Know your Brands: BMW AG

When it comes to sports cars and luxury vehicles, BMW is one of the famous brands that might come to mind. 

Bayerische Motoren Werke Aktiengesellschaft (BMW AG), along with its subsidiaries, develops, manufactures, and sells automobiles, motorcycles, spare parts, and accessories worldwide. It operates through the Automotive, Motorcycles, and Financial Services segments.

The Automotive segment is involved in the development, manufacture, assembly, and sale of automobiles, spare parts, accessories, and mobility services under the BMW, MINI, and Rolls-Royce brands.

Disclaimer: The brands may not be limited to the logos on the image and may change. The use of logos are for educational purposes only.

BMW has also been making moves to produce electric vehicles (EVs). These moves include:

• To invest in the Rosslyn plant in South Africa, where it will make hybrid EVs.
• Production of its next-generation EVs in China via BMW Brilliance Automotive Ltd (BBA), a joint venture between BMW and Brilliance China Automotive Holdings Ltd, a subsidiary of a Chinese state-owned company.
• Building a new high-voltage battery assembly plant in the US.

The group is an automotive giant with a global sales network in over 140 countries.

Financials, Share Buyback and Dividends

BMW reported a profit before tax of €4.2 billion for the second quarter of 2023 (Q2 '23), and deliveries for the same period increased by 11% compared to the previous comparative period (PCP). The electric vehicle share in deliveries surged by 95% to 14%.

The group said: “Compared to the previous year, revenues for the six-month period benefited from the combined effect of the timing of BMW Brilliance’s full consolidation and sustained favourable product mix effects.

“revenues continued to be boosted by income generated on the back of growth in dealership financing, mainly reflecting the impact of higher contract values and interest rates as well as increased dealership inventories.” Read full results here.

In May 2023, BMW announced that it will commence a buyback program valued at up to €2 billion as soon as the first program concludes, and the group pays dividends annually (once a year).

Expansion

Last year, BMW acquired the Alpina brand, which has been manufacturing BMW vehicles. The deal is expected to come into full effect after 2025. Commenting on the deal, a board member added that: “Acquiring the trademark rights will allow us to shape the long-term course of this brand steeped in tradition.”

Earnings

Bayerische Motoren Werke AG (BMW AG) is expected to release its third quarter results in September 2023. To invest in BMW AG you can head over to your EasyEUR account where you can buy a whole or fraction of a share.