BMW's current financial health questionable?

DrGP · 11-30-2008, 10:20 AM

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

rmorin49 · 11-30-2008, 11:44 AM

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.

stickypaws · 11-30-2008, 12:09 PM

Wrong forum.

demosthenes · 11-30-2008, 12:48 PM

Thanks for posting. Very interesting article.

HERR FSTIR · 12-01-2008, 01:11 AM

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.

Briar · 12-08-2008, 07:05 AM

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.

dirtbike59 · 12-08-2008, 09:49 PM

BMW is doing well but they are cutting the warranty times by 20% so less pay for a tech.

11-30-2008, 10:20 AM	#1
DrGP Lieutenant Colonel 143 Rep 1,914 Posts Drives: Sapphire 335i coupe Join Date: Oct 2006 Location: SE, PA iTrader: (0)	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
rmorin49 Major 58 Rep 1,162 Posts Drives: 11 335d/10 Z4 s30i Join Date: Nov 2006 Location: Hagerstown, MD iTrader: (1)	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. __________________ Colonel (Retired), US Army/Hagerstown, MD 2016 518ixdrive/MSport AW/Ivory White ED-01-10 2010 Z4s30i AW/Beige/Burl/ 6MT/SP/PP/CWP/NAV/ipod/USB/CA (retired) 2011 335d BS/Oyster/PP/CWP/NAV/ipod/USB(Daily Driver) 30+ mpg(retired)
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11-30-2008, 12:09 PM	#3
stickypaws Dictator 57 Rep 1,811 Posts Drives: people crazy Join Date: Mar 2008 Location: where you want to be iTrader: (0)	Wrong forum.
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11-30-2008, 12:48 PM	#4
demosthenes Major 50 Rep 1,162 Posts Drives: E90 328i 6MT Join Date: Dec 2006 Location: SF Bay Area iTrader: (0) Garage List 2008 328i sedan [0.00]	Thanks for posting. Very interesting article.
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12-01-2008, 01:11 AM	#5
HERR FSTIR Captain 121 Rep 771 Posts Drives: LBB M2C, VO 1M, GSA 1200 Join Date: Sep 2007 Location: Frozen Tundra iTrader: (0) Garage List 2021 BMW X3M Compet ... [0.00] 2019 BMW S1000R [0.00] 2019 M2 Competition [0.00] 2018 BMW 1200 GSA [0.00] 2011 1M Coupe [9.75]	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
Briar New Member 3 Rep 26 Posts Drives: 335i, 996 Join Date: May 2007 Location: Nor Cal iTrader: (0)	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
dirtbike59 bmw tech 0 Rep 44 Posts Drives: e46 330ci Join Date: Dec 2008 Location: dc area iTrader: (0)	BMW is doing well but they are cutting the warranty times by 20% so less pay for a tech.
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