The record result also leads to an increase in the dividend for shareholders, with the Group paying € 5.80 for preference shares. The siblings Susanne Klatten and Stefan Quandt, who hold around 48 percent of BMW shares, will benefit in particular from this dividend increase. BMW is distributing a total of 3.8 billion euros to its shareholders. BMW CEO Oliver Zipse explained that the good result was the result of a consistent strategy. The available semiconductors were installed in electric cars and high-priced SUVs and saloons, with which the automotive group was able to achieve high contribution margins. In addition, BMW was able to achieve a total turnover of 111.2 billion euros, which is not least due to a reduction in costs through the reduction of 1800 full-time positions and the conversion of the pension scheme to capital market funds.
The car manufacturer’s strong balance sheet was due to the recovery of the car markets after the coronavirus crisis. Compared to its competitors, BMW also benefited in particular from the fact that production lines were shut down much less frequently and high sales figures were achieved, particularly in the luxury segment, thanks to the launch of the X7 SUV and the 8 Series. The Group will continue to focus on premium classes and electric cars in the future. A dozen electric cars are planned by 2025. The company is also expanding its business in China and increased its share in the production joint venture with Brilliance from 50 to 75 percent on February 11. This makes BMW the first foreign car manufacturer to acquire a majority stake in a company in China. In the medium term, the share of China will also increase due to the expansion of research and development capacities and new production facilities, so that BMW can look forward to a positive future.
Source of information: Handelsblatt.com from 10.03.2022
