A signal for the whole of Germany

"A signal for the whole of Germany" was what Mayor Christian Hirtreiter called it: at the end of September, voters in Straßkirchen in Lower Bavaria voted by a clear three-quarters majority in favor of the construction of a BMW battery plant in their town. This was preceded by an often fierce and bitter election campaign between supporters of the plant and opponents who wanted to prevent further sealing of fertile soil. BMW will build its factory on 100 hectares of the most fertile Gäuboden, the equivalent of 180 soccer fields that will be lost. So the question was: climate and homeland protection or economic upturn and prosperity?

But it's not quite that simple after all. BMW had examined twenty locations and could probably have built more cost-effectively abroad. So why did the car manufacturer want to stay in the region, especially in one where the costs are even higher than in other parts of Germany and where the headwinds were so strong?

Back in 2020, BMW CEO Prof. Oliver Zipse said: "Our aim is to ensure the most sustainable supply chain in the entire industry." However, this would not be possible if the 600-kilo batteries were to be produced in the Czech Republic or Hungary, for example, and then transported 900 kilometers across Europe before being installed in electric cars produced here in Germany. That would make no sense for the climate or for BMW. And Bavaria would also lose out as a business location. The BMW sites in Dingolfing, Regensburg and Landshut would also have been at risk in the long term.

The clear decision of the people of Strasbourg, over 70 percent of whom went to the polls, also sends a signal to other companies in Germany. BMW HR and Real Estate Director Ilka Horstmeier had already said before the decision: "Many companies will take a close look at whether people still want to invest in sustainable technologies and future-proof jobs in Bavaria." The decision shows that many people have now understood that transformation and climate protection can only succeed if compromises are made.

In order to convince local people of this, BMW has held talks to dispel any doubts. Horstmeier says that it can be seen "that with good solutions, a transparent process and open dialog, resilient decisions can be made for a common future".

The case is a good example of why it is becoming increasingly important and essential for companies to bring together all interest groups and work together. In the Strasskirchen case, both the local authority and the state of Bavaria had spoken out in favor of the construction - the cash-strapped municipality can make good use of the single-digit mid-million euro amount in trade tax per year, and Bavaria needs BMW to remain relevant as a business location. BMW is also creating jobs and will create compensation areas for the developed land.

It is precisely this approach that will be the central theme of the upcoming Munich Management Colloquium (MMK). "In our colloquium, we want to explore the realignment and the associated change in strategy of companies towards the guiding principle of Strong Together. This is associated with a greater assumption of responsibility and an increased need for transparency - which means that the requirements for successful communication on the corporate side have also increased," writes MMK founder and Managing Director Prof. Horst Wildemann in a contribution entitled "How can the asset value of companies be increased through social acceptance?". According to Wildemann, the question is how stakeholders with different perspectives can arrive at joint solutions that are acceptable to both. "This makes the social acceptance of companies a decisive asset." The license to operate has to be earned again and again.

With their clear vote, the people of Strasbourg have given BMW a leap of faith that the car manufacturer must now honor - and which could send a signal to other companies to continue investing in the region and in Germany.

At the 31st Munich Management Colloquium on March 5 and 6, 2024, the topic will be why BMW is an example of best practice and how companies can earn their license to operate again and again.