BMW 2006 Annual Report Download - page 6

Download and view the complete annual report

Please find page 6 of the 2006 BMW annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 197

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192
  • 193
  • 194
  • 195
  • 196
  • 197

05
Dr. Klaus Draeger was appointed to succeed Prof. Dr. Göschel as member of
the Board of Management with effect from 1 November 2006. Dr. Draeger had
previously occupied the post of Head of Department with responsibility for the
Group’s large-size model series (the BMW 7, 6 and 5 Series).
Deliberations on the future strategic orientation of the BMW Group constituted
another key area of activity for the Supervisory Board during 2006. Based on writ-
ten and oral reports received from the Board of Management, the Supervisory
Board intensively considered the premium strategy, currently being followed by
the Board of Management, aimed at sustainable growth and long-term corpo-
rate appreciation in value. This strategic orientation is also the subject of a con-
tinuing exchange of views between the Chairman of the Supervisory Board on
the one side and the Chairman of the Board of Management on the other. The
Supervisory Board supports the strategy pursued by the Board of Management,
namely continuing the new model product initiative implemented over recent
years, remaining committed to the premium car and motorcycle markets and ex-
panding the BMW Group’s financial service activities.
The two boards also discussed the market opportunities available to the group,
especially in Asia,as well as othermeasures aimed at expanding the BMW Group’s
market presence. In this context, the members of the Supervisory Board were
shown the extended version of the BMW 5 Series Sedan, a vehicle specifically
designed for the Chinese market and on sale there since December 2006.
The Supervisory Board was also kept informed about the construction of a new
plant in India and the current progress of a new production and sales company
which is being set up for that market.
The Supervisory Board also followed with great interest the Board of Manage-
ment’s activities regarding the continuing expansion of the BMW Group’s pro-
duction network. The Supervisory Board obtained information about significant
areas of capital expenditure in 2006 which are aimed at reinforcing the under-
lying strength of the production network and, at the same time, creating the ba-
sis for further sales volume growth. Particularly noteworthy developments in
this respect have been the expansion of production capacities for the MINI in the
United Kingdom and modifications at the BMW Spartanburg plant in the USA for
the manufacture of the new BMW X5.
In the view of the Supervisory Board, the on-going efficiency improvement
measures implemented in all lines of business have further strengthened the
competitiveness of the BMW Group. The Supervisory Board was kept informed
by the Board of Management of the nature and the progress of measures taken
and their successful implementation.