Recently the BMW Group has announced that it will secure the rights to the Alpina brand, bringing even greater diversity to its luxury-car range.
Over half a century, BMW and the small-series manufacturer Alpina Burkard Bovensiepen have forged close cooperation built on the highest level of trust. The German vehicle manufacturer based in Buchloe was active in BMW tuning and motorsports and began manufacturing passenger cars based on BMW AG products in 1978.
Now, the journey of these companies enters a new chapter as both the firms share the same passion for cars that capture the imagination.
Automotive Gourmets
Alpina has been creating exclusive automobiles for a small circle of connoisseurs who have a sense for the special and love pleasure. Probably these can be attributed as the world’s most renowned individual automobiles based on BMW, which have been developed and produced in a small, independent family business in friendly cooperation for over five decades. And that has always been done with great attention to detail.
Now, both the companies have reached an agreement to this effect; however, the conclusion of the transaction is still subject to various suspensive conditions – in particular, approval by the responsible antitrust authorities.
The long-standing cooperation agreement, which was extended for another five years in late 2020, will expire on December 31, 2025. Both firms have agreed not to disclose any financial details. In addition, no shares in the company will be acquired.
The Need
The transformation towards electromobility and increasing regulation worldwide – especially emissions legislation, software validation and requirements for driver assistance and monitoring systems – result in significantly higher risks for small-series manufacturers. The management of Alpina is addressing this with a strategic realignment that will secure the long-term viability of its operations.
According to Pieter Nota, Member of the Board of Management responsible for Customer, Brands and Sales, BMW Group, the automotive industry faces a far-reaching transformation towards sustainable mobility. For that reason, existing business models need to be re-examined regularly. That is why BMW is now embarking on a new chapter in its long-standing partnership. Acquiring the trademark rights will allow it to shape the long-term course of this brand steeped in tradition.
Smart Thinking, Splendid Offerings
The cooperation will continue in the strategic relationship 2.0 between the two companies, but differently. The company owned by the Bovensiepen family will continue to use its engineering expertise in developing, manufacturing, and selling BMW Alpina vehicles within the existing cooperation until the end of 2025. This results in base BMW cars receiving extensive modification by the Alpina team - including the engine and transmission and the chassis, aerodynamics, and interior equipment. BMW and Alpina vehicles are pre-assembled on the former’s production lines before final assembly of the vehicles taking place in workshops in Buchloe, also comprising individual interiors built to customer specifications.
Setting The Right Course
Andreas Bovensiepen, Co-managing Director, Alpina, says, “We recognised 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. 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.”
Accordingly, the service, parts and accessories business for the existing and legacy BMW Alpina vehicle portfolio will continue at the Buchloe location in the long term. Furthermore, there will be no changes to the existing aftersales cooperation.
Wine Won’t Wane
As part of this strategic cooperation, there will certainly be a further expansion of BMW’s existing development services business out of Buchloe. However, the wine business that also forms part of the family firm will be unaffected.
Snug Fit
Jens Thiemer, Senior Vice President Customer and Brand BMW, says it is a perfect fit for both brands as Alpina has matured alongside BMW over the past five decades 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,” he adds.
Co-managing Director Florian Bovensiepen says that without its 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 reorganisation.”
Sale Of Trademark Rights
The sale of trademark rights to BMW and the resulting discontinuation of the current Alpina vehicle programme at the end of 2025 will have implications for existing jobs at the Buchloe site. BMW will support Alpina with the necessary adjustments to the workforce at the location over the coming years. Until the end of 2025, it will work with Alpina to offer those employees who will not be able to continue working at the site a new position with the group and help them find new jobs with suppliers and development partners.