BMW AG is a German manufacturer of automobiles, motorcycles, engines, and bicycles, founded in 1916 by Rapp Motorenwerke. The company sells vehicles worldwide under the brands – BMW, MINI and Rolls-Royce. The main production facilities of the company are concentrated in Germany. Cars are also assembled at enterprises in China, Russia, Thailand, Malaysia, India, Egypt, South Africa, in Vietnam and the USA. The BMW Group’s activity is divided into three segments, which include automobile, motorcycle and financial services segments. The Automotive and motorcycle segments are involved in the development, production, assembly and sale of vehicles under the BMW, MINI and Rolls-Royce brands, as well as spare parts and accessories. In addition, the financial services segment focuses primarily on car leasing, lending to retail customers and dealers, accepting customer deposits and insurance operations. The BMW Group operates in global markets with 22 manufacturing and assembly plants, 34 sales branches and a research and development network. The main competitors of BMW Group would be Mercedec-Benz, Fiat, Nissan and Toyota. The following table illustrates the amount of vehicles sold.
Automobile Segment 2016 2017 Difference
BMW 2 003 359 2 088 283 4.2%
Mini 360 233 371 881 3.2%
Rolls-Royce 4 011 3 362 -16.2%
Total 2 367 603 2 463 526 4.1%
Motorcycle Segment 2016 2017 Difference
Sold Motorcycle in total 145 032 164 153 13.2%
The automotive segment, which brings the Group a larger share of revenue (90%), showed an increase in sales by 4.1%. Sales of BMW cars grew by 4.2%, Mini – by 3.2%, and Rolls-Royce, on the contrary, decreased by 16.2%.According to bmw.com the fastest growing sales of the BMW brand in China (+ 15.1%) and in Asia as a whole (+ 13.5%) against the background of modest changes in sales volumes in the European market as a whole (+ 0.9%), and even a decline in the UK (-4.2%), Germany (-1%) and the United States (-3.5%). Moreover, in the motorcycle segment, sales increased by 13.2% to 164.2 thousand motorcycles. According to bmw.com the most impressive sales growth occurred in the European market, namely: France and Italy showed an increase of 24.4% and 17.3%, respectively. Furthermore, the rise and fall can seemingly be attributed to the state of the economy.
Concerning to the financial risk of BMW group, could be affected by the illegally copying not only the accessories, but including the parts or even whole automobiles. The activity of counterfeiters violates the legal rights of trademark owners and damages the reputation of the BMW Group. Therefore, the BMW group seeks to protect customers from fakes. The BMW Group Trademark Protection Department works closely with customs and other authorities in more than 75 countries around the world. Together, they track counterfeit goods, take them out of sale and bring the perpetrators to justice.