BMW 2014 Annual Report Download - page 67

67 COMBINED MANAGEMENT REPORT
Stable conditions are also predicted for used car mar-
kets in Asia and Europe in 2015, while price levels in
North America are, at the most, only likely to fall
slightly.
Expected impact on the BMW Group in 2015
Future developments on international automobile mar-
kets also have a direct impact on the BMW Group.
While competition is likely to intensify in contracting
markets, new opportunities are opening in growth
regions. In some countries, sales volumes will be influ-
enced to a great extent by the way we tackle new com-
petitive challenges. After the uncertainties that have
dominated recent years, we expect Europe to generate
some positive momentum again, albeit on a slight scale.
North America and China are likely to see a continua-
tion of the positive trend in 2015. In contrast, the situa-
tion on the Russian car market can be expected to re-
main tense over the forecast period.
As an enterprise with global operations, the BMW
Group is ideally placed to exploit opportunities that
arise and thus compensate for unfavourable develop-
ments in other regions. Thanks to its strong brands, we
forecast continued profitable growth for the BMW
Group in the current year. We will push ahead with in-
vestments in innovation, future technologies and the
further internationalisation of our production network
in 2015. As a manufacturer of premium vehicles, we will
continue to profit from strong worldwide demand in
this segment. Given all these factors, we forecast that
the BMW Group will remain the world’s leading pre-
mium manufacturer in 2015.
Our highly flexible
international production network
enables us to compensate for even substantial fluctua-
tions
in demand. Investing in major growth markets
provides the basis for the continued success of the BMW
Group. We attach great importance to ensuring that
the global distribution of our sales remains balanced,
while simultaneously expanding the global presence of
the BMW Group.
Outlook for the BMW Group in 2015
The BMW Group in 2015
Profit before tax: solid increase expected
The BMW Group will remain on course in 2015 and
forecasts a solid increase in Group profit before tax
compared to the preceding year (2014: € 8,707 million).
However, the scale of the increase during the forecast
period is likely to be held down by intense competition
on car markets, rising personnel costs, continued high
levels of upfront expenditure to safeguard business
viability going forward and future challenges arising in
the wake of the normalisation of the Chinese market.
A number of risks will also have to be faced, including
the precarious state of the Russian market and macro-
economic uncertainties in Europe (see the section “Po-
litical and global economic risks” in the risk report).
We
expect our attractive model range to generate positive
momentum, which will help us achieve our target of
balanced growth on all major markets.
Workforce at year-end: solid increase expected
The BMW Group will continue to recruit staff in 2015
and, based on our latest forecasts, we expect a solid in-
crease in the size of the workforce (2014: 116,324 em-
ployees), driven by car and motorcycle sales growth and
the rapid pace of innovation.
Automotive segment in 2015
Deliveries to customers: solid increase expected
We expect the pace of growth in the Automotive seg-
ment
to remain high in 2015. Assuming economic
conditions continue to be stable, we predict a solid rise
in deliveries to customers (2014: 2,117,965 units) to
achieve a new high level, which will, in all probability,
enable the BMW Group to maintain its position as the
world’s foremost premium car manufacturer in 2015.
Attractive new models and dynamic market conditions,
particularly in North America, should have a positive
impact on car sales. After some negative
developments
in recent years, the European car markets
are expected
to recover slightly overall. Nevertheless, the market en-
vironment is likely to remain challenging.
The new 2 Series Convertible was added to the BMW 2 Se-
ries with effect from the end of February. Its predeces-
sor, the 1 Series Convertible, achieved worldwide sales
of more than 130,000 units and was therefore the un-
disputed leader in its class.
In April, the four-wheel drive BMW X5 M and X6 M will
come onto the market. These high-performance models
combine the characteristic features of the successful
BMW X family – exclusivity, robustness, agility and every
day usability – with the commitment to high perfor-
mance that defines an M car.
The new facelift of the BMW 1 Series, unveiled at the
Geneva Motor Show, will provide additional sales
momentum. With a fully revamped engine range and
additional features that reduce fuel consumption and