Improving product and geographic diversification; Premium brand image, allowing BMW to command a price premium compared with competitors; Above industry-average profitability; and Strong cash flow generation and coverage of capital expenditures through cash flows. Growing competitive pressure in the premium segment of the automotive industry; and Introduction of new, smaller models may lead to margin erosion. The ratings on Munich, Germany-based BMW AG (BMW) reflect the group's strong competitive position as a producer of luxury automobiles, its conservative financial policy, and its robust earnings and cash flow. BMW has a solid image, broad geographic distribution of sales, and a high degree of operating efficiency. The group still remains relatively dependent on its key 3-series and 5-series models, despite the ongoing,
