BMW, Germany’s flagship automotive manufacturing company, has gone a long way.

About 60 years ago, its primary market (aeroengines) and capital equipment were both in ruins. Even during the German recovery period in the 50s, BMW did not prosper despite economic improvements everywhere. By 1959, BMW was so bankrupt, that a rescue by Mercedes served as its only way of staying afloat (Kay 1993). Today, BMW is one of the most respected companies and recognizable brands in the world. The BMW Group, according to its latest financial report, continues its leading position in premium segments of the international automobile markets. Despite persistently difficult conditions, a total of 341,932 BMW, MINI and Rolls-Royce brand cars were delivered to customers in the period from July to September 2005, 15.4% more than in the third quarter 2004, according to BMW.com. In the age of globalization, when distinctions between national markets are fading, this is no mean feat. BMW joins other major automotive manufacturers such as General Motors, Ford, Toyota, Honda, Volkswagen, and Daimler Chrysler in operating in a global competitive marketplace. How was BMW able to successfully respond to the challenges of globalization? What are the critical success factors required by BMW to compete successfully in their chosen segments? What are the competitive advantages that set BMW apart from its competitors? These and more are some of the issues that this paper will tackle. Key macro environmental impacting the automotive marketIncreasing global trade has enabled the growth in world commercial distribution systems, which has also expanded global competition amongst the automobile manufacturers, according to the Business Economics Research Advisor (2004). A phenomenon that mostly accelerated in the later half of 1990s, globalization of the automotive industry mostly transpired due to the construction of important overseas facilities and establishment of mergers between giant multinational automakers (Business Economics Research Advisor 2004). Industry specialists agree that the expansion in foreign commerce in the automobile industry mostly profited the German and Japanese markets and led to increased growth and production. In the automotive industry, globalization can have tremendous cost benefits. Automotive manufacturers have traditionally taken a multinational strategy in forming a global strategy, wherein they have traditionally operated separate organizations in North America, Europe, Asia, and South America that for the most part have acted independently with little if any synergies across organizations (Chandler n.d.). This strategy has resulted in substantial inefficiencies in product development costs and to a

This overlapping represents substantial cost savings as these companies spend several years and billions of dollars designing and engineering a new car model (Chandler n. Kia-Volvo (Business Economics Research Advisor. PDMA. PDMA praised BMW . production systems at factories. Principal drivers of globalization in the automotive marketThe world's largest automobile manufacturers continue to invest into production facilities in emerging markets in order to reduce production costs. 1st Tier Company Mergers . These emerging markets include Latin America. To cope with globalization. the BMW Group received the Outstanding Corporate Innovator (OCI) Award 2002 . China.). 2004) A leader in innovation Innovation management seems to be the key to BMW’s continuous leadership and sustainable growth.lesser extent production costs. In 2002.Mazda-Mitsubishi.). increasing global competition amongst the global manufacturers and positioning within foreign markets has divided the world's automakers into three tiers (please see below). systems to purchase from the suppliers of parts. EU’s role in fostering European automobile exports The European Union (EU) has taken an active stance in fostering European automobile exports and investment through improved market access and a rules-based investment environment (European Union 2005). supply systems including factory locations.Chrysler-Mercedes Benz. This prestigious award is regarded as an “Oscar” of innovation management. Renault-Nissan-Fiat 3rd Tier Company Mergers . EU makes this a priority by engaging in World Trade Organization negotiations and the negotiation of the Free Trade Agreements in China and South East Asia to improve opportunities for export and investment for the European automobile industry (European Union 2005). Malaysia and other markets in Southeast Asia (Business Economics Research Advisor 2004). BMW-Rolls Royce 2nd Tier Company Mergers . the separate geographic organizations within each auto manufacturer has developed and launched overlapping models. In presenting the award.d.Volkswagen-Lamborgini. Moreover.by the Product Development & Management Association. automobile companies were forced to develop the following framework and integrate them in the global management strategy: product development. components. with the two remaining tier manufacturers attempting to consolidate or merge with other lower tier automakers to compete with the first tier companies.the first European enterprise to ever win . and automobile sales and distribution systems although they may be different region by region (Shimogawa n. intermediary material and raw material.d. Traditionally.

