BMW 2013 Annual Report Download - page 18

18
18 COMBINED MANAGEMENT REPORT
18 General Information on the BMW Group
18 Business Model
20 Management System
23 Research and Development
24 Report on Economic Position
24 Overall Assessment by Management
24 General and Sector-specific
Environment
27
Financial and Non-financial
Performance Indicators
29 Review of Operations
47 Results of Operations, Financial
Position and Net Assets
62 Events after the End of the
Reporting Period
63 Report on Outlook, Risks and
Opportunities
63 Outlook
68 Risks Report
77 Report on Opportunities
81 Internal Control System and Risk
Management System Relevant for the
Consolidated Financial Reporting Process
82 Disclosures Relevant for Takeovers
and Explanatory Comments
85
BMW Stock and Capital Markets
General information on the BMW Group is provided be-
low. There have been no significant changes compared
to the previous year.
Business model
Bayerische Motoren Werke Aktiengesellschaft (BMW AG),
which is based in Munich, Germany, is the parent
company of the BMW Group. The primary business
object of the BMW Group is the development, manufac-
ture and sale of engines as well as all vehicles equipped
with engines. The BMW Group is subdivided into
the Automotive, Motorcycles, Financial Services and
Other Entities segments (the latter primarily c om-
prising holding companies and Group financing com-
panies).
Bayerische Motoren Werke G. m. b. H. came into
being in 1917. Having been originally founded in
1916
as Bayerische Flugzeugwerke AG (BFW), it be-
came Bayerische Motoren Werke Aktiengesellschaft
(BMW AG) in 1918. The BMW Group comprises
BMW AG and all subsidiaries, which BMW AG – either
directly or indirectly – has the power to control.
BMW AG is also responsible for managing the BMW
Group. General conditions on the world’s automobile
and motorcycle markets (such as the competitive situa-
tion,
government policies, statutory regulations),
under lying trends within society as well as changes
in raw materials prices, exchange rates and interest
rates are some of the major external factors that exert
an influence
over our business.
The BMW Group is one of the most successful makers
of cars and motorcycles worldwide and among the
largest
industrial companies in Germany. With BMW,
MINI and Rolls-Royce, the BMW Group owns three of
the strongest premium brands in the automotive in-
dustry.
The vehicles it manufactures set the highest
standards in terms of aesthetics, dynamics, technology
and quality, a fact borne out by the BMW Group’s
leading position in engineering and innovation. In addi-
tion to its strong position in the motorcycles market,
the BMW Group also offers its customers a successful
range of financial services. In recent years, the Group
has also established itself as a leading provider of pre-
mium services for individual mobility. At the end of the
reporting period, the BMW Group had a worldwide
workforce of 110,351 employees.
Long-term thinking and responsible action have long
been the cornerstones of our success. Striving for eco-
logical and social sustainability along the entire value-
added chain, taking full responsibility for our products
and giving an unequivocal commitment to preserving
resources are prime objectives firmly embedded in our
corporate strategy. Thanks to these endeavours, we
have been among the most sustainable companies in
the automobile industry for many years.
The BMW Group operates on a global scale and is
represented in more than 140 countries. Our research
and innovation network is spread over twelve loca-
tions in five countries. At 31 December 2013 the pro-
duction network comprised a total of 28 locations in
13 countries.
BMW 3 Series and 4 Series models as well as petrol and
diesel engines are manufactured at the BMW plant in
Munich, next to the BMW Group’s headquarters. Models
of the BMW 1 Series, 3 Series and 4 Series as well
as the Z4 Roadster roll off the production lines at the
Regensburg plant. The largest BMW plant is located
in Dingolfing, where we build the BMW 3 Series Gran
Turismo, models of the BMW 5, 6 and 7 Series and
hybrid BMW 5 and
7 Series vehicles. Chassis and drive
components are also manufactured at this plant. The
BMW Leipzig plant’s production range covers models of
the BMW 1 and 2 Series, the BMW X1 and the electri-
cally powered BMW i3 as well as the hybrid sportscar
BMW i8 (from 2014). The BMW 3 Series Sedan is
manu-
factured at the plant in Rosslyn (South Africa).
The
BMW plant in Spartanburg (USA) is responsible for pro-
ducing the BMW X3, X4 (from 2014), X5 and X6 models.
BMW X1 and models of the BMW 3 and 5 Series are
built exclusively for the Chinese market at the two
plants operated by the joint venture BMW Brilliance in
Shenyang (China).
Components for the worldwide production network
are manufactured at the BMW plants in Landshut and
Wackersdorf. The Eisenach plant is responsible for
toolmaking. The two production sites in Moses Lake
(USA) and Wackersdorf are operated by the joint venture
SGL Automotive Carbon Fibers (ACF) and supply carbon
fibre and carbon fibre cores for the production of
BMW i models. The BMW Group’s largest engine manu-
facturing plant in Steyr (Austria) manufactures petrol
and diesel engines for the various BMW plants and die-
sel engines for the MINI production. In 2012 the joint
venture BMW Brilliance Auto motive opened an engine
plant in Shenyang (China), which supplies petrol en-
gines to the neighbouring BMW plants.
The primary function of the BMW Group’s assembly
plants is to serve nearby regional markets with
BMW cars currently being assembled in Chennai
(India), Jakarta (Indonesia), Cairo (Egypt), Kaliningrad
(Russia), Kulim (Malaysia) and Rayong (Thailand).
COMBINED MANAGEMENT REPORT
General Information on the BMW Group
Business Model