Personnel changes at the top of the BMW Group for the future

July 20, 2006
Supervisory Board designates new management – two new members appointed to the Board of Management and new Chairman appointed

Munich. At its meeting on 20 July 2006, the Supervisory Board of BMW AG made a number of decisions which will shape the management of the BMW Group in the long term. Dr. Norbert Reithofer (50) was appointed as Chairman of the Board of Management and will take over this position from Dr. Helmut Panke (59) on September 1, 2006.

The Supervisory Board appointed also Frank-Peter Arndt (50) to the Board of Management as Reithofer’s successor with responsibility for Production. Arndt is currently Head of the BMW Dingolfing plant. In addition, the Supervisory Board appointed Dr. Klaus Draeger (49) to the Board of Management of BMW AG with effect from 1 November 2006. At that date, Draeger will take over responsibility for Research, Development and Purchasing from Professor Dr. Burkhard Göschel (60). Draeger is currently Director of the development department with responsibility for the Group’s large model series (BMW 5, 6 and 7 Series).

After the meeting, Professor Joachim Milberg, Chairman of the Supervisory Board of BMW AG, stated: “These decisions taken by Supervisory Board will shape the management of the BMW Group in the long run. The newly composed Board of Management will ensure continuity of management over the coming years and provide a basis for the continued success of the BMW Group. Both the Supervisory Board and the company as a whole express their highest gratitude and genuine appreciation to Dr. Panke for all the successful work he has carried out for the company.“ Helmut Panke has been with the BMW Group for a total of 24 years; he has been a member of the Board of Management since 1996 and Chairman of the Board of Management since May 2002.

Reithofer is currently member of the Board of Management of BMW AG with responsibility for Production. He has been a member since 2000, and prior to that, held various offices, including those of Head of the Rosslyn plant in South Africa and Head of the Spartanburg plant in the USA. Mr. Reithofer joined BMW AG in 1987.

Panke was appointed as Chairman of the Board of Management after the Annual General Meeting in 2002, at the same time his predecessor, Professor Milberg, moved to the Supervisory Board. In his position as Head of Group Planning and Strategy, Panke was closely involved in sharpening the international focus of the BMW Group: he took a leading role in the decision and planning of the Spartanburg plant (South Carolina) in the USA. In 1993, he took over responsibility for the management of BMW (US) Holding Corp. During his time as Chairman of the Board of Management, he inaugurated the production plant of the joint venture with Brilliance China Automotive Holdings Limited in Shenyang in 2004 and prepared the path for the establishment of a BMW plant in India, which is to open next year. Today, the BMW Group has its own production facilities in 12 countries and its own sales companies in 37 countries. BMW, MINI and Rolls-Royce cars and BMW motorcycles are sold in 140 countries. The BMW Group is thus the world’s most widely represented manufacturer of premium vehicles. Internationalisation also secures jobs in Germany – since 2001, the workforce of the BMW Group has grown by almost 9,000 employees to its current level of 105,800 worldwide; during the same period, the annual sales volume of cars has increased from approximately 1 million to 1.33 million units and that of motorcycles from approximately 85,000 to 97,500 units. For the financial year 2006, the BMW Group has reported that it plans to achieve a record profit before tax of EUR 4 billion, thus making it one of the most profitable companies in the industry.

Professor Dr. Burkhard Göschel has been with BMW AG since 1978; after holding various senior positions within the research and development function, he joined the Board of Management in March 2000, taking over responsibility for Research, Development und Purchasing. Professor Joachim Milberg thanked Burkhard Göschel for his steadfast commitment and dedication to the BMW Group over the years: “Mr. Göschel has played an important role in the area of motorcycle, engine and vehicle development; the Board of Management team has been responsible for the most comprehensive model and market initiative in the history of our company.“

As of November 2006 the Board of Management of BMW AG will comprise of the following members: Dr. Norbert Reithofer, Chairman; Frank-Peter Arndt, Production; Ernst Baumann, Human Resources and Industrial Director; Dr. Klaus Draeger, Research, Development und Purchasing; Dr. Michael Ganal, Sales and Marketing; Stefan Krause, Finance.

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Richard Gaul

Corporate Affairs

BMW Group

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