Statement by Harald Krüger, Chairman of a Board of Management of BMW AG, Conference Call Quarterly Report to 31 Mar 2016

Posted on 03. May, 2016 by in BMW Canada

Good morning, ladies and gentlemen.

 

2016 outlines a year of a BMW Group’s centenary. A demeanour during our
story clearly shows how a association has successfully transformed
over a years: From an aircraft-engine and motorcycle manufacturer to
a multi-brand Group. From a world’s heading writer of premium
vehicles to a heading provider of reward mobility and services. Our
charge now is to ready a association for a digital transformation
holding place in a area of particular mobility. We are branch the
BMW Group into a high-tech provider of mobility.

 

Our prophesy automobile – a BMW VISION NEXT 100 – embodies the
innovative strength and transparent destiny concentration of a association in a very
special way. It provides a glance into a destiny of mobility, from
2030 on: sustainable, entirely connected and rarely automated. We are
transforming a ‘ultimate pulling machine’ into ‘the ultimate
driver’. Our concentration relocating brazen will sojourn on a business and
their particular mobility needs. We wish to continue to move fun to
a business and surpass their expectations: With a reward vehicles
and reward brands.

And – some-more than ever before – with a reward services for
particular mobility. This will capacitate us to make mobility easier, more
accessible and – above all – safer for a customers.

 

In dual days’ time, we will benefaction a “BMW VISION NEXT 100” on its
World Tour in Beijing. Two some-more prophesy vehicles – from MINI and
Rolls-Royce – will be denounced in London in June. All 3 vehicles
will be shown in Los Angeles in Oct – along with a prophesy “on
dual wheels”. So, as we can see: We are operative tough on formulating a future.

 

Our plan realignment, NUMBER ONE NEXT, sets dual transparent target
dates: 2020 and 2025. More than ever, we will need to be fast,
veteran and stretchable to master a hurdles that distortion brazen –
though also in a actions and a decision-making. Over a final few
months, we have already launched a initial measures and projects for
Strategy NUMBER ONE NEXT. These embody a new BMW 7 Series,
with a many technical innovations, a BMW iPerformance fleet, and
a new BMW M2 Coupé.

 

The new BMW 7 Series has been well-received by customers. We have
already delivered 10,500 BMW 7 Series given a commencement of a year.
That’s over 20 percent some-more than during a same duration final year. And
during a finish of March, we launched a 730i, that we pattern will boost
sales even further. Two additional variants of a 7 Series – the
iPerformance and M Performance versions – will even give customers
some-more choice. An M automobile for a oppulance category was something many of
a business wanted. And a BMW 740e iPerformance will uncover how we
send BMW i ‘born electric’ record into a array vehicles
within a BMW brand.

 

Our plug-in hybrid BMWs will be underneath a tag of BMW iPerformance.
This summer, business will already have 5 iPerformance models to
select from.

This means we will offer a plug-in hybrid for each class, from
compress to luxury. The substructure of a automobile quick is a key
component of Strategy NUMBER ONE NEXT.

 

A larger suit of all-electric and plug-in hybrid vehicles
within a quick is essential in sequence to accommodate Europe’s desirous CO2
emissions targets for 2020.

 

In a initial entertain of this year, we sole over 5,000 BMW i3 cars.

I am also gay that a German supervision is holding concrete
stairs to support electric mobility. we am confident that this will
boost a direct for electric cars. In a prolonged tenure – and we are
assured of this – choice expostulate trains will be an constituent part
of particular mobility. And we wish to be a personality in electric mobility.

 

Ladies and gentlemen,

 

Our attention is undergoing a elemental transformation. Strategy
NUMBER ONE NEXT focuses on 6 pivotal concentration areas: Brands
design, products, technologies, patron knowledge services,
digitalization and profitability.

 

For us, unchanging profitability over a longer tenure is a must; it
gives us a substructure we need for investing in a future. We must
also constantly weigh a inner structures and processes. Here,
we are concentrating on speed and potency to ready a company
for a digitalisation of a vehicles and a prolongation facilities.

 

In a future, a appealing indication operation will sojourn elemental to
a success.

