BMW 2013 Annual Report Download - page 7

7 REPORT OF THE SUPERVISORY BOARD
Dear Shareholders and Shareholder Representatives,
The BMW Group has again fared extremely well over the past financial year. Throughout the twelve-
month period, we diligently supervised the Board of Management’s running of the business and, in joint
consultations, supported it in an advisory capacity. Our work within the Supervisory Board and in con-
junction with the Board of Management was conducted openly, constructively and in a spirit of trust.
Main emphases of the Supervisory Board’s monitoring and advisory activities In a total of five meet-
ings, we deliberated on the BMW Group’s current situation. Other matters at the forefront of our
consulta-
tions were corporate strategy and planning for the BMW Group as a whole, the strategy being pursued for the
Financial Services segment in particular, risk management and levels of risk provision. Decisions were also
taken with respect to the composition and compensation of the Board of Management and an examination
of corporate governance within the enterprise was carried out. In 2013 we paid particular attention to the
progress being made in the field of electromobility and to the efforts expended and the challenges arising for
the BMW Group regarding the necessity to continue to reduce emissions.
We carefully monitored the performance of the BMW Group and were regularly kept informed of sales
performance, workforce developments and other significant matters, both at scheduled meetings and at
other times as the need arose. Moreover, the Chairman of the Board of Management, Dr Reithofer, informed
me directly about major business transactions and projects. In addition to scheduled meetings, Dr Kley, the
Chairman of the Supervisory Board’s Audit Committee, and Dr Eichiner, the Board of Management member
responsible for Finance and Financial Reporting, remained in direct contact at other times.
In its regular reports on the financial condition of the Group, the Board of Management presented its
assessment of economic developments in important regions of the world, commented on sales volume and
competitive issues within the Automotive and Motorcycles segments and highlighted fluctuations in the
size of the workforce. We were also kept informed of the performance of the Financial Services segment,
including new retail business volumes, the size of the contract portfolio with dealers and retail customers,
total business volume and the development of vehicle residual values on major markets.
The business status reports provided by the Board of Management also dealt with important ongoing
activities and projects, such as the current status of the realigned strategy adopted for BMW Motorrad as well
as the progress of cooperation discussions and projects with Toyota. The Supervisory Board was also informed
of any temporary delays affecting spare parts supplies during the summer and deliberated on causes and
countermeasures required.
One of the Supervisory Board meetings was held at the BMW site in Berlin, where we visited BMW Motorrad’s
production facilities. The Board of Management and local management representatives took this opportunity
to present their vision of the new strategic direction of the motorcycle line of business, with its focus on the
premium segment. As well as receiving an insight into new product concepts, we were also informed of the
range of measures currently being implemented in the fields of production, sales and marketing, aimed
at
attracting new motorcycle customer groups and making inroads on emerging markets with appropriate
products.
We looked at the regulatory situation on the world’s major markets, particularly in the EU, China, USA and
Japan, both for vehicles powered by combustion engines and those with alternative drive systems. The Board
of Management elucidated numerous options for achieving further reductions in carbon emission levels for
conventional vehicles and the genuine benefits that can be generated by expanding electromobility products