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BMW Prepares for the Future with a New Organzational

16 January 1998

BMW Prepares for the Future with a Process-Oriented Organizational Structure - Redistribution of Responsibilities Within the Board of Management

    MUNICH, Germany, Jan. 16 -- The responsibilities of the
individual members of BMW's Board of Management are to be restructured from
March 1, 1998 on.  The objective is to focus even more on customers and
markets, and to improve efficiency still further.
    The tasks of product concept development and design are to be combined
with sales, marketing and materials purchasing in a new task area bearing the
title "Market and Product."  Dr. Wolfgang Reitzle, until now responsible for
Research, Development and Purchasing within the Board of Management of BMW AG,
will be in charge of this division.
    Product engineering is to be combined with the tasks of manufacturing
planning and production to form a new "Engineering and Production" task area
to be headed by Prof. Joachim Milberg, hitherto Member of the Board of
Management of BMW AG responsible for Production.
    The traditional Research and Development, Production and Sales and
Marketing Divisions will benefit from novel, process-oriented structures which
are unprecedented in the automotive industry.
    Already many years ago, BMW first implemented the principle of
interdivisional project organization when creating its Research & Development
Center (FIZ).  The latest reorganization represents the next logical
progression.
    Bernd Pischetsrieder, Chairman of the BMW Board of Management of BMW AG,
regards the reorganization, coming on the back of BMW's most successful year
to date, as a further significant step towards securing the company's
long-term success.  "By interlinking our sales and marketing functions with
the concept development of new products, we establish a basis for extending
our lead.  Process-oriented engineering will yield even faster and more
accurate results.  In the same way that we laid the foundations of our current
success by making changes in the corporate organization in the past, this
consistent stop serves as the basis for success in years to come," Mr.
Pischetsrieder said.

SOURCE  BMW of North America, Inc.