BMW’s Foreign Exchange Risk Management

Bin Xu (First Author), Ying Liu (Participant Author)

Research output: Other contributionCase Studies


BMW, the world-famous auto and motorcycle manufacturer, produces the majority of its vehicles in Germany, yet sells over two thirds of them outside Germany. In 2010, BMW sold a total of 1.46 million cars, of which 267 thousand were sold in Germany. The German market overall accounts for only 18.3% of global sales, and overseas markets account for 81.7%. The globalization of the markets has brought about not only rapid growth but also a huge foreign exchange risk, leading to growing pains that BMW has to face. BMW learned from the experience of its peer Porsche, whose efforts to pass the foreign exchange risk onto consumers by raising sales prices completely failed. This case focuses on how BMW manages its huge foreign exchange exposure on an operating level and on a strategic level.
Original languageEnglish
Number of pages10
Publication statusPublished - 1 Jan 2011

Case number


Case normative number


Update date


Published by

China Europe International Business School


  • Bayerische Motoren Werke(BMW)
  • Foreign Exchange
  • Germany
  • Hedge Contract
  • Motor industry
  • Natural Hedging
  • Risk Management

Case studies discipline

  • Accounting
  • Finance

Case studies industry

  • Manufacturing


Dive into the research topics of 'BMW’s Foreign Exchange Risk Management'. Together they form a unique fingerprint.

Cite this