plans to increase in the motorcycle business by 50 % to 150,000 units per annum. The BMW Group's strategic targets for 2020 are equally ambitious: the company intends to increase retail in the automobile business to clearly more than two million vehicles.
The BMW Group will launch a comprehensive efficiency program that will encompass all of the company's divisions and will apply to both performance and costs. The new program is based on principle of EfficientDynamics, a strategy that is successfully applied to the company's automobiles as well: More output for less input.
In addition, the BMW Group has adopted a range of measures that will help achieve significant progress in terms of costs. Besides putting all costs to the test, the company will continue to standardized processes. Further targets include a reduction in cost, capital expenditure and capital employed by vehicle in development, production, sales, and administration. As result, the company aims for a rise in productivity of at least 5 % a year.
The BMW Group expects to be able to achieve the growth planned for the period until 2012 with roughly the same level of personnel as today. The BMW Group will continue its product initiative, making use of modulars systems for all new models in order to increase synergy effects: X1, Grand Turismo, MINI SAV, Rolls- Royce Coupe will be launch by 2012. 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 the EfficientDynamics development strategy, the BMW Group has gained a significant edge over competitors, for example reducing carbon emissions." I am firmly convinced that this strategy will lead us to continued business success." Reithofer stated.
Source: Norbert Reithofer annual strategic speech for 2009
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