BMW 2008 Annual Report Download - page 70

71 Group Management Report
If the situation on used car markets does not stabilise in
, further losses on the sale of vehicles coming out of
leases cannot be ruled out. Given the current economic
situation, it seems unlikely that the bad debts risk for the
retail customer and dealer financing lines of business will
diminish in the short term.
As part of the strategy Number ONE, the further develop-
ment of the various lines of business will be reviewed in the
light of changed external parameters. As well as focusing
on service quality and process efficiency, greater
impor-
tance will be attached to achieving a well-balanced earnings
and risk profile for the segment’s various lines of business.
Profitability targets for  remain in place
Against the background of the business conditions de-
scribed above, it is not possible to provide any further quan-
titative earnings forecasts over and beyond those that are
necessarily made in conjunction with the preparation of
the Group Financial Statements and that are described in
the notes to the Group Financial Statements and in the
Group Management Report.
Since economic recovery will lag behind, the original fore-
cast for the financial year  and the target for  are
not attainable. The profitability targets for  set in con-
junction with the strategy Number ONE nevertheless
remain in place. The BMW Group will continue to steer
its new strategic course by stepping up cost-cutting and
efficiency improvement measures and still intends to
achieve a return on capital employed (ROCE) in the Auto-
mobiles segment in excess of   and a return on sales
of between   and  .
With its strategy Number ONE and the rigorous value-
added approach adopted, the BMW Group is laying the
foundation for achieving its ambitious targets in the
future.