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Positive spin

(China Daily)
Updated: 2007-07-31 09:41

Germany's BMW has a reputation for producing cars that offer driving pleasure and luxury.

But in recent years that reputation has been sullied in China, with BMW owners tagged nouveau riche and a series of scandals including a lottery fraud in the northwestern city of Xi'an and a fatal accident in northeastern Harbin making headlines in local newspapers.

Although BMW was cleared of responsibility in all cases, the brand's image has taken a knock.

Christoph Stark, president and CEO of the Munich-based company's China operations, says the carmaker is working on revitalizing its brand in the world's second-biggest and fastest growing vehicle market.

It's introduced several initiatives since it kicked off production in China in 2004 such as price cuts and donations to education, environmental protection and cultural programs.

Stark says the initiatives aim to "convert part of the success we are having in our own core business as a corporate citizen and to give something back to the society, together with our customers and dealers".

And the activities help BMW understand "what's required in China at the moment, what people are thinking and what they are concerned with".

"We are still a very young company in China. We are gradually finding the right way to become more accepted."

He stresses that BMW is no longer seen as just for "the super rich and super wealthy".

"We have a lot of hard-working people who buy our cars. We have a lot of journalists, economists, professors, doctors ... Our customer base is growing much bigger and wider," he tells China Business Weekly.

"We could not survive or grow on a very small customer base."


(For more biz stories, please visit Industry Updates)

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