added value should be used (Kay 1993).” but each Series has its own unique audience. BMW is also an example of the intersection of commerce and art writ large (Bangle 2001).198) · Through June 2004. Plenty of companies face the challenge of balancing art with commerce: movie studios. Successful companies. fashion design firms.cfm? CaseStudyID=8 Agency: Merkley Newman Harty Partners . BMW 7 Series were up 3 % versus yearly average Industry Awards: 2005 Kelly Awards finalist Source: http://www. the maximisation of profits. Different firms. Below are some of their successful campaigns. How Magazines Were Used: All BMWs are built to be the “Ultimate Driving Machine. number sold: 8. They are both young and young at heart and have an energetic approach to life. · Increase sales Target Audience: Primarily men 35 to 54 who take great joy in driving and are looking for a pure performance experience behind the wheel. . everyone seemed to be referring to the same companies over and over again: Hewlett-Packard. and successful economies. BMW’s fanaticism about design excellence is matched only by the company's driving desire to remain profitable. (Kay 1993). and the development of the business. and luxury goods manufacturers struggle with the same thing. safeguarding the artistic process.Group's innovation management as well as its unique worldwide research and network (Intel 2003). For its part. But the underlying objective of adding value was common to all. Magazines allowed BMW to deliver an umbrella brand message while narrowly targeting the consumer segments that best aligned with each Series. Yet.org/Advertising_and_PIB/case_studies/index. carefully planned. They actively seek out new experiences and information. and different business cultures gave different weights to these purposes. BMW stands by three solid principles to maintain the quality of its products: protecting the creative team.magazine. once created. but rather more the product of different views as to how. highest-performing models and targeting specific audiences. Agency: Fallon Minneapolis Budget Range: $5-10 MM Percentage of Print in the Media Mix: 50-74% Objective: Further establish the BMW brand as “The Ultimate Driving Machine” by featuring the latest. These different opinions on how success should be measured were partly the result of disagreement about how added value was created. most of which garnered recognition from prestigious bodies. BMW. vary in the relative emphasis to be given to returns to shareholders.000 units. critical success factors that enabled BMW to compete in the global market seemed to lie in extensive. Microsoft. after 88% of the print media had run. whatever the criteria of success are. Until today. Results: The BMW 6 Series exceeded its 2004 sales goal by 17% through December (goal: 7. anThe measure of success There exists a large disagreement about which companies are successful. And those objectives have required them to develop a unique set of operating principles (Bangle 2001). and targeted marketing campaigns. Marks and Spencer.

Merit Award· IAAA (Auto Awards) Bronze Award· One Show. or realise that the distinctive blue and white propeller badge reproduces the colours of the state flag of the State of Bavaria.S.Budget Range: Under $10 MM Percentage of Print in the Media Mix: 75% Unit Size: Spreads and Pages Media Mix: Case studies that are magazine dominant.both visually and verbally Results: · 2002 Tracking Study reports: · 50% increase among those "extremely likely to purchase a BMW Motorcycle" · 125% jump for BMW motorcycles on the rating "the brand for motorcycle enthusiasts" · Among BMW's current customer base.org/Advertising_and_PIB/case_studies/index. Results: · A huge demand has been generated for the car. loyalty has risen 53 Industry Awards: · 2002 MPA Kelly Finalist· CLIO Awards . already established. with demand exceeding supply and waiting lists at dealers throughout the U. by promoting it as an alternative culture of driving called "motoring" Target Audience: · All athletes· Excuse-prone athletes 18 – 24 How Magazines Were Used: · Print innovations including branding tie-ins and content inserts leveraging the magazine environment. Print Finalist· One Show/Integrated Branding Campaign Final Source: http://www.magazine.cfm? CaseStudyID=9 BMW’s chosen strategy Few who drive a BMW car know what the initials stand for.magazine.$20MM Percentage of Print in the Media Mix: 25+% Unit Size: Pages Objective: · Launch MINI and establish it as an Icon in the U. competitors Target Audience: · Riding zealots of all dimensions and experience — BMW loyalists and prospective competitive riders How Magazines Were Used: · Leverage the entire magazine spread to powerfully zero in on the most profound truths about motorcycles and the people who love them . The company subsequently diversified into what are now its two principal product ranges: automobiles and motor cycles.S.org/Advertising_and_PIB/case_studies/index.cfm? CaseStudyID=8 Agency: Crispin Porter & Bogusky Budget Range: $10MM . Industry Awards: · ADWEEK Media Plan of the Year Finalist· MPA Kelly Award Grand Prize Winner Source: http://www. Today BMW is one of Germany's largest . 75%+ of total budget Objective: · Build sales with BMW loyalists and prospective competitive riders by promoting the brand as a legitimate alternative to key.

