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Table ofContents

INTRODUCTION .................................................................................................................................................... III

INDUSTRY OVERVIEW ............................................................................................................................................ 1

OVERVIEW ............................................................................................................................................................ 1HISTORY ............................................................................................................................................................... 1SALES AND REVENUES .............................................................................................................................................. 3

Revenue Breakdown per Country .................................................................................................................... 3Production Breakdown per Country ................................................................................................................. 3

GLOBAL EMPLOYMENT/WORKFORCE ........................................................................................................................... 4GLOBAL REGULATIONS ............................................................................................................................................. 4GLOBAL STANDARDS ................................................................................................................................................ 4INDUSTRY RELATED PROFESSIONAL AND TRADE ASSOCIATIONS ........................................................................................... 5INDUSTRY RELATED PERIODICALS&NEWSLETTERS .......................................................................................................... 5INDUSTRY FORECASTS/OUTLOOK ................................................................................................................................ 6YOUR ASSESSMENT OF INDUSTRY ................................................................................................................................ 6

BAYERISCHE MOTOREN WERKE AG ....................................................................................................................... 7

COMPANY PORTRAIT ............................................................................................................................................... 8Basic Data ...................................................................................................................................................... 8

HISTORY ............................................................................................................................................................... 9DESCRIPTION OF BUSINESS ...................................................................................................................................... 10

Vision ........................................................................................................................................................... 10Mission ......................................................................................................................................................... 10Strategy Statement ....................................................................................................................................... 10

Job Information ............................................................................................................................................ 10ASSESSMENT OF COMPANY ..................................................................................................................................... 11

Past Performance ......................................................................................................................................... 11Future Opportunities ..................................................................................................................................... 11

GENERAL MOTORS CORPORATION ...................................................................................................................... 12

COMPANY PORTRAIT ............................................................................................................................................. 13Basic Data .................................................................................................................................................... 13

HISTORY ............................................................................................................................................................. 14DESCRIPTION OF BUSINESS ...................................................................................................................................... 15

Vision ........................................................................................................................................................... 16Mission ......................................................................................................................................................... 16Strategy Statement ....................................................................................................................................... 16

Job Information ............................................................................................................................................ 16ASSESSMENT OF COMPANY ..................................................................................................................................... 17

Past Performance ......................................................................................................................................... 17

Future Opportunities ..................................................................................................................................... 17CAREER DEVELOPMENTCENTER (CDC) ................................................................................................................ 19

RSUM ASSISTANCE ............................................................................................................................................. 19INTERVIEWING ASSISTANCE ..................................................................................................................................... 19JOB SEARCH ASSISTANCE......................................................................................................................................... 19BUSINESSETIQUETTE ASSISTANCE ............................................................................................................................. 19YOUR SUGGESTED IMPROVEMENTS ........................................................................................................................... 19

APPENDIX A-BMW ............................................................................................................................................... 20


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A1CORPORATE GOVERNANCE AND OPERATIONS.......................................................................................................... 20A1-1 Auditor/Accountant .............................................................................................................................. 20A1-2 Board of Directors ................................................................................................................................. 20A1-3 Operating Officers ................................................................................................................................ 21

A2SELECTED CONDENSED FINANCIALS....................................................................................................................... 21A2-1 Income Statement ................................................................................................................................ 21

A2-2 Balance Sheet ....................................................................................................................................... 21APPENDIX B-GENERAL MOTORS .......................................................................................................................... 22

B1CORPORATE GOVERNANCE AND OPERATIONS .......................................................................................................... 22B1-1 Auditor/Accountant .............................................................................................................................. 22B1-2 Board of Directors ................................................................................................................................. 22B1-3 Operating Officers ................................................................................................................................ 23

B2SELECTED CONDENSED FINANCIALS ....................................................................................................................... 23B2-1 Income Statement................................................................................................................................. 23B2-2 Balance Sheet ....................................................................................................................................... 23

APPENDIX C-SOME RELEVANT FINANCIAL RATIOS ............................................................................................... 24


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Introduction

When this project was assigned at the beginning of the semester, I talked with various former students. They allmade the same predictions, that it would take longer than expected, and that you will procrastinate and that youwont be able to find some data. All three happened.Picking an industry to analyze was easy; I had been a car enthusiast for a very long time. Choosing the companyswas simple as well. I have loved BMWs for as long as I have liked cars. Then, I chose one from the US. At first, it

seemed like a daunting task..When I was able to finally get myself to sit down, I spent one evening researching a company, and found about athird of the information I had planned on.Now, in the end I guess its true that there is some information I couldnt find. Yet despite the negative predictionsand introduction I received to this project, I enjoyed it. I enjoyed doing research and learning about the differentcompanies and putting it together in a precisely formatted report. I must say that overall, this has been quite aninsightful project, from which I walk away from having learned many lessons.


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Industry & Company Profile

Sean Riley [email protected] Page 1 of24

Industry Overview

SIC Code: 3711NAISIC Code: 336111

Overview

1

Global Revenue: $1,889,840 (2010)Global Production: 77,774,094 (2010)Global Workforce: 8.40 million people (2010)

Recessionary economic conditions in North America and Europe began taking a toll on those regions' automotiveindustries in early 2001. An oversupply problem in North America prompted auto manufacturers to shut downassembly plants for days and, in some cases, weeks, during the first quarter of the year. Immediately following thetragic bombing of the World Trade Center towers in New York City, automotive sales tumbled. When analystsbegan predicting that U.S. unit sales would fall nearly six percent to 16.5 million, General Motors launched a no-interest financing program, dubbed "Keep America Rolling," that proved quite successful in boosting sales. The freefinancing appealed to increasingly cost conscious consumers, and when sales at General Motors began to rebound,other carmakers began to launch their own special promotions. In 2005, General Motors hit the jackpot again by

offering its employee-pricing program to everyone, which resulted in sales increases of 47 percent in June 2005,the company's best year since 1986, as reported in the Detroit Free Press. Following in the company's success, Fordand Chrysler offered similar plans in mid-2005. An overall increase in U.S. automotive sales of 15.9 percent wasdue in large part to the GM program.In early 2005, overseas automakers continued to gain U.S. market share. Sales of cars and light trucks in April 2005alone numbered 1,504,332, an increase of 5.7 percent over the year before. However, GM and Ford still lostmarket share, as did U.S. automakers overall. While the Chrysler Group showed substantial sales increases, andGeneral Motors and Ford's new cars were selling well, overall the Big Three U.S. auto companies lost market share,bringing them to about 43 percent of the domestic market. Japanese companies were gaining rapidly. Nissan NorthAmerica showed a gain of almost 32 percent, Toyota Motor Sales U.S.A. increased sales by almost 26 percent, andAmerican Honda Motor Co. climbed 18 percent.As of the mid-2000s, some manufacturers in the industry were considering increasing or beginning a build-to-order

(BT

O) segment.S

uch vehicles, although they would be fewer in number than traditional vehicles, would commanda premium price from buyers who could custom design their own vehicles. In addition, cars would not be built onuncertain forecast but on known demand. Time would tell whether or not the industry as a whole would move inthis direction.

