BMW Canada

BMW Group sets vital march for future

Munich. On a proceed towards a mobility of the
future, a BMW Group is holding critical stairs to raise its
handling opening on a tolerable basis. As good as
evenly implementing a plan NUMBER ONE
, a association is also focusing on faster processes,
leaner structures and therefore larger efficiency. In perspective of the
many hurdles now confronting a automotive sector, a BMW Group
is ensuring it maintains a financial strength to change and
decisively figure sole reward mobility relocating into a next
decade, only as it has over a past 10 years.


“After 3 years of Strategy NUMBER ONE NEXT, we remain
resolutely on course, carrying determined a clever position as one of the
world’s tip providers of e-mobility. We lead a European marketplace and
will shortly go into array prolongation of a fifth era of
electric drivetrain systems. We’re significantly expanding our
participation in a top oppulance class. Our initial rarely programmed vehicle
will turn accessible in 2021 and we are already now paving a way
for a expansion of a subsequent era of groundbreaking
technology. In a domain of mobility services, we are fasten forces
with Daimler AG to emanate even larger momentum,” said
Harald Krüger, Chairman of a Board of Management
of BMW AG, in Munich on Wednesday. “We need to work
evenly on a operational value in sequence to leverage
these critical advances and safeguard a ability to use a own
underlying strength to assistance figure a sector’s mutation going
forward,” he added.


To recompense for a augmenting volume of upfront output needed
to expostulate a mobility of a future, a BMW Group is enhancing its
business performance by comprehensively rolling out
an array of new models. In a top oppulance class, for instance, the
new BMW 8 Series (both a Coupé and a Convertible) and a new BMW
X7 have already done their debut. The entirely revamped BMW 7 Series is
on a proceed to dealerships and will be flanked by a launch of a BMW
8 Series Gran Coupé in a serve march of this year. The Group’s
subsequent step will be to significantly reinvigorate and enhance a operation in
a compress class. With this aim in mind, a subsequent era BMW
1 Series will be launched in autumn 2019 and a BMW 2 Series
Gran Coupé
, a new and rarely emotive model, will be added
to a compress shred in open 2020 with a perspective to attracting new customers.


High intensity for boosting potency with Performance NEXT


Since 2017, a BMW Group has also worked evenly with
Performance NEXT to urge structural
potency along a whole value chain. In this respect, numerous
decisions have possibly been taken or are already being implemented. In
perspective of a flourishing hurdles and final on resources, a Group
intends to enhance and feature these efforts. By a finish of 2022, it
expects to precedence intensity efficiencies totalling some-more than
12 billion euros. Many of a measures directed during shortening product
complexity will afterwards come to full delight in a following years.


“Our attention is witnessing fast transformation. In this
environment, a postulated high turn of profitability is essential if we
are to continue pushing change,” pronounced Nicolas
, Member of a Board of Management of BMW AG, Finance.
“In perspective of a countless additional factors negatively impacting
earnings, we began to deliver countermeasures during an early theatre and
have taken a array of inclusive decisions. Discipline and a clear
concentration on severe doing are essential as we aim to emerge
from these severe times stronger than ever.”


Performance NEXT will also advantage from a fact that processes
can be significantly accelerated by a new opportunities
digitalisation offers. For instance, development
for new car models will be reduced by as many as
one third. Among other savings, digital simulations and virtual
validation could discharge a need for some 2,500 costly prototype
vehicles by a year 2024.


The BMW Group continues to partisan learned workers and IT specialists
on a resourceful basement to rivet in forward-looking projects such as
digitalisation, unconstrained pushing and electric mobility.
Nevertheless, a aim for 2019 is to keep a workforce during the
prior year’s level. Compared to progressing years, a scale of natural
rubbing in a workforce has been exacerbated by demographic factors
(including a baby boomer phenomenon), a conditions that means the
BMW Group can concentration even some-more intensively on issues that will shape
a destiny and boost efficiency. In addition, with outcome from 1
Apr 2019 a BMW, MINI and Rolls-Royce automotive brands will be
sum within a singular sales division, clearly
signalling a pierce towards even leaner processes and some-more efficient
structures via a company.


On a product side, from 2021 onwards, adult to 50 per cent of today’s
drivetrain variants will be separated in the
transition to some-more worldly and stretchable car architectures.
This proceed will also capacitate a BMW Group to concentration on a products
many in demand. At indication level, no inheritor will be grown for the
stream era of a BMW 3 Series Gran Turismo. Moreover, the
indication portfolio is frequently assessed with a perspective to identifying
additional intensity to reduce complexity. Synergy
and potency opportunities in surreptitious purchasing as good as in
materials and prolongation costs are also being leveraged.


Upfront output set to sojourn high


The BMW Group intends to exercise a measures summarized above to
homogeneous a ongoing high turn of upfront output compulsory to
welcome a mobility of a future. Substantial volumes of
future-oriented output are again designed for 2019.


At € 5,029 million, capital expenditure in 2018 was
7.3% above a prior year’s high turn (€ 4,688 million). The Capex
ratio rose to 5.2% (2017: 4.8%). Investments enclosed work connected
with a introduction of new models in a Spartanburg, Dingolfing and
Munich plants and a building of a Group’s plant in Mexico. As
planned, research and development losses in 2018
were significantly aloft than in a prior year and totalled
€ 6,890 million (2017: € 6,108 million; +12.8%). RD expenditure
for a year was therefore homogeneous to 7.1% of Group revenues (2017:
6.2%). In serve to ramping adult a roll-out of new models, a focus
is also on future-oriented topics such as unconstrained pushing and the
systematic enlargement of electric mobility.