its branding and advertising strategies. January 2001. Automotive Sector. Europa Trade Issues 2005. BMW is representative of much of German manufacturing industry. In this. available at: http://www. BMW is a company with a wellexecuted strategy.and most successful companies (Kay 1993). This control supports the brand image and also aids market segmentation. C. The Automotive Industry. While most car assembly has now been taken over by robots or workers from low wage economies. Sectoral Issues.htm .com/Lessons/lesson_bowman. Interim Report. are all built around that recognition and these choices (Kay 1993). The company maintains tight control over its distribution network.gov/rr/business/BERA/issue2/industry.int/comm/trade/issues/sectoral/industry/auto/index_en. which realized its full potential.marketingteacher. It is a company which came . Available at: http://www. from an educational system which gives basic technical skills to an unusually high proportion of the population. BMW maintains a skilled German labor force. and subsequent markets.after several false starts .d. Retail margins on BMW cars are relatively high. Available at: www. the achievements of BMW are built on two closely associated factors. According to Kay.eu. C. “The Ultimate Creativity Machine: How BMW Turns Art into Profit. its pricing approach. Vol 79. BMW's activities are focused almost exclusively on two product ranges .com Bowman’s strategy clock.loc. The company achieves a higher quality of engineering than is usual in production cars. BMW 2005. The company also uses the brand to support a range of motoring accessories. Its dealings with its suppliers and distributors. Available at: http://europa. The key to BMW’s success is focused differentiation – putting perceived added value to a “particular segment’ warranting a premium price. The company benefits. 2001. Globalization: The Automotive Industry’s Quest for a “World Car” Strategy. Today.high performance saloon cars and motor bikes which reflect its competitive strengths. No 1.bmw.htm Business and Economics Research Advisor 2004. BMW cars are positioned differently and priced very differently in the various national markets.html Chandler. Kay said.to recognize its distinctive capabilities and chose the market. “ Harvard Business Review. Its reputation has followed from these substantial achievements. who mostly have continuing long associations with the company. the BMW business is structured to maximize these advantages. n. The same tight control is reflected in BMW's relationships with suppliers. as many German firms do. References Bangle.

design.org/Advertising_and_PIB/case_studies/index. The $37.d.com/strategy/124 Magazine Publishers of America 2005. n.johnkay.S." Panke. sure. J. They gazed approvingly at the sleek surfaces and listened as engineers described the tight handling of the new steering and stability systems. the heart of the BMW franchise. But will the brand suffer? The lofty new modern art museum in Munich boasts a world-class collection of art. Mini Cooper – Let’s Motor. BMW Brand Print Campaign. the company unveiled the new $377. to 1. Next comes the 5 Series sedan. "We won't accept the position of No. His goal: expand annual sales by 40% over the next five years. The expansion is well under way. The Munich company is rolling out a new or updated model nearly every three months through 2005 in a ramp-up more ambitious than anything the company has attempted before. a nuclear physicist by training who is passionate about cars.EUROPEAN COVER STORY BMW Like clockwork. In January. a downsized sport-utility vehicle." says BMW Chief Executive Helmut Panke. together with a diesel version of the Mini. "The [new] product initiative is critical to our future success.cfm? CaseStudyID=9 Shimokawa. BMW's new raft of models will power the carmaker to a new level of prominence and profitability in the global industry. for which BMW is still building an exclusive dealer network. The Structure of Strategy. If the accelerated rollout works. and architecture.magazine.cfm? CaseStudyID=96 Magazine Publishers of America 2005. But as factories ramp up production levels and juggle an increasingly complex variety of models.4 million cars. Looming over the proceedings was a 10-meter high sculpture celebrating the beauty of auto design. 1993. 2. Supporting Mobility: BMW Practices Proactive PC Replacement. "We won't give up. at the end of 2002. Available at: http://www. Reorganization of the Global Automobile Industry and Structural Change of the Automobile Component Industry. the specially invited guests weren't there to gawk at the Picassos and Mirós." says the 56-year-old Panke. More than 100 German car dealers crowded around the revamped 5 Series sedan. BMW will have to fight harder than ever to keep its margins and maintain the quality that underlies its success. Available at: http://www. and godfather of the latest 5. BMW is rolling out a new model every three months as it guns for the top spot among premium carmakers. which goes to market in July.org/Advertising_and_PIB/case_studies/index. And they have a lot more to talk about than the latest rendition of BMW's biggest money-maker. the controversial American designer of BMW's new look. Available at: www. Super-theatrical? Well. Deploys Intel® Mobile Technology. which arrived in the U. INTERNATIONAL -. Available at: http://www..com/go/intelsolutionservices/ Kay. the old British subcompact that under BMW's ownership is fast becoming a cult car.760 Z4 roadster. and we don't rest on our laurels. and beat out Mercedes-Benz (DCX ) as the No. the latest Bimmer to hit the road is always a subject worthy of high drama.760 Rolls-Royce Phantom. Driving Down Support Costs. hits European showrooms this spring. But on May 19. K.Intel 2003. But to the auto world. The Internet chat rooms of the global car-buff community have been buzzing about the fifth-generation 5 Series for months now. the X3. created by none other than Christopher Bangle. makes its . is pushing BMW into high gear. It all depends on how BMW's vaunted engineers and workers respond to the challenge.intel.magazine. They were assembled to appraise the art Bavarians love best: The latest model from Bayerische Motoren Werke. 1 maker of premium cars in the world. In the fall. in Business Strategy Review.

