BMW 2015 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
27 Overall Assessment by Management
27
Financial and Non-financial
Performance Indicators
29 Review of Operations
49 Results of Operations, Financial
Position and Net Assets
59 Comments on Financial Statements
of BMW AG
62 Events after the End of the
Reporting Period
63 Report on Outlook, Risks and
Opportunities
63 Outlook
68 Report on Risks and Opportunities
81 Internal Control System and Risk
Management System Relevant for the
Financial Reporting Process
83 Disclosures Relevant for Takeovers
and Explanatory Comments
87
BMW Stock and Capital Markets
This Combined Management Report incorporates the
management reports of Bayerische Motoren Werke
Aktiengesellschaft (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),
based in Munich, Germany, is the parent company of
the BMW Group. The primary business objective of the
BMW Group is the development, manufacture and sale
of engines as well as all vehicles equipped with those
engines. The BMW Group is subdivided into the Auto-
motive, Motorcycles, Financial Services and Other Enti-
ties segments (the latter primarily comprising holding
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 finally became
Bayerische Motoren Werke Aktiengesellschaft (BMW AG)
in 1918. The BMW Group comprises BMW AG itself
and
all subsidiaries over which BMW AG has either direct
or indirect control. BMW AG is also responsible for
managing the BMW Group as a whole. General condi-
tions on the world’s automobile and motorcycle markets
(such as the competitive situation, 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 influence on business performance.
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 industry.
The vehicles manufactured by the BMW Group set ex-
ceptionally high standards in terms of aesthetics, dynam-
ics,
technology and quality and are the culmination of
concerted expertise in engineering and innovation. In
addition to its strong position in the motorcycles market,
the BMW Group also offers its customers a successful
range of financial services. In recent years, it has also
established itself as a leading provider of premium ser-
vices for individual mobility. At the end of the reporting
period, the BMW Group employed a workforce of
122,244 people worldwide.
Long-term thinking and responsible action have long
been the cornerstones of the BMW Group’s success.
Striving for ecological and social sustainability along the
entire value-added chain, taking full responsibility for
products and giving an unequivocal commitment to pre-
serving resources are prime objectives firmly embedded
in the BMW Group’s corporate strategy. As a result of
these endeavours, the BMW Group has ranked among
the most sustainable companies in the automotive in-
dustry for many years.
The BMW Group operates on a global scale and is repre-
sented in more than 150 countries worldwide. Its research
and innovation network spans 13 locations in five
countries. At 31 December 2015, the Group’s production
network comprised a total of 30 locations 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 . BMW 1, 3 and 4 Series models as well
as
the 2 Series Gran Tourer, the Z4 Roadster and the X1
are produced at the Regensburg plant. The BMW 3 Series
Gran Turismo, the BMW 4 Series Gran Coupé, models
of the BMW 5, 6 and 7 Series and also hybrid BMW 5 and
7 Series vehicles are manufactured at the BMW Group
plant in Dingolfing. Chassis and drive components are
also produced at this plant. Models of the BMW 1 and
2 Series as well as the electrically powered BMW i 3 and
the BMW i 8 hybrid sports car are manufactured at the
Group’s Leipzig site. The BMW 3 Series Sedan is assem-
bled at the plant in Rosslyn (South Africa). The BMW X3,
X4, X5 and X6 models are all manufactured at the Group’s
plant in Spartanburg (USA). The BMW X1 and various
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). Various models are also produced at
the BMW Group plants in Chennai (India) and Rayong
(Thailand). Production at the BMW Group’s newest plant
in Araquari (Brazil) currently includes the BMW 3 Series
Sedan, the 1 Series 5-door model, the X3 and the X1 as
well as the MINI Countryman.
A variety of components that supply the Group’s world-
wide production network are manufactured at the
plants in Landshut and Wackersdorf. The Eisenach site
makes special-purpose metalworking tools for the
pro-
duction network. The manufacturing sites in Moses Lake
(USA) and Wackersdorf – both part of the SGL Auto-
motive Carbon Fibers (ACF) joint operations – supply
carbon fibre and carbon fibre fabrics for the production
of BMW i models and the new BMW 7 Series. The BMW
Group’s largest engine manufacturing plant in Steyr
(Austria) makes both petrol and diesel engines for the
various BMW and MINI plants. In 2016, the joint venture
BMW Brilliance Automotive Ltd. opened an engine plant
COMBINED MANAGEMENT REPORT
General Information on the BMW Group
Business Model