BMW: Miracle of figures in the chip crisis – economy

Bayerische Motoren-Werke, under the leadership of CEO Oliver Zipse, remains true to its self-confidence even in difficult times: As half of the auto industry is in turmoil again because computer chips are lacking and lines production are therefore constantly at a standstill and employees are on short-time working, they say in Munich: crisis? What crisis? Or as Zipse puts it: BMW wants to “avoid” that word. Because the crisis, as the CEO said in an interview with a journalist on the occasion of the autumn figures, implies that you no longer know what to do. “This is not at all the case with us! The attitude was similar to Corona’s time last year.

Now, the slow supply of so-called semiconductors is also having an impact on BMW, for example production at the main Munich plant has recently been slowed down and work elsewhere is sometimes dormant for A few days. About a tenth of vehicles less than the previous year are currently leaving factories. But the competition is worse, some of them are building a third less (Daimler) or they have closed factories by the end of the year (Opel). Now it pays off, Zipse said, that you always treat your suppliers fairly. In fact, in a European comparison, BMW is seen as a reasonably moderate cost eliminator when it comes to purchasing.

At the same time, something remarkable can be observed: after nine months, the automaker has achieved “new records” in deliveries, turnover and consolidated results. With 1,932 million cars sold, 83 billion euros in turnover and a profit of 13.2 billion euros before taxes. “We confirm our increased annual forecast for 2021,” Zipse said and announced that BMW would generate a return on sales of at least ten percent. All of this makes it one of the best credit scores in the auto industry.

BMW takes a different path from German premium competition

The mechanics of the numbers miracle are pretty straightforward: Customers are currently asking for a lot of BMW vehicles – but they are few and far between. And so new and used can be sold at a good price, especially since the very expensive – that is to say also very profitable – are preferably manufactured.

So applies to BMW: is the chip crisis actually very good and could easily last even longer? Financial director Nicolas Peter strongly contradicts him. This is “certainly” not the case, as customers now have to wait longer and orders are piling up. And they would have initiated the “best price application” before the chip crisis. In short: “The formula is not less sales, more results.” Because, in fact, you want to grow in terms of sales.

In doing so, BMW is taking a different path from the German premium competition. The Munich-based company is currently introducing new electronic models, such as the i4 and iX; but the hugely popular i3 is coming to an end and has no direct successor. And unlike Audi and Daimler, BMW hasn’t announced a thermal engine release date. They want to serve all of the world’s markets, and there isn’t always the right framework for electric cars, Zipse said. Even in Europe, it is difficult to manage the charging infrastructure.

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