When we checked the set “BMW behind the scenes” of three books, we described them as a “masterpiece”. The author received a level of trust in order to tell the company’s insider history like never before, and the book set was awarded the prestigious time RAC book of the year. It is full of never -seen information and many undemanded stories. Here is one of them – when BMW tried to buy Porsche. You can get one BMWblog Exclusive offer of 45 USD discount on the last copies and free shipping at the end of this function. Now let yourself be pulled Steve, he curtains back to something remarkable.
Fusions: The conversation of the 1990s
If a volatile era may appear in global politics and in the smaller world of the automotive industry today, then there may be a ridge of the consolation that car manufacturers were quite excited in the early 90s. McKinsey, the business consultants, were partly to blame after they published a well -founded discussion paper that received global reporting. The numbers had cracked and concluded that no car manufacturer would survive less than a million vehicles a year if they were not merged with a partner or were brought into harmony. It proclaimed that two automobile manufacturers were in this terrible place where you were too big to be bought and too small to survive alone.
One was Renault and the other was BMW. The consultants believed that Daimler-Benz was protected by his diversification in aerospace and other technology services, while BMW was simply too much on a car company that depends on the modes volumes on cars with high profits. Unfortunately, Daimler-Benz decided that this was not enough and that Chrysler and BMW teamed up. Well, it was now thrilled how it could be in 1991 to find a solution.
BMW was not in the mood to be bought by a larger company. The Quandt family still had a majority stake, and the company earned good money. CEO Eberhard von Kuenheim, like everyone else, could see the logic in McKinsey’s reasoning. He came to the conclusion that BMW, since it was a lot under the seven -digit surveillance number that McKinsey claimed, then had to grow BMW; Now it was time to buy a car company and become a purchaser rather than the acquired.
BMW was shopping.
Which brand could fit the BMW values?
At the beginning of 91, Kuenheim sent Wolfgang Reitzle, his board member for engineering to find an appropriate premium pass form with BMW. First, Rolls-Royce/Bentley-Dann was under the same property of the British Vickers Engineering Company. They were certainly Premium and BMW Planned to supply them with many 7 -series electrofers and engines for a smaller car. However, the problem was that they were built in such small volumes that Rolls-Royce/Bentley was not a major volume; BMW needed a larger fish to swallow. Reitzle found the ideal candidate in Land Rover and then acted as a semi-autonomous organization within the Rover group. It was perfect, although the larger parents of the Rover group made fade cars with poor reliability that only bought the British in considerable numbers, they had two hidden jewels.
Land Rover, including Range Rover, were, like other Rover, unreliable vehicles, but that could be remedied. What the offer offer and an off-roading brand was that was as high as BMW, but with little to even crossover. Land Rover fit perfectly and there were more. Thanks to the narrow -minded management, the mini had been ignored for years and became so old that it did not meet contemporary security laws. Rover had the little ones 100, formerly called the subway, and it was also old and minus – Rover urgently needed a new little car. It had teamed up with Honda, but maybe the Japanese company was not ready to produce Rover’s own versions of Small Hondas for Europe. Honda had to make a profit, and a small Rover, based in Honda, would reduce his ability to achieve more volume in Europe.
Reitzle and Anglal with a perfect understanding of English and nuances of British culture were certain that Mini could be an independent brand, not just a somewhat embarrassing 30-year relic in the Rover area. Instead of negotiating with the Rover Group, which he looked at with mild contempt, Reitzle turned to his owner British Aerospace. The company accepted its offer price, but insisted that BMW did not have to turn the two brands it wanted and instead buy the entire, slightly dipped Rover group. Reitzle was able to see major problems that Rovers Motley collection of cars was not a premium and, even worse-based on Honda products, which meant that it was a three-way tryth with a Japanese car manufacturer. Despite the attractions of Land Rover and Mini, the entire group fit well and Reitzle went away with carefully.
Stuttgart was on the map
His next call harbor was Stuttgart, where Daimler-Benz and Porsche were home. Obviously, a connection with Mercedes could work together, but Reitzle had made some enemies there (a story in history BMW from Design) and the two brands were more than natural enemies than friends. Then there was Porsche.
It couldn’t fit better; Two German brands that have committed themselves to excellence and the sporty product of engineering and the sporty product – preferably for BMW – was financially on their knees. Porsche limped together with 968, a heavily converted 944 four-cylinder car that was expensive to make, and the US dollar/Deutsche change course did a loss, while the age 911 made almost no money.
Even worse, Porsche had to write a loss of $ 300 million after the cancellation of his stillborn 989 four-door limousine. To this time-amusing as today, when Porsche four models with four-door body styles-is a radical step for Porsche to take a four-door limousine. Chief designer Harm Lagaay’s team created an attractive-looking limousine that initiated the style of the 993 generation later. Look was not on the problem. The engineers had run turmoil with a unique V8 engine and today costs that today is well over a price of $ 200,000. It was the right Porsche at the wrong time.
Porsche price: 600 million US dollars
Reitzle met Porsche, including colleagues Ferdinand Piech, and made his playing field. BMW would buy the company, but protect its cars by running management for business so that it can invest in a new 911 and expand the reach. BMW would offer purchase aid, test facilities, logistics and access to capital – exactly the things that cripple the sports car manufacturer. All the Porsche family had to do is name its price. And it did it, it was a large $ 600 million – a big one for a small sports car manufacturer who fluctuates on the edge and earns no money.
Reitzle took back the 600 million dollars to the BMW CEO from Kuenheim, which was outraged by Porsche’s impertinence for the same number, that would have bought much higher volume if far less appealing Rover group. But Reitzle had an ace her sleeve. Reitzle sought to be CEO and accepted Piech’s offer. From Kuenheim it was still outraged, not only Porsche asked a price that was too high, but also hired Reitzle!
This was completely unacceptable for the by-now furious of Kuenheim, who thought Reitzle was the contract, which forbids him to easily go and join another car manufacturer.
Rover Group joins BMW
It was a stain on Reitzle’s call that was not ready to remove and forget from Kuenheim. When the older man decided to retire and gather on the Supervisory Board, Reitzle was overlooked in favor of the production director Bernd Pischestresseder. Unfortunately, the new man who ran things had the same old problem and the same time solution. There were not many partners who were within the framework of the BMW to dance with Now Porsche and Pischetriederer took the catastrophic purchase of the purchase of the entire Rover group. Unfortunately, BMW would cost twice as much as Porsche and years of pain, as the Munich company learned to operate the pain on the mass market. It had to keep Mini against all chances of winning, but had to sell Land Rover to Ford and pay off the losses generated by Rover. If it had only paid $ 600 million for Porsche, the German auto industry would have accepted a completely different form.
BMWblog users receive a special discount of 45 US dollars from the last remaining copies of Steves Drei Buchset. BMW behind the scenes. The box set is delivered with free shipping, which is personally signed by Steve Saxty. The book received a RAC 2024 book of the year and you can see complete details here. Use the BMWblog voucher code at the cash register.
