BMW Risk
op y CC-111-010
Do
No
tC
BMW’s Foreign Exchange Risk Management
This case was prepared by Professor Xu Bin and Dr. Liu Ying, Research Associate at CEIBS. The case was prepared as the basis for class discussion rather than to illustrate either effective or ineffective handling of an administrative situation.
Copyright © 2011 by CEIBS (China Europe International Business School) No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means-electronic, mechanical, photocopying, recording or otherwise-without the permission of
CEIBS.
The CEIBS Case Centre is sponsored by McKinsey & Company.
BMW’s Foreign Exchange Risk Management
CC-111-010
BMW’s Foreign Exchange Risk Management
“Currency is much more volatile than it ever was. We’ve seen dramatic shifts between the euro and the dollar in recent years. The only real solution here is to
op y manufacture and buy components in the currencies where we sell cars.”
Norbert Reithofer, CEO of BMW
BMW Legend
No
tC
BMW, the world-famous auto and motorcycle manufacturer, was founded in Munich in
1916 as “Bayerische Flugzeugwerke AG” (Bavarian Aircraft Works). The company concentrated initially on the development and production of aero engines. Gustan Otto, one of BMW’s founders, was son of four-stroke internal combustion engine inventor
Nikolaus August Otto. In 1919, riding on an aircraft powered by an inline six-cylinder engine Type IV, test pilot Franz Zeno Diemer set an altitude record of 9,760 meters.
Since then twenty-nine world aviation records have been set by BMW. The blue and white BMW logo symbolizes the rotating propeller, reflecting the early age of the
BMW Group.
Do
After the end of World War I in 1918, BMW was forced to cease aircraft engine production by the terms of the Versailles Armistice Treaty. The company subsequently shifted to motorcycle and automobile production. BMW’s first successful motorcycle
“R32” went into production in 1923.
Do
No
tC
BMW’s Foreign Exchange Risk Management
This case was prepared by Professor Xu Bin and Dr. Liu Ying, Research Associate at CEIBS. The case was prepared as the basis for class discussion rather than to illustrate either effective or ineffective handling of an administrative situation.
Copyright © 2011 by CEIBS (China Europe International Business School) No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means-electronic, mechanical, photocopying, recording or otherwise-without the permission of
CEIBS.
The CEIBS Case Centre is sponsored by McKinsey & Company.
BMW’s Foreign Exchange Risk Management
CC-111-010
BMW’s Foreign Exchange Risk Management
“Currency is much more volatile than it ever was. We’ve seen dramatic shifts between the euro and the dollar in recent years. The only real solution here is to
op y manufacture and buy components in the currencies where we sell cars.”
Norbert Reithofer, CEO of BMW
BMW Legend
No
tC
BMW, the world-famous auto and motorcycle manufacturer, was founded in Munich in
1916 as “Bayerische Flugzeugwerke AG” (Bavarian Aircraft Works). The company concentrated initially on the development and production of aero engines. Gustan Otto, one of BMW’s founders, was son of four-stroke internal combustion engine inventor
Nikolaus August Otto. In 1919, riding on an aircraft powered by an inline six-cylinder engine Type IV, test pilot Franz Zeno Diemer set an altitude record of 9,760 meters.
Since then twenty-nine world aviation records have been set by BMW. The blue and white BMW logo symbolizes the rotating propeller, reflecting the early age of the
BMW Group.
Do
After the end of World War I in 1918, BMW was forced to cease aircraft engine production by the terms of the Versailles Armistice Treaty. The company subsequently shifted to motorcycle and automobile production. BMW’s first successful motorcycle
“R32” went into production in 1923.