" thanks to unexpectedly strong sales of loaded models. president of AutoPacific Inc. The company is hedged nearly 100% against its dollar risk this year and 60% for 2004 -." says George Peterson.S. While the two rivals ended 2002 neck and neck. and its purchasing costs higher. Panke and his top officers are betting BMW's new-model momentum will propel it past rivals. auto analyst Christopher Will expects the new-model push will generate a 20% rise in revenues next year. "Mercedes is much further down the list and slipping.5 billion. and demand for luxury sedans -. will employ 5.000 for the cheeky little car. in Düsseldorf." says Christoph Stürmer. Next year. and the 1 Series subcompact typically earn lower margins than do midsize sedans and luxury limousines. "BMW is the brand people aspire to own. However. they'll have to bring in another brand on top to add prestige. has outsold its predecessor during its first full year on the market. at 8% in 2002 and 8. prompted in part by the new 5 Series. as BMW builds a new.36 billion.5 billion factory in Leipzig at breakneck pace. The growing strength of the euro also poses a risk to BMW's dollar-denominated earnings. many are betting that BMW's vaunted profit margins will take a hit. At yearend. Chief Financial Officer Stefan Krause insists BMW will wring cost savings on the 1 Series to maintain its high margins. when the Japanese took the U. "We can't make cars anymore that are three differently sized slices of the same sausage. entrepreneurs.were again among the highest in the industry. Lehman Brothers Inc. Even the top-of-the-line 7 Series sedan. BMW shares have slid 41% from a year ago.3%. It's a high-speed shift from a carmaker that 10 years ago churned out just a handful of models -essentially the 3. As for the Mini.but only 30% for 2005. BMW has steered its own redesign deftly. ponying up as much as $35.debut. they buy a (BMW) 3 Series.a quantum leap compared with the early 1990s. But can Panke keep his highly tuned company on track as it accelerates? "The core strength of BMW will be challenged. and professionals." he says.started to shrink as a percentage of total auto sales. "The 1 Series will diminish the brand in the eyes of 7 Series buyers. General Motors Corp. which at first raised howls of criticism for a provocatively imposing trunk design and for its complicated electronic information system. market by storm." says Peter Soliman. What's more. Management is being stretched to the limit. a revival of the high-performance 6 Series coupe hits the road. BMW's manufacturing costs are much higher. launched in 2001.and Y-generation managers. its product development process more costly." says Panke. "We are not competing with the mass market." Panke is adamant that future growth won't tarnish the BMW badge. Panke's bet assumes turbocharged growth in the second half. Robert A.S. at least in the short run. BMW will introduce a 6 Series convertible and a station wagon version of the new 5 Series. analyst Keith Hayes in a recent report. When people get to the point they can afford a luxury car. Despite a 53% increase in research and development and a 75% increase in capital expenditures over the past two years. to $32. senior analyst at Global Insight Automotive in Frankfurt. the Mercedes A-Class. to $2.'s luxury brand Lexus as the premium-car leader in the U.500 workers: the first 400 are already being trained in BMW's complex production methods. BMW's net profit last year still rose 8. very critical for BMW. Although Panke vows earnings will be flat in 2003.7% in 2001 -. vice-president at Booz Allen Hamilton Inc. Few expect a major product blunder from the company's highly esteemed Bavarian engineers. . In the fall of that year. So is 2004. market. Calif. dealers will get their first deliveries of the new 1 Series subcompact that will go head-to-head with the Audi 3.the company's core business -. vice-chairman for product development." warns Goldman. The Bavarian giant has already overtaken Mercedes-Benz in the all-important U. Reflecting these risks. But remaking BMW became an imperative in the 1990s as the global auto market fragmented into hot new niches. says Cadillac will not follow the path of German luxury brands in the march to obtain higher sales volumes: "After a couple of 1 Series. while revenues climbed 9. Operating margins.9%. $1. featuring some of BMW's most powerful engines. small cars such as the Mini. and the high-end versions of Volkswagen's Golf.the heaviest years for investing -. and 7 series.S. analysts warn that they could slip by as much as 10%. with models appealing to a wide swath of X. Buyers are snapping up options from navigation systems to sunroofs. Lutz. "Compared with volume producers. The Leipzig plant. slated for inauguration at the end of 2004. Sachs & Co." he says. to $49. So far. BMW has outsold Lexus for the first four months of 2003 (table) -. The more pressing question: Can an ever-bigger BMW maintain the consistently high returns it once achieved with its exclusive portfolio? For starters. 5. But rivals are eager to point out other pitfalls. "The year 2003 is very. in Tustin." BMW is also overtaking Toyota Motor Corp. as marketing costs peak this year on top of higher R&D spending. he says profits are "way beyond our forecast.

