BMW 2004 Annual Report Download - page 6

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the MINI Convertible, the Group has succeeded in
gaining access to new customer groups, thus laying
the foundation for continued sales volume growth.
The Supervisory Board also devoted time to the
Group’s third premium brand, the Rolls-Royce, which
recorded a sharp rise in sales volume in its first full
year of production. The Supervisory Board fully
supports the Board of Management in its strategy
of focusing on premium segments, thus setting the
scene for further growth.
The Supervisory Board also kept itself fully
informed on the progress of the Group’s activities
in China.The opening of a joint venture plant in
Shenyang in conjunction with the Chinese partner,
Brilliance China Automotive Holdings Ltd., is another
major step for the BMW Group’s strategy in Asia.
The expansion of the European Union has also
created new perspectives for the BMW Group in
Eastern Europe.
The Supervisory Board also discussed the
development of the euro against the US dollar and
other major currencies. It also obtained detailed
information about the situation on international com-
modity markets and discussed, together with the
Board of Management, the potential effect on the
business of the BMW Group and its suppliers.
The Board of Management regularly informed
the Supervisory Board about the performance,
financial position, personnel situation and corporate
strategy of the BMW Group. The Supervisory Board
also discussed the pleasing performance of the
Financial Services segment.
It also reviewed the performance of the Motor-
cycles segment, whose business continues to
be affected by difficult economic conditions and a
continuing reluctance on the part of customers to
spend.
The Board of Management also reported regu-
larly to the Supervisory Board on how construction
of the new BMW plant in Leipzig, and preparations
for the start of production there, are progressing.
The Supervisory Board also discussed with the
Board of Management the issue of the increasing
trend towards tougher specifications for emissions
and vehicle safety and the effect that this trend has
on the BMW Group’s business.The Supervisory
Board looked particularly closely at the potential
offered by alternative engine concepts. The effect
of divergent national standards in the area of emis-
sions and vehicle safety on operations and current
development projects was also a topic of discussion.
The Group’s long-term corporate strategy was
discussed at length with the Board of Management
and approved at the Supervisory Board’s meeting
held in December. The budget for the financial year
2005 was also approved at that meeting.
At the meeting held on 7 December 2004,
the Supervisory Board and the Board of Manage-
ment dealt with Corporate Governance issues,
culminating in the two boards issuing a Declaration