Bmw in Bric Countries

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BMW
Using a BRIC localization strategy to maintain global leadership in luxury automobile manufacturing

Achille MOLLON, Aleksander OLECHNOWICZ, Ania, TWOREK, Celine PAN, Jade CHAN, Sophie SCHAEFGEN, Viktor MIKUS

Content
• Introducing BRIC • Company Snapshot • R&D • Sourcing • Manufacturing • Sales

BMW Winning the BRIC Auto Market
BRIC market performance
—  By 2014 BRIC will account for 30% of the world sales

—  As a whole is growing by 3%-15% per year between 2009 and 2014

—  BRIC markets have strongly outperformed three markets Europe, US, Japan

Winning the BRIC Auto Market
How can BMW localize in BRIC countries to maintain its number one position among the luxury car makers ?

BMW and the Competitive Landscape - 1
—  BMW No. 1 —  Audi & Mercedes have each made it a clear goal to become No. 1 by 2015 and 2020 respectively.

BMW and the Competitive Landscape - 2

To recognise trends in good time and offer appropriate, tailor-made solutions, it is essential for the BMW Group to communicate directly with the most important markets. Incorporating eleven locations in five countries, the BMW Group’s Research network spans the entire world and is always up-to-date. Strong partnerships with, say, local universities and research institutes also ensure that the BMW Group Research Network is always technically up-to-date and clearly oriented towards the customer. Interaction of Development Centres The technical heart of the BMW Group beats in the BMW Group Research and Innovation Centre or the “FIZ”, as it is called for short. One of the most advanced development centres in the global automotive industry, this unique facility serves as the central interface for all technical and design-related activities in BMW research and development. All of the BMW Group’s other Innovation Centres are directly connected to the FIZ, acting as both a service provider and driving force in the development process. The two subsidiaries BMW Forschung und Technik GmbH and BMW Car IT GmbH are both based in Munich, working on new technologies for use in the automobile. At the same time the BMW Group’s Research and Technology Division interacts closely with its own global network of partners in research and development. 2007 9,800 2008

R&D

The BMW Group’s Diesel Competence Centre is BMW Motoren GmbH in Steyr, Austria. Cooperation with specialists in production and with suppliers starts here form the very beginning in the initial stage of development. The same applies to the Innovation and Technology Centre in the German town of Landshut, where in particular specialists on lightweight technologies examine and develop innovative materials and appropriate production methods. Thanks to the strategically favourable location of the Landshut Centre between Vehicle Development and Production, knowledge gained here goes straight into the construction and production of new components and vehicles. BMW Group Research and Development is represented in the United States by no less than four institutions. The California Innovation Triangle comprises not only the BMW Group Technology Office in Palo Alto, but also the Engineering and Emission Test Center in Oxnard as well as BMW Designworks USA in Newbury Park. The US Development Office, in turn, is located on the East Coast in Woodcliff Lake. The BMW Group has additional Development Offices in Beijing (China) and Tokyo (Japan).

2009 Headcount Research and development network

9,300

8,900

Four Roles for Localized R&D Centers
3,144 5.6 2,864 5.4 Research and development expense R&D centers in the BRIC countries—and in other RDEs— in Euro million 2,488 typically play one of four roles. (See the exhibit below.) 4.8 Research and development ratio in %

O shore Unit. This kind of R&D center takes advantage of low local factor costs to develop specific contents for products; typical examples include so ware programming and electronics engineering. O shore units have local...
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