History2

The development of the automobile was truly international in scope. Individuals from many countries contributedinnovations that led to the technical features and production methods commonly used on modern cars. The firstfunctional self-propelled vehicle, a three-wheeler powered by steam, was invented by Frenchman Nicholas JosephCugnot in 1769. Nearly a century later, Belgian inventor Etienne Lenoir created the first internal combustionengine. The first gasoline-powered vehicles were constructed by Germans Karl Benz and Gottlieb Daimler in 1885,and Armand Peugeot offered the first motorized vehicles for public sale in France four years later.In the United States, brothers Charles and Frank Duryea of Massachusetts worked from Benz's designs to launch

their own gasoline-powered automobile in the early 1890s. By 1899, some 30 different manufacturers produced

1 http://galenet.galegroup.com/servlet/BCRC?vrsn=157&locID=nysl_ca_rpi&srchtp=glbi&c=1&iType=sic&-

mode=i&ste=85&tbst=tsIS&cind=3711+-+Motor+Vehicles+and+Passenger+Car+Bodies&tab=1024&mst=car&docNum=I2501600073&bConts=161632

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and sold various types of motor vehicles in the U.S. market. In 1914, U.S. inventor Henry Ford, who built his firstcar in 1896, developed an automated production system that revolutionized the industry. Ford's assembly linewith its moving belts allowed his company to produce four times as many Model Ts as the year before andcontinually reduce prices while adding new features to the product. By 1920, half of all the cars on the roadworldwide were Model Ts. Many other well-known U.S. manufacturers came into existence at this time as well,including Buick, Cadillac, Chrysler, Oldsmobile, Packard, and Studebaker.

As the 1930s came to a close, the worldwide automobile industry continued to see many innovations. Automatictransmissions were introduced, and manufacturers began to concentrate more on styling, aerodynamics, and fuelefficiency. Although personal car production came to a virtual halt during World War II as most countries devotedall industrial capacity to national defense, the war brought improvements to the industry in the form of betterassembly line production. World War II also introduced women to the factory workplace. Postwar prosperity andpent-up demand meant the industry greeted world peace in 1945 with a booming worldwide automobile market.The United States' Ford Motor Company had the very earliest success in reaching the markets of Western Europe.Ford began assembling cars in the United Kingdom in 1911, and became Great Britain's largest producer by 1914.Ford began exporting to Japan in 1925 and, following World War II , built plants in several major European nations.General Motors followed a slightly different route, establishing an export company in 1911 to handle overseassales, entering the Japanese market in 1927. After World War II, GM expanded its European operations bypurchasing existing companies, such as Vauxhall in the United Kingdom and Opel in Germany.The first imports to the U.S. market included exotic European luxury and sports cars: Rolls Royce, Mercedes, Jaguar

(later purchased by Ford Motor Company), and Porsche. Until the 1960s, imports accounted for less than one halfof one percent of all U.S. auto sales. Led by Volkswagen and its popular Beetle, imports improved their foothold inthe U.S. market, and rose from a 10 percent share in 1968 to 15 percent in 1970. The oil crises of the 1970sincreased the price of fuel and led many consumers to seek smaller, more fuel-efficient, foreign cars as the 1980scame and went. Japanese manufacturers were most successful in anticipating the demand for fuel economy, andquickly gained market share at the expense of U.S. producers. Design, quality, price, and economy of operation allcombined to see foreign market share continue to increase, and in 1998 nearly 40 percent of cars and 18 percentof trucks in 1998 did not bear U.S. manufacture name plates. Ironically, in the late 1990s the wheel turned fullcircle, and luxury cars were once again among the most popular of imported vehicles.Throughout the 1990s, tough competition and minimal growth precipitated a trend toward restructuringthroughout the North American market. Automakers struggled to reduce new product development time andimprove quality (the latter in order to counter a perceived German and Japanese competitive advantage), while

still containing costs. That decade also saw the dominance of the United States' Big Three automotive companiesfade, while Japanese manufacturers first enjoyed huge success and then were forced to maintain similar marketshare under the aegis of a volatile and occasionally shaky domestic economy. Recovery following the depressedearly 1990s was followed by a more generalized Pacific Rim recession in the late 1990s, although Japaneseoverseas efforts continued to prosper. The proliferation of transplant auto companies reshaped the industry--butno single event could equal the impact of the merger of automotive giants Chrysler Corporation and Daimler-BenzAG.The North American automotive industry boomed in 1999 and 2000, bolstered by favorable economic conditions,such the lowest unemployment rate in decades, the growth of personal income levels, and a high level ofconsumer confidence. Sales in the United States grew 3.6 percent to reach a record 17.5 million units in 2000.However, the Big Three continued to lose ground to rivals like Toyota and Honda, who were largely responsible forthe 5 percent global market share loss by the Big Three between 1997 and 2000. This was due at least in part toefforts by Japanese car makers to expand their product lines to more closely resemble those of the Big Three.


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Sales and Revenues3

Revenue Breakdown per Country

Country Sales (2010)

($US Millions)

Country Sales (2010)

($US Millions)

Argentina 3,519 Japan 435,610Australia 18,929 Korea 62,993

Austria 13,900 Malaysia 6,084

Belgium 18,225 Mexico 3,348

Brazil 26,997 Netherlands 7,876

Canada 77469* Poland 16,202

China 86,984 Portugal 4,457

Croatia 205 Romania 1,836

Czech Rep. 12,091 Russia 7,019

Denmark 1,165 Slovakia 8,711

Egypt 2,901 Slovenia 1,544

Finland 1,076 South Africa 20,602

France 111,901 Spain 75,104

Germany 227,666 Sweden 24,784Greece 162 Switzerland 4,252

Hungary 8,144 Thailand 11655*

India 16,893 Turkey 28,196

Indonesia 3,858 UK 58,238

Italy 54,135 USA 425,106

Grand Total: 1,889,840

Production Breakdown per Country

Country Total Vehicle Production

(2010)


(2010)

China 18,264,667 Indonesia 704,715Japan 9,625,940 Malaysia 567,715United States 7,761,443 Slovakia 556,941Germany 5,905,985 South Africa 472,049South Korea 4,271,941 Romania 350,912Brazil 3,648,358 Belgium 338,290India 3,536,783 Republic of China Taiwan 303,456Spain 2,387,900 Australia 243,495Mexico 2,345,124 Sweden 217,084France 2,227,742 Slovenia 205,711Canada 2,071,026 Hungary 167,890Thailand 1,644,513 Portugal 158,723Iran 1,599,454 Uzbekistan 156,880

Russia 1,403,244 Pakistan 109,433United Kingdom 1,393,463 Austria 104,814Turkey 1,094,557 Venezuela 104,357Czech Republic 1,076,385 Netherlands 94,106Poland 869,376 Ukraine 83,133Italy 857,359 Egypt 69,060Argentina 716,540 Philippines 63,530

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(2010)


(2010)

Grand Total: 77774094

Global Employment/Workforce4

Country Workforce (2010) Country Workforce (2010)

Argentina 12,166 Korea 246,900Australia 43,000 Malaysia 47,000Austria 32,000 Mexico 137,000Belgium 45,600 Netherlands 24,500Brazil 289,082 Poland 94,000Canada 159,000 Portugal 22,800China 1,605,000 Romania 59,000Croatia 4,861 Russia 755,000Czech Rep. 101,500 Serbia 14,454Denmark 6,300 Slovakia 57,376Egypt 73,200 Slovenia 7,900

Finland 6,530 South Africa 112,300France 304,000 Spain 330,000Germany 773,217 Sweden 140,000Greece 2,219 Switzerland 15,500Hungary 40,800 Thailand 182,300India 270,000 Turkey 230,736Indonesia 64,000 UK 213,000Italy 196,000 USA 954,210Japan 725,000

Grand Total: 8,397,451

Global Regulations

Emissions are regulated individually by each country, or in the UnitedS

tates by each state.T

he European Unionhas a five-step twenty three year stringent plan to reduce emissions of cars. Other developed nations have equallaws in place, except for the United States, whose emission laws differ in that they are not as severe and arestructured differently. Due to their different structure, import car manufacturers must often modify the fuel intakeand emission system of their engines, resulting in decreased performance.Laws and regulations governing the building of cars (such as regulations regarding lights, seat belts, and airbags)are created by each country independently, often prompting car manufacturers to have different models indifferent countries. GM for instance, sells a totally different model-line up in Europe under their OPEL brand name.