As partial of Strategy NUMBER ONE NEXT, we will enhance a product
portfolio – for all of a brands and segments, with an additional
indication for a oppulance class, an X7 to element a X family and
serve additions to a M and M Performance ranges. we already
mentioned a BMW M2 Coupé. A new Rolls-Royce is grown underneath the
plan name ‘Cullinan’. And there will be new additions to a i
family. In a second half of 2016, we will launch another i3 model,
with 50 percent some-more battery capacity. This will be followed by a BMW
i8 Roadster in 2018.

 

In terms of record we are operative together on optimising our
explosion engines with Efficient Dynamics NEXT and also on
electrification, with battery packs and fuel cells. At a beginning
of 2020, a new BMW i NEXT will combine a full operation of future
features: unconstrained driving, digital connectivity, intelligent
lightweight construction and next-generation electric mobility.

 

Our idea is set out in Strategy NUMBER ONE NEXT: We wish to be
a personality in a digitalisation of particular mobility. We will focus
on 3 categorical areas: Digital patron experiences, connected and
unconstrained pulling and business processes.

 

Mobility services and digital services are already a partial of our
business indication today. DriveNow, ParkNow and ChargeNow are only three
examples. Especially in vital cities, business need seamless and
particular mobility solutions. For tolerable civic mobility, a USA
is a commander market. In early April, we launched a automobile sharing
service, ReachNow, in Seattle. The series of people who have
purebred has distant exceeded a expectations. ReachNow is modelled on
DriveNow in Europe. Our partner for this use in a USA is a
record start-up called RideCell.

 

Since Mar this year, BMW Connected Drive users in a USA can
download a BMW Connected app – a customised digital companion
accessible from a Apple Store. This app offers business convenient
entrance to a rarely personalised universe of intelligent, connected
digital mobility services. It’s a cross-platform mobility judgment that
is formed on an Open Mobility Cloud. The Cloud gives us an even better
design of a customers’ wishes and we can yield an even more
tailored service.

 

And that’s accurately what we are aiming for: The best services in our
rival field. ReachNow and BMW Connected clearly uncover that we are
pulling brazen with a doing of a plan NUMBER ONE
NEXT.

We are strengthening a core business, operative intensively on
operational excellence. At a same time we are creation quick progress
in serve building a use range.

 

We have set ourselves a series of desirous goals for a current
business year:

 

  • A slight boost in automotive sales – that would be another
    all-time high for a BMW Group.
  • A slight boost in Group EBT – that would be another best
    outcome for a company.
  • An EBIT domain in a Automotive Segment that stays within our
    aim operation of 8 to 10 percent.

 

Our initial entertain was a good start to a year. For a sixth time in
a row, we achieved a new first-quarter sales record – with some-more than
557,000 vehicles sold. Our BMW, MINI and BMW Motorrad brands posted
their best first-quarter total yet. Group distinction before taxation was more
than 2.3 billion euros – a top first-quarter figure ever. Group
distinction rose to some-more than 1.6 billion euros. And a EBIT domain in the
Automotive shred now stands during 9.4 percent, that is during the
top finish of a projected aim operation of 8 to 10 percent.

 

So, after 3 months, we sojourn on lane to grasp a targets for
2016. This assumes that business conditions sojourn stable. A series of
risks could potentially impact a business development, such as the
stability normalisation of a Chinese market, recessive developments
in some rising markets and domestic doubt in Europe. And not
to be forgotten: marketplace conditions in a all-important marketplace of the
USA. This year, they seem to be apropos some-more challenging. In
addition, a reward shred stays rarely competitive.

 

On a other hand, a foresee expansion in a tellurian automobile
marketplace is approaching to yield momentum. And one of a greatest
contributors to a business expansion will be a appealing range
of new BMW, MINI and Rolls-Royce vehicles: The new BMW 7 Series has
been accessible with a full operation of engines given March. The new BMW
X1 is proof intensely popular, with clever sales growth. The X1 long
chronicle is due for marketplace launch in China in May. It will be
made during a plant in Tiexi. The new MINI Convertible has been
on a marketplace given March. And during Rolls-Royce, a new convertible,
Dawn, will supplement serve procedure to sales.

 

Ladies and gentlemen, as we can see: We are moulding the
mutation of particular mobility. We are operative from a position
of strength, with a plain financial foundation. we sojourn confident
that a BMW Group is on lane for continued success – in its
centenary year 2016 and beyond.

 

Thank we really much.

 

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