The board of management and the supervisory board of BMW have approved a new corporate strategy, defining the company’s strategic direction up to 2020.
The Group says its goal is to maximise profitability and increase value over the long term. This strategic realignment includes, among other items, the following measures:
Capital-efficiency targets - to achieve a return on capital employed before taxes (RoCE) of 26% in the automotive segment as of 2012, resulting in an EBIT-based return on sales of between 8% and 10% for the automotive segment.
Programme to tap into efficiency potential - in terms of performance, the company plans to increase revenues and earnings per vehicle, and in terms of costs, it plans to cut development, production, sales and administration costs per vehicle to achieve a cumulative efficiency effect of about €6bn (US$8.5bn) by 2012.
Growth targets - to achieve automotive retail sales of more than 1.8 million vehicles and increase deliveries in the motorcycle business by 50% to 150,000upa, by 2012. The company intends to increase retail sales in the automotive business to more than two million vehicles by 2020.
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