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      12-03-2010, 11:14 AM   #1
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BMW borrowed 3.62 Billion from feds.

Here's an article about how BMW borrowed 3.6B from the US Fed.

Quote:
Just released yesterday, BMW announced that it had “intermittent” use of the Federal Reserve’s Commercial Paper Funding Facility in 2008 and 2009. How much use did they have exactly? 3.62 billion dollars. BMW used the money to invest into its South Carolina assembly plant and to help maintain sales of their new cars. BMW themselves invest 750 million into their plant to help assemble the new X3.



(BMW South Carolina plant)

With the US being BMW’s second biggest market, it is no wonder why they did this. BMW reported its lowest sales year in over a decade last year, with around 270 million in sales, but it had an excess of two billion in cash flow, thanks to the money borrowed from the feds.
for the rest of the article,
http://autodebut.com/2010/bmw-this-one-is-on-us/

interesting how much influence the US fed really has on automakers in the US and abroad.
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      12-03-2010, 11:17 AM   #2
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BMW didn't borrow 3.62 billion from feds, their credit corporation, a seperate entity from BMW that just makes their financing program possible took advantage of a federal program that was being offered which made up for banks tightening lending restrictions and hoarding money which the credit corporation should have normally had access to.
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Last edited by Legion5; 12-03-2010 at 11:28 AM.
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      12-03-2010, 11:19 AM   #3
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Nothing to do with the ability to produce or sell cars, only to do with the ability to finance them.
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      12-03-2010, 11:25 AM   #4
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Given that every 20-something is running around with a BMW, its obvious.
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      12-03-2010, 12:06 PM   #5
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Long live the $30,000 millionaires...
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      12-08-2010, 10:32 AM   #6
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meh, anything under $5 billion doesn't matter
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