BMW Korea pursues stable growth

Firm plans to up sales by 10%, beef up after-sales services

By Kim Tae-jong

BMW Korea CEO Kim Hyo-joon said Thursday that it aims to increase its sales by 10 percent this year while expanding after-sales repair infrastructure by 20 percent. He stressed that the automaker will focus more on stable growth.

“We set a growth rate of 10 percent this year, which can be seen moderate given last year’s rapid growth rate of about 20 percent,” Kim said during a news conference at the Westin Chosun Seoul. “But for higher growth in the future, we’ve decided to focus more on strengthening our organization, expanding customer-service sectors and enhancing the quality of the technical standards of repairmen.”

BMW Group posted 10.6 percent year-on-year growth last year, selling about 1.84 million vehicles globally, the largest number ever.

But BMW Korea celebrated a more successful year. It sold 28,152 vehicles under the BMW brand, up 17.25 percent from the previous year, and about 5,927 cars under Mini, up 27.75 percent.

“Thanks to the introduction of various new models and the popularity of diesel cars, we were able to achieve the most successful result. We will keep introducing new models such as the 3 Series GT, the new Z4, the four-door M6 Coupe,” he said.

But he added that the automaker will also increase the number of repair centers, recruit more skilled repairmen and enhance service quality.

BMW Korea has eight dealers who run a total of 42 showrooms and 42 repair centers nationwide, the largest number among imported automotive brands.

It has 649 maintenance bays and 1,053 repairmen, also the largest number among foreign car firms. It also has the largest number of highly-skilled technicians at 35.

But Kim said he will increase the numbers of repair centers to 56, maintenance bays to 800 and repairmen to 1250.

“A premium service for customers will be our main objective this year. The number of maintenance bays and repairmen is more important than the number of service centers. So we will increase them by about 20 percent,” he said.

The firm will also continue to run an ombudsman system, launched last year for the first time in the industry to also lead in after-sales services here, and open more Fast Lane Centers where customers can receive essential maintenance such as the replacement of engine oil, brake pads and filters without a long wait.

The firm also pledged to create new driving culture.

It will soon hold a groundbreaking ceremony for a large-scale driving center to be built in Yeongjong Island off Incheon. The center will offer the ultimate driving experience in an adventurous yet safe setting.

It will be the Munich-based BMW Group’s fourth driving center, following two in Germany and one in the United States.

“Cars are not just a means for transportation anymore. They are related to leisure and lifestyle. As the market leader, we will take an important step to set a new milestone,” Kim said.

He also vowed to continue to make contributions to society through its corporate social responsibility arm.

The BMW Korea Future Fund has generated about 2 billion won, which will be used to support the underprivileged and other good causes.

The charity arm requests customers donate 30,000 won to charity when they buy a vehicle from BMW Korea. When the buyer accepts this, the dealer in charge of the sale and BMW Korea each pay the same.

The organization will also continue the Junior Campus program, which offers science education to children.

Kim also said BMW Korea will make an effort to bridge Korean firms to the German automaker.

“BMW Group is always interested in working with Korean suppliers, especially small- and medium-sized enterprises that excel in technology. BMW Korea will keep making efforts to have them form a strategic alliance and seek shared growth,” he said.