Book Review by: Tushar Mishra
Reviews • A lot of us in the auto industry watch and study BMW closely because it does so many things right. Lately, it has made many controversial choices in designs and new products that are testing its track record. David Kiley does an excellent and timely job of exploring what has been right about BMW and asking the right questions about whether it will continue to lead the industry in brand and product focus and excellence. A fascinating read. - Bob Lutz V-C, General Motors
Reviews • David Kiley has captured the unique DNA of BMW and presents it in a straightforward and readable manner. He gets at the essence of the BMW brand and what makes it tick. - J. D. " Dave" Power lll Founder, J. D. Power and Associates
David Kiley • Marketing Editor, BusinessWeek • Detriot Bureau Chief, USA Today • 17 Years covering the Auto Industry • “Getting the Bugs Out: The Rise, Fall, and Comeback of Volkswagen in America” • Featured in Nightline, CNBC, CNN, National Public Radio, Today show
WHY? • The Ultimate Cars • The Ultimate History • The Ultimate Family • The Ultimate Brand • The Ultimate Blunder • The Ultimate Brand Expansion The Ultimate Auto Drama
Ultimate Cars • There will never be a boring BMW - BMW Chairman Dr. Helmut Panke
Ultimate Cars • Balance • Power-to-weight ratio • Brakes “Happiness isn’t around the corner. Happiness is the corner.”
Ultimate Cars • 3 Series • 5 Series • 7 Series • M Series • Z Series • X Series
Ultimate History • Late 1920- early30: Dixi 3/15 (licensed Austin) • Mid 1950: Isetta “bubble car • Pre 1960: Aero Engines, Motorcycles, Cars • Post 1960: The Phoenix rises
Ultimate Family The Quandt Family • Worth of around $17 billion • Takeover in 1959 • Other holdings: Delton AG; Datacard: Altana AG;
Ultimate Brand A mark made by burning with a hot iron to attest manufacture or quality or to designate ownership. - Webster’s Collegiate Dictionary, Ninth Edition
Ultimate Brand • Authentic • Because the company never seems to turn out a ‘dud’. • Consistent • No doubts as to what BMW stands for. • Twelfth Most Admired Global Company – Fortune 2003. • Best shareholder value – Automotive News & PWC, 2002.
Ultimate Brand • Positioning • Sporty driving • Sports sedan vs luxury couch-on-wheels • Focus on customers • Price justification • “Four Cylinders” headquarters
Ultimate Brand • Number of new models in the core series. • Aggressive pricing. • Dealer network • Value addition
Ultimate Blunder • Japanese threat • Expansion • Options • Buy Porsche • Buy Rolls-Royce & Bentley • Buy Land Rover • Buy Mini
The Players • British Aerospace • BMW • Honda • British Government The Price • 2.4 billion pounds
The Problems • Profit in 1994 by manipulation. • Absenteeism: Rover 6%,Industry 1% • Downtime: Rover 15%, Industry 5% • Rework Time: 4 times Industry avg • Rover vehicles far below industry standards as per JDPower and Asso. • Productiveness: 62% less than ind • Return on sales: BMW 8%, Industry 4%, Rover –ve
Ultimate Expansion • Mini Cooper • Premium small car. • North America COTY 2002. • Gem out of the deal. • Customization.
Ultimate Expansion • Rolls-Royce • Premium. • Bidding war with Volkswagen. • Phantom.
Ultimate Future? • GM, Diamler Chrysler: electric cars powered by hydrogen fuel cells. • BMW: ICE with liquid hydrogen. • 2003: fifteen 7 Series liquid hydrogen powered IC cars. • These 750hL ran 170000 km. • Plans for around a 100 running & testing around Europe.
Ultimate Questions? Thank You