May 30, 2006

By Peter Kenny

BMW will be partnering with American Express to launch a new co-branded credit card in the UK.

BMW will be offering insurance and savings products as well as the new mini credit card. At this time, the luxury German car manufacturer, only offers car finance and leasing options to its UK car buyers.

This move by BMW seems to signify that financial services offer lucrative profit revenue to established branded products. It is known that other car makers find their financial services generate more than their standard car making divisions.

BMW has also partnered with The Royal Bank Of Scotland to offer home insurance while at the same time joined with Newcastle Building Society for its savings products.

Keith Dye, chief executive of BMW Financial Services GB said, "We are extending our range of financial services products in our key sales markets and as the third largest market we see the UK playing an important part in this global strategy"

BMW hope to offer the existing 1.5 million UK customers special incentives to take out BMW’s own in-house financial products.

BMW already offers in Germany, Japan, New Zealand, Australia, Spain, Austria and the United States. It also plans to launch financial products in the United Arab Emirates later this year.