The circular blue and white BMW logo is portrayed by BMW as the movement of an aircraft propeller to signify the white blades cutting through the blue sky. It is symbolic of the first works which were of engines which shifted to motorcycle production in 1923, followed by automobiles in 1928-29. It also combined the blue and white colours of the flag of Bavaria. However, the origin of the logo being based on the movement of a propeller is in dispute as some believe the colours are to reflect the free state of Bavaria.

Mission statement

From the BMW website:

"The mission statement up to the year 2020 is clearly defined: the BMW Group is the world's leading provider of premium products and premium services for individual mobility."

 

"Up to the year 2020, the BMW Group has been clearly defined as the world’s leading provider of premium products and premium services for individual mobility. The BMW Group is committed to striving for excellence and status towards the future.

"Taking responsibility for all their products and ensuring their brands grow in strength from year to year is what keeps the BMW Group thriving. Furthermore, the BMW Group will invest in future technologies, new vehicle concepts and pioneering drive systems.

"The new strategy has been given the name ‘Number One’ which resonates ‘New Opportunities’ and ‘New Efficiency’. With this strategy in place, the BMW Group looks to shape the company’s future and have a substantial lead over its competitors."

Company history

BMW dates back to 1913, when a well known aircraft engineer Karl Friedrich Rapp formed Rapp Motoren Werke in a suburb of Munich. Nearby, another airplane specialist named Gustav Otto set up his own shop, Gustav Flugmaschinefabrik, building small aircraft. Rapp Motoren Werke secured a contract with Austro-Daimler to build V12 Aero engines under license, due to problems in building the engines as an independent company. However, rapid expansion of the company led to financial difficulties and Rapp had little choice but to resign. Franz Josef Popp and Max Friz, two Austrians, took over his company, and in the same year merged with Gustav’s shop to become Bayersiche Flugzeungwerke, later renamed Bayersiche Motoren Werke, or BMW.

In 1917 the first aircraft engine was produced, but the Treaty of Versailles shortly afterwards prohibited BMW from producing aircraft engines temporarily. In 1922 when aircraft engine construction commenced, 29 world records in aviation were set by BMW. It was in 1923 that the first BMW motorcycle went into production, followed by the beginning of BMW automobile production half a decade later. In the 1930’s, three new models were produced and business was booming, however, the onset of the Second World War halted production with a three year ban on car production imposed by Allies, whilst BMW focused on producing aircraft engines and rockets. The first model produced after the War in 1951 was of poor quality and demand was small.

The production of the Isetta, a “mini-car”, in 1955 is what started to set BMW back in the right direction. Following this, the BMW 507 was released in 1956, which became an instant hit with consumers, and several years later BMW were back on their feet.

In 1992, BMW acquired a large stake in a California industrial design studio, which they later fully acquired in 1995. In 1994 BMW bought British Rover Group, which they then sold six years later as Rover were making huge losses. They retained the rights to build the new Mini however, which is still in production today and creates a large proportion of BMW’s revenue.

 

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Trademarks

The BMW Group is a collaboration of three first-class brands: BMW, MINI and Rolls Royce. Together the total revenue for the financial year in 2010 equated to a €9.8 million increase (+13.6%) compared to the financial year 2009, and thus achieved one of the best sales volume performances in the history of the group. A total of 234,175 MINI brand cars were sold worldwide, totalling an increase from the year before to 8.1%. The increase of MINI sales may also be boosted by the market launch of the Countryman.

The Rolls Royce brand enjoyed a very successful year in 2010. A total of 2,711 units were sold worldwide, thereby easily doubling the previous year’s sales volume figure of 1,002 units. Its main factor contributing to the increase in sales might have been increasing business transactions within the Asian realm.

Strapline

BMW have used the slogan ‘The Ultimate Driving Machine’ since 1975.

Advertising

Sponsorships

BMW are big golf sponsors, having recently sealed a four year sponsorship deal with for the PGA Championship – the European Tour’s flagship event, worth 16 million Euros. They also sponsor three other events at the tour, the BMW International Open and the Russian and Asian Opens. BMW became sponsors of the European Tour in 1989, and are now the tour’s biggest sponsor, they will continue their partnership until at least 2014.

BMW also signed to be sponsors of the 2012 Olympics, providing a fleet of four thousand cars, while BMW motorcycles and bicycles will also be used by athletes and officials at the 2012 games.

Key people

 

Norbert Reithofer, CEO

Since 2006, Norbert Reithofer has been Chairman of Management Board at BMW Group and has been its Member of the Board of Management since March 2000. He already served as Director of Production of BMW Group since March 2000, as well as Technical Director of BMW South Africa from 1994 to 1997 and President of BMW Manufacturing Corporation, USA from 1997 to 2000.

 

Dr. Friedrich Eichiner, CFO and Head of Corporate and Brand Development

Dr. Friedrich Eichiner has been Chief Financial Officer of BMW Group since December 2008 and a Member of its Management Board since October 1, 2007. Dr. Eichiner is responsible for Group planning of BMW since 2002 and also heads the newly created Corporate and Brand Development division.