The BMW Group management is sticking to its course in the Corona crisis. But is that justifiable if you demand government support from taxpayers' money at the same time?
- The top management of BMW demands a kind of scrappage bonus 2.0, i.e. an incentive to buy new cars.
- Bavaria's Prime Minister Markus Söder also strongly supports this concern.
- But does tax aid and the dividends of 1.6 billion dividends fit together?
- Here you will find the basic facts about the corona virus * and the corona news from Germany *. You can also find current case numbers in Germany here as a map *. The following recommendations for corona protective measures * are currently available.
Munich - BMW CEO Oliver Zipse triggered an outrage in political Berlin. In the middle of the Corona crisis, the automaker will distribute a dividend of 1.6 billion euros to shareholders. Particularly controversial: Zipse itself recently called for government-funded incentives to buy new cars, calling them the “innovation bonus”. In other words, a scrappage bonus 2.0 , similar to that after the 2009 financial crisis, to boost the economy. Meanwhile, 30,000 of the approximately 90,000 BMW employees in Germany are on short-time work *. A wrong world?
BMW pays dividends in the middle of the Corona crisis - despite short-time work and demands
Oliver Zipse, who was able to announce a profit of around five billion euros for the 2019 financial year, pointed out that his company is acting reliably - also in dividend policy. In addition, according to the CEO at the company's 100th Annual General Meeting, employee profit sharing is linked to the dividend. The workforce therefore also benefits from the distribution of EUR 2.50 per ordinary share or EUR 2.52 per preference share.
The heirs of the Quandt family , who are among the wealthiest Germans anyway, will particularly benefit from the distribution . Stefan Quandt holds 25.8 percent of BMW's shares and therefore receives a dividend of 425 million euros for the past financial year. His sister Susanne Klatten gets 344 million euros for her 20.9 percent.
BMW boss wants state support in corona crisis - is scrapping premium 2.0 coming?
At the Annual General Meeting, Zipse literally did not again request a premium for new car purchases , but indirectly he continued to insist on government aid. A tax-financed "stimulus package for the entire economy" was needed, the auto industry carried the German economy and secure 830,000 jobs in the country, the CEO argued. The faster the car industry gets going again *, the better it is for the economy and the labor market * in Germany.
Also interesting: huge recall at BMW in Germany - there is a risk to life *
Video: Car industry wants new purchase premiums for new cars in coronavirus crisis
Corona crisis: Quandt heirs benefit from BMW distribution - indignation never fails
Criticism of the billions in distribution and the simultaneous request for state aid was immediately loud. Prime Minister Söder was also shocked. For example, left-wing MP Fabio von de Masi rumbled on Twitter : "BMW is lobbying for government purchase premiums for cars, the Quandts and Klattens are transferring party donations to the Union and the majority are looking into the tube! If you allow this, you share responsibility for powerlessness, division and anger in Germany! "
#BMW is lobbying for government purchase premiums for cars, the Quandts and Klattens are transferring party donations to Union and the majority are watching! If you allow this, you share responsibility for powerlessness, division and anger in Germany! /end
- Fabio De Masi (MdB) (@FabioDeMasi) May 14, 2020The Greenpeace activist Marion Tiemann sees a loss of image BMW given that is comparable to that heralded the beginning of the corona crisis in March to try to freeze rents for their business with the Shitstorm against Adidas, H & M and Deichmann *. These companies would have shown “how such a lack of community spirit is accepted.”
#BMW had profits of over 5 billion in 2019:
• takes short-time work allowance
• demands a purchase bonus
• still wants to pay dividends Do you enjoy damage to your image
? We already showed Adidas, H&M and Deichmann how such a lack of community feeling is accepted.
SPD general secretary on BMW dividend in Corona times: "immoral"
A statement by the SPD general secretary makes it clear that Soder's project for a new car premium, which he is promoting together with the heads of government of the "car countries" Baden-Württemberg and Lower Saxony, the Greens Winfried Kretschmann and the social democrat Stephan Weil , has now become less likely. In an interview with taz, Lars Klingbeil said about BMW: "But I find it immoral to collect short-time work benefits and pay dividends at the same time." And regarding a possible new edition of a scrappage bonus, the influential politician from Söders Bund coalition partner SPD announced: "We should now help the automotive industry wisely - but not with a bonus towards the past."
Also read: BMW presents giant project - new center will change Munich *
Bonus for new cars: A lot of persuasion is waiting for Söder, Weil and Kretschmann
And it is not only from the left-wing camp that criticism of the dividend distribution is loud. The German Association for the Protection of Securities (DWS) also expressed serious concerns. "The question arises whether even such a distribution is justified, since it is unlikely that a profit can be made in 2020, that the auto industry and BMW will demand a purchase premium from the state for newly produced cars and that at least 30,000 employees are on short-time work. Must Isn't it better to keep your powder dry in this situation? "questioned DSW Vice President Daniela Bergdolt, according to ARD.
It seems as if more persuasion is now waiting in Berlin for the Prime Ministers Söder, Weil and Kretschmann to clear the way for new government aid for the automotive industry.
ZDF “Today Show”: Persiflage about Markus Söder's premium claims
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* Merkur.de and tz.de are part of the nationwide Ippen-Digital editors network
