BMW aims to increase stake in SGL

BMW and Volkswagen are reportedly taking a huge interest in purchasing extra shares in SGL Carbon. If the German auto giants were to increase their shares, they would have a major influence in the carbon fibre manufacturing company.

The move looks almost certain to go ahead as a BMW executive was quoted to have said “We have a fundamental interest in SGL Carbon,”

BMW’s investment plans don’t come as a surprise. Their new i Series will be built with carbon fibre materials in order to make the car lighter, which will directly impact the eco-friendliness and fuel economy. The i3, as previewed by us in an earlier article will be produced at a SGL factory in the city of Washington.

The same can be said for Volkswagen. They hope to use carbon fibre materials for the upcoming XL1, a very economical green car which is expected to achieve 261 MPG.

Volkswagen are hoping to increase their stake to around 15-16 % from 8.2 %. BMW are said to be increasing their stake to 20%. Stakes as high as these would mean both companies will have a considerable amount of power in business operations and major decisions.

Susanne Klatten, a BMW board member, purchased 27.3% of SGL. That figure is expected to rise to 29% by the end of the year. This may block any offer from Volkswagen as a result. If a bid was to be blocked, it would make sense in some respects, as BMW wouldn’t like their rivals to benefit from such a great opportunity.

The benefit of using carbon fibre materials on cars is to increase economy ratings and deliver a longer driving range. Carbon fibre can weigh up to 50% less than steel.

SGL are a thriving company which are set to prosper further in the upcoming years. Demand for carbon fibre is set to soar within the car industry. Whereas many carbon fibre parts have already been installed onto cars throughout previous years, they are set to come as standard for many future cars. SGL were reported to have made around $1.38 million last year, representing great business.

As far as the direction of the Germany’s largest luxury car manufacturers goes, this particular BMW investment seems like a very good idea.