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BMW/Husky Press Conference at Milan....
Most interesting at end, talking about sourcing in Asia....
Speech of Fritz Geri - Executive Vice President Finance, Business Unit Planning, IT - BMW Motorrad
Press Conference Husqvarna Motorcycles
65th International Motorcycle Show “EICMA” 2007
Milan, November 06 2007
Ladies and gentlemen,
A very warm welcome to you here in Milan for the press conference of Husqvarna Motorcycles.
You may be rather surprised to see me speaking to you here.
Well, the EICMA is the most important trade show of the year for all motorcycle manufacturers – and for BMW Motorrad particular.
For us this trade fair is the right time and the right place to present the strategic orientation of our two brands BMW and Husqvarna Motorcycles for the first time: after all, this is BMW’s first press conference since taking up business operations with Husqvarna Motorcycles.
But I will start by taking a look at BMW Motorrad’s current retail figures.
As of September 2007, motorcycle retail is at 7,661 vehicles worldwide. This means that as compared to September last year, the number of BMW motorcycles supplied to customers has risen by over 4 per cent to some 82,800 units. So once again we have moved a little closer towards the target we announced in Paris just a few weeks ago.
This year we intend to supply more motorcycles of the brand BMW Motorrad to customers than ever before. This is an ambitious goal in view of the fact that we passed the 100,000 mark for the first time last year.
The market here in Italy has developed very well for BMW Motorrad over recent years. Italy has now become established as the second most important market for BMW Motorrad after Germany, with double-digit growth rates in some cases. This means that Italy has contributed significantly to our success and we are particularly pleased about this.
You will find out more about the Italian market later from Andrea Castronovo, President of BMW Italia, at the BMW Motorrad press conference.
I would now like to say something about our two-brand strategy.
When the contract between BMW and MV AGUSTA was finalized on October 1st 2007, BMW became the owner of Husqvarna Motorcycles and took over business operations.
The company headquarters of Husqvarna Motorcycles will remain in the northern Italian region of Varese, likewise the company’s management, development, production and central sales and marketing organisation. Internationally speaking, sales operations will remain in the tried and trusted hands of our worldwide importers.
We wish to continue to grow profitably, that is our aim. To do so we wish to address customers in the medium and long term in segments and markets which are new to us. We intend to achieve this aim together with Husqvarna Motorcycles – a brand which stands for highly emotional products.
The conditions for success are excellent. With the state-of-the-art Husqvarna single-cylinder sports models we are presenting here and the BMW models which will celebrate their world premiere at the BMW stand, it is clear to see just how well the model ranges of the two brands complement each other.
With the sporty off-road profile of Husqvarna Motorcycles as a second brand, we will be able to penetrate younger customer target groups and extend the range to include the entire off-road and supermoto area more quickly than with our core brand alone, thereby initiating significant growth.
In the off-road segments above 650 cc, BMW Motorrad will very soon be enhancing its range, extending model diversity and closing gaps. I can reveal this much now: at the BMW Motorrad press conference today we will be presenting several world premieres.
Unstoppable – this is the motto of BMW Motorrad at the EICMA. It stands for the products we are presenting to you and for the market and model campaign which we have pursued consistently since 2004.
And what we are showing you today does not mark the end of our product offensive, of course. We will continue to make use of the potential of both brands to further expand the range of BMW Motorrad and Husqvarna Motorcycles in the years to come.
In order for us to maintain a BMW range in the highly competitive medium category segment, we do need to take full advantage of both sales potential and cost potential, however.
In concrete terms, this means that we will be intensifying our sales activities in Asia. In this connection I would remind you of the Boxer Café opened in June 2007 in Chongqing, the centre of the Chinese motorcycle industry. The Boxer Café is the second sales centre for BMW motorcycles in China after Peking.
Our next step is to increase our purchasing and cooperation activities in the Asian markets. Purchasing parts and components in the Asian region is an important means of reducing the currency disadvantages of the euro – in particular as compared to the yen. This is the only way we can create some leeway within cost structures so as to enable us to continue to offer our customers innovations and technical highlights in the medium category.
For this reason, we have decided to procure the single-cylinder engine for the G 650 Xcountry from a Chinese supplier who will manufacture the engine according to our BMW specifications and quality standards. And the 450 cc engine for our new, innovative BMW sports enduro will be made by Kymco in Taiwan in a production facility equipped according to BMW specifications.
We will continue to build on these examples and join together with our partners to develop further ideas as to how to capitalize on further growth potential not yet tapped into by BMW Motorrad.
All our activities in the Far East are of great strategic importance to BMW Motorrad. Our aim is to participate successfully in the development of the motorcycle market there from the very beginning. As yet there is virtually no market for large-volume motorcycles in the up-and-coming countries of Asia, but we are confident that this will change in a few years’ time.
Ladies and gentlemen, allow me to summarise briefly:
1. BMW Motorrad is well on the way to surpassing last year’s retail record once again this year.
2. By purchasing Husqvarna Motorcycles we have set the course to continue to grow profitably and faster in the future. And…
3. In order to achieve this growth in a highly competitive market with considerable currency distortions, we will continue to extend our purchasing activities in the Asian economic region, as well as our sales activities.
