BMW Group and Daimler AG to jointly develop next-generation technologies for automated driving

·       Long-term strategic cooperation planned
·       Next
generation of technologies for driver assistance systems and
highly 
        automated driving on highways (SAE Level 3 and
Level 4)
·       Goal: a flexible platform and shorter innovation
cycles
·       Technology to be market ready by
mid-2020s
·       Klaus Fröhlich: Consistent pursuit of scalable
platform strategy and
        pooling of expertise from two
technology leaders
·       Ola Källenius: Working with the right
partners, we want to continue 
        enhancing this technology
and get it ready for the road.

Munich/Stuttgart
. The BMW Group and Daimler AG are to join forces on
automated driving. Initially, the focus will be on advancing the
development of next-generation technologies for driver assistance
systems, automated driving on highways and parking features (up to SAE
Level 4). The two companies have signed a Memorandum of Understanding
to jointly develop this technology, which is key for future mobility.
The BMW Group and Daimler AG view their partnership as a long-term,
strategic cooperation and aim to make next-level technologies widely
available by the middle of the coming decade.

“As we continue to pursue our strategy, we are combining the
expertise of two technology leaders. At the BMW Group, long-term
partnerships within a flexible, scalable, non-exclusive platform are
fundamental to advancing the industrialisation of autonomous driving.
Combining the key expertise of our two companies will boost our
innovative strength and speed up the spread of this technology,” said
Klaus Fröhlich, Member of the Board of Management of BMW AG, Development.

Ola Källenius, Member of the Board of Management of Daimler AG,
responsible for Group Research and Mercedes-Benz Cars Development
said: “Autonomous driving is one of the most revolutionary trends for
us at the moment, and the entire Daimler Group is working very hard on
it. As always at Daimler, our top priority is safety. Instead of
individual, stand-alone solutions, we want to develop a reliable
overall system that offers noticeable added-value for customers.
Working with the right partners, we want to make significant advances
in enhancing the performance of this technology and bring it safely on
the road.”

The planned cooperation offers the BMW Group and Daimler AG a number
of obvious advantages: the skills and experience of the individual
partners and a scalable architecture will speed up and streamline the
development of future technology generations. Besides the synergies,
new technologies will be faster to market, with shorter innovation
cycles. For both companies, the safety of vehicle occupants and other
road users is of the utmost importance and a key reason for making the
reliability of systems a key criterion for the collaboration. The two
partners continue to pursue their goal of being the pace-setter in development.

Joint development work will be carried out via a scalable
architecture covering several stages of automation, with Levels 3 and
4 enabling automated driving on highways. In addition, the two
partners plan to discuss the possibility of extending their
collaboration to cover higher levels of automation, both on highways
and in urban areas. These considerations underline the sustainable,
long-term nature of the cooperation, which includes the aim to create
a scalable platform for automated driving. The development of
current-generation technologies and ongoing collaborations of the two
companies will remain unaffected and continue as before. Ongoing
development of latest-generation technologies and existing
collaborations will remain unaffected by the projected cooperation and
go ahead as planned. The BMW Group and Daimler AG will also explore
additional partnerships with other technology companies and automotive
manufacturers that could contribute to the success of the platform.

Autonomous driving at the BMW Group
The BMW
Group has been working on highly automated driving since 2006, and has
established a non-exclusive platform with technology specialists,
suppliers and OEMs to take it to series maturity. Since 2017, work in
this area has been consolidated at the Autonomous Driving Campus in
Unterschleissheim, just north of Munich, and the industrialisation and
scalability of the technology is being advanced with the support of
partners. Brand new agile software development is used at the Campus
to speed up development of the platform and set new industry
standards. Around the world, more than 70 test vehicles are trialling
state-of-the-art technology. They collect data in order to improve
machine learning with artificial intelligence through simulations and
test new Level 2 – 5 functions out on the road. The generation of
technologies that is currently under development will go into series
production as Level 3 automation in 2021 in the BMW iNEXT where it
will also be Level 4 enabled for pilot projects.

Autonomous driving at Daimler AG
Daimler AG has
been working on series development projects not only for specific
Level 3 vehicles but also for Levels 4 and 5. Long a leader in active
safety systems, it programmed its systems largely in-house right from
the very beginning. 2019 will see the launch in San José, Silicon
Valley, of its first pilot programme, with Bosch, on self-driving
vehicles (Levels 4/5) in urban environments. This will be the next
milestone within the existing cooperation between both partners and
the cooperation will continue as planned. Early next decade, Daimler
will bring to the market not only highly automated (Level 3) vehicles
but also fully automated (Level 4/5) vehicles. It is the only to the
OEM in the world to be so well-positioned to apply autonomous driving
in every relevant context, from passenger cars and vans to buses and
trucks, and is therefore relying on scalable solutions to deliver
automated driving.

