Statement by Harald Krüger, Chairman of a Board of Management of BMW AG, Conference Call Interim Report to 30 Sep 2016

Posted on 05. Nov, 2016 by in BMW Canada

Good morning, ladies and gentlemen,

 

The BMW Group has a transparent prophesy of how a business in a premium
shred will stay on a pierce after 2030. Mobility will be autonomous,
electric and entirely connected. In all of this, a romantic experience
of a business plays a executive role. Individual mobility will be
tailor-made to perform all of their personal desires and needs.

 

Our BMW, MINI, Rolls-Royce and BMW Motorrad Vision Vehicles combine
all these characteristics – as good as a fascinating design. Together
they emanate a transparent design of a prophesy of a destiny after 2030. In
October, we presented all 4 of a Vision Vehicles in Los Angeles.
The tellurian response to a “BMW Group Future Experience” debate was
intensely positive, generally in amicable media. With headlines like:
“BMW’s Four Futuristic Concepts Will Blow Your Mind.” or “Easy Rider
meets iPhone.”

 

Our picture film for a BMW Motorrad VISION NEXT 100 alone perceived 46
million clicks on a online height “Mashable”. This turn of
oddity and unrestrained confirms a clever faith that: Individual
mobility is, and will sojourn rarely sparkling and romantic in the
future. This mutation routine is driven by a 4 ACES:
Automated, Connected, Electrified and Shared.

 

In expostulate technologies, we began creation this change early: In 2008, we
presented a plug-in hybrid judgment of a BMW 7 Series. With a MINI
E, we also began a world’s many endless domain hearing for electro-mobility.

In 2013, we introduced a entirely electric BMW i3. We showed that we
are prepared to take shortcoming and do a partial for climate
protection. To this day, with a 360-degree approach, a BMW i3 is
one-of-a-kind. It is a colonize in extensive sustainability
via a value chain. In 2014, a BMW i family was stretched to
embody a i8. In 2015, a X5 became a initial series-production BMW
with plug-in hybrid record and launched as an iPerformance model.

 

Our postulated efforts are essential off. In early November, we reached
an critical milestone: 100,000 vehicles with an electric expostulate train
sole worldwide. That means: More than 60,000 BMW i3s – creation it the
many successful electric automobile in a reward compress segment. More
than 10,000 BMW i8s – creation it a array ONE electric sports car.
And around 30,000 BMW plug-in hybrids.

 

BMW and BMW i already offer business a largest operation of electric
expostulate trains opposite all segments. We now have 7 models with
a pristine electric or plug-in hybrid expostulate train. We sole 7,000
electrified BMWs in Sep alone. Further plug-in hybrid models
will follow in a entrance years, including a initial MINI PHEV in 2017
with a new MINI Countryman.

 

We have emphasised right from a commencement that: BMW i has a clear
purpose for a Group as a whole – as a spearhead of creation and
record enabler. We are consistently requesting innovations from BMW
i opposite a brands and array models. To make this imagination transfer
visible, all BMW plug-in variety bear a name “iPerformance”. It
shows a tighten couple between BMW and BMW i – usually like BMW M and M Performance.

 

The trend towards tolerable mobility is irreversible. We integrated
a BMW i3 into a DriveNow and ReachNow fleets to attract more
people to electric driving. This has already brought some-more than 200,000
people into hit with e-mobility.

Our DriveNow business have now driven around 6 million kilometres
alone quite on electric power. Currently, a car-sharing use has
some-more than 800 BMW i3 on a roads worldwide.

 

This is all partial of a plan Number ONE NEXT. And we are now
rising Phase II of a successful substructure strategy. We are
electrifying a vehicles opposite all a brands and opposite all
segments and series. Let me give we a few examples:

  • the BMW i8 Roadster from 2018 on.
  • a fully-electric MINI from 2019.
  • a fully-electric BMW X3 from 2020.
  • the fully-electric BMW iNEXT from 2021.

 

Over a entrance years, we will need to make poignant upfront investments.

This relates not usually to tolerable expostulate trains, though also to
digital connectivity, unconstrained pushing and mobility services. Our
financial strength continues to yield a basement for this.
Profitability is a executive post of Strategy Number ONE NEXT.
Our investors and stakeholders take a long-term view, usually like we do.

 

We continue to aim unchanging high profitability – by gripping EBIT
domain in a Automotive shred within a aim operation of 8 to 10
percent. In other words: Our successful core business stays the
substructure for all of a ground-breaking vital decisions.

