You've been in Munich three years now - what have been the biggest changes you've noticed in the company since you arrived?
For me BMW was still a company in a box, building traditional `pipe and slippers' brigade motorcycles lacking excitement. We had started the new product offensive earlier in 2004. For me the biggest change was a new way of thinking about BMW products. We knew the products needed to be lighter, faster and more exciting. The product offensive took on a new dynamic and I don't think anyone fully understood the true impact of all that was being proposed at the time.

Prior to taking up your position in Munich, what goals did you set yourself and have you achieved these yet?
I was for many years working in the markets and my impression at the time was that many of the things that were being `prescribed' by Headquarters were not always relevant to the markets.

Pieter de Wall, BMW VP of Sales and Marketing

Therefore, from the beginning I felt my role was to change a thinking philosophy from one which said `HQ dictates and the markets follow' to one which says `HQ listens to what markets need. At the same time we expect markets to listen to what the dealers say as the dealers have the really close contact to our customers'. That was the main change I desired - to do the things that our customers appreciate.

What do you think is the biggest challenge facing Motorrad today?
We've got many challenges, but I think the biggest overall challenge is to make this leisure activity called motorcycling popular among young people. We basically battle with a saturated market and aging customer profiles. We hope we will be able to effectively counter this with our new product offensive where we will target new segments and younger customers.

The aggressive new model initiative that's been happening since 2004 has seen the entire range renewed, 17 new models and entry into new segments - it must be difficult to keep Motorrad's core values on track?
No, I do not think so. Although we are moving fast to make the brand more dynamic, market research just completed confirms that our existing customers are more loyal than ever. On the other hand, among non-BMW riders the perception of BMW as a dynamic company appealing to younger riders has grown massively. The fact that people who do not ride BMW see us today as a much more dynamic company with products that are much more acceptable to them, prepares us very well for our next product offensive which really takes us to uncompromising fields. We've just announced that we will be in the Superbike World Championship in future, and this major step in motorsport implies that we will have the product to be able to race in that area. That said, our forte remains our big GSs and touring motorcycles. In these two segments we have more than 50 per cent of the world market for motorcycles over 500cc.

How would you sum up the first season of motorsport activity?
We're satisfied with what happened. It's a bit of a clich if I say that we used motorsport to develop our product, but this really was the case with the 450cc sports enduro prototype We entered a brand new area and this truly was a development year for us. From next year onwards, the emphasis will be on what people are normally in motorsport for - to try and win!

How do you see the acquisition of Husqvarna helping BMW Motorrad's off-road segment to grow?
Both companies will be kept separate, as we want a very clear focus as to what BMW and Husqvarna stand for. Purchasing Husqvarna allows us to be main players in two very different fields without diluting our BMW focus. The acquisition of Husqvarna gives us another volume boost in an area where we're addressing younger people, where there is profit potential, and - at the same time - we also have the synergies of the development between BMW and Husqvarna.

How can you remain competitive against the Japanese manufacturers and keep the brand's premium status?
It is a major challenge. We're competing against Japanese and they have a huge exchange rate advantage. In the last five years, the exchange rate has moved 70 per cent in favour of the Yen against the Euro and that puts us at a real disadvantage. In order to remain competitive, we have looked at all areas of cost very closely. We have also embarked on an international sourcing strategy to keep us competitive. In the end Japanese competitors.

Are you confident of beating last year's sales figures?
Yes, we're confident that we'll be able to set a new volume record again this year and also increase our turnover and profitability at the same time.

What steps are Motorrad dealers taking to go outside their comfort zones and engage with the off-road world?
I doubt that any motorcycle dealer nowadays is in a comfort zone! Our dealer network is our most important asset. We have a very different dealer structure than most other manufacturers. We have mostly dedicated dealers exclusively selling our products, or where we share franchises, we have the majority share. Furthermore, we have a dealer network that consists of fewer dealers, all absolutely focused on BMW. We believe that what we can provide in terms of future product will allow our dealers to benefit as that what we can provide in terms of future product will allow our dealers to benefit as well. It is a challenge for both of us to enter into new fields, but I think we've got pretty established training programmes and the type of relationship with our dealers that with our input and their skill levels, they can cope with that.

What was the reaction in Paris to the HP2 Sport?
We had a wonderful reception by the press and that's not surprising. After all, it's the sportiest motorcycle we've ever built. It will be produced in low volume, and will become a real collector's item for true enthusiasts. It's full of interesting technology and there's an uniqueness about it, not to mention the features that are world firsts on a production bike, such as power shift, MotoGP dashboard, etc. There's also a huge interest in the fact that BMW will be back in `full blown' motorsport. A lot of people expect BMW to be there and will be watching with interest.

And great news about BMW Motorrad's continued participation in the World Endurance Championship next year?
Participation in motorsport is a very important element in changing the perception about BMW. Whether on-road or off-road, motorsport fans are the opinion makers in the motorcycle world, so we want to be there and this is right in line with how we see our company positioned in the future.

It must be reassuring to see BMW engaging with its customers much more worldwide with events like the Spanish Bikermeeting, Canada Summerfest, Xplor Bonneville Rally, the Great African GS Challenge and of course the BMW Motorrad Days festival?
You're touching on something that is very close to my heart and this is the whole activity-based marketing that we do. We've made a very conscious decision to move away from `conventional' above-the-line advertising to be much more focused on below-the-line activity. We want to really give people something very exciting to do with their motorcycle, so the things that you mention will certainly become more and more a part of our future.

The past two or three years are surely some of the most exciting times to be involved with BMW - but what do you enjoy most about your job?
The fact that it is so varied. One day you are involved in changes in certain markets, the next day you're looking at brand new product for 2012-2013 or trying to understand what the customer would look for then. Also our team is small enough that you can really effect changes. The things that you decide on ...you see them happen. Most of the time it's very rewarding - success is great - but failures have also happened. In our game you learn fast! Either way you can see the changes. Lastly, it's great to be part of a company like BMW, which not only has such a rich tradition, but really is a cutting-edge company that rewards bold thinking. The team in Munich is great too. I don't think anyone could work for us if deep down there wasn't a passion for motorcycling. I use every opportunity I have to ride a bike and of course it's a great privilege to be able to visit and ride in different countries.

What's your favourite bike in the current range, and why?
I don't normally answer that, but this time I will. It has to be the R 1200 GS, or the Adventure variant. It's a bike that can just do everything so well. If you are confronted with the terrible choice that you have to have just one bike, then it can only be the GS. No wonder then that it's also the favourite bike of at least 30,000 people worldwide every year.