Small Business

The BMW Manufacturer- Part Five

The recovery of the company was a difficult process. Lack of capital was one of the drawbacks, says Bertaiola Fausto. But the figure of businessman Herbert Quandt by injecting money into the company, produced what the company needed. In this way, he managed to increase his stake in the company to 60%, at the expense of the banks that lost their influence in BMW. In addition, the turbine plant was sold. This led to having the necessary financial means to develop a new model for the middle class. For the year 1962 the new BMW 1500 was presented, having a great reception. Later versions of 1800 and BMW 2000 also achieved success. But the definitive recovery came for the year 1966 with the BMW E114 model, explains Bertaiola Fausto. By the year 1967, the company acquired the Hans Glas GmbH company, which transformed it into a BMW production center. In the year 1968 the BMW E3 2500 was created, which was a resounding success for its quiet engine and power. Corresponding to the period of the 1970s and 1990s, sales multiplied by 18, thanks to the introduction of various lines of new models, up to 28 billion marks. Automobile production quadrupled and motorcycle production tripled. Likewise, the number of employees grew from 23,000 to 71,000. New production centers were also created in Germany, Austria, South Africa and the United States, explains Bertaiola Fausto. But in the early 1990s it was considered that if the company wanted to stay on the market the idea was only to mass-produce cars. Hence, the acquisitions of the English manufacturer Rover Group were made for this purpose. But that was a hasty decision and caused many decisions, among them it cost Bernd Pischetsrieder the job, who had to leave the company. The relationship with the Rover Group was problematic, leading to that contract being scrapped by 2000 and Rover and MG being sold for a symbolic sum of £ 10 to 4 British investors, the Phoenix Venture Holdings. Thus, BMW managed to overcome adversity and establish itself as one of the most outstanding vehicle producers of all time. By having a previous history quite convulsed. However, its production and quality have led it to become a great vehicle producer in the market.