BMW’s Production Strategy Helps It Offset Europe Decline image

BMW said that it success amid the crisis hit European markets is a clear example of the importance of setting up sales and production that can weather an economic crisis.

“Instead of making forecasts that don’t materialize after all, companies should create robust systems that get stronger, not weaker through chance, change and stress,” said Chief Executive Officer Norbert Reithofer. “I view our strategy as such a robust, anti-fragile system. It led us through the time of economic crisis and laid the basis for our current success.”

BMW managed to surpass Italian volume automaker Fiat in 2012, as the German automaker has labor agreement with the workers at its German plants, which allows the company to quickly react to shifts in demand. In March, BMW increased its lead in luxury sales over Audi, due to increased sales for its X1 SUV and the 3-Series sedan. In March BMW sold 159,195 vehicles, up 4.4%, surpassing the 3% gain set by VW’s Audi. During the first quarter BMW sold 381,404 vehicles, widening the distance from Audi with 11,904 more vehicles.

Reithofer added that German industry leaders should give up reservations regarding the electric vehicles and prepare for an eventual increase in demand for plug-in and battery powered vehicles.