BMW Refines Corporate Structure

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BMW has rolled its BMW Motorrad business unit into one of two new divisions company officials hope will help bolster corporate planning, brand management and strategic implementation.

One of the two new divisions, Corporate and Brand Development, will be home to BMW Motorrad, Financial Services and Softlab, "three business units that will be developed further according to our strategic targets," says BMW CEO Norbert Reithofer.

Reithofer announced the move following a recent meeting by the BMW Board of Management. He says other new business units will be assigned to this division as well. The division of Corporate and Brand Development will be headed by BMW's former director of corporate planning, Dr. Friedrich Eichiner.

The second new division, Purchasing and Supplier Network, will primarily be responsible for optimizing the process chain, from raw material to finished products, with the top priority of lowering material costs while improving the quality of parts.

"Correspondingly, our strategic approach includes optimizing the interface between the BMW Group and its supplier network as well as redefining the share of in-house activities in strategically relevant technologies," Reithofer says. "This is why the new division includes material procurement, parts logistics, as well as the vehicle components and systems area."

Dr. Herbert Diess, up to now in charge of BMW Motorrad, will be head of the division of Purchasing and Supplier Network.