Plan for 2008
BMW Motorrad delivered 82,779 motorcycles from January through September, up 4.3 percent from worldwide sales of 79,333 units during the same nine-month period in 2006.
BMW Motorrad has outlined three areas to be cornerstones for the company's continued growth in sales and profits: 1) a continuation of BMW's offensive in product development; 2) the development of a two-brand strategy as it pertains to the company's Husqvarna acquisition; and 3) an increase in profitability through the development of a broader global supplier system.
"Our goal is to sell more motorcycles to customers this year than last year," BMW Motorrad Director Herbert Diess said. "It's a big endeavor since breaking the barrier of 100,000 units sold in 2006. But we were well under way at the end of August, with the sale of 75,000 units accounting for 5 percent more motorcycle sales during the first eight months of this year than during the same eight-month period last year."
Diess made his comments prior to a reassignment within the company. As part of a "strategic realignment," the BMW Group created two new divisions in October. The first of the new divisions, Corporate and Brand Development, will be headed by former director of corporate planning, Dr. Friedrich Eichiner, and will be home to BMW Motorrad, Financial Services, Softlab, and any other new business units that are created. Diess now heads up the second new division, Purchasing and Supplier Network, primarily be responsible for lowering material costs.
How will BMW Motorrad further its market share in the future? "Our goals are no doubt large, particularly considering the sales climate for motorcycles in Europe and North America," says Diess. "The model offensive we began in 2004 will continue. We plan to continue the product offensive we started in 2004 because we realize that it is the new product that will attract the new customers."
Diess says the purchase of Husqvarna will allow the company to approach younger buyers and off-road and supermoto enthusiasts more quickly than it could have with the BMW brand. He also says Husqvarna's established worldwide sales network is another strong point for growth.
"If we want long-term gains, we have to diversify. We're confident Husqvarna has the potential to become a leading off-road brand. And, with this second brand, we now can grow in a segment that we previously were not in."
Profitability Through Purchasing
Since 2000, the Japanese Yen has lost value while the Euro has gained value. Diess says this exchange allows Japanese manufacturers to more easily optimize the value of their vehicles.
"What are we doing to combat that?" asks Diess. "First, we're improving the productivity of our suppliers and our plant in Berlin; second, we're looking for suppliers from around the world from which to purchase our parts and materials; and third, we are capitalizing on the technology and quality that differentiate the BMW brand from all of the others."
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Plan for 2008