BMW 2001 Annual Report Download - page 159

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37
Entering new terrain  going our own way. The BMW Groups product offensive is
reinforced by the expansion of our worldwide sales and distribution network. The
target of the BMW Group is to be represented through its own sales subsidiaries
in all of the worlds major markets and in addition, to ensure an optimal customer
service, with branches in metropolitan centres, which also means in the fast-grow-
ing markets of Asia, a significant growth region for the BMW Group. The Company
has been directly represented here for years, pursuing a long-term strategy in the
process ever since 1981, when the BMW Group became the first European car
maker to establish its own subsidiary in Japan. Further sales subsidiaries followed
in South Korea and Thailand in the late 90s. The next step was taken in 2001,
with the establishment of sales subsidiaries in Indonesia and the Philippines. The
BMW Group supports this expansion of the sales and marketing network with CKD
(completely knocked down) assembly plants in Malaysia, Vietnam, Indonesia, the
Philippines and in Thailand.
Today the BMW Group sells more than 61,000 cars a year in Asia, with the
trend pointing upwards. In South Korea every second car in the premium segment
is now a BMW. In Japan we delivered more than 35,000 cars to customers in the
year 2001  clear proof of the stable growth of the premium segment both here
and in other Asian markets despite the crisis in Asia. In Japan, the BMW Group has
particularly positive expectations for the MINI, the first premium brand in the small
car segment already arousing a large response.
These examples clearly confirm the strategy of the BMW Group in Asia. The
Company will step up its activities in this region in the years to come, since Asia will
be the number one growth area for the automotive industry in the next 10 years,
particularly after the planned establishment in 2003 of the AFTA (Asean Free Trade
Area) generating additional growth and momentum. Precisely this is why the
BMW Group is consistently supporting its product and market offensive through
the further expansion of its sales and distribution network in the region.
China plays a special role in this context, after taking an important step in
opening up its domestic market by joining the WTO in December 2001. The BMW
Group has had a Representative Office in Beijing, China, since 1994 and currently
sells BMWs through five self-importing dealers. Penetration of the Chinese market
from within, combined with local production, nevertheless offers a far greater po-
tential. This is why the BMW Group has been establishing contacts with possible
partners for several years and has maintained a close relationship with the Chinese
company Brilliance Automotive Holdings Limited since autumn 2000. The com-
mon objective in this process is to establish a joint venture. The licensing procedure
required for this purpose is already under way, with the full support of both partners.
The BMW Groups involvement in Asia is based on our trust and confidence in
the local markets. The consequence of this commitment is a long-term strategy.
The result is success in business. The BMW Group will continue its commitment
to the Asian market.