Global Standards5

ISO 9001- Quality Assurance ISO 3006:2005 Passenger Car Wheels for Road Use, testmethods

ISO 4000-1:2001 Passenger Car Tires and Rims (Tires) ISO 4000-2:2001 Passenger Car Tires and Rims (Rims)

ISO 7736:1984 Car radio for front installation ISO 9815:2003 Car and trailer combinations, lateralstability test

ISO 10191:1995 Verifying car tire capabilities,laboratory test methods

ISO 11425:1996 Specification of rubber hoses and hoseassemblies in power steering systems

CLEPA Standard for uniform and safer replacementparts

The UN has many agreements, including one aboutlatching mechanisms on doors.

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Note: Each country and often each state (within the US) has different standards and laws to which automobilesmust be built. There are very little global standards. However, ASTM and ISO both publish information andstandards related to the raw materials which make up a car.

Industry Related Professionaland Trade Associations6

The Alliance of Automobile Manufactures Automotive Aftermarket Industry Association

National Automobile Dealers Association Automotive Industry Action GroupGerman Association of the Automotive Industry The International Organization of Motor VehicleManufacturers

Mexican Association for the Automotive Industry The Michigan Manufacturers AssociationAssociation of International Automobile Manufacturersof Canada

Japan Automobile Manufacturers Association of Canada

Japan Automobile Manufacturers Association Asociacion de Fabricas de AutomotoresFederal Chamber of Automotive Industries Fachverband der Fahrzeugindustrie sterreichsFdration Belge de l'Industrie de l'Automobile et duCycle

Associao Nacional dos Fabricantes de VeculosAutomotores

Union of Automobile Importers in Bulgaria Canadian Vehicle Manufacturers' AssociationChina Association of Automobile Manufacturers Automotive Industry AssociationDe Danske Bilimportrer Egyptian Automobile Manufacturers Association

Motorex Autotuojat r.y.Comit des Constructeurs Franais d'Automobiles Verband Der Automobilindustrie e.V.Association of Motor Vehicle Importers Representatives Association of the Hungarian Automotive IndustryAssociazione Nazionale Fra Industrie Automobilistiche Japan Automobile Manufacturers Association, Inc.Korea Automobile Manufacturers Association Latvian Authorized Automobile Dealers AssociationNederlandse Vereniging de Rijwiel-En-AutomobielIndusrie

Bilimportrenes Landsforening

Associao dos Industriais de Montagem deAutomveis

Association of Automotive Manufacturers andImporters

Automotive Industry Association Association of Automotive Manufacturers andAuthorized Importers ofSlovenia

National Association of Automobile Manufacturers of

South Africa

Asociacion Espanola de Fabricantes de Automoviles y

CamionesChambre Syndicale Suisse de l'Automobile et BranchesAnnexes

Association of Ukrainian Motor Vehicle Manufacturers

Sociey of Motor Manufacturers and Traders Ltd. Alliance of Automobile ManufacturersThe Uzbek Association of Automobile IndustryEnterprises Uzautosanoat

Yougoslav Association of Motor Vehicle Manufacturers

Association des Constructeurs Europensd'Automobiles

Industry Related Periodicals & Newsletters7

Car and Driver Automobile Motor Trend Auto Sound & SecurityAuto Express Road & Track Car Auto World MagazineSuper Street Autocar Lowrider CarMag

European Car Auto Bild Auto Motor und Sport Canadian Auto WorldAutonews Import Tuner Auto World Weekly AutoextremistAutoFan Magazine Automobile Magazine Automobile Quarterly Automotive IntelligenceAutomotive News Auto Speed BBC Top Gear Brake and Front EndCar Design News Classic American EV World Ferrari MarketFour-wheeler Magazine Go Auto Italia Speed JJournal

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Motor Age My Daily Driver Super Chevi TestDrivenTurbo Magazine Vette Woman Motorist

Industry Forecasts/Outlook

Our overall outlook for the automobile manufacturers is negative. While we expect demand this year and next to

be at the high end Competition should remain intense on new product introductions and incentives. Relativelyhigh gasoline prices are hurting demand for fuel-inefficient but profitable light trucks. Weakening housing demandcould also hurt vehicle sales. Domestic company profits before special items should benefit from cost cuttingincluding employee buyouts. One of the issues is now the US companies are looking to move from high cost placeslike the US for manufacturing and moving plants to other countries where it is cheap for them to operate.The highly profitable light truck, minivan, and sport utility segment, which we think is facing increasing pricingpressure now that the gasoline prices have risen sharply and sales of lower-margin crossover utility vehicles aretaking share from SUVs. We project that margins will come down in this segment. We see increased sales of luxuryimport models hurting domestic manufacturers' margins in the luxury vehicle category. However, we expectretiree and health care costs to squeeze margins, and that lower production will be a near-term negative. It hasalso become a trend for automakers to reduce the number of technological platforms with a greater number ofmodels produced from each model in order to stay cost competitive.

Your Assessment of IndustryThe automotive industry has grown to the worlds 6

thgreatest economy in over a century. While the market for

new vehicles is becoming saturated in developed and developing countries, there is huge potential in under-developed countries. While premium sedans or sporty coupes might not sell there, rugged, reliable and cheapmodes of transportation will be needed in the future in order to develop these countries. Further, with theintroduction of hybrids and alternative fuel powered cars, customers will want to drive the more efficient vehicles,prompting them to buy new cars in an already saturated market. Overall, there is much potential in the market.To look at the industry globally makes little sense due to the high variance between the three major car producingcontinents (Asia, North America and Europe).The Asian car manufacturing industry appears to hold the most prominent future. The recent success of Kia andHyundai in South Korea, the domination ofToyota and the booming economy in China makes Asia a prime locationfor investors and companies to invest into the car manufacturing industry. Further, Russias manufacturing

industry is expected to quadruple over the next decade as it slowly lifts itself out of the post-cold war recession.While the vehicles in Japan are safe, reliable and technology-rich, the practices adopted by Chinese and Koreanmanufacturers are outdated. Their plants and production means must be redesigned, requiring large amounts ofinvestment into R&D to provide for years of profitable operation.The American car industry has a bad image, caused by Ford and GM both having massive losses due to their healthcare provider costs, retirement and pension payments, as well as high labor and extremely high executivecompensation. The American production facilities depend primarily on human labor, which is expensive and has ahigh rate of error. Further, many of those workers are part of a labor union; driving labor costs up so high that Fordand GM lose big sums of money. Their factories need to be updated and modernized, and their strategy shouldrely more on robots (which cant unionize) in order to remain profitable.The European market peaked in 1991, and has been in slow decline since then until 2003. In the early years of thethird millennium, the EU changed laws and added more incentives for car manufacturers, prompting higherproduction and sales. Europe is considered the leader in new technology for car manufacturers, and was

considered the distant leader in terms of safety. However, advanced airbags and stronger materials have madeAmerican and Asian cars just as safe as their European counterparts. European car manufacturing plants relyheavily on robots, but also on immigrant labor. Their efficiency is high, but not as high as Toyotas plants, whichincorporate the concept ofkaizen, constant improvement. While this is a cultural mind-set, a similar approachcould be taken to improve the efficiency of European car manufacturing plants.


