BMW 2014 Annual Report Download - page 18

18
18 COMBINED MANAGEMENT REPORT
18 General Information on the BMW Group
18 Business Model
20 Management System
23 Report on Economic Position
23 General and Sector-specific
Environment
26 Overall Assessment by Management
26
Financial and Non-financial
Performance Indicators
29 Review of Operations
49 Results of Operations, Financial
Position and Net Assets
61 Comments on Financial Statements
of BMW AG
64 Events after the End of the
Reporting Period
65 Report on Outlook, Risks and
Opportunities
65 Outlook
70 Report on Risks and Opportunities
82 Internal Control System and Risk
Management System Relevant for the
Consolidated Financial Reporting Process
83 Disclosures Relevant for Takeovers
and Explanatory Comments
87
BMW Stock and Capital Markets
This Combined Management Report combines the
management reports of BMW AG and the BMW Group.
General information on the BMW Group
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 com-
pany of the BMW Group. The primary business objective
of the BMW Group is the development, manufacture and
sale of engines as well as of all vehicles equipped with
those engines. The BMW Group is subdivided into the
Automotive, Motorcycles, Financial Services and Other
Entities segments (the latter primarily comprising hold-
ing companies and Group financing companies).
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),
underlying 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 workforce of
116,324 employees worldwide.
Long-term thinking and responsible action have always
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. As a result of these endeavours, we
have ranked among the most sustainable companies in
the automobile industry for many years.
The BMW Group operates on a global scale and is repre-
sented in more than 140 countries worldwide.
Its re-
search and innovation network is spread over twelve
locations in five countries. At 31 December 2014 the
Group’s production network comprised a total of 30 lo-
cations in 14 countries.
BMW 3 Series and 4 Series models as well as petrol and
diesel engines are manufactured at the BMW Group
plant in Munich, next to the BMW Group’s headquarters.
Models
of the BMW 1, 3 and 4 Series as well as the Z4
Roadster roll off the production lines at the Regensburg
plant. The currently largest BMW Group plant is located
in Dingolfing, where we build the BMW 3 Series Gran
Turismo, the BMW 4 Series Gran Coupé, models of
the BMW 5, 6 and 7 Series as well as hybrid BMW 5 and
7 Series vehicles. Chassis and drive components are also
manufactured at this plant. The BMW Group Leipzig
plant’s production range covers models of the BMW 1
and 2 Series, the BMW X1 and the electrically powered
BMW i3 as well as the BMW i8 hybrid sports car. The
BMW 3 Series Sedan is assembled at the plant in
Rosslyn (South Africa). The BMW Group plant in
Spartanburg (USA) is responsible for producing the
BMW X3, X4, 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 BMW Brilliance Automotive Ltd. joint venture in
Shenyang (China).
Components for the worldwide production network are
manufactured at the BMW Group 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 SGL Auto-
motive Carbon Fibers (ACF) joint venture and supply
carbon fibre and carbon fibre fabrics for the production
of BMW i models. The BMW Group’s largest engine
manufacturing plant in Steyr (Austria) makes petrol and
diesel engines for the various BMW plants and diesel
engines for the MINI. In 2012 the BMW Brilliance Auto-
COMBINED MANAGEMENT REPORT
General Information on the BMW Group
Business Model