BMW 2012 Annual Report Download - page 73

73 COMBINED GROUP AND COMPANY MANAGEMENT REPORT
have an adverse impact on the Group’s reputation. Such
proceedings are typical for the sector or arise as a
con-
sequence of realigning our product or purchasing strategy
to suit changed market conditions. Particularly in the
US market, class action lawsuits and product liability
risks can give rise to substantial financial consequences
and cause reputational damage. The BMW Group recog-
nises
appropriate levels of provision for lawsuits. A part
of these risks, especially where the American market is
concerned, is insured where this makes business sense.
Some risks, however, cannot be assessed in full or can-
not be assessed at all. It cannot be ruled out that losses
from damages could arise which are not, or which are
not fully, covered by insurance policies or provisions.
The high quality of our products, which is ensured by
regular quality audits and ongoing improvement meas-
ures, helps to reduce this risk. In comparison with com-
petitors, this can give rise to benefits and opportunities
for the BMW Group.
The BMW Group is not currently involved in any court
or arbitration proceedings which could have a signifi-
cant impact on its financial condition.
Changes in the regulatory environment may impair our
sales volume, revenues and earnings performance in
specific markets or economic regions. Further details are
provided in the section “Strategic and sector-specific
risks”.