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Bayerische Motoren Werke AG


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Company Portrait

Bayerische Motoren Werke G.m.b.H. came into being in 1917, having been founded in 1916 as BayerischeFlugzeugwerke AG (BFW); it became a stock corporation in 1918. The BMW Group one of Germanys largestindustrial companies is one of the most successful car and motorcycle manufacturers in the world. With BMW,MINI and Rolls-Royce, the BMW Group owns three of the strongest premium brands in the automobile industry.T

he vehicles it manufactures set the highest standards in terms of aesthetics, dynamics, technology and quality,borne out by the companys leading position in engineering and innovation. In addition to its strong position in themotorcycles market with the BMW and Husqvarna brands, the BMW Group also offers a successful range offinancial services The BMW Group will continue in this vein in the coming years

8.

Web Page

http://www.bmwgroup.com

Primary SIC

3711 Motor Vehicles and Car Bodies

Primary NAICS

336211 Motor Vehicle Body Manufacturing

Secondary SICs

3751 Motorcycles, bicycles and parts3724 Aircraft engines and engine parts3829 Measuring and controlling devices6141 Personal Credit Institutions

Secondary NAICSs

336991 Motorcycle, Bicycle and Parts Manufacturing336412 Aircraft Engine and Engine Parts Manufacturing334519 Other Measuring and Controlling Device Manufacturing522210 Credit Card Issuing

Incorporation Year1916

Official Correspondence Address

BMW AGPetlring 130Munich, D-80788Germany

Telephone Number

+49.89.382.0

Basic Data

Exchange(s): Frankfurt Stock Exchange (DAX 30)9

Stock Ticker: BAMXFPublicly traded since: 1918Shares Outstanding: 655,160,000

10

Market Value: 39.339 billionFiscal year end: 12/31

82010 BMW Annual Report p2

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Employees: 95,450 (end 2010)Subsidiaries: Rolls-Royce Motor Cars, BMW Motorrad, Husqvarna

Products (or Brands)

BMW, MINI, Rolls-Royce

Competitors

Daimler-ChryslerFordVolkswagenGeneral MotorsToyotaHonda

Geographic Operation Areas

Ranked in order ofSales11

1. Germany 2. Europe (excluding Germanyand UK)

3. North America4. Asia/Oceania 5. UK 6. Other (South America,

Africa)

History12

BMW's logo speaks to its origin: a propeller in blue and white, the colors of Bavaria. In 1913 Karl Rapp opened anaircraft-engine design shop near Munich

13. He named it Bayerische Motoren Werke (BMW) in 1917. The end of

WWI brought German aircraft production to a halt, and BMW shifted to making railway brakes until the 1930s.BMW rolled out its first motorcycle, the R32, in 1923, and the company began making automobiles in 1928 afterbuying small-car company Fahrzeugwerke Eisenach.In 1933 BMW launched a line of larger cars. The company built aircraft engines for Hitler's Luftwaffe in the 1930sand stopped all auto and motorcycle production in 1941. BMW chief Josef Popp resisted and was ousted. Underthe Nazis, the company operated in occupied countries, built rockets, and developed the world's first production

jet engine.With its factories dismantled after WWII, BMW survived by making kitchen and garden equipment. In 1948 it

introduced a one-cylinder motorcycle, which sold well as cheap transportation in postwar Germany. BMW autos inthe 1950s were large and expensive and sold poorly. When motorcycle sales dropped, the company escapeddemise in the mid-1950s by launching the Isetta, a seven-foot, three-wheeled "bubble car."Herbert Quandt saved the enterprise in 1959 by buying control for $1 million. Quandt's BMW focused on sportssedans and released the first of the "New Range" of BMWs in 1961. Success of the niche enabled BMW to buyautomaker Hans Glas in 1966.The company bought UK carmaker Rover from British Aerospace and Honda in 1994 and introduced a cheapervehicle, the four-wheel-drive Discovery. It launched Highlander Land Rover in 1996 to meet a growing demand for4x4 utility vehicles.BMW offered to buy the luxury Rolls-Royce auto unit (including the Bentley) from UK-based Vickers in 1998, butlost out when Volkswagen (VW) countered with a higher offer. The company fared better, however, when aircraftengine maker Rolls-Royce sold the Rolls-Royce auto brand name and logo to BMW for $66 million. (VW got to use

the name until 2003.) Also in 1998 BMW was hit by a class-action lawsuit brought by Holocaust survivors seekingcompensation for their work as slave laborers during WWII.In mid-1998 BMW began cutting jobs at its money-losing Rover unit. As Rover's plants continued their downwardtrend in 1999, BMW's board forced out chairman Bernd Pischetsrieder, who spearheaded the Rover acquisition in

11BMW Group Vehicle Manufacturer Strategic Insight

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1994. The UK later pledged to help pay for renovations at Rover's Longbridge plant to save about 14,000 jobs andprevent it from moving operations to Hungary.The company in 2000 sold its Land Rover SUV operations to Ford in a deal worth about $2.7 billion. Also that yearBMW handed over its Rover Cars operations and MG brand to the Phoenix Consortium, a UK-based group led byformer Rover CEO John Towers.In 2001 BMW launched its MINI brand in the UK; other European markets soon followed. BMW brought the MINI

Cooper to US shores in 2002. The following year BMW took control of the Rolls-Royce brand from Volkswagen, andbegan making Rolls-Royce Phantoms in Goodwood in the south of England.Despite selling the operations of Rover in 2000, BMW still retained the rights to the brand. In 2006 BMW agreed tosell the Rover brand to an unidentified buyer at an undisclosed price, although Dow Jones Newswires reported thebuyer was Shanghai Automotive Industry Corp. and the price was nearly $21 million. That deal, however, wasderailed a month later when Ford Motor said it would exercise its right of first refusal agreement with BMW andtake control of the brand for about $11 million.

