BMW's Strategy Number ONE

How does a premium segment car manufacturer plan of riding out the economic storm? Well, lots of calculations, predictions and a lot of hope may point them in the right direction. BMW for instance seems not to be afraid of the future, despite the 13.4 percent drop of its first quarter revenue. Why? Because they have a strategy, which they call Number ONE.

The main guideline of that strategy is the continuing investment in new products and technologies. According to BMW, the first megacity vehicle (remember Project i?) with a fully electric drive or an ultra-efficient combustion engine will hit the streets by the first half of the next decade.

The BMW 7 Series and Z4 are already available, and will be followed in the company's line-up by the arrival of the 5 Series Gran Turismo and the X1 towards the end of the year. Also in 2009, BMW will begin production of its first hybrids, a mild one based on the new 7 Series and full hybrid version of the X6.

In June, BMW will resume two-shift operation five days a week at the Leipzig plant, due to the increased demand for the 1 Series (all body versions) and the 3 series sedan. By the end of the year, in Leipzig will begin production of the X1.

As for sales prediction, the company is counting on the continuing growth of the premium vehicle market. Mostly because of...China, of course. There, BMW sees the biggest opportunities, as the country's premium market now accounts for only 1 to 2 percent.

“The market for premium vehicles will continue to grow over the medium to long term. But, in the future, premium will not just be defined in terms of horsepower, but much more in terms of sustainability," Norbert Reithofer, BMW chairman of the board said.