BMW 2005 Annual Report Download - page 36

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approximately 1,600 internal and 2,000 external
people use a basic toolset for non-centralised project
management purposes.
Focus on efficiency and reach of the sales
organisation
Sales and marketing activities in 2005 focused on
implementing the product and market initiative in
the various markets around the world in which the
BMW Group operates. The reinforcement of the
position of the new model series (BMW 1, BMW 6
and BMW X3 Series) on the markets and BMW 3
Series model change were at the centre of these
activities. In addition, in response to the sharp sales
volume increase and the larger product range brought
about by the new model series, extensive measures
were initiated to increase the efficiency of the sales
organisation and to improve the way that this is put
across to customers.
Continued expansion of sales network
The BMW Group continued in 2005 to expand its
sales network and increase its commitment to exist-
ing markets. It is now represented via its own sales
companies in 35 countries. Approximately 100 more
countries are handled by local importers.
Following the opening of the new sales company
in Portugal on 1 January 2005, the BMW Group is
now present with its own sales companies in all
Western European EU countries. On a year-on-year
basis, BMW Group car sales in Portugal have in-
creased by more than 50% since the new company
started operations.
With the foundation of a newly incorporated
sales company (BMW China Automotive Trading
Ltd.), the BMW Group assumed direct responsibility
for imports to China with effect from 1 October
2005; this supplements the existing joint venture
with Brilliance China Automotive Holdings Ltd.,
which continues to be responsible for local produc-
tion of BMW 3 and 5 Series cars and for the sale of
those cars on the Chinese market. The sales net-
work in China was significantly expanded during
the year under report. With a total of about 60 dealer-
ships, the BMW Group is now present in almost
every province in China.
Worldwide dealer organisation
At the end of 2005, the dealer organisation for the
BMW brand comprised some 3,000 independent
dealerships. The international presence of the MINI
brand was also further expanded in 2005. More
than 1,400 dealerships operate now in 80 countries.
As in the previous year, Rolls-Royce motorcars are
sold worldwide by approximately 70 dealers in 23
countries. Another 13 markets are serviced directly
by Rolls-Royce Motor Cars.
With worldwide capital expenditure in excess
of euro 1 billion, the independent dealerships con-
tinued to support the activities of the BMW Group
in 2005, helping to ensure that customers and other
interested parties can positively enjoy the wider
range of models and the BMW Group’s growth in
general.
The BMW Group also runs its own sales retail
operations in branches in 36 major cities around
the world.
Preparations for market engagement
in India
Besides expanding activities in existing markets,
the BMW Group made extensive preparations in
2005 to enter the Indian market. This represents
an important step in the group’s Asian strategy.The
approval process to set up a group sales company
in the Delhi region and for an assembly plant in
Chennai for BMW 3 and 5 Series vehicles was
suc-
cessfully completed in autumn 2005. The new sales
company will commence operations at the begin-
ning of 2007.