Description of Business

Bayerische Motoren Werke (better known as BMW) is one of Europe's top automakers. BMW's carofferings include sedans, coupes, convertibles, and sport wagons in the 1 Series, 3 Series, 5 Series, 6 Series, and 7Series model groups. Other models include the M3 Coupe and Convertible, M5 Sedan, and the M6 Coupe andConvertible; the X3 and X5 sport utilities; and the Z4 roadster. In addition to its BMW automobiles, the company's

operations include motorcycles (K 1200 GT, R 1200 GS, and R 1150 R models, among others), the MINI automotivebrand, Rolls-Royce Motor Cars, and software (softlab GmbH). BMW's motorcycle division also offers a line ofmotorcycling apparel such as leather suits, gloves, and boots.BMW has opened up a joint-venture in China (with local partner Brilliance China Automotive Holdings Ltd.) forproduction of BMWs for that market. The company is also looking out for opportunities in Eastern Europe asnations there join the European Union. BMW is also working to set up a manufacturing and dealer presence inIndia to bolster its Asian strategy as Asia is the fastest-growing geographical segment of the automotive market.The new 7-Series will be capable of burning hydrogen as well as gasoline. When in hydrogen mode its onlyemission is water vapor. Due to the new sedan's high price, it will only be available for lease to select BMWcustomers. BMW is also working on fuel cell-powered cars, but is launching the hydrogen/gasoline 7-Series first asit is more practical for the near-term.Germany's Quandt family controls BMW

14.

Vision

With BMW, MINI and Rolls-Royce Motor Cars, the BMW Group is the world's only car maker to pursue a purelypremium strategy for all market sectors covered by its brands, from exclusive smaller cars to top-of-the-rangeluxury limousines.

15

Mission

"To be the most successful premium manufacturer in the industry."16

Strategy Statement

y Identifying potential and encouraging growthy Knowing what we representy Recognizing where our strengths lie and making the best use of every opportunity17

Job Information

The human factor is the No. 1 criterion in determining a company's relative success. Accordingly, we see ourassociates not as a cost factor, but instead as an essential performance factor. This is especially true because any

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15http://www.bmwgroup.com

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human resources policy that is not oriented towards the associate will always lead to negative cost effects in thelong run, thus proving uneconomical.As a future-oriented company, we seek to pursue an exemplary, creative and associate-oriented human resourcespolicy, making significant contributions to business success through our human resources activities. The humanresources policy of the BMW Group is an integral feature of our overall corporate policy in both strategic andoperative decisions.

18

Assessment ofCompany

Past Performance

BMW has been on the rise ever since mid march. During that month the company took a big hit and lost a lot ofpoints in the stock market. The cost of raw material is still high and now with gas prices going up people arelooking for more miles per gallon in their car. BMW financial services operations also enjoyed a brisk business in2010.High oil prices have driven up costs for plastics, and steel prices also remain high.

Future Opportunities

Group revenues rose steeply, reflecting the overall strong sales volume performance of the BMW Group. Stronggrowth was recorded for both the third quarter and the nine-month period. BMW wants to sell 1.8 million vechiles

per year by 2010. Now with the SUV line expanding with the 1 series and producing a four door grand turismo carrevenues will climbThe Group's reported results benefited accordingly from the rise in revenues. The third-quarter profit beforefinancial result (EBIT), for example, increased by euro 1,137 million to euro 1,192 million (2009: euro 55 million),while the nine-month EBIT increased by euro 3,189 million to euro 3,358 million (2009: euro 169 million).

With a great market potential, and a huge customer base that is loyal to BMW, if BMW continues to designadvanced modern cars, its growth potential is nearly unlimited.

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General Motors Corporation


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Company Portrait

General Motors Corporation and its subsidiaries engage in the development, production, and marketing of cars,trucks, and parts worldwide. It offers small, midsize, sports, and luxury cars; and pickup, van, utilities, and mediumduty trucks. The company sells its products under the Chevrolet, Buick, Saab, GMC, Pontiac, Cadillac, Hummer, andSaturn, Opel, Vauxhall, Isuzu, Holden, and Daewoo brand names in Canada, Europe, Latin America, and Asia Pacific.It also provides a range of financial services, including consumer vehicle financing, automotive dealership and

other commercial financing, residential mortgage services, automobile service contracts, personal automobileinsurance coverage, and commercial insurance coverage. In addition, the company offers after sale services, suchas maintenance, light repairs, collision repairs, and vehicle accessories. General Motors markets its productsthrough distributors and dealers, as well as through retail dealers. The company was founded in 1908 and is basedin Detroit, Michigan

19.

Web Page

http://www.gm.com

Primary SIC

3711 Motor Vehicles and Car Bodies

Primary NAICS

336211 Motor Vehicle Body Manufacturing

Secondary SICs

3714 Motor vehicle parts and accessories6153 Short-term business credit6141 Personal credit institutions6159 Misc. business credit institutions6331 Fire, marine, and casualty insurance

Secondary NAICSs

336350 Motor Vehicle Transmission and Power Train Parts Manufacturing522291 Consumer Lending522220 Sales Financing

524126 Direct Property and Casualty Insurance Carriers517410 Satellite Telecommunications

Incorporation Year

1916

Official Correspondence Address

300 Renaissance CenterDetroit, MI 48265-3000 United States

Telephone Number

313-556-5000

Basic DataExchange(s): NYSEStock Ticker: GMPublicly traded since: 1916Shares Outstanding: 1.560 billionMarket Value: $48.804 billion

20

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Fiscal year end: 12/31Employees: 202,000

21

Subsidiaries: OnStar, Adam Opel AG, GM Holden Ltd, GM Financial, Vauxhall Motors, GM Korea, General Motorsdo Brasil

Products (or Brands)22

Chevrolet Buick Pontiac GMCSaturn Hummer Saab CadillacHolden Opel Vauxhall OnStarXM Satellite Radio

Competitors23

Daimler-ChryslerFordToyota

Geographic Operation Areas24

USA Canada Germany AustraliaChina Poland United Kingdom Sweden

Thailand South Korea Brazil BelgiumArgentina South Africa Mexico SpainPortugal

History25

In the early years of the auto industry, hundreds of carmakers each produced a few models. William Durant, whobought a failing Buick Motors in 1904, reasoned that manufacturers could benefit from banding together andformed the General Motors Company in Flint, Michigan, in 1908.Durant bought 17 companies (including Oldsmobile, Cadillac, and Pontiac) by 1910, the year a bankers' syndicateforced him to step down. In 1915 he regained control when he formed a company with racecar driver LouisChevrolet. They soon formed GM Acceptance Corporation (GMAC, financing) and bought businesses includingFrigidaire (sold in 1979) and Hyatt Roller Bearing.With Hyatt came Alfred Sloan (president, 1923-37), who built GM into a corporate colossus via a decentralizedmanagement system. Unlike Ford -- which offered cars in any color you liked as long as it was black -- GM offered arange of models and colors; by 1927 it was the industry leader. It bought Vauxhall Motors (UK, 1925), merged withIn the post-war boom years GM expanded with the nation; the good times rolled until Japanese automakersbecame established in the 1970s. GM spent much of the decade trying to emulate the Japanese while making itscars meet federal pollution-control mandates. CEO Roger Smith laid off thousands of workers.In 1984 GM formed New United Motor Manufacturing (NUMMI) with Toyota to see ifToyota's manufacturingtechniques would work in the US. GM also bought Electronic Data Systems (1984), Hughes Aircraft (1986), and 50%ofSaab Automobile (1989). GM launched the Saturn car in 1990; that year Robert Stempel became CEO. In 1992GM made what was the largest stock offering in US history ($2.2 billion), and Jack Smith replaced Stempel as CEO.President Rick Wagoner replaced Smith as CEO in June 2000. Also in 2000, GM and Fiat entered talks to acquireDaewoo Motor after Ford withdrew its bid for the South Korean carmaker. GM announced in December that itwould phase out its Oldsmobile division (the last Oldsmobile rolled off the assembly line in 2004) and cut its

salaried workforce by 10%.

