Opening of the new Shanghai Research & Development Center as part of BMW’s Innovation Day China.

Shanghai/Munich. Today opened the newly BMW Group
Shanghai RD Centre as part of BMW’s Innovation Day China. The
event showcased BMW’s latest developments in the areas of innovation,
digital services, autonomous driving and automotive design. Following
the opening of the Beijing RD Centre and the laying of the
foundation stone for phase II of the Shenyang High-Voltage Battery
Centre in May 2018, the new RD Centre in Shanghai marks another
milestone for BMW’s “In China, for China” RD strategy,
illustrating how the BMW Group has further enhanced the RD
network in China.

With China leading the way for innovation worldwide, the BMW Group
values the country’s importance as a driver of innovation and will
continue to increase its RD investment there. “China has a
world-class infrastructure, abundant skills and strong support from
the government. As one of the most vibrant cities in China, Shanghai
is in touch with the latest trends and represents the cutting edge of
technology and innovation. It has become the spearhead of innovation
for BMW’s RD network in China and an incubator for future
technologies. The Shanghai RD Centre will focus on autonomous
driving, digital services and futuristic design, and will expand
collaboration with leading high-tech companies. With its team of
experienced and talented professionals, the Shanghai RD Centre
will bring more and more innovative technologies to Chinese
customers,” said Mr Jochen Goller, President CEO, BMW Group
Region China.

Collaboration with local high-tech companies, building an
innovative ecosystem.

At today’s BMW Innovation Day local innovation and technology
companies joined the event, sharing views with BMW RD specialists
and demonstrating their innovative achievements. The Technology Office
China has been working with Chinese high-tech companies on open
innovation projects covering the four aspects of ACES (Automated,
Connected, Electrified and Shared) since 2016, with the aim of
building a future mobility ecosystem in China. Dr Martin Sautter,
Senior Vice President, Research and Development Centre BMW, BMW China
Services Ltd., presented awards to four Chinese start-ups for their
outstanding achievements in the quest for future mobility solutions.

In the words of Dr Sautter: “As a premium automotive manufacturer
with over 100 years of history, innovation is an intrinsic part of
BMW’s DNA. It is a key topic in China’s new era of development and
also the driving force behind the car industry’s shift towards ACES.
OEMs are playing an active role in creating the future mobility
solutions and BMW is no exception to this. China has become a global
driver of innovation and will be at the forefront of innovation at
BMW. We collaborate with local technology and innovation companies,
providing them with a platform for open innovation. This is a win-win
partnership, as BMW implements the resulting innovations in its future
products and services.”

Four functions of Shanghai RD Centre for cutting-edge
mobility innovation in the future.

The new Shanghai RD Centre is located on the Puxi side of the
city. It comprises four departments focusing on future mobility trends
and innovative design: Technology Office China; Digital Products
Services and Digitalization Customer Interface; Connected and
Automated Driving Lab; Designworks Shanghai Studio. It covers over
2,500 m2 and features an open and flexible working environment that
inspires employees and improves cooperation. The RD team is made
up of over 200 technical specialists and designers. More than 90% are
Chinese. They come from diverse scientific backgrounds: big data,
robotics, AI, human machine interface, mechanical engineering,
business model development and economics. All the departments of the
Shanghai RD Centre work with other BMW RD departments around
the world as part of a collaborative effort to transform the BMW Group
into a high-tech mobility service company.

The department for Digital Products Services develops and
operates BMW Connected and other digital services in China with the
aim of creating a comprehensive mobility ecosystem. BMW Connected
seamlessly integrates vehicles into their users’ digital lives via
multiple touchpoints, such as the iPhone and Apple Watch. It is
powered by the BMW Open Mobility Cloud, a highly flexible, cloud-based
system. With BMW Connected, mobility extends beyond the vehicle. BMW
is committed to building a comprehensive mobility ecosystem and
providing intelligent, seamless and personalised mobility services for
customers. BMW Connected also uses the Tmall Genie smart voice
assistant and Baidu smart speaker to provide home-to-vehicle services.
BMW Connected was launched in China in December 2016 and now has over
one million customers and counting.

The Connected and Automated Driving Lab has its
sights set on safer, more convenient and smarter future mobility
solutions. It develops autonomous driving in China based on customer
requirements, technological developments, technical standards and
government regulations. Around 60 engineers in China are working on
the core technologies behind autonomous driving – such as
high-definition maps, sensors and perception, driving strategy and
vehicle control, interfaces with on-demand mobility services and
prototypes – as well as regulatory issues. In May 2018, BMW became the
first OEM to obtain an autonomous driving road testing licence in
China. As of June 2018, about 200,000 kilometres (125,000 miles) of
simulated testing and nearly 30,000 kilometres (18,500 miles) of road
testing had been carried out in China.

As one of the first automotive manufacturers worldwide to develop
autonomous driving technology, the BMW Group has already amassed more
than 10 years of RD experience and created a solid foundation. In
China, BMW has been working on the development of autonomous driving
since 2014. China has one of the most complex traffic infrastructures
and driving behaviour patterns in the world. Localised RD for
autonomous driving forms a crucial basis for perfecting the
technology. In 2017, BMW started Level 4 autonomous driving trials
with a fleet of 40 test vehicles on roads around the world, and the
number of test vehicles will increase to 80 in 2018. Road safety has
always been a top priority for BMW and it plans to complete 200
million kilometres (125 million miles) of testing globally prior to
the mass production of autonomous vehicles.

The Technology Office China in the Shanghai RD
Centre
joins California and Tokyo as the third technology
office. It focuses primarily on three main areas – Megacity Mobility
China, Open Innovation and Customer Car Data Analytics China. One of
their most important projects is the Open Innovation Network, which is
building an innovation ecosystem in China. This network covers
Beijing, Shanghai, Hangzhou, Shenzhen and Hong Kong, and conducts
joint research projects with partners such as universities, start-ups
and technology companies.

Designworks Shanghai Studio, along with the studios
in Munich and Los Angeles, forms a global future-oriented creative
consultancy that offers strategic services to clients in auto and
other industries to foster innovation and business growth. With a
multicultural team, an organic work organization and a
multi-disciplinary capability, the Shanghai Studio has become a
strategic partner for its clients by jointly tailoring design projects
and foreseeing the future opportunities of the market. 

“China remains a key market for the BMW Group and Designworks, and
continues to grow in importance.  The region provides a unique
platform for design inspiration; from its rapid speed of change,
advancements in technology and digitization, as well as its
overarching spirit of optimism,” said Adrian van Hooydonk, Senior Vice
President BMW Group Design. “By building first-hand experience and
understanding of this marketplace, it allows us to create strong and
highly relevant solutions for our Chinese customers, as well as giving
us the opportunity to infuse this knowledge back into our teams and
projects across the world.”

100 years of innovation DNA, building a solid local RD network.

Innovation is in BMW’s DNA and acts as the driving force for the
brand’s sustainable development. Over the past century, the company
has always focused on innovation as a means of developing future
mobility. The global BMW RD network encompasses 13 cities in five
countries (Germany, USA, Japan, South Korea and China). China has the
largest RD network in the BMW Group outside Germany.

The BMW Group is committed to investing in and leading the way into
the future. In 2017, total RD investment increased by 18.3%,
hitting €6.108 billion and accounting for 6.2% of annual revenue. With
the ongoing upgrades to its RD network in China, the BMW Group
will keep increasing its innovative capacity for future mobility,
accelerating its transformation into a high-tech mobility service company.