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      11-30-2008, 10:20 AM   #1
DrGP
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BMW's current financial health questionable?

As well as the financial health of the other German car manufacturers. Article doesn't spell gloom and doom, but perhaps changes are on order. Wonder about the future of leasing at current attractive rates. http://www.spiegel.de/international/...592658,00.html
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      11-30-2008, 11:44 AM   #2
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Here's my take:

I bought some BMW stock about 4 months ago. It is worth half what I paid for it. That said, BMW is much better shape that the US Big Three. They essentially manage inventory by producing only what they can sell. When sales begin to decline, they slow down the manufacturing. They recently laid off a bunch of temporary and part time workers. In the long run, they will do fine but the next 18-24 months are going to be tough for all auto manufacturers.
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      11-30-2008, 12:09 PM   #3
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Wrong forum.
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      11-30-2008, 12:48 PM   #4
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Thanks for posting. Very interesting article.
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      12-01-2008, 01:11 AM   #5
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Great article. It seems BMW's aggressive lease policies over the last few years are coming home to roost. Unfortunately, it's under such duress that some companies lose their way, and this may be just such a time for BMW. The reference to the difference between the 1 series and mini is a little concerning; imagine if they changed the 1 series to a front wheel drive power train. It is also abundantly clear (and has been for some time now) that large displacement normally aspirated engines (i.e. M division motors) are a thing of the past.

Who knows what other BMW traditions will be on the financial chopping block, and to what extent the current financial difficulties will undercut future innovation.

As alluded to in the article, how things turn out depend a great deal on whether the Quandt family remains a major stock holder. If they sell out and BMW becomes a corporate entity no different than Daimler or GM, then the future looks a bit bleak.
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      12-08-2008, 07:05 AM   #6
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BMW is doing well and much better than the big 3 - they are prudent with financing, but that does not mean they have 0 risk.
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      12-08-2008, 09:49 PM   #7
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BMW is doing well but they are cutting the warranty times by 20% so less pay for a tech.
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