BMW is probably one of the best-known luxury car names out there in the world today. Some identify with the brand because it's a status symbol while others find themselves in the driver's seat for the pure thrill of the ride.
Sales for the German car giant were rising until the COVID-19 pandemic depressed car purchases. In 2020, the company reported sales of more than 2.3 million vehicles worldwide, down from 2.5 million in 2019. The company, which had a market capitalization of more than $55.2 billion as of April 23, 2021, topped the list of the American luxury car market.
Getting to this point involves a lot of different entities, including the company's suppliers. Keep reading to find out more about BMW and about some of the companies that make up its supplier network.
- BMW is one of the world's largest high-end automakers, with a global presence and a household name.
- To become efficient on the global stage, BMW relies on a complex network of suppliers for its cars.
- While some suppliers have become integrated into the company itself, many still operate as third-party vendors under contract.
A Brief History of BMW
Most of us know the company as BMW but the company's full name is Bayerische Motoren Werke. Founded in 1916, the corporation is headquartered in Munich. The company manufactures cars and motorcycles in 31 production facilities in 15 different countries.
As mentioned above, the company sold more than 2.3 million cars to consumers around the world in 2020. This includes models from all three of the company's business segments—BMW, Rolls-Royce, and MINI, as well as 169,000 motorcycles. BMW is among the big three German manufacturers of luxury automobiles—along with Mercedez-Benz and Audi—and is one of the biggest-selling luxury car makers worldwide.
Expanding Market Segments
BMW followed other automakers by expanding into emerging markets, such as China and India. The company established manufacturing plants in both of those countries in the early 2000s. For instance, the Chennai, India plant was opened in 2007.
In 2014, BMW moved to access other important emerging market economies by establishing production plants in Brazil and Mexico. By pushing into emerging markets, BMW is focused on establishing its own production and marketing its own brand rather than entering into strategic joint venture partnerships with existing automakers native to the country.
If you want to invest in BMW, you can purchase an American depositary receipt (ADR), which is a negotiable certificate issued by a U.S. bank that represents a specific number of shares of a foreign company's stock.
To manufacture its automobiles, BMW depends upon a network of over 100 auto parts suppliers from all over the globe, though approximately 43% of its suppliers are either located in Germany or are subsidiaries of German-based companies.
Roughly another 34% of BMW's suppliers are headquartered in other European countries, with about a 55-45 split between Western European countries and Eastern European nations.
BMW emphasizes consciousness toward environmental issues, developing sustainability guidelines for its suppliers. Examples include the guideline for use of recycled aluminum in parts and BMW's EfficientDynamics concept, developed to enhance fuel efficiency and reduce emissions. In fact, the company has featured in the Dow Jones Sustainability Index (DJSI) every year since 1999, taking the top spot in 2020, beating out 38 other car companies in the automobiles section.
The following is a list of some of BMW's automotive parts suppliers (either current or previous suppliers), along with the component parts that they've supplied:
- Brembo: This company provides brake calipers
- Dräxlmaier Group: Supplier of interior panels
- Peiker Acustic GmbH: Provider of high-speed mobile Internet for cars. In 2012, BMW became the first automaker to introduce this feature.
- Thyssenkrupp: Supplies steering columns, shock absorbers, and suspension parts
- BorgWarner: Provider of drivetrain components, such as clutches and automatic transmissions
- Elringklinger: Maker of gaskets and exhaust system components
- Mahle: Supplies piston and cylinder components, valve train systems, and air and liquid management systems
- Bridgestone: Supplier of tires
- GKN Driveline: Provides axle assemblies
- Johnson Electric: Supplies cooling and heating fan modules
- Gestamp: Providers of front and rear hood assemblies
- Apag Elektronik AG: Interior lighting components
- Delphi: Battery and electric vehicle charger components
- Hirschvogel: Wheels
- Magna: Body casting stampings
- Harman/Kardon: Interior music and audio systems