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BMW Group Creates Two New Divisions

As part of the company's strategic realignment, the BMW Group will create two new divisions as of October 1, 2007. +++New responsibilities for Michael Ganal and Stefan Krause

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BMW Group

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New responsibilities for Michael Ganal and Stefan Krause Munich. As
part of the company's strategic realignment, the BMW Group will create
two new divisions as of October 1, 2007. The new division Corporate and
Brand Development, will be headed by our former director of corporate
planning, Dr. Friedrich Eichiner. The move underlines the importance of
corporate planning, brand management and strategic implementation at
the BMW Group. The division will also be home to BMW Motorrad,
Financial Services and Softlab. If new business units are created, they
will be assigned to this division. The second new division will be
Purchasing and Supplier Network. Dr. Herbert Diess, up to now in charge
of BMW Motorrad, will be head of this division. This division will
primarily be responsible for lowering material costs, the Group's major
expense factor. This corresponds to the BMW Group's strategic approach
of optimizing the interface between the BMW Group and its supplier
network and redefining the share of in-house activities in relation to
our strategically relevant technologies. The BMW Group's basic
organizational structure has remained mostly unchanged since 2000. Due
to the new strategy, however, complexity of tasks is expected to
increase considerably. This means that all divisions will have to
shoulder significantly more challenging workloads. "Strategy
implementation requires a high-performance organization capable of
handling the complexity of our activities and generating growth,"
stated Dr. Norbert Reithofer, Chairman of the Board of Management of
BMW AG, at a press conference on Thursday. In conjunction with
implementing the strategy, the BMW Group decided to make a castling
move, with Dr. Michael Ganal and Stefan Krause taking on each other's
current responsibilities as of October 1. Michael Ganal will be in
charge of Finance, while Stefan Krause will be responsible for
Marketing and Sales. "We want our executives to be global
thinkers, highly skilled and able to apply their expertise in various
areas throughout the Group," Reithofer stated. "Both
colleagues have done an excellent job for years. They are now going to
give fresh input to their new divisions by sharing their vast
experience in leading their respective teams." In case you have
any further questions please contact: Corporate Communications Marc
Hassinger, Business and Finance Communications, Phone: (+49 89)
382-23362, Fax: (+49 89) 382-24418 Bill McAndrews, Corporate
Communications, Phone: (+49 89) 382-22332; Fax: (+49 89) 382-29756
Internet: Email:

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