BMW Tapped $3.6 Billion in Federal Reserve Funds During Crisis
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BMW Tapped $3.6 Billion in Federal Reserve Funds During Crisis
http://www.bloomberg.com/news/2010-1...al-crisis.html
Bayerische Motoren Werke AG, the world’s largest maker of luxury cars, secured funds from the U.S. Federal Reserve during the financial crisis to boost liquidity as other sources dried up.
BMW’s largest transaction under the Fed’s Commercial Paper Funding Facility was for $3.62 billion on Jan. 30, 2009, according to data released yesterday. BMW made “intermittent” use of the Fed program for refinancing at a time when other forms of credit were frozen, Mathias Schmidt, a spokesman for the Munich-based automaker, said today.
“We tapped into this program in 2008 and 2009 during the financial crisis like other companies,” said Schmidt. “It supported our financial profile and offered us an additional funding source, especially at times when the money markets and capital markets did not function properly and efficiently.”
The maker of , Mini, and Rolls-Royce autos spent $750 million to expand its factory in South Carolina to assemble the X3 sport-utility vehicle. The plant, which also makes the X5 and X6 SUV models, exports vehicles to more than 120 countries, including Germany and China. Last year, the U.S. was BMW’s second-largest market after Germany, accounting for 19 percent of deliveries.
“The BMW Group weathered the economic and financial crisis very successfully,” and even generated positive free cash flow in 2009, “when most other auto companies suffered a lot,” said Schmidt. “The diversified and international treasury operations helped to deal with these challenges.”
BMW recorded an adjusted free cash flow of nearly 1.5 billion euros ($2 billion) last year, as net income declined to 204 million euros, its lowest profit in a decade.
BMW’s largest transaction under the Fed’s Commercial Paper Funding Facility was for $3.62 billion on Jan. 30, 2009, according to data released yesterday. BMW made “intermittent” use of the Fed program for refinancing at a time when other forms of credit were frozen, Mathias Schmidt, a spokesman for the Munich-based automaker, said today.
“We tapped into this program in 2008 and 2009 during the financial crisis like other companies,” said Schmidt. “It supported our financial profile and offered us an additional funding source, especially at times when the money markets and capital markets did not function properly and efficiently.”
The maker of , Mini, and Rolls-Royce autos spent $750 million to expand its factory in South Carolina to assemble the X3 sport-utility vehicle. The plant, which also makes the X5 and X6 SUV models, exports vehicles to more than 120 countries, including Germany and China. Last year, the U.S. was BMW’s second-largest market after Germany, accounting for 19 percent of deliveries.
“The BMW Group weathered the economic and financial crisis very successfully,” and even generated positive free cash flow in 2009, “when most other auto companies suffered a lot,” said Schmidt. “The diversified and international treasury operations helped to deal with these challenges.”
BMW recorded an adjusted free cash flow of nearly 1.5 billion euros ($2 billion) last year, as net income declined to 204 million euros, its lowest profit in a decade.
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Nissan needs to borrow some money to pay for the glasses their designers sorely need
Info on Toyota
http://jalopnik.com/5704575/ford-bmw...vernment-money
Info on Toyota
http://jalopnik.com/5704575/ford-bmw...vernment-money
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Wait, so BMW got 6.2 Billion, not 3.6B?
I did not know Toyota recieved money. That is ridiculous I must say. Why would Toyota need to access US Federal Reserve money?
I guess the US government doesn't mind giving away reserve money so freely then .
I did not know Toyota recieved money. That is ridiculous I must say. Why would Toyota need to access US Federal Reserve money?
I guess the US government doesn't mind giving away reserve money so freely then .
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Well its different then the bailouts Chrysler/GM got. These are loans which are paid back. It is unusual for the FED to do this but since credit tightened they did it. What the chart shows isn't really abnormal for businesses at all but the loans are usually from banks, not directly from the FED.
I am sure BMW, Toyota would have survived without the loans but they did help keep business running "as usual".
I am sure BMW, Toyota would have survived without the loans but they did help keep business running "as usual".
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That's the one thing I find weird; don't companies usually get such loans from the bank? Or were the banks in such a tight situation that the US government decided to take place of the banks with the loans?
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The Fed is an evil institution controlled by a select few that do what they want. They don't follow laws, they don't listen to the government. They are there to help the connected and that is all.
You should read the lack of diversity the Fed has, it would make you sick.
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What I posted in the Harley thread and what you should really be pissed off about:
BOA made 30% increased profits in Q3... by doing deals.. with.. CHINA...
.. and...
... you (the American taxpayer) are PAYING for it and the BMW dollars, etc... by what the Fed is doing... monetizing our debt
ENJOY
<doesn't go on rant, leaves opinions to PMs>
BOA made 30% increased profits in Q3... by doing deals.. with.. CHINA...
.. and...
... you (the American taxpayer) are PAYING for it and the BMW dollars, etc... by what the Fed is doing... monetizing our debt
ENJOY
<doesn't go on rant, leaves opinions to PMs>
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There's also a distinction here. It was the credit arms of these automakers that got fed loans. It wasn't loans to keep the automakers in operation (like GM and Chrysler got) but rather cash that is used to finance customers to buy cars which of course is critical especially when banks are severely tightening their lending.
That said, it was thought that Toyota was sitting on a massive war chess, especially before 2008. Kind of surprised that they would need to tap the fed for their finance arm.
That said, it was thought that Toyota was sitting on a massive war chess, especially before 2008. Kind of surprised that they would need to tap the fed for their finance arm.
#15
There's also a distinction here. It was the credit arms of these automakers that got fed loans. It wasn't loans to keep the automakers in operation (like GM and Chrysler got) but rather cash that is used to finance customers to buy cars which of course is critical especially when banks are severely tightening their lending.
That said, it was thought that Toyota was sitting on a massive war chess, especially before 2008. Kind of surprised that they would need to tap the fed for their finance arm.
That said, it was thought that Toyota was sitting on a massive war chess, especially before 2008. Kind of surprised that they would need to tap the fed for their finance arm.
Its like me giving you a .01% interest mortgage, you would end up using my money for the mortgage and take your nest egg and buy a lambo lol