BMW in the News

["Weinberg, Steve" <weinberg@xxxxxxxxxxxxx>]

BMW up on higher sales 
But shareholders reportedly want BMW chief to step down over losses at Rover

January 29, 1999: 6:17 a.m. ET

LONDON (CNNfn) - German automaker BMW saw its shares climb strongly in
Frankfurt Friday after it released details of its 1998 sales. 

However, the announcement was overshadowed by a report in German newspaper
Die Welt that BMW Chief Executive Officer Bernd Pischetsrieder. has come
under shareholders' fire over losses at the company's UK Rover Group, with
some calling for him to go 

BMW's 1998 group sales rose 5 percent to 63.1 billion marks from 60.1
billion marks in 1997 but it said losses at its Rover will keep net profits
below 1997's level.

Rover Group production fell 5 percent from 1997 to 497,574 units.

BMW's unit production, by contrast, rose 5 percent to 706,426.

Die Welt Friday reported that shareholders were angered by continuing losses
at the Rover, acquired in 1994. Company sources told the newspaper that a
private meeting of shareholders Thursday had decided it would be best if the
chief executive resign, according to Reuters. 

Die Welt suggested BMW director and marketing chief Wolfgang Reitzle may be
a possible replacement. 

However, a BMW spokesman told CNNfn, "The story is complete rubbish. There
never was a meeting of shareholders in Berlin and there is no pressure on
Herr Pischetsrieder."

In a statement accompanying the sales figures issued for its annual meeting
BMW said Rover was improving its competitive situation, and that new
products and more restructuring would lead to further gains. 

BMW has been locked in talks with U.K. unions and government officials over
the future of Rover's historic Longbridge plant in West Midlands. Despite
modernization, the plant still has one of the worst productivity records of
any European car manufacturer. There have been concerns BMW would close the
plant. 

BMW shares rose 21 euros Friday to 631. 

------------------------------

End of bmw-digest V9 #933
*************************