Percy_991

Remember back in 2008 when Porsche attempted to take a controlling stake in VW, said to be worth over $14 billion? After a power-struggle and the collapse of Porsche's complicated loan transaction structure, combined with the credit-crunch, Porsche's liquidity dried up enabling VW to swoop in and reverse the acquisition.

This got me thinking, with mergers and acquisitions becoming increasingly common in the global markets, is it just a matter of time before BMW is acquired by another marque or competitor?

So 3 question I have for your good selves in this poll:

[1] Do you think BMW will be acquired by another marque?
[2] Do you want BMW to remain an independent brand?
[3] Do you think BMW will acquire another major marque within the next 5 years?

Hopefully, this will initiate some interesting opinions.

EBMCS03

BMW buys out other brands then sells them

MINI
Rolls Royce
Land Rover

Percy_991

Indeed. BMW also owned Jaguar and back in the day took over Rover here in the UK.

ron_cb550

Yes, yes and yes. You can't use words like "ever" in these discussions... provide us a timeframe or something... unless you're ok with responses like "it depends", in which case, It depends

Percy_991

Point taken. Lets put a 5 year time-frame on Questions 1 and 3. I cant edit the post / survey anymore!

ron_cb550

There are SEVERAL events which could necessitate the capital restructuring or a sell-off of BMWAG, EVEN IF WE TAKE INTO CONSIDERATION their current ability
to post solid earnings /return on sales
to show positive profit margins and operating margins
to satisfy their finely-tuned strategic long-term growth strategy (which includes endless branding and their venture into new segments and growing markets.)

Given what we know about BMWAG's upward-trending equity alongside the strength of the German economy (Europe's premier economy, 5th largest global), AND BMWAG's standing as a German economic benchmark & key DJSI component, we can ASSUME that the company is OK......

Is this enough information to help us define the probability of an acquisition, even within a 5-year span? Nope!

Anyway, numbers aren't out yet, but BMWAG is expecting to post record Q1 2011 sales, partially as a result of their current growth/ventures into the Middle East markets and fantastic sales numbers in newly industrialized countries.

SO, ask yourself, who is going to be the "big dog" that will come along a chew "us" up? Will there ever be one? What will it take?
Full analysis only when I'm paid. Until then, "anything is possible".. or "it depends," if you prefer

Percy_991

Exceptional and very appetizing food for thought Sir.

swajames

Perfectly possible, but unlikely. BMW was almost taken over once by Mercedes before the Quandt family took their stake. Much like Ford, much of BMW is family owned and only some is publicly traded meaning no deal happens unless the Quandt family wants out, something that's looking very unlikely.

I don't see BMW acquring another brand, they are already in every segment (including some they ought not to be in) as it stands. It's also interesting how BMW positions itself as an independent brand, it's no more indepedent than any other major manufacturer that answers to a board and to stockholders.

Not that it matters, but the Porsche/VW deal was always going to happen in one way or another due to the family ties but it wasn't simply the credit crunch that impacted Porsche's (otherwise absolutely brilliant) strategy. There are state laws in Lower Saxony (the so-called VW Law) that gave the state, which was a 20.1% shareholder, the ability to block the deal despite having only a minority interest. The EU Courts struck down the VW Law but it keeps coming back in slightly altered form. Finally - Porsche isn't yet a VW subsidiary, but will be this year and the two companies have operated as one since the VW investment was made.

swajames

BMW has never owned Jaguar.

spyrot1

First of all, BMW never owned Jaguar!

They bought the Rover group, but Ford picked up Jaguar.

They got rid of Land Rover, and the Rover group, but kept Mini.

They picked up Rolls Royce when VW thought they had it and Bentley.

The Quandt family owns the majority share of BMW, so they would have to sell it for anyone else to buy it.

And after the debacle of the Rover Group purchase (BMW lost billions on it), I doubt they'll buy anyone big. They are one of the most profitable and prestigious luxury car makers, why screw that up by buying someone else...?

Besides they learned their lesson with the Rover Group (as Daimler Benz learned with Chrysler). Don't try to get big by buying inferior priducts.