Most interesting at end, talking about sourcing in Asia....
Speech of Fritz Geri - Executive Vice President Finance, Business Unit Planning, IT - BMW Motorrad
Press Conference Husqvarna Motorcycles
65th International Motorcycle Show “EICMA” 2007
Milan, November 06 2007
Ladies and gentlemen,
A very warm welcome to you here in Milan for the press conference of Husqvarna Motorcycles.
You may be rather surprised to see me speaking to you here.
Well, the EICMA is the most important trade show of the year for all motorcycle manufacturers – and for BMW Motorrad particular.
For us this trade fair is the right time and the right place to present the strategic orientation of our two brands BMW and Husqvarna Motorcycles for the first time: after all, this is BMW’s first press conference since taking up business operations with Husqvarna Motorcycles.
But I will start by taking a look at BMW Motorrad’s current retail figures.
As of September 2007, motorcycle retail is at 7,661 vehicles worldwide. This means that as compared to September last year, the number of BMW motorcycles supplied to customers has risen by over 4 per cent to some 82,800 units. So once again we have moved a little closer towards the target we announced in Paris just a few weeks ago.
This year we intend to supply more motorcycles of the brand BMW Motorrad to customers than ever before. This is an ambitious goal in view of the fact that we passed the 100,000 mark for the first time last year.
The market here in Italy has developed very well for BMW Motorrad over recent years. Italy has now become established as the second most important market for BMW Motorrad after Germany, with double-digit growth rates in some cases. This means that Italy has contributed significantly to our success and we are particularly pleased about this.
You will find out more about the Italian market later from Andrea Castronovo, President of BMW Italia, at the BMW Motorrad press conference.
I would now like to say something about our two-brand strategy.
When the contract between BMW and MV AGUSTA was finalized on October 1st 2007, BMW became the owner of Husqvarna Motorcycles and took over business operations.
The company headquarters of Husqvarna Motorcycles will remain in the northern Italian region of Varese, likewise the company’s management, development, production and central sales and marketing organisation. Internationally speaking, sales operations will remain in the tried and trusted hands of our worldwide importers.
We wish to continue to grow profitably, that is our aim. To do so we wish to address customers in the medium and long term in segments and markets which are new to us. We intend to achieve this aim together with Husqvarna Motorcycles – a brand which stands for highly emotional products.
The conditions for success are excellent. With the state-of-the-art Husqvarna single-cylinder sports models we are presenting here and the BMW models which will celebrate their world premiere at the BMW stand, it is clear to see just how well the model ranges of the two brands complement each other.
With the sporty off-road profile of Husqvarna Motorcycles as a second brand, we will be able to penetrate younger customer target groups and extend the range to include the entire off-road and supermoto area more quickly than with our core brand alone, thereby initiating significant growth.
In the off-road segments above 650 cc, BMW Motorrad will very soon be enhancing its range, extending model diversity and closing gaps. I can reveal this much now: at the BMW Motorrad press conference today we will be presenting several world premieres.
Unstoppable – this is the motto of BMW Motorrad at the EICMA. It stands for the products we are presenting to you and for the market and model campaign which we have pursued consistently since 2004.
And what we are showing you today does not mark the end of our product offensive, of course. We will continue to make use of the potential of both brands to further expand the range of BMW Motorrad and Husqvarna Motorcycles in the years to come.
In order for us to maintain a BMW range in the highly competitive medium category segment, we do need to take full advantage of both sales potential and cost potential, however.
In concrete terms, this means that we will be intensifying our sales activities in Asia. In this connection I would remind you of the Boxer Café opened in June 2007 in Chongqing, the centre of the Chinese motorcycle industry. The Boxer Café is the second sales centre for BMW motorcycles in China after Peking.
Our next step is to increase our purchasing and cooperation activities in the Asian markets. Purchasing parts and components in the Asian region is an important means of reducing the currency disadvantages of the euro – in particular as compared to the yen. This is the only way we can create some leeway within cost structures so as to enable us to continue to offer our customers innovations and technical highlights in the medium category.
For this reason, we have decided to procure the single-cylinder engine for the G 650 Xcountry from a Chinese supplier who will manufacture the engine according to our BMW specifications and quality standards. And the 450 cc engine for our new, innovative BMW sports enduro will be made by Kymco in Taiwan in a production facility equipped according to BMW specifications.
We will continue to build on these examples and join together with our partners to develop further ideas as to how to capitalize on further growth potential not yet tapped into by BMW Motorrad.
All our activities in the Far East are of great strategic importance to BMW Motorrad. Our aim is to participate successfully in the development of the motorcycle market there from the very beginning. As yet there is virtually no market for large-volume motorcycles in the up-and-coming countries of Asia, but we are confident that this will change in a few years’ time.
Ladies and gentlemen, allow me to summarise briefly:
1. BMW Motorrad is well on the way to surpassing last year’s retail record once again this year.
2. By purchasing Husqvarna Motorcycles we have set the course to continue to grow profitably and faster in the future. And…
3. In order to achieve this growth in a highly competitive market with considerable currency distortions, we will continue to extend our purchasing activities in the Asian economic region, as well as our sales activities.
