Statement Harald Krüger, Chairman of a Board of Management of BMW AG, 98th Annual General Meeting of BMW AG in Munich on 17th May 2018

Posted on 17. May, 2018 by in BMW Canada

BMW Group.

Today’s decisions figure mobility
for a business tomorrow



Welcome, Ladies and Gentlemen!


There are many opposite aspects to mobility. It serves us in our
daily lives, though can also be a extensive source of pleasure. At the
BMW Group, we have 130,000 organisation and women full of appetite and passion
operative daily in building mobility.


Many of them are examination today. we would like to start by addressing
you, a employees. You are what make a BMW Group so clever and
unique. we would like to take this event to contend appreciate we to all
of you: Together, we safeguard this company’s continued success. That is a requirement towards a shareholders.


Allow me to acquire we all – everybody here in a Olympiahalle and
those fasten us around internet – to a 98th Annual General Meeting of


Some of you, Ladies and Gentlemen, have been with us for many years.

You know that a BMW Group is built on a plain foundation.


It is some-more than 100 years of knowledge that has enabled us to master
vital changes in a past and to take on those to come. We have the
strength and certainty to see us by a stream transformation.
Our reward finish is to be during a forefront. With a biggest
indication descent in a history, we are arising a plea to our
competitors. We are a array one in electrified vehicles in Europe
and Germany. All a brands and indication array are going electric. That
shows a consistency. That’s a future.


2017 was a eighth uninterrupted record year:


  • We sole some-more than 2.4 million cars and
  • 164,000 BMW motorcycles and scooters.
  • Group gain before taxation exceeded 10 billion euros.


    And, many importantly for you: We are a many essential car
    association in a world.


    That, Ladies and Gentlemen, distinguishes Your Company – and you,
    a shareholders, should share in this success.


    For 2017, we are proposing a top division ever: 4.00 euros
    per share of common batch and 4.02 euros per share of preferred
    stock. Our employees in Germany will also advantage by our
    profit-sharing programme.


    Fairness promotes togetherness – that is what a multitude needs. At
    BMW, we face a hurdles brazen together. That is a culture.


    In a complex, fast-paced world, there are no easy answers;
    blurb success can't be taken for postulated – generally over
    a prolonged term.


    The automobile courtesy is now confronting some critique as good as
    clever regulation, nonetheless particular mobility will sojourn a very
    renouned mode of transportation.


    The law of a matter is that a poise of certain
    manufacturers has shop-worn a courtesy as a whole.


    Ladies and Gentlemen,


    There is one thing we would like to explain during this point:


    A mistake was done a few years ago, involving prior model
    versions of a BMW 5 Series and 7 Series, that were propitious with
    an engine control program we trust had been correctly
    developed. These models were after propitious with a program module
    not designed for them.


    To be clear: This has zero to do with counsel manipulation,
    possibly of engine control or empty gas treatment.


    We are now available capitulation from a authorities, so that we can
    yield a corrected software. A limit of 11,700 vehicles are
    affected. To put that into perspective: In a final 5 years
    alone, a BMW Group delivered some-more than 11 million cars to customers.


    We were a initial manufacturer to use a multi-phase empty gas
    diagnosis judgment – that valid unequivocally successful: Our Euro 5 and
    Euro 6 diesels in Germany are around 40 percent subsequent a average
    NOx sum published by a German Environment Agency.


In serve tests conducted by a German automobile club, ADAC,
questioning a NOx emissions of Euro 6 diesel models, BMW and MINI
models achieved unequivocally well. The BMW 520d and 530d were many revoke than
a destiny boundary for highway pushing tests.


We keep a word. In Germany, we are implementing a decisions
adopted during a National Diesel Summit. This means that a Euro 5
diesel models from 2011 or after will get a program update. But, we
will also pronounce out if something is not technically viable: upgrading hardware.


Responsibility is partial of a core values. That is also how we are
doing allegations of wrong conglomeration arrangements. The European
Commission has not nonetheless finished a analysis in this matter.


Dear Shareholders and Shareholder Representatives,


I ask that we continue to place your trust in a BMW Group!


BMW charts a possess transparent path, as set out in a Strategy NUMBER ONE
NEXT, that provides us with a vital roadmap adult to 2025, with
3 categorical priority areas:  Electrification, Being
Global, and Products and services.

Ladies and Gentlemen,


As we have mostly emphasized, a e-mobility enlargement bend is constantly rising.


Our first-quarter sales endorse this: We sole over a third more
electrified vehicles worldwide, and roughly 80 percent some-more in a US.
That’s all we wish to contend about a figures.


