BMW 2003 Annual Report Download - page 29

001 BMW Group in figures
004 Report of the Supervisory Board
008 Supervisory Board
011 Board of Management
012 Group Management Report
12 A Review of the Financial Year
29 Outlook
30 Financial Analysis
44 Risk Management
047 BMW Stock
050 Corporate Governance
054 Group Financial Statements
118 BMW AG Principal Subsidiaries
120 BMW Group10-year Comparison
122 BMW Group Locations
124 Glossary, Index
28
BMW Group is represented in 32 countries via its
own sales companies. This function is performed in
a further 120 countries by importers.
The link to the customer is provided by the
dealer network for the BMW, MINI and Rolls-Royce
brands. More than 90% of cars are sold via inde-
pendent enterprises working together with the
BMW Group as partners in the market. The BMW
Group is also represented in a number of the world’s
major cities through 36 of its own branches. The
dealer network is currently going through a phase of
exceptionally high capital expenditure, a prerequisite
for achieving the planned growth.
At present, the dealer network for the BMW
brand comprises 3,100 locations around the world.
In the meantime, the MINI brand is served by 1,392
locations in more than 70 countries.
Contracts are currently in place with 57 dealers
for the sale of Rolls-Royce vehicles. This sales net-
work will be expanded during the course of 2004 as
new contracts are signed.
The new Block Exemption Regulation (BER)
for car sales, passed by the EU Commission in July
2002, is being implemented with a view to the fu-
ture by the BMW Group. In so doing, the aspiration
for premium quality service, both before and after
a sale, remains at the forefront. An external quality-
auditing firm carries out checks at each location to
ensure that sales and service standards prescribed
by the BMW Group have been systematically imple-
mented in the interests of customers and dealers.
Brand leadership strengthened
Over the past years, the BMW Group has success-
fully added the MINI and Rolls-Royce to its portfolio
of brands. The Group is thus the only automobile
manufacturer with three non-overlapping premium
brands. The leading position of these brands will
be strengthened still further with effect from 1 Janu-
ary 2004. Brand responsibility has been placed in
the hands of semi-autonomous executives, under
whose management all brand-related functions will
be brought together. Appropriate organisational struc-
tures are therefore now in place to take account
of the fact that brands play an important role in the
customer’s purchase decision.