" Walker says. and to shore up aging models." fumes Walker. That's standard industry practice. CEO of BMW North America. BMW now offers a four-year warranty. First-time customers have had their frustrations. the X3. he says. Peter Walker. Software problems with the iDrive left many owners fuming as their new. The company makes its profit by selling the car at the end of the lease to the leaseholder. it could lead to a cannibalization of the sales of the higherpriced 3 Series." says Deutsche analyst Christian Breitsprecher in a recent report.000 job applications last year for 3. BMW's Munich plant won the J. Power & Associates Inc. and completely eliminating toxic waste. In the first quarter of 2003. That will save costs. BMW is currently offering the most aggressive leasing terms.000 sedans sat in the shop for weeks for software upgrades. often running over 60% for a threeyear-old car." says Walter Wimmer. who thinks BMW's model push may well have overextended the auto maker he grew up admiring. "It's hard to copy BMW because you can't copy culture. providing a more perfect finish and better scratch resistance. Auto experts say the move could be an innovative alternative to building new plants.000 X3s a year. To speed the upcoming X3 to market. The real risk lies in the new models soon to hit streets around the globe. Magna Steyr is dedicating an entire factory in Graz to making up to 150. Everyone knows the story of the engineer who in the 1970s cut a hole in the roof of a 3 Series car in his garage and cobbled together BMW's first convertible to wow reluctant board members. $69.S.S. a unit of Canadianbased supplier and engineering services giant Magna International Inc. a BMW dealer. "Even then they gave me a rebuilt engine. And while BMW enjoys some of the highest residual values in the industry. BMW is also redoubling efforts to keep costs down by sharing components across similar-sized cars. As costs come under pressure. "We took the pain out of owning a car.500 openings." says Bernd Kreutzer. including maintenance and service. and the high-energy buzz is hard to miss. or others. But in the premium car segment.S." Step inside BMW's factories and research centers. But there's a risk.BMW already may be showing some early signs of margin stress. Analysts warn the company has resorted to an aggressive leasing strategy to bolster sales in a weakening market in the U. to be sure. the X5 and the 6 Series. Gold Plant Quality Award. "It was just one nightmare to the next. A BMW-certified tow truck even broke the rear suspension control arms. Not so. .D. BMW received more than 160.. preserving quality will be critical.300 in the 7 Series lease rates. If the sale price of the leased cars doesn't match BMW's high residual value estimate. head of the paint shop at the Dingolfing plant. then the company could suffer a lower return on those cars than it has traditionally achieved. Despite the risks. blunders infuriate drivers more and get big headlines. such as the 5 Series. together with minor problems with the clutch and pedals. "All the Japanese and American auto makers have come to view it. "Being able to attract and develop the best talent is BMW's hidden success factor. analysts' calculations use the original price for older models -. many are betting the Bavarian champion can deliver. But up to 75% of its luxury 7 Series sedans and 50% of the 5 Series are leased in the U. it's unclear what will happen to values if an increasing number of leased cars hit the market down the road.the leasing business is not being used to ratchet up subsidies on sales. analysts agree.500 kilometers. says BMW's Krause -. Kearney in Frankfurt. "The bottom line from our analysis shows clearly that in the U. vice-president at consultants A. That's already happened at Volkswagen. BMW's factories are considered the most flexible and most productive in Germany. The repair.T. its suppliers are the industry's best. cutting out complaints that occasional technological glitches made the brand extremely expensive to maintain. but warn that the strategy leaves BMW with only limited control