The PESTLE analysis model is a strategic management tool for identifying the external

factors that can impact the BMW automobile industry, such as political, economic, social,
technological, legal, and environmental factors.

Political: Brexit uncertainties threaten auto industry impact. UK fees and taxes can cause
inflation, affecting revenue. The political phenomena can harm Eurosceptic voices, leading to
uncertainty and instability for BMW. International political influences pose pressure on the
company. The influx of migrants and refugees in Europe has had a significant political
impact, potentially resulting in the reestablishment of borders between countries. This would
create additional costs for a company heavily reliant on international production and cross-
border trade. (Lanius, 2023)

Economic: Economic factors impact a business's profit and growth. Examples include
inflation rates, taxation changes, globalization effects, and national economic growth. If
interest rates rise to combat inflation, borrowing costs increase and consumer spending
decreases. This leads to lower disposable income and slower economic growth. Increased
inflation raises production costs, affecting the business environment. Growth in economy
leads to more high earners and knowledgeable consumers, expanding the consumer base for
companies. High-quality products and services are valued, but price also matters. (Meyer et
al., 2022)

Social: Social factors impacting the auto industry include changing vehicle usage and
attitudes. Urbanization and a shift towards health and eco-consciousness may lead to a
decline in personal vehicle use. BMW and similar companies face potential threats from this
trend. There is a growing interest in reducing carbon footprint and shifting towards electric
and alternative fuel vehicles, influenced by oil prices, technology, infrastructure, and political
support. (Nittala & Moturu, 2023)

Technological, Legal, and Environmental: The automotive industry has seen recent
technological developments, particularly in safety, sustainability, and intelligence. BMW
competes with Tesla and Toyota and focuses on integrating Intelligent Personal Assistant
technology into its car models to enhance productivity and connectivity. BMW integrates
technology in its car models for sustainability, with electric drivetrains and a focus on
reducing greenhouse emissions. BMW also prioritizes compliance with government laws, cut
carbon emissions and has been researching bio-fuel sources for affordable alternatives. They
are dedicated to introducing electric cars with zero emissions and researching 'Swarming'
technology to reduce traffic and minimize greenhouse emissions. Innovation in electric
mobility increases costs. Increased demand for minerals and metals like cobalt, copper, and
manganese. Diversification of companies, including lithium mining. (Shigeta & Hosseini,
2020)

References:

Lanius, L., 2023. Sectoral regional dependence and the Brexit Vote: A case study of the
British Automotive Industry.ru.nl

Meyer, B. H., Prescott, B., & Sheng, X. S., 2022. The impact of the COVID-19 pandemic on
business expectations. International Journal of Forecasting.nih.gov
Nittala, R. & Moturu, V. R., 2023. Role of pro-environmental post-purchase behaviour in
green consumer behaviour. Vilakshan-XIMB Journal of Management.emerald.com

Shigeta, N. & Hosseini, S. E., 2020. Sustainable development of the automobile industry in
the united states, europe, and japan with special focus on the vehicles' power sources.
Energies.mdpi.com