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BMW sets out its car and business strategy. Image by BMW.

BMW sets out its car and business strategy
With a target of 2 million cars by 2020, BMW AG has outlined an aggressive model and business development programme.
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| Model Range and Company Strategy | BMW Group |

BMW has given the car industry food for thought with its new business strategy outlining far-reaching cost-saving initiatives taking the company through to 2020, but more important to us is the confirmation of several new vehicles.

In last week's presentation in Munich, Norbert Reithofer, Chairman of the Board of Management of BMW AG announced a 'strategic realignment' of the company that will tap into potentially six billion euros by 2012 in efficiency potential, based on the EfficientDynamics principle. In simple terms: 'More output for less input.'

BMW will predictably retain its place in the premium segment with a projected growth between 2005 and 2019 of 40 percent, double that of the mass market segment - and who can blame them.

The most interesting information gleaned from all of this however, is the future of BMW cars. The German manufacturer confirmed that a new X1 model will become part of the X-range alongside the X3 and X5. It's no surprise that BMW will make a production version of the X6 Concept seen at the Frankfurt Motor Show.

Another concept making it to production is the fantastic CS study concept based on the idea of a four-door GT. The car was shown in Shanghai earlier this year and could rival the upcoming Porsche Panamera and Aston Martin Rapide, possibly under a new 8 or 9 Series badge.

BMW has decided to ditch a Space-Functional Concept (SFC) it was working on in favour of a 'Progressive Activity Sedan' (PAS), creating a new market segment without deviating from the BMW brand image to the same degree as the SFC was perceived to do.

MINI will also expand its range in the near future with a 4x4 Sports Activity Vehicle, which has been rumoured for some time. As has a Rolls-Royce Coupé - the third instalment in the Phantom range. Norbert Reithofer also gave away that a smaller, less pricey Rolls will appear, positioned below the Phantom.

With rivals such as the Chrysler Group and Volkswagen having a somewhat larger brand and car portfolio, it was necessary for BMW to search the market for new acquisitions. However, recent rumours of a bid for Swedish car manufacturer Volvo and perhaps even Jaguar and Land Rover were quashed when Reithofer announced that no current manufacturers met the requirements of a BMW takeover. He also said that the creation of a fourth brand would require a massive rethink in subsequent economies of scale to make it as successful as existing car businesses. The search is ongoing however, with the Munich based manufacturer refusing to rule out new partnerships in the future.

Kyle Molyneux - 4 Oct 2007


2007 BMW X6 concept. Image by BMW.2007 BMW X6 concept. Image by BMW.2007 BMW X6 concept. Image by BMW.2007 BMW X6 concept. Image by BMW.2007 BMW X6 concept. Image by BMW.

2007 BMW X6 concept. Image by BMW.2007 BMW X6 concept. Image by BMW.2007 BMW X6 concept. Image by BMW.2007 BMW X6 concept. Image by BMW.2007 BMW X6 concept. Image by BMW.









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