 

This document contains forward-looking statements that reflect our
current views about future events. The words “anticipate,” “assume,”
“believe,” “estimate,” “expect,” “intend,” “may”, “plan,” “project,”
“should” and similar expressions are used to identify forward-looking
statements. These statements are subject to many risks and
uncertainties, including an adverse development of global economic
conditions, in particular a decline of demand in our most important
markets; aworsening of the sovereign-debt crisis in the euro zone; a
deterioration of our funding possibilities on the credit and financial
markets; events of force majeure including natural disasters, acts of
terrorism, political unrest, industrial accidents and their effects on
our sales, purchasing, production or financial services activities;
changes in currency exchange rates; a shift in consumer preference
towards smaller, lower margin vehicles; or a possible lack of
acceptance of our products or services which limits our ability to
achieve prices as well as to adequately utilize our production
capacities; price increases in fuel or raw materials; disruption of
production due to shortages of materials, labor strikes, or supplier
insolvencies; a decline in resale prices of used vehicles; the
effective implementation of cost-reduction and efficiency-optimization
measures; the business outlook of companies in which we hold a
significant equity interest; the successful implementation of
strategic cooperations and joint ventures; changes in laws,
regulations and government policies, particularly those relating to
vehicle emissions, fuel economy and safety; the resolution of pending
governmental investigations and the conclusion of pending or
threatened future legal proceedings; and other risks and
uncertainties, some of which we describe under the heading “Risk
Report” in Daimler’s most recent Annual Report. If any of these risks
and uncertainties materialize, or if the assumptions underlying any of
our forward-looking statements prove incorrect, then our actual
results may be materially different from those we express or imply by
such statements. We do not intend or assume any obligation to update
these forward looking statements. Any forward-looking statement speaks
only as of the date on which it is made.

The BMW Group at a Glance
With its four brands
BMW, MINI, Rolls-Royce and BMW Motorrad, the BMW Group is the world’s
leading premium manufacturer of automobiles and motorcycles and also
provides premium financial and mobility services. The BMW Group
production network comprises 30 production and assembly facilities in
14 countries; the company has a global sales network in more than 140 countries.

In 2018, the BMW Group sold over 2,490,000 passenger vehicles and
more than 165,000 motorcycles worldwide. The profit before tax in the
financial year 2017 was € 10.655 billion on revenues amounting to
€ 98.678 billion. As of 31 December 2017, the BMW Group had a
workforce of 129,932 employees.

The success of the BMW Group has always been based on long-term
thinking and responsible action. The company has therefore established
ecological and social sustainability throughout the value chain,
comprehensive product responsibility and a clear commitment to
conserving resources as an integral part of its strategy.

Daimler at a Glance

Daimler AG is one of the world’s most successful automotive
companies. With its divisions Mercedes-Benz Cars, Daimler Trucks,
Mercedes-Benz Vans, Daimler Buses and Daimler Financial Services, the
Daimler Group is one of the biggest producers of premium cars and the
world’s largest producer of trucks above 6 tons. Daimler Financial
Services provides financing, leasing, fleet management, investment
products and brokerage of credit cards and insurance, as well as
innovative mobility services. The company’s founders, Gottlieb Daimler
and Carl Benz, made history with the invention of the automobile in
the year 1886. As a pioneer of automotive engineering, it is a
motivation and commitment of Daimler to shape safely and sustainably
the future of mobility. The Group’s focus is on innovative and green
technologies as well as on safe and superior automobiles that appeal
and fascinate. Daimler consequently invests in the development of
efficient drive trains with the long-term goal of locally
emission-free driving: from hightech combustion engines about hybrid
vehicles to electric drive trains powered by battery or fuel cell.
Furthermore, the company follows a consistent path towards intelligent
connectivity of its vehicles, autonomous driving and new mobility
concepts. This is just one example of how Daimler willingly accepts
the challenge of meeting its responsibility towards society and the
environment. Daimler sells its vehicles and services in nearly all the
countries of the world and has production facilities in Europe, North
and South America, Asia, and Africa. Its current brand portfolio
includes, in addition to the world’s most valuable premium automotive
brand, Mercedes-Benz (Source: Interbrand-Study, 10/4/2018), as well as
Mercedes-AMG, Mercedes-Maybach and Mercedes me, the brands smart, EQ,
Freightliner, Western Star, BharatBenz, FUSO, Setra and Thomas Built
Buses, and Daimler Financial Services’ brands: Mercedes-Benz Bank,
Mercedes-Benz Financial Services, Daimler Truck Financial, moovel,
car2go and mytaxi. The company is listed on the stock exchanges of
Frankfurt and Stuttgart (stock exchange symbol DAI). In 2018, the
Group sold 3.4 million vehicles and employed a workforce of around
298,700 people. Group revenue amounted to €167.4 billion. Group EBIT
amounted to €11.1 billion.