I also wish to tell we about an knowledge that overwhelmed me on a
personal level: In Dec 2017, we handed over a 100,000th
electrified automobile during BMW Welt: a BMW i3. we admit, we approaching the
patron to be a immature chairman who was already informed with electric
driving. But, it was indeed an 80-year-old gentleman, station in
front of me with a large grin on his face. He had spent his whole life
pushing opposition models with a explosion engine. we cruise this
demonstrates: It is never too late to switch to BMW and a electric models.


That same evening, we illuminated adult a Group headquarters, a BMW
Four-Cylinder, as a battery. we watched from a Olympic Park, with a
organisation of employees, and it unequivocally was an romantic moment.


100,000 electrified vehicles in 2017. Promised and delivered. That is BMW.


Our march is clearly mapped out:

  • At slightest 140,000 electrified vehicles in 2018.
  • 25 electrified models by 2025 – 12 of them pristine electric.
  • By a finish of 2019, we will have a sum of half a million
    electric models and plug-in variety on a roads. We have already
    a entertain of a million today.


    Two models illustrate a course to a new dimension: a BMW
    i4 and a BMW iNEXT.


    The BMW i4 Concept was a star of final year’s Frankfurt Motor Show.

    A few years ago, “project i” started out as an independent
    project. Now, a minute “i” is entrance to a core BMW brand.
    Going forward, all pristine electric BMW models will competition a “i”
    badge and come versed with fifth-generation battery technology.
    With an increasing operation of about 700 kilometres, electric models
    will turn wholly unsentimental for bland use.


    Parallel to a i4, we are also building a BMW iNEXT.


    Today, we wanted to give a shareholders an disdainful first
    glimpse. And we can exhibit that we will be presenting a iNEXT as
    a prophesy automobile after this year.

    It is a modular complement for a future.


    If that sounds a bit like Lego, that’s roughly a idea. The
    iNEXT will advantage a whole association and all a brands. For the
    initial time, we are mixing all pivotal technologies for future
    mobility. The iNEXT is entirely electric, entirely connected, and
    enables safe, partially unconstrained driving. Further models will follow.


    We are operative on unconstrained pushing during a campus outward of
    Munich, that we announced in 2017 and non-stop in Apr of this
    year. Once again – betrothed and delivered. That is BMW.


    The campus thought is all about brief distances, quick decisions and
    stretchable working. 1,800 experts from opposite countries work
    together there.


    We are building a cars of a destiny right here in Germany.
    And we will build them here as well: a i4 in Munich, and the
    iNEXT in Dingolfing.


    Bavaria will always be a home. From here, we drive
    technological innovations and Industry 4.0. We furnish some-more than
    half a vehicles abroad. But scarcely 70 percent of a employees
    are still formed in Germany. For me, that shows a strong
    joining to a roots. These roots give us fortitude in a tellurian world.


    And that brings me to my second point: Being Global.

    Our prolongation network comprises 30 locations in 14 countries. We
    are enabling a plants for a far-reaching operation of expostulate trains, using
    stretchable architectures. From 2020, we will be means to fit all
    indication array with any form of expostulate train.

    Today, we are already producing electrified models during ten
    locations worldwide. Not many manufacturers can contend a same.


    Three vital markets are essential for us: Europe, China and a US.


    They any differ in terms of domestic demands, patron desires
    and culture.


    In Europe, for
    example, we are confronting despotic regulations on emissions, that we
    will continue to approve with. The BMW Group advantages from the
    European singular marketplace and stays committed to Europe. The EU has
    to be rival to play an suitable purpose in a world.


    But internally, Europe also needs to be fit for a future.
    Particularly in a areas of connectivity and unconstrained driving,
    we need unchanging authorised manners and a 5G customary via the
    European Union. On a theme of e-mobility: Europe needs to take
    on a heading role. We need to emanate an inner European market
    in digital infrastructure and e-mobility.


    The tighten ties between Germany and France are fundamentally
    critical to Europe. However, a UK contingency also sojourn tighten to the
    EU. We will start building a initial entirely electric MINI in Oxford
    in 2019. It is therefore critical that entrance to a EU internal
    marketplace stays basic and etiquette free. We are once again
    targeting a slight boost in European sales this year.


    Let’s take a demeanour during China.


    China is commencement to set a gait for a whole universe in
    e-mobility and digitalisation. We are targeting plain enlargement in
    a largest singular marketplace in 2018. After all, BMW is a most
    attractive, many innovative reward code in China.


    The Chinese supervision is accelerating e-mobility. We are likely
    to see a million new electrified vehicles purebred in China this
    year alone. Our business in China already have 6 electrified
    models to select from. With ChargeNow they also have entrance to the
    world’s largest network of open charging points.


