Norbert Reithofer, the CEO of BMW AG, just had his contract extended until September 2016. It would have expired in September 2011 but the main shareholder decided to demonstrate its support by offering a fresh five-year term.
Chairman Joachim Milberg said that with this step, continuity is secured for the years ahead. Reithofer, who has been CEO since 2006, is credited for leading a campaign that began in 2007 to increase BMW's flagging margins by cutting about 10,000 jobs and by forming alliances with rivals, including and PSA/Peugeot-Citroen SA.
Last Wednesday, Saab revealed that it will use BMW engines to increase its appeal and hasten its recovery. BMW is 46.7% owned by the widow and children of German industrialist Herbert Quandt.
With revenue of 50.68 billion Euros, it is easy to see why the BMW Group comprising of BMW, MINI and Royals-Royce is witnessing an impressive global success. Manufacturing motorcycles and automobiles in 13 different countries at 24 production sites and selling products in over 140 countries leave no doubt on why this German brand is a success story.
With a work force of 96,000, BMW produced around 1.29 million automobiles and over 87,000 motorcycles in 2009 alone. The reason for such impressive success is down to the long term forward thinking of the company. It has a moral conscience and has implemented ecological and social sustainability initiatives.
The products are well made and reliable and there has been a dynamic push towards conservation of resources. Because of such impressive efforts, the BMW Group was listed number 1 in the Dow Jones Sustainability Indexes consecutively for the past six years in a row!