 

The BMW Group continued a successful expansion in a initial nine
months of a 2016 business year. More business than ever before
bought a BMW Group vehicle, with over 1.74 million deliveries – an
boost of 6.2 percent over a same duration in 2015. The BMW, MINI
and BMW Motorrad brands any reported new all-time highs for a first
9 months. Our oppulance code Rolls-Royce achieved a best third
entertain so far.

Year-to-date sales are around a high turn of a prior year.
Earnings before taxation climbed 8.8 percent to 7.74 billion euros. Group
net distinction totalled 5.41 billion euros. The EBIT domain in the
Automotive shred was 9.1 percent for a year to a finish of
Sep – and stays within a aim operation of 8 to 10 percent.

We continue to advantage from a proceed of offset sales opposite the
vital marketplace regions and in vast particular markets:

 

  • Europe: and 10 percent in a initial 9 months. The UK, France
    and Italy all with double-digit growth.
  • Asia: and 9 percent. We are saying strong expansion in China,
    with serve potential; as good as an ceiling trend in Japan, with 10
    percent expansion in new registrations. Further procedure in Asia will
    come from new models specifically grown for Chinese customers, such
    as a X1 PHEV.
  • Americas: reduction 6.5 percent. In a US, a new automobile deliveries
    decreased by 8.7 percent. We continue to observe that a US market
    is rarely competitive.

Overall, expansion on a automotive markets should remain
positive. What is clear, however, is that: All markets remain
intensely competitive. At a same time, we contingency continue investing in
a future. This goes palm in palm with rising crew costs.
Political and mercantile hotspots, as good as postulated sensitivity seem
to be a new normal.

However, in perspective of a certain sales expansion and a good
financial pivotal figures, we sojourn optimistic.

 

We intend to grasp a targets for 2016.

 

  • As we already know, we are targeting new all-time highs for Group
    sales and gain before taxation in a centenary year. Both of these
    total should be somewhat aloft than final year.
  • In a Automotive segment, we aim to keep EBIT domain within our
    aim operation of 8 to 10 percent.
  • The company, with a 3 reward brands – BMW, MINI and
    Rolls-Royce – stays a personality of a reward segment
     

As always, a targets assume there are no poignant changes in
conditions for a tellurian business. One thing is certain: Our company
is flourishing during a high turn and it is profitable.

 

Therefore, we are strengthening a tellurian group in specific areas. We
advantage from a fact that a BMW Group is a really attractive
employer, as many rankings show. The array of employees will increase
somewhat this year from 2015 levels. At a finish of September, a BMW
Group employed around 126,000 people worldwide. We will naturally
continue to yield immature people with a competent preparation and
training. In September, 1,600 apprentices began their career during our
association – 1,200 of them in Germany. To accommodate a hurdles of the
future, we need engineers, program and IT specialists and mobility
services experts.

 

Digitalisation is one of a executive pillars of a Strategy Number
ONE NEXT.

We see it as an event to continue growing. We will continue to
figure destiny mobility – therefore we have motionless to build a new
investigate and expansion centre for unconstrained pushing in a Munich
area. It will be one of a largest of a kind in Europe.

 

Already starting subsequent year, we will pool all of a imagination in this
area, during a new campus. It will yield a developers from all the
opposite fields with an ideal and moving work environment.
Together with a FIZ Research and Innovation Centre and cooperation
partners we will rise and exam a fully-autonomous and
highly-automated vehicles during a new site.

 

I would like to repeat what we pronounced in L.A.: We have already arrived
during a place others are still usually forgetful about. Our aim, and our
vision, is to move particular mobility into a digital age. We want
to be a record and creation personality in a mobility sector. A
good instance of this is a new BMW 5 Series, that will be launched
in early 2017. It will not usually set a benchmark in driving
performance; it will also set new standards in connectivity. In the
subsequent weeks, many of we will be means to decider for yourselves during our
exam expostulate in Portugal.

 

For a initial time, shortly after a marketplace launch of a new BMW 5
Series, we will already move serve variants to a market: a
Plug-in Hybrid, an Efficient Dynamics Edition, and an M Performance
model. Our business have several needs – and we aim to do them.

 

We intend to lead a way. And we continue to labour a business
model. In this way, we will accomplish a transition from a leading
provider of reward mobility and services to a heading tech association in
a mobility sector.

 

We have a suggestion and a ideas to do so. Our 4 Vision Vehicles
are explanation of that.

 

Thank you!

 

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