BMW Group focuses on flexibility and solidarity in dealing with Coronavirus pandemic

Safeguarding liquidity and the company’s long-term success

During the current coronavirus pandemic, protecting employees and taking responsibility for society are the number one priority for the BMW Group. At the same time, it is important to safeguard the company’s liquidity and secure its long-term success. The sales result for the first quarter was overshadowed by the global impact of COVID-19 and the effects of the temporary closure of a large number of retail outlets. The BMW Group delivered a total of 477,111 (‑20.6%) premium BMW, MINI and Rolls-Royce vehicles to customers in the first three months of this year.

“We are reacting to the globally challenging sales situation caused by the corona pandemic and are flexibly adapting our production volume to demand. In this way, we are creating important conditions for the company’s continued economic success,” underlined Pieter Nota, member of the Board of Management of BMW AG responsible for Customer, Brands and Sales. “In China, we are seeing the first signs of recovery with a strong order intake,” Nota continued.

Thanks to its major model offensive in recent months, the BMW Group initially made a good start to the year and was reporting sales growth. However, by February, the impact of the pandemic had already led to a significant decrease in sales in China. By March, the effects of the pandemic were clearly visible in sales figures in Europe and the US. Around 80% of all retail outlets in Europe and 70% of those in the US are currently closed due to the coronavirus. In a number of countries, including Germany, stationary retailers are legally prohibited from selling cars at the present time.

BMW Group supports measures to contain the pandemic

The BMW Group fully supports the measures to contain the spread of COVID-19 and is meeting its responsibility to society. The company is providing vehicles to social and healthcare facilities to ensure the mobility of health sector helpers and workers. At its German and international locations, the BMW Group is also helping social and public institutions with donations of goods and materials such as breathing masks and disinfectants. The company is currently working closely with its global supplier network to procure the necessary respiratory masks and other medical equipment at short notice. It is also reviewing the possibility of producing medical masks itself.

The BMW Group is providing its retail partners and customers with the best possible support in this difficult situation. Since the situation differs from one country to another, specific measures are being implemented for individual markets in close consultation with retail partners. Where currently appropriate, the BMW Group is also offering its customers measures such as the extension of warranties from new vehicle sales and the extension of maintenance intervals and continues to provide workshop services, as far as the legal requirements allow.

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SOURCE: BMW Group

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