over the final product.models that don't apply to BMW's revamped lineup. For starters. BMW's obsession with performance and brand image helped the German auto maker close the yawning gap with Lexus in the U.500 for a sporty BMW M3 last year." says Tom Purves. requiring endless phone calls and e-mail with the company.S. and the 1 Series. The upcoming 1 Series will share about 60% of its components with the 3 Series. but if the cars are too similar. too. But an engine defect put the car out of commission at 14. which shares parts across a variety of brands.) information-technology consultant. BMW found out the hard way in 2001 when it introduced an innovative knob called the iDrive to control a slew of functions on the dashboard. Munich headquarters read the message to improve quality and customer care loud and clear. Production engineers in the paint shop recently racked up an impressive first with a new powder-based technology to apply the final clear coat on a car. a 33-year-old Woodland Hills (Calif. Deutsche Bank (DB ) recently calculated an implied incentive of around $4. plunked down $62. as well as the 3 Series. plagued Walker for most of a year. and Europe. in the 1990s. and the workforce among the industry's most talented. in the price of the car. BMW outsourced development and production to Austria's Magna Steyr.

Their goal was a car that accelerated faster and handled even more smoothly. which aims to make its cars even more fun than Bimmers. Drive the 231-horsepower 530i 5 Series around a set of sharp curves and it grips the road more like a sports car than a sedan. both sides won. and a whole new generation of models at Cadillac. When the new 7 Series drew complaints for its befuddling iDrive. The engine and styling variations offered by BMW are "clearly an advantage." that matches the increased performance. hunkered look." says AutoPacific's Peterson. and fuel efficiency. "BMW is hipper and cooler. Rosman. vice-president for marketing at Toyota's Lexus Div. They own it. Mercedes' Stuttgart designers gave the 2002 remake of the E-Class a sportier line. The members of the engineering staff protested." which reduces the effort needed to turn at slow speeds and makes the steering more sensitive and agile at high speeds. not months. it's packed with new technologies that boost engine power. Sportiness and style made a convert of Debra J. handling. As the team convened in 1998." he adds. A smoother integration of the trunk and angular rear lights gives the rear a racy attitude. The development of the new 5 Series shows the concept in action. Added weight and length were taboo for the gearheads. In the end. whose elegant E-Class still outsells BMW's 5 Series worldwide. safety. marketers demanded more leg room in the back seat and more trunk space: Buyers of the old model had complained it was too small to hold several golf bags. Of course. says designer Bangle. Lexus is not about to concede. Even rivals get the point. Rosman traded in her Lexus RX300 SUV for a BMW X5 with leather seats. longer. "I have to give BMW credit for consistency in their message. It's going to be a helluva ." says Rosman. Development teams that pore over everything from such market feedback to new innovations are encouraged to engage in "friendly fighting" to decide the vital characteristics of a new BMW. "We learned a lot from the 7 Series launch.Now BMW speeds customer feedback to headquarters faster than before. One technological coup: a system called "active front steering. Then there's Audi. The muscular-looking 5 Series is not only taller. "[Quality] problems have to be solved in a matter of days." says Purves. and an on-board computer. torque." says Mike Wells." says Norbert Reithofer. Neither is Mercedes. whose monthly lease payments are well above the $450 she paid for the Lexus. senior director of marketing for the NBA's Miami Heat. and lighter than its predecessor. BMW's brand image is tied tightly to such innovation. wood trim. engineers went to work immediately on modifications now appearing in the new 5 Series. with its smooth engine effortlessly delivering top acceleration and tight control. including a reduction in the number of control positions from eight to four and a handy reset button to return to the main menu. board member in charge of production. BMW also outfitted its dealers with kiosks and trained them to help customers master iDrive on dry ground. The powerful front end was designed to appear deep and short to give it a "low. shooting for the more dynamic brand image that BMW has played to advantage. "BMW really captured the performance space in the market for themselves.

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