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http://www.gm.com/23

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In 2001 GM paid about $600 million to double its stake in Suzuki to 20%. That year GM submitted a bid (reportedlyaround $776 million) to take over Daewoo Motor. The company also announced that it would spend $340 millionon a joint venture with AvtoVAZ (Russia's biggest automaker) to build 75,000 SUVs a year.As GM reportedly neared a deal in 2001 to combine Hughes Electronics (and DIRECTV) with Rupert Murdoch'sNews Corp., EchoStar -- the US's #2 satellite TV business -- made a $32 billion all-share offer for Hughes (Echostar'soffer later dropped to $26 billion after News Corp. dropped out of the bidding). The deal later fell through when it

was blocked by the FCC.Later in 2001 GM announced that it planned to discontinue the once popular Chevrolet Camaro and PontiacFirebird models.The following year GM took a 42% stake in South Korea's bankrupt Daewoo Motor (now named GM Daewoo Auto& Technology Company) for $251 million. GM entered the Daewoo deal with partners Suzuki (which took a 15%stake) and Shanghai Automotive Industry Corp. (which has a 10% stake). The remaining 33% of the venture is heldby GM Daewoo's creditors. GM later increased its stake in GM Daewoo to 49% and then again to 50%.Meanwhile, GM retooled its relationship with Isuzu Motors. Through a recapitalization, GM's stake in Isuzu wasreduced to 9%. As 2002 wound to a close Fiat sold its entire stake in GM to an unnamed investment bank fornearly $1.2 billion.Early in 2003 GM completed the sale of its defense unit (armored vehicles) to General Dynamics for $1.1 billion.Later that year GM finally made a deal to unload its 20% stake in Hughes Electronics by agreeing to sell its sharesto News Corp. in a transaction valued at about $3.1 billion. The deal was completed in the waning days of 2003.The company announced in 2004 that the headquarters for its Asia Pacific operations would move from Singaporeto Shanghai.2004 also marked the last model year for GM's Oldsmobile brand. The world's last Oldsmobile rolled off theassembly line in June 2004 -- almost 100 years after GM first bought the brand. Later in 2004 GM wrote its first carloan in China through a joint venture with its Chinese partner Shanghai Automotive Industry Corp., and in so doingbecame the first western car company to offer auto loans to Chinese consumers.In October 2004 GM announced it would trim 12,000 jobs in Europe (one-fifth of its European workforce) in hopesof saving its ailing Continental operations about $618 million per year.Early in 2005 GM sold its money-losing locomotive manufacturing operations (GM Electro-Motive) to GreenbriarThe deal could have forced GM to purchase the remaining stake in Fiat's troubled automotive operations that itdidn't already own. Instead GM paid $2 billion to make the whole mess go away. GM and Fiat have since dissolvedtheir joint venture operations and gone their separate ways.

Later that year GM sold its stake in Fuji Heavy Industries, maker ofSubaru passenger vehicles. Their collaborationnever bore the desired fruit and GM sold just under 9% of its 20% stake to Toyota Motor for about $315 million.GM's remaining 11% stake was sold back to Fuji as part of Fuji's open market buyback program and throughregular stock sales.

Description of Business

General Motors (GM) has steered around competitors to remain the world's #1 maker of cars and trucks, withbrands such as Buick, Cadillac, Chevrolet, GMC, Pontiac, Saab, and Saturn. GM also produces cars through itsHolden, Opel, and Vauxhall units, and heavy-duty transmissions through Allison Transmission. GM also has stakesin Suzuki Motor, and GM Daewoo Auto & Technology. Subsidiary GMAC provides financing. GM has been sellingoff non-core assets including stakes in Fiat and Fuji Heavy Industries (Subaru), as well as its locomotivemanufacturing business.The Chapter 11 filing of former GM parts subsidiary Delphi Corp. cast a shadow of potential bankruptcy on GM

after the automaker reported a staggering 2005 loss of $10.6 billion.Health care costs have been an albatross hanging over GM's head for years. To address its health care woes GMhas hammered out a tentative deal with the United Auto Workers (UAW) union that would reduce GM's payout forretiree health care by about $15 billion while cutting employee health care costs by about $3 billion. In anotherUAW-GM scheme, GM offered to finance the early retirement of thousands of unionized GM and Delphi workers.Ultimately, about 35,000 hourly employees, or about one-third of GM's hourly workforce, accepted the buyouts.The better-than-expected reaction to the buyout offers puts GM about two years ahead of schedule for planned

job cuts. The deals also make a work stoppage at Delphi less likely. In addition to hourly job cuts, GM has alsoannounced it would cut 7% of its white collar positions, or about 2,500 jobs.


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To help pay the bills while it restructures GM has sold some assets. GM's finance arm, GMAC, has sold a 78%equity stake in its commercial mortgage business to a private equity consortium including Kohlberg Kravis Roberts& Co., Five Mile Capital Partners, and Goldman Sachs Partners. The deal raised nearly $9 billion for GMAC. GM hasalso sold a 51% stake in GMAC to a consortium of investors led by Cerberus Capital Management for $14 billion.The move will raise much-needed cash for GM and the carmaker hopes it will return the financing unit's creditrating back to investment grade status.

Outside of North America GM's fortunes don't look as bleak. With the world's largest pool of potential drivers,China's automotive market is experiencing explosive growth. GM's unit sales keep climbing in China and thecompany has increased its market share.GM is trying to work with its GM Europe division by bringing the operations of its Opel, Saab, and Vauxhallsubsidiaries under tighter, centralized control. GM has done away with the individual finance, engineering,marketing, purchasing, and manufacturing controls at Adam Opel, Saab, and Vauxhall by moving those functions toGM Europe headquarters in Zurich. The three brands will also share a common, pan-European design team. Thereorganization does not include plant closings or layoffs, but rather seeks to achieve cost savings by sharingplatforms and eliminating duplication of effort

26.

Vision27

Our vision is to be the world leader in transportation products and related services. In order to achieve this vision,we recognize that many issues must be addressed and many goals attained. It is imperative that economic,

environmental and social objectives be integrated into our daily business objectives and future planning activitiesso that we can become a more sustainable company.

Mission28

GM does not differentiate between a corporate mission and vision.

Strategy Statement29

Technologyis the most efficient way we can address many current issues, such as fuel efficiency and climatechange. It is through our products that most of the impacts arise and through which many of the solutions can bereached. Our strategy is to accelerate the development and deployment of new technology while at the same timeimproving existing technology.Innovation is not a new priority for GM. In our increasingly competitive global industry, marked by excess capacityand a growing number of strong global competitors, innovation is critical to our future success. Innovation

provides us with the tools needed to develop new ways of doing things, such as new concepts of mobility, as wellas new ways of working, both as a company and with others.Partnerships with stakeholders and others are also an important part of doing business. We recognize that wemust continue our long history of building strong partnerships with our employees, industries, governments,markets, communities, and others in order to be responsive to the needs and concerns of our variousstakeholders. These partnerships are needed in order to create a sustainable future.

