BMW 2005 Annual Report Download - page 24

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the previous year. In total, 92,012 BMW motorcycles
were manufactured in Berlin, 1.9% fewer than in
2004.
The Berlin plant uses various flexible and de-
mand-orientated working time models which were
extended at the beginning of 2005 in order to achieve
even more efficient utilisation of production capaci-
ties. The new 21-shift model for mechanical pro-
cessing of engine and bodywork components
makes it possible to have operating times of up to
168 hours a week, thus increasing the competitive-
ness of the Berlin plant.
Financial Services segment remains on
growth course
The Financial Services segment continued to grow
in 2005, contributing to the success of the BMW
Group with a strong customer-friendly approach and
with innovative products. The total business volume
of the Financial Services segment as disclosed in
the balance sheet at 31 December 2005 increased
by 24.2% to euro 40,428 million. For the first time,
the total number of lease and financing contracts
in place with dealers and retail customers surpassed
the two million mark in 2005 and, with 2,087,368
contracts in place, was 13.2% above the total num-
ber one year earlier.
At 41.1%, the proportion of new cars of the BMW
Group leased or financed by the Financial Services
segment was slightly (0.9 percentage points) below
the proportion of 42.0% recorded in 2004.
Geographical expansion continued
The business activities of the Financial Services
segment were further expanded in the course of
2005 with four new ventures based on cooperation
agreements. As a result, the Financial Services
segment now looks after customers in more than
50 markets, either with its own companies or in the
form of ventures based on cooperation agreements.
As well as expanding geographical coverage,
the segment also expanded its range of products in
2005. New customer groups were attracted especial-
ly by integrating insurance components into credit
and lease contracts. By bundling components in this
way, the Financial Services segment is able to satis-
fy the customer’s desire to obtain car-related finan-
cial services on a one-stop basis.
Strong growth in retail customer business
Finance and lease business with retail customers,
the segment’s largest line of business, continued to
grow strongly in 2005. In total, new contracts were
signed with retail customers with a value of euro
23,507 million, a 13.2% increase over 2004.This
corresponds to 866,879 new contracts, 6.0% more
than in the previous year. Approximately 62% of
these contracts related to new vehicles manufactured
by the BMW Group.
With a growth rate of 15.0%, lease business
contributed especially to the positive development
in the number of new contracts, whereas the num-
ber of new credit financing contracts increased only
by 1.1%. Overall, 38.4% of all new contracts related
to leases, compared to 35.4% in the previous year.
The growing trend for private customers away from
credit financing towards leasing is most pronounced
on the German and American markets.
Contract portfolio of BMW Financial Services
in 1,000 units
2,600
2,400
2,200
2,000
1,800
1,600
1,400
1,200
1,000
800
600
01
1,298
02
1,443
03
1,623
04
1,843
05
2,087