BMW Ponders State Aid To Prop Up Financial Arm

BMW, the German maker of premium cars, is considering an application for state aid for its financial services division to help ease the pain of its ailing dealer networks who are struggling to sell vehicles amid the global slowdown in demand.

BMW is following in the footsteps of Volkswagen's financial services division which has already applied for help, despite the fact that Volkswagen is flush with cash compared with other German manufacturers.

"The Federation of German Car manufacturers was asked by manufacturers to assess whether it made sense to seek state guarantees," said a BMW executive. "It was decided to do this on a joint basis to avoid the impression that any one company was in particular trouble."

He stressed that the board was still mulling over the move and that it applied only to the financial services arm.


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topneuro - 1/21/2009 9:38:58 AM

+1 Boost

Another one bites the dust.
Star...
Where are you?

_43LE - 1/22/2009 12:08:38 PM

+1 Boost

He's afraid that we're still laughing at him, not with him.

david999 - 1/21/2009 11:14:28 AM

+3 Boost

It's going to be tough for those that are typical BMW buyers to lease their vehicles when BMW Financial is hurting.

david999 - 1/22/2009 2:00:10 PM

+2 Boost

Who cares what you think Chick37, you don't even have a drivers license.

Kthorn - 1/22/2009 2:35:40 PM

+2 Boost

David999, ChuckG37 is 26 years old, works at a computer software firm, has a temper as short as his penis, (rumored to be 3 inches long) and if deemed a moron, can send you a computer virus through autospies.com Now, none of this confirms his having a drivers license, but he does seem to be old enough to have one.

0to60 - 1/21/2009 1:20:50 PM

0 Boost

If this were toyota...

Kthorn - 1/22/2009 12:51:49 PM

+1 Boost

Any politician who supports bailing out a captive lender should be shot. These enteties should be allowed to fail when their parent companies are sitting on the kind of cash BMW has. Call it what you want, a business plan, business model, etc... if it is not working then there is a reason why. Poor management, unsound business practices, yuddah, yuddah, yuddah, if Germany can learn one thing from us stupid Americans, it should be "the bail out failed". And ours was an attempt to prop up the banking industry, something far more critical than a captive lender of automobiles. They are doing something wrong, it isn't working, and the last thing you should do is give them more money. It's like giving drugs to a heroine addict and telling him to get it worked out.

veyron1001 - 1/22/2009 6:21:33 PM

+2 Boost

The thing that separates BMW from the failing 3 aside from quality, heritage, individuality, an awesome performing straight 6 is that BMW is changing to cope with the times. If US politicians were to lower their made up emissions standards on diesel cars you would see 1 series diesels everywhere making 40mpg+ on average. The failing 3s solution? Adding an electric motor with the ice and call it innovation. I would support a loan to BMW as they are far more likely to pay it back.

Kthorn - 1/22/2009 7:02:14 PM

+1 Boost

Why should the tax payers be the first to foot the bill? As I said in an earlier post, any politician who would support the financial bailout of a captive automobile lending institution should be shot on sight. Especially if the institution is a whole or partial subsidiary of a cash cow. And shame on the board of directors for even considering it. BMW should leverage their holdings to raise the necessary cash before they consider leveraging their childrens future. Perhaps if they had to trim a little fat and place some assets in jeopardy, they would have a little more respect and motivation to get it right. It is simply not prudent to amass a debt upon the shoulders of those who will be burdened with that debt, and have yet to be born. If you disagree, I have a ponzi scheme, I mean madoff scheme you may be interested in.