When we reviewed the “BMW behind the scenes” collection of three books we described as a “masterpiece”. The author was granted a level of confidence to tell the company’s internal story as it was unprecedented, and the collection of books granted the prestigious RAC book for this year. It is full of information that is not berries and many indescribable stories. Here’s one of them – when I tried to buy Porsche. You can get a file Bmwblog An exclusive offer of $ 45 of the last free copies and charging at the end of this feature. Now, let Steve pull the curtains again to something great.
Inclusion operations: talking about the nineties
If today it seems a fluctuating era in global politics and the smaller world of the auto industry, then there may be a group of condolences that car makers were in the early 1990s. MCKINSEY, Administration Advisers, was partially blaming after publishing a well -known discussion paper that collected global coverage. It has resulted in the numbers and concluded that there is no car manufacturer that makes less than a million cars annually will remain alive unless they are combined or compatible with a partner. It has announced that two car makers were in this terrible place because you are too much to be purchased and small than staying alone.
One of them was Renault and the other was BMW. Advisors said that Daimler-Benz was protected by diversifying it in the field of space and other technology services, while BMW was also, as it was a car-based car company with high profits. Unfortunately, Daimler-Benz decided that this was not enough and continuous with Chryler and BMW, he is now eager in 1991 to find a solution.
BMW was not in a mood to buy a larger company; The Quandt family still has the contribution of the majority, and the company was making good money. However, the CEO Eberhard Von Kuenheim – like anyone else – can see logic in the mckinsey argument. He concluded that since BMW was less than the number of numbers consisting of seven numbers, MCKINSEY claimed that BMW needed to grow; It is time to shop for a car for buying and becomes acquired instead of acquired.
BMW was out of shopping.
What brand can fit the BMW values?
In early 91, Von Quinheim was sent Reitzle, a member of the Board of Engineering, to find a suitable premium with BMW. First Up Rolls-Royce/Bentley-then under the same ownership of British Vickeers Engineering Company. Premium and BMW are definitely planning to provide them with a lot of electrical equipment and engines of the 7 series of chain for a smaller car. But the problem is that it was built in small sizes Rolls Royce/Bentley will not be bigger; BMW need a larger fish to swallow. Ritzel found the ideal candidate in the Land Rover, then works as an independent organization within the Rover Group. It was perfect, although the large Rove Group made inappropriate cars from reliability that only the British were purchased in large numbers, but they had two hidden jewels.
Land Rover, including Range Rover, was unreliable vehicles, like other Rover, but this can be fixed. What a width is high margins and rough road brands that were premium like BMW, but with the small intersection. Land Rover was completely appropriate, and there was more. Thanks to the narrow management, Mini has been ignored for years and has become so old that no contemporary safety legislation was met. The small Rover 100, who was previously called the metro, was also old and bleeding so far – Rover strongly needed a new small car. A partnership with Honda was held, but, perhaps wisely, the Japanese company was unwilling to allow the manufacture of its own versions of the small Honda to Europe. Honda needed to make a profit, and a small Rover based in Honda will reduce its ability to get more size in Europe.
Ritzel and Anglo -to -sized with an ideal understanding of the English language and the nuances of British culture were certain that mini could be an independent brand, not just 30 -year -old embarrassing residues in the Rover range. Instead of negotiating with Rover Group, which was seen with moderate contempt, Reitzle approached its British Aerospace owner. The company accepted the price of its offer, but it insisted that BMW was unable to sew the two brands that they wanted, and instead it had to buy the ROVER group a little fully. Retzel could have seen huge problems in it, the Rover’s Motley Cars Group-Worse-was not-based on the Honda product, which means it would be a triple experience with a Japanese car maker. Despite the attractions in the Land Rover and Minnie, the entire group was not good and wisely Retzl.
Stuttgart was on the map
His next port was from his call, Stuttgart, the home of Daimler Benz and Porsche. It is clear that the link with Mercedes may result from the advantages of cooperation, but Retzel has made some enemies there (a story inside BMW by design) The two brands were present as more natural enemies than friends. Then there was Porsche.
It cannot be better. Two German brands are committed equally with engineering and sports product, as well as the best in BMW – one of them was financially on her knees. Porsche was clinging alongside 968, a four-cylinder car that was largely assembled, which was very expensive-thanks to the US/Deutsche-Deutsche-while 911 ages 911 near any money.
Worse than that, Porsche had to write a $ 300 million loss after the 989-door sedan was canceled. At that time-entertaining as it is today when Porsche offers four models with four-door body methods-a radical step for Porsche to make a four-door sedan. A team of great designers in Lagai invented an attractive sedan that looks like a style later in 993 generation 911. The appearance was not the issue; Engineers were running a unique V8 riot and costs of costs, which could exceed the price of a label worth $ 200,000 today. Porsche was right in the wrong time.
Porsche price: $ 600 million
Retzel met with the Porsche family, including his engineering teammate Ferdinand Beach, and made his stadium. BMW will buy the company, but it protects its cars by leaving the management in place to operate the business, so that it can invest in 911 new and expand. BMW will provide purchase assistance, test facilities, logistics and access to capital – the same things that paralyzed the sports car maker. All Porsche family needed to do it is to name its price. I did so, it was 600 million dollars – some of which are large for a small sports car maker swinging on the edge and do not make any money.
Retzel has regained $ 600 million to the CEO of BMW Von Kuenheim, who was angry at the Porsche lock of the same number, can buy the Rover Group group much higher, albeit less attractive. But Ritzel had his possession, and his dealings with Ferdinand Bish in Porsche had led to a substitute for that Ritzel joined Porsche instead as CEO and transfer the Stuttgart Company. Ritzel aspires to be the CEO and before Beach’s offer. Von Quinheim was more angry, Porsche was not asking a very high price, but they also rented Retzel too!
This was completely unacceptable to now angry von Quinheim who carried Retzel for his contract that prevents him from leaving and joining another car maker.
Rover Group joins BMW
It was a stigma on Ritzel’s reputation that von Quinheim was unwilling to remove and forget him. When the older man decided to retire and occupy a seat in the Supervisory Council, Ritzel was overlooked for production manager Bernd Bishtarider. Unfortunately, the new man who manages things had the same old problem and the same inherited solution at the time. There were not many partners there for BMW to dance together, Porsche, was out of the frame and took the catastrophic path to buy the entire Rover collection. Unfortunately, it will end at the cost of BMW twice the cost of Porsche and years of pain, as Munich has learned the work of work in the comprehensive market. For all the difficulties, I kept the Mini but had to sell Land Rover to Ford and pay the losses resulting from Rover. If you only pay $ 600 million for Porsche, the German auto industry would have taken a completely different shape.
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