It's official: Alpina joins BMW Group

MANILA: The BMW Group has further expanded its luxury car portfolio with the acquisition of the Alpina brand.  BMW AG and Alpina Burkard Bovensiepen GmbH + Co. KG have signed an agreement to this effect, ensuring the Alpina brand's and Burkard Bovensiepen GmbH und Co. KG's long-term future.

The fulfillment of the transaction is still subject to various conditions, including approval by the relevant antitrust authorities. The long-standing collaboration agreement will expire on December 31, 2025, after being renewed for another five years in late 2020. Both parties have vowed to keep any financial information confidential. There will be no acquisition of business stock.

Alpina Burkard Bovensiepen GmbH + Co KG was formally established in 1965. From the 1960s onwards, Alpina was involved in BMW tuning and motorsports, and in 1978, it started producing passenger cars based on BMW AG products. The company, which employs around 300 people and is headquartered in Buchloe, Bavarian Ostallgau, Germany has been certified as an official vehicle manufacturer with the German Federal Motor Transport Authority in Flensburg since 1983. In 2021, Buchloe produced around 2,000 vehicles. Aside from Germany and Europe,  Alpina's markets include Japan, the United States, and the Middle East. The Alpina wine business is the family firm's second key area of activity.

BMW and Alpina’s strong relationship for over half a century is based on the highest level of trust. The entry of the small-series manufacturer in the BMW Group ushers in a new phase for the automotive industry.

In a statement, BMW Group Board of Management Customer, Brands, and Sales Member Pieter Nota said, “The automotive industry is in the midst of a far-reaching transformation towards sustainable mobility. For that reason, existing business models need to be re-examined on a regular basis. For over 50 years, the Buchloe firm has demon­strated how to deliver top-quality car cachet through meticulous attention to detail. The BMW Group is also driven by this same passion for cars that capture the imagination. That is why we are now embarking on a new chapter in our long-standing partnership. Acquiring the trademark rights will allow us to shape the long-term course of this brand steeped in tradition. We are delighted to welcome the Alpina brand to the BMW family.”

The shift to electromobility, as well as increased regulation around the world – specifically in the areas of emissions standards, software validation, and requirements for driver assistance and monitoring systems – puts small-series manufacturers at higher risks. Alpina Burkard Bovensiepen GmbH + Co. KG's management is responding with a strategic realignment that will ensure the Buchloe operations' long-term stability.

“We recognized the challenges facing the automotive industry early on and are now setting the right course for Alpina and for our family firm, Bovensiepen. This marks the beginning of a new chapter. Both the Alpina brand and our company are extremely desirable. We made a conscious decision not to sell Alpina to just any manufacturer, because BMW and Alpina have worked together and trusted one another for decades. That is why it is the right decision strategically for the Alpina brand to be managed by the BMW Group in the future,” Alpina Burkard Bovensiepen GmbH + Co. KG Co-managing Director Andreas Bovensiepen stated.

The partnership will continue – but in a new form: the Bovensiepen family's company will continue to employ its engineering expertise in creating, manufacturing, and selling BMW Alpina vehicles until the end of 2025, as part of the existing partnership. As a result, the Alpina team modifies base BMW vehicles extensively, including the engine ,transmission, chassis, aerodynamics, and interior features. BMW Alpina vehicles are pre-assembled on BMW production lines before being finished at Buchloe workshops, including individual interiors tailored to customer specifications.

In the long run, the service, parts, and accessories business for the current and legacy BMW Alpina vehicle portfolio will remain at the Buchloe site. The existing after-sales partnership will remain unchanged. BMW's current development services business in Buchloe will be further expanded as part of a strategic partnership between the two companies. The family company’s winery will remain unaffected.

“BMW and Alpina are a perfect fit! The Alpina brand has matured alongside BMW over the past 50 years and has everything it takes to make the heart of an automotive connoisseur beat faster all over the world. It finds the right balance between cultivated sportiness, luxury, and exclusivity. We are delighted to acquire the trademark rights to Alpina and add new vehicle capturing DNA to the BMW portfolio,” BMW Senior Vice President for Customer and Brand Jens Thiemer said.

Year 2021 was Alpina's most successful year in its history. The family firm will deliberately realign in the future, building on this strong base, to face regulatory issues and technological transformation in the industry. This will ensure the long-term viability of the Buchloe site.

“We will continue our father’s life’s work and invest in the equally well-known name of Bovensiepen. With our expertise and high standards of quality, we will bring other convincing mobile offerings to the market in the future. Without our creative, highly capable, and loyal employees, Alpina’s success story would not have been possible. We are relying on the strength of our company, our team, and our families to pivot at the right time. At the same time, we acknowledge, with the BMW Group, our social responsibility towards our workforce and will do our best to cushion the potential impact resulting from this reorganization,” Alpina Burkard Bovensiepen GmbH + Co. KG Co-managing Director Florian Bovensiepen stated.

Existing jobs at the Buchloe site will be affected by the sale of trademark rights to BMW and the consequent termination of the current Alpina vehicle program at the end of 2025. BMW will assist Alpina in implementing the necessary workforce adjustments at the Buchloe site in the coming years. BMW will collaborate with Alpina until the end of 2025 to offer those employees who will no longer be able to work at the Buchloe site new positions with the BMW Group, as well as assist them in finding new jobs with suppliers and development partners.

Photo from BMW

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