Bayerische Motoren World Domination
[Video via The Auto Channel]
Ivan, one of my coworkers here in London, has a funny way to describe his admiration for his former employer BMW; he just paces back and forth muting they cover and master every single angle of the business, e.v.e.r.y single one, all while shaking his head in disbelief.Proving Ivan right, BMW announced last week that they were starting a premium car-sharing program in Germany.The news comes right on the heels of their February announcement of the i sub-brand, a division that wants to be to environmental vehicles what the M brand represents to performance, as well as the launch of i-ventures, their venture capital arm.Why would a conventional car company move into such a fundamental threat to their core business as car-sharing? While the launch of the i sub-brand is understandable from a product point of view, creating a venture firm and a car-sharing organization might seem, at first glance, odd. I see three possible explanations:1- The Conspiracy theory: eyeing car-sharing as an attack to the fundamentals of their business model, BMW has decided to start its own car-sharing company and get in the game, only to follow with a string of acquisitions (Zipcar?) that will ultimatly allow them to dominate the business. Full domination achieved, they will declare the division a money loosing operation and close it down. Very unlikely, but we have seen this movie before.