    Further vital stairs include:


  • Deepening a partnership with Brilliance: From mid-2018, a new
    BMW X3 will be built in Shenyang, in serve to a US and South
    Africa. From 2020, we will also be producing a iX3 there, the
    initial all-electric indication from a core BMW brand.
  • We are formulation another corner try with Great Wall Motor,
    directed during producing entirely electric MINI vehicles in China.


    The Chinese supervision announced a goal to revoke tariffs
    and to serve open adult a automobile market, display good clarity and
    prophesy in a midst of a stream trade dispute.


    In a United
    , critical domestic decisions still have to be
    made, both in trade process and domestically. With courtesy to the
    arriving examination of fuel expenditure regulations during sovereign level,
    we are strongly in foster of a unchanging inhabitant standard.


    The United States has been a BMW Group’s “second home” for many
    years. We minister severely to a U.S. economy. In terms of
    value, BMW is a largest automobile exporter in a US, responsible
    for around 70,000 approach and surreptitious jobs opposite a country. We
    are targeting slight enlargement in a US marketplace in 2018. Spartanburg,
    home to a biggest plant, will advantage from a serve 600 million
    euros in investment adult to 2021.


    We are also investing in Mexico, where we will open a new plant
    subsequent year. Mexico has relied heavily on giveaway trade in a past –
    and benefited as a result. Our plant in San Luis Potosí will
    furnish for a tellurian market.


    Global meditative and tellurian movement have done a BMW Group
    successful. Free trade leads to enlargement and wealth for
    everyone. That’s a fact.


    We work globally – though we also take shortcoming during the
    internal level: for jobs, value origination and a broader community.


    Now, let’s pierce on to my third point: Products and services.


    We are now in proviso II of a indication offensive, with another
    20 new and revised models for recover this year. Two highly
    romantic vehicles are here subsequent to a stage: The BMW i8 Roadster
    and a BMW Z4 judgment car.


    We will be focusing on dual aspects: Luxury and X. Examples from
    a rarely essential oppulance shred embody a new Phantom and
    a Cullinan during Rolls-Royce.


    And, during BMW, a new 8 Series Coupé, that will be launched still
    this year. The new 8 Series operation will underline during slightest six
    models, including a BMW M8 Gran Coupé, that showcases a new
    BMW pattern language. The new BMW X7, that will go into production
    towards a finish of a year, is also resonating with a clever presence.


    2018 will be a X year, with:

  • the new X3,
  • the cold X2,
  • the jaunty X4, from a summer on,
  • and, as we can exhibit exclusively today: after this year, a
    inheritor to a X5.


    Our indication descent goes palm in palm with enlargement in a services.


    More than 23 million business used a mobility services last
    year. By 2025, we will enhance this bottom to 100 million active
    users, charity business an all-round, comprehensive package.


    We done 3 critical vital decisions this year:


  • The full merger of DriveNow.
  • The merger of Parkmobile LLC – that creates us a leading
    general provider of digital parking solutions.
  • The designed corner try with Daimler Group, that will combine
    a imagination in mobility services on an equal footing. This is
    theme to capitulation by antitrust authorities.


    Dear Shareholders and Shareholder Representatives,


    Mobility is a partial of a daily lives.


    The European Commission has distributed that private households in
    a EU deposit some-more than a billion euros in mobility each year.


    In Germany alone, mobility needs will boost significantly by
    2040, many of that still relying on cars.


    The automobile stays a array one mode of transport. That makes
    sense, when we cruise that a world’s biggest car
    manufacturers reported their highest-ever revenues in 2017.

    Our courtesy has always achieved good things and continues
    to play an critical purpose in a economy and multitude during large: as
    an employer, as a taxpayer and as a motorist of innovation.


    So, let us concentration a full courtesy on a change towards
    sustainable, digitalised mobility. Mastering that plea is the
    executive charge confronting a German automotive courtesy – and zero else.


    In times of change, infrequently a large guys win, infrequently the
    small guys. But, with comprehensive certainty, those who overcome are
    always flexible.


    I have been with this association for 26 years. During that time,
    there have been many hurdles – though a BMW Group has always
    followed a possess transparent path, with innovation, integrity and consistency.


    That, Ladies and Gentlemen, is because Your Company has been around
    for some-more than 100 years.


    The opening of a BMW share cost reflects a long-term
    approach: Between May 2008 and May 2018, a value increasing by
    over 140 percent. Even during a stream transformation, Your
    Company stays profitable. We have confirmed an EBIT domain of
    between 8 to 10 percent in a Automotive Segment for the
    past 8 years. This allows us to deposit in a future.


    We intend to make 2018 a ninth uninterrupted record year.


    Your joining towards a BMW Group gives us a strength and
    support we need. We can count on we – and we can rest on a BMW
    Group, your company. Thank we for your attention!



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