Job Information

The following is a list of standards which all GM employees are held to.

y Collaborates proactively on global issues and drives for team success.y Encourages teamwork.y Leverages ideas, concepts, products and processes for GM units around the world.y Leads teams effectively within and across organizations/borders.y Encourages others to look beyond individual organizations and focus on GM's success.y Stimulates external and internal exploration, benchmarking and learning.

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27http://www.gm.com/company/gmability/sustainability/reports/01/ /vision_strategy/index.html

28 2010 Annual Report29 http://www.gm.com/company/gmability/sustainability/reports/01/ /vision_strategy/index.html


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y Understands customers, markets and competitors, and focuses on customer requirements and customerenthusiasm.

y Sets and deploys high-impact, stretch goals and objectives focused on making GM the best.y Makes stretch "the very best we can do" -- 1 in 10 -- benchmark performance.y Understands, measures and manages intelligent risks.y Motivates, stimulates and supports efforts to deliver results that achieve competitive advantage.y Monitors, evaluates, coaches and rewards based on performance and results that really make a difference.y Champions fast implementation of leading-edge changes.y Eliminates bureaucracy and slowness.y Ensures that speed and cycle times are understood, measured and improved.y Inspires and leads employees and teams to pursue "GoFast!" opportunities.y Is decisive and empowers others to make decisions based on performance and integrity.y Seeks feedback from others on ways to go fast; is respectful and responsible.y Focuses on the customer: links customer needs and wants to innovation and product development.y Integrates across functions to address customer needs.y Embraces excellence and innovation: leads efforts to create value-added products and services.y Supports initiatives focused on "designing, building and selling" excellent products and services to our

customers.

y Questions conventional thinking on products and services.y Never compromises safety.Assessment ofCompany

Past Performance

In the late 1990s, GM had regained market share; its stock had soared to over $80 a share by 2000. However, in2001, the stock market drop following the September 11, 2001 attacks, combined with historic pensionunderfunding, caused a severe pension and benefit fund crisis at GM and many other American companies and thevalue of their pension funds plummeted. A weak U.S. dollar and private health care (as opposed to nationalizedhealth care in other countries) costs also put GM at a disadvantage to its Japanese, Korean, and Europeancounterparts. In successive moves, GM responded to the crisis by fully funding its pension fund; however, its OtherPost Employment Benefits Fund (OPEB) became a serious issue resulting in downgrades to its bond rating in 2005.The company expressed its disagreement with these bond rating downgrades. In 2006, GM responded by offeringbuyouts to hourly workers to reduce future liability; over 35,000 workers responded to the offer, well exceedingthe company's goal. GM has gained higher rates of return on its benefit funds as a part of the solution. Stock valuehas begun to rebound - as of October 30, 2006 GM's market capitalization was about $19.19 billion. GM stockbegan the year 2006 at $19 a share, near its lowest level since 1982, as many on Wall Street figured the ailingautomaker was bound for bankruptcy court.

Future Opportunities

The outlook for the US automotive industry for the rest of the year is not bad, concidering that since the change ofGMs CEO the sales are increasing and the company has already turned a profit in the first quarter. The Big Threesprogress is expected to be limited for the year, shaped by softened domestic demand, due to the growing impactof higher lending rates. Lower interest rates, which supported market growth in recent years, have becomeunsustainable.American brands are no longer the preferred choice, with heavyweights such as GM and Ford losing more marketshare, while DaimlerChrysler struggles to stay cost competitive. However, the aggressive restructuring strategiesput in place by the Big Three should see improved results for the rest of the year. GMs redundancy program andcost-cutting efforts have had a noteworthy effect on its profits and cash flow generation ability. Domesticautomakers are shrinking in size to regain traction, resulting in a significant reduction in manufacturing jobs. On a


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positive note, hiring by Japanese and South Korean transplants is offsetting job losses as the industry undergoes apainful shakeout

30.

With a challenging industry and many problems, GM has a lot of work to do to be able to stay profitable. Yet,theyre plan seems to work as sales are rising and the cost of those sales are going down.

30 The North-America Automotive Sectors Published by MergentOnline


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Career Development Center (CDC)

Rsum Assistance

The CDC has great rsum help online. First, they have an overview page depicting and explaining the six step

process to finalizing your rsum.T

hen, they link to a University of Minnesota website which goes through asimilar six step process in great detail. The steps they have listed are: Gathering information, deciding what toinclude, choosing a format, sections of a rsum, writing a draft, and critique/revision. The site takes about half anhour, and afterwards you are fully educated on how to create your own rsum.

Interviewing Assistance

The CDC has a great page about Interview preparation. It goes through what preparations should be donebeforehand, things to do and not to do during the interview, things to say and not to say, and proper behaviorafter an interview. Further, it has a list of potential questions which can be asked during the interview. I found thisespecially helpful during an interview for my summer internship.

Job Search Assistance

Redhawk Joblink is the job listing database which the CDC uses. It works like Monster, students sign up and pay

their $5 fee, and then they have access to all the job listings and can post their rsum online for corporations toview. Further, the CDC holds multiple career fairs each year, and gives training sessions on how to get the most outof them.

Business Etiquette Assistance

The CDC does a great job of helping to turn the college kid into a business professional. Everything from personalappearance to correct language use is discussed on their website. Whats also mentioned is what to do inuncomfortable situations, such as when an illegal question is asked during a job interview.

Your Suggested Improvements

I feel that the CDC is distant from campus. I mean this as in terms of student involvement. The only time I cameacross them was during the rsum presentation and the career fair. An event during NRB would help the CDC getbetter connected, especially during the first couple years of college.

As I was looking through the Joblink site with someone, it seemed very complex and hard to navigate. Maybe thisarea could be restructured to be simpler. However, looking through corporate career databases, I noticed thatthose too are complex as well.


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Appendix A-BMW

A1 Corporate Governance and Operations

A1-1 Auditor/Accountant

KPMG Deutsche Treuhand-Gesellschaft AG31

A1-2 Board of Directors

Name Affiliation (Company and Title) Age

Milberg, Joachim Chairman of the Supervisory Board 43

Reithofer, Norbert Chairman of the Management Board 55

Schoch, Manfred Deputy Chairman of the SupervisoryBoard, Employee Representative

56

Quandt, Stefan Deputy Chairman of the SupervisoryBoard

45

Schmid, Stefan Deputy Chairman of the SupervisoryBoard, Employee Representative

46

Kley, Karl-Ludwig Deputy Chairman of the SupervisoryBoard

60

Eichiner, Friedrich Member of the Management Board,Chief Financial Officer

56

Loechelt, Dieter General Counsel

Robertson, Ian Member of the Management Board,Head ofSales and Marketing

53

Krueger, Harald Member of the Management Board,Head of Human Resources, IndustrialRelations Director

46

Arndt, Frank-Peter Member of the Management Board,Head of Production

55

Draeger, Klaus Member of the Management Board,Head of Development

55

Diess, Herbert Member of the Management Board,Head of Purchasing and SupplierNetwork

