BMW 2013 Annual Report Download - page 40

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40
18 COMBINED MANAGEMENT REPORT
18
General Information on the
BMW
Group
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
29 Automotive Segment
35 Motorcycles Segment
36 Financial Services Segment
38 Research and Development
40 Purchasing
41 Sales and Marketing
42 Workforce
44 Sustainability
47 Results of Operations, Financial
Position and Net Assets
56 Events after the End of the
Reporting Period
63 Report on Outlook, Risks and
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
As the leading provider of premium vehicles, the BMW
Group operates the supply chain together with its part-
ners. The focus here is on achieving the right balance
between quality, innovation, flexible supply structures
and competitive costs. This enables us, even in a volatile
environment, to react swiftly and flexibly to
fluctua-
tions in demand and to continue improving the quality
of our products and services.
Numerous model start-ups
The year under report saw the launch of ten models in
total for the BMW, MINI and Rolls-Royce brands, for
which much of the groundwork was performed by the
purchasing team. The BMW i3 incorporates a large
number of innovations, implemented thanks to the co-
ordinated efforts of our suppliers and our own in-house
component manufacturing resources. Furthermore,
the
new generation of the MINI marks the start of front-
wheel drive architecture for the BMW Group.
Internationalisation of procurement markets
In accordance with the basic principle applied that pro-
duction follows the market, the BMW Group is
increas-
ingly shifting value-added processes into its respective
sales markets, thus providing a further defence against
currency exposures.
High level of investment safeguards productivity and
technology lead
The BMW Group’s Purchasing and Supplier team is also
responsible for component production sites and carries
out regular comparative analyses to ensure the efficiency
PURCHASING AND SUPPLIER NETWORK
of our in-house component production facilities. The
expansion of the Landshut production plant for carbon
fibre parts emphasises the importance that the BMW
Group attaches to it as a competence centre for light-
weight construction and electromobility. This invest-
ment in CFRP technology provides the basis for the
large-
scale automated series production of carbon fibre parts
in the BMW Group.
Regional mix of BMW Group purchase volumes 2013
in %, basis: production material
Germany 47.2 NAFTA 12.1
Rest of Western Europe 18.9 Asia / Australia 1.9
Central and Eastern Europe
17.0 Africa 1.9
Germany
Rest of Western Europe
Central and
Eastern Europe
NAFTA
Asia / Australia
Africa