BMW survived crisis through $3.6 billion U.S. Federal Reserve Funds

BMW was able to secure funds from the U.S. Federal Reserve during the financial crisis. This was to boost liquidity as major sources of the company dried up. The US$3.62 billion Federal funding transaction last January 30, 2009 was the largest, according to a report by Automotive News. BMW Spokesperson Mathias Schmidt said that this financing option saved BMW during the time when other forms of credit were frozen.

“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 BMW Group weathered the economic and financial crisis very successfully, when most other auto companies suffered a lot. The diversified and international treasury operations helped to deal with these challenges.”

Source: Autonews