53

Klatten, Susanne Member of the Supervisory Board 49

Loew, Willibald Member of the Supervisory Board,Employee Representative

55

Zierer, Werner Member of the Supervisory Board,Employee Representative

52

Oberlaender, Franz Member of the Supervisory Board,Employee Representative

59

Haniel, Franz Member of the Supervisory Board 56Mayrhuber, Wolfgang Member of the Supervisory Board 64

Eichler, Bertin Member of the Supervisory Board,Employee Representative

59

Ruf, Anton Member of the Supervisory Board,Employee Representative

58

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Huettl, Reinhard Member of the Supervisory Board 54

Schmidt, Maria Member of the Supervisory Board,Employee Representative

57

Koecher, Renate Member of the Supervisory Board 58

Lane, Robert Member of the Supervisory Board 62

Lischka, Horst Member of theS

upervisory Board,Employee Representative 48

Wechsler, Juergen Member of the Supervisory Board,Employee Representative

56

Kagermann, Henning Member of the Supervisory Board 64

A1-3 Operating Officers

Name Position/Title32

Age Compensation (2009)33

(US$)

JoachimMilberg Chairman Supervisory Board 148,484Stefan Quandt Deputy Chairman Supervisory Board 98,989Stefan Schmid Deputy Chairman Supervisory Board 98,989

Manfred Schoch Deputy Chairman Supervisory Board 98,989Jrgen F. Strube Deputy Chairman Supervisory Board 43 98,989Norbert Reithofer Chairman Management Board 55 755,916Friedrich Eichiner Member Management Board Finance 56 377,958

A2 Selected Condensed Financials

A2-1 Income Statement34

$ US (millions) 2010 2009 2008

Net Sales 64,644.4 55,254.7 60,472.9Cost of Sales 65,679.60 65679.60 62473.3Gross Margin 18% 10.5% 16.7%Operating Expenses 6,750.60 414.2 1,298.10Depreciation/Amortization N/A 7,657.7 7,562.0Net Income 4,285.70 301 465.1EPS Basic

35 1.822 4.47 4.47

EPS Diluted36

1.822 4.45 4.45

A2-2 Balance Sheet37

$ US (Millions) 2010 2009 2008

Assets

Cash 9,848.9 11,131.7 10,506.4

Receivables N/A N/A N/AInventories 10,291.5 9,394.6 10,275.3TotalCurrent Assets 57,183.7 57,247.7 54,505.4

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33 BMW Annual Report 201034

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Total Assets 144,270.5 146,119.0 142,480.7

Liabilities

Long Term Debt N/A N/A N/ACurrent Liabilities 53,185.6 52,912.3 55,375.0Total Liabilities 113,658.4 117,576.9 113,905.9

Equity

Common Stock Equity 30,612.1 28,542.2 28,563.5Shares Outstanding (thou.) 601,995.2 601,995.2 601,995.2

Appendix B-General Motors

B1 Corporate Governance and Operations

B1-1 Auditor/Accountant38

Deloitte & Touche LLP

B1-2 Boa

rdo

f Directo

rs

39

Name Affiliation (Company and Title) Age

Akerson, Daniel Chairman of the Board, Chief Executive Officer 62Stephens, Thomas Vice Chairman of the Board, Global ChiefTechnology Officer 62Girsky, Stephen Vice Chairman of the Board 48Ammann, Daniel Chief Financial Officer, Senior Vice President 38Millikin, Michael GM Senior Vice President, General Counsel 62Barra, Mary GM Senior Vice President - Global Product Development 49Cyprus, Nicholas GM Vice President, Chief Accounting Officer, Controller 57Kline, Terry GM Vice President - Information Technology, Chief Information

Officer49

Ewanick, Joel GM Vice President, Global Chief Marketing Officer 50

Lee, Timothy GM Vice President & President - International Operations 60Reilly, David GM Vice President & President, Europe 61Reuss, Mark GM Vice President & President, North America 47Ardila, Jaime GM Vice President & President - South America 55Bingol, Selim GM Vice President - Global Communications 50Russo, Patricia Independent Lead Director 58Bonderman, David Independent Director 68Davis, Erroll Independent Director 66Isdell, E. Neville Independent Director 67Krebs, Robert Independent Director 68Laskawy, Philip Independent Director 70Marinello, Kathryn Independent Director 54Stephenson, Carol Independent Director 60Telles, Cynthia Independent Director 58

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B1-3 Operating Officers40

Name Position/Title Age Compensation (2010)41

(US $)

G. R. Wagoner, Jr. Chairman N/A 1,558,333F. A. Henderson Vice Chairman N/A 1,279,167R. A. Lutz Vice Chairman, Global Product

Development

N/A 1,279,167

G. L. Cowger Group Vice President N/A 900,000T. G. Stephens Group Vice President N/A 825,000

B2 Selected Condensed Financials

B2-1 Income Statement42

$ US (millions) 2010 2009 2008

Net Sales 135,592.0 104,589.0 148,979.0Cost of Sales 118,792.0 112,195.0 149,257.0Gross Margin 12.4% -7.3% -0.2%Operating Expenses 6,172.0 104,821.0 (30,943.0)

Depreciation/Amortization 6,923.0 190.0 749.0Net Income 6,172.0 104,821.0 (30,943.0)EPS Basic 2.996 2 2EPS Diluted 2.767 4.94 7.14

B2-2 Balance Sheet43

$ US (Millions) 2010 2009 2008

Assets

Cash 21,061.0 22,679.0 14,053.0Receivables 16,896.0 7,518.0 7,918.0Inventories 12,125.0 10,107.0 13,195.0TotalCurrent Assets 62,340.0 59,247.0 44,267.0Total Assets 138,898.0 136,295.0 91,039.0

Liabilities

Long Term Debt 3,014.0 5,562.0 29,018.0Current Liabilities 47,157.0 52,435.0 75,608.0Total Liabilities 102,718.0 115,046.0 176,599.0

Equity

Common Stock Equity 25,789.0 21,249.0 (85,560.0)Shares Outstanding (thou.) 1,500,137.0 N/A N/A

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412010 GM Annual Report

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Appendix C-Some Relevant Financial Ratios44

Industry Norm

BMW GM UQ Median LQ

Solvency

Quick Ratio .76 .87 1.1 .8 .3Current Ratio 1 1.13 2.2 1.6 1.2Current Liabilities to Net Worth (%) 76.96 780.80 51.7 78.2 125.7Current Liabilities to Inventories (%) 420.02 341.40 84.2 114.7 193.3Total Liabilities to Net Worth (%) 161.49 316.48 70.7 105.9 248.0Fixed Assets to Net Worth (%) 30.40 57.10 22.1 26.4 63.1

Efficiency

Collection Period (days) 17 29 18.6 30.9 41.3Sales to Inventory 7.21 5.77 11.6 7.3 4.2Assets to Sales (%) 161.35 247.18 35.7 48.3 58.1Accounts Payable to Sales (%) 7.63 59.17 3.1 5.7 10

ProfitabilityReturn on Sales (%) 8.07 (5.49) 6.2 2.2 .8Return on Assets (%) 3.09 (2.22) 15.9 5.3 2.1Return on Net Worth (%) 7.74 (72.39) 25.5 11.1 4.6

44 Could not find more up to date info. Info from 2006-2007

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