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Autoweek Statements of BMW CEO - Disses Audi
Autoweek posted an article this morning with an interview of Norbert Reithofer, CEO of BMW. He's questioned regarding issues with emissions, exchange rate and the like. However, he dismisses Audi as a competitor. See below:
BMW's Tailpipe Troubles
CEO cites emissions, trade issues at hand
By AUTOMOTIVE NEWS
AutoWeek | Published 03/19/07, 1:09 pm et
BMW faces difficult and profit-eroding issues, such as the weak dollar and yen, rising material prices and tougher European Union regulations on tailpipe emissions. Also, rivals Audi and Lexus have expansion plans that could hurt BMW sales.
BMW CEO Norbert Reithofer talked about how BMW will meet these challenges with Automobilwoche Editor Guido Reinking and Staff Reporter Pia Krix. Reithofer, 50, succeeded Helmut Panke as CEO in September.
BMW is still far below the European auto industry's goal of reducing CO2 emissions to 140 grams per kilometer driven by next year. How do you plan to close that gap?
We will achieve a clear reduction in these numbers by the target date. By then a third of our vehicle fleet will be under 140 grams per kilometer. But we have to reach this goal without undermining our core characteristic: driving dynamics.
The European Commission wants to reduce CO2 emissions from cars to 120 grams per kilometer by 2010. What would that mean?
There isn't a single luxury manufacturer who could achieve this limit for all vehicles. It would put the foundation of the German luxury automakers' existence into question.
You have other challenges, such as rising prices for raw materials and exchange-rate exposure. Analysts put these effects at more than a billion euros a year.
We were in a position to compensate for these figures. We did this through increases in productivity as well as through our growth in volume and model-mix improvements. This year, there is no question that we will increase our productivity further, by at least 5 percent.
How bad are exchange-rate effects?
It's not just the weak dollar that's an issue for us. The yen also has become an issue. We have been very successful in the Japanese market, so the yen exchange rate keeps playing a larger role for us.
How great is Lexus' competitive advantage in Europe by virtue of its production in Japan?
The competitive advantage is now significant. Since 2001, the yen has continued to weaken against the euro.
Your rival Audi has resolved to become the most successful luxury automaker in the world by 2015.
We have been in competition with Mercedes in sporty vehicles for the past 10 years. It has done both of us good; it has pushed both of us. I view the prospects of more competition from Audi in precisely the same way.
Do you see any danger that you could be overtaken by Audi?
If you look at the entire world - not just Europe, Asia and the U.S. - then you see that there are just two luxury manufacturers acting globally: Mercedes and BMW.
| | Reply » Autoweek Statements of BMW CEO - Disses Audi |
Seems dismissive, but those statements are grounded in truth.
In Europe and Germany in particular, Audi is a very major player. But worldwide? Hardly.
| | Reply » Autoweek Statements of BMW CEO - Disses Audi |
Audi looses money in the US for every SUV it makes. Its margins on the A4, A6, A8 give dealers nothing to negociate with.
However, the changes at the top of VW/Audi will make it more competative. There is even talks of opening up plants in US.
Audi is not to be discounted but in the current environment, they are no threat.
The advantage the Japanese have had in all markets because of the low Yen has trounced almost everyone. The US Big 3 have suffered from this and Nissan still produces more in Japan then in the US.
However, things are changing and the BOJ has shown that it will do the right thing despite pressures from govt and industry which means they are slowing raising the BOJ rate although slowly. BMW is a huge player in China and India while Audi does not even show up on the radar.
A stronger dollar would help BMW a lot -- there biggest problem is the "green" lobby. Regulations in Europe and soon the USA will make it difficult for BMW to keep what it does best and still respond to regulations. As always, they have great timing and the 1 series in the USA followed by the Z2 will go a long way. It will however be some trick to keep big HP and Low Emissions -- one thing for sure, diesels are coming very soon!
| | Reply » Autoweek Statements of BMW CEO - Disses Audi |
Quote: BMW is a huge player in China and India while Audi does not even show up on the radar.
! | Audi is pretty big in China. It's the de facto government officials' car but it doesn't carry the status of BMW and MB.
| | Reply » Autoweek Statements of BMW CEO - Disses Audi |
Quote: Audi looses money in the US for every SUV it makes. Its margins on the A4, A6, A8 give dealers nothing to negociate with.
However, the changes at the top of VW/Audi will make it more competative. There is even talks of opening up plants in US.
Audi is not to be discounted but in the current environment, they are no threat.
The advantage the Japanese have had in all markets because of the low Yen has trounced almost everyone. The US Big 3 have suffered from this and Nissan still produces more in Japan then in the US.
However, things are changing and the BOJ has shown that it will do the right thing despite pressures from govt and industry which means they are slowing raising the BOJ rate although slowly. BMW is a huge player in China and India while Audi does not even show up on the radar.
A stronger dollar would help BMW a lot -- there biggest problem is the "green" lobby. Regulations in Europe and soon the USA will make it difficult for BMW to keep what it does best and still respond to regulations. As always, they have great timing and the 1 series in the USA followed by the Z2 will go a long way. It will however be some trick to keep big HP and Low Emissions -- one thing for sure, diesels are coming very soon! |
With diesels and the small engine varients on the 1 and 3 series, you know, the 305i with a 0.5 liter mouse running on a cartwheel engine, they should be able to meet the 1/3 fleet statement he made.
Audi can suck my arse with its overpriced cars.
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Autoweek Statements of BMW CEO - Disses Audi