Pioneer evenly expands e-mobility product range


With more than 350,000 units (over 130,000 fully
electric vehicles and some-more than 220,000 plug-in hybrids) delivered to
business adult to a finish of 2018, a BMW Group is already a leading
retailer of electrified vehicles and expects to have some-more than
half a million units on a roads by a finish of the
year. At a commencement of March, a new plug-in hybrid versions of
a BMW 3 Series, BMW 7 Series, BMW X5 and BMW X3, that now come with
extended electric range, were showcased during the
Geneva Motor Show. By a finish of subsequent year, a BMW Group will have
more than 10 new or revised models versed with
fourth-generation electric drivetrain record (“Gen 4”)
on a roads.


By a finish of 2019, these will embody a all-electric MINI
done during a Oxford plant and, from 2020, the
BMW iX3, that will be constructed for a world
marketplace in Shenyang, China. Together with a pioneering BMW i3, the
BMW i4 and a BMW iNEXT, the
Group will have five all-electric models on the
marketplace by 2021 and a array is scheduled to arise to during slightest twelve
models by 2025. Including a fast flourishing operation of plug-in
hybrids, a BMW Group’s product portfolio will afterwards contain during least
25 electrified models.


This far-reaching operation of electrified models on offer will be done possible
by highly stretchable car architectures and an
equally stretchable tellurian prolongation system. Going forward, a BMW Group
will be able of prolongation models with all-electric (BEV),
hybrid-electric (PHEV) and required (ICE) drivetrains on one
prolongation line. The ability to confederate e-mobility in a production
network will capacitate a BMW Group to respond even some-more flexibly as
direct grows.


The BMW Group is now building a fifth
of a electric drivetrain, in that a interplay
of electric motor, transmission, energy wiring and battery will be
serve optimised. Integrating a electric motor, a transmission
and energy wiring also plays a purpose in slicing costs. Furthermore,
a electric engine does not need singular earths,
enabling a BMW Group to revoke a coherence on their availability.
The fifth era of a Group’s electric drivetrain technology
will be commissioned for a initial time in a BMW iX3 from 2020.


Cooperation for subsequent era of unconstrained driving


The BMW Group believes long-term partnerships within a flexible,
scalable, universal height are pivotal to advancing the
automation of autonomous driving. As early as
2016, a BMW Group determined a universal height with
record specialists, suppliers and OEMs to take a record to
array majority and has now successfully sum work in this
area during a Autonomous Driving Campus in
Unterschleißheim, nearby Munich. The era of technologies
now underneath expansion will go into array prolongation as Level 3
automation in a BMW iNEXT in 2021, this vehicle
will also be Level 4-enabled for commander projects.


The BMW Group has assimilated army with Daimler AG to allege the
expansion of a next era of technologies
indispensable for unconstrained driving. At a finish of February, a two
companies sealed a Memorandum of Understanding (MoU) to jointly
rise a technologies that are critical for destiny mobility.
Initially, a concentration will be on advancing a expansion of
next-generation technologies for motorist assistance systems, automated
pushing on highways and parking comforts (in any box adult to SAE Level 4).


The BMW Group and Daimler AG perspective their partnership as a long-term,
strategic cooperation and aim to make next-level
technologies widely accessible by a center of a entrance decade.
Combining a superb imagination of a dual companies will boost
their corner innovative strength. Moreover, it will both accelerate and
streamline a expansion of destiny record generations. The
expansion of current-generation technologies and a ongoing
collaborations both companies have in this domain will remain
unblushing and continue as planned. Both parties will also explore
additional partnerships with other record companies and automotive
manufacturers that could minister to a success of a platform.


Major investments in corner try for mobility services


The BMW Group and Daimler AG are also operative together in a field
of mobility services, formulating a new tellurian player
that provides tolerable civic mobility for a customers. The two
companies are investing some-more than one billion euros to rise and
some-more closely intermesh their offerings for car-sharing, ride-hailing,
parking, charging and multimodal transport. The team-work comprises
5 corner ventures: REACH NOW (multimodal), CHARGE NOW (charging),
FREE NOW (ride-hailing), PARK NOW (parking) and SHARE NOW (car-sharing).


The common vision is clear: a 5 services will
increasingly combine to form a singular mobility use portfolio with an
all-electric, self-driving swift of vehicles that assign and park
autonomously and also interconnect with other modes of transport. This
use portfolio will be a pivotal cornerstone in a BMW Group’s
plan as a mobility provider going forward. The cooperation
represents a ideal proceed for maximising opportunities in a
flourishing market, while jointly shouldering a destined cost of investment.


Challenging conditions in a financial year 2018


In terms of a core business, a BMW Group had
always approaching 2018 to be a severe year. Compared with 2017,
alongside additional upfront output for a mobility of the
future, a high three-digit million euro disastrous impact from
exchange-rate and tender materials cost developments had been factored
into approaching gain for a year. As announced on 25 September
2018, several additional factors dampened business opening in the
third quarter. Unlike many of a competitors, a BMW Group
implemented a mandate of a WLTP regulations
early. The industry-wide change to a new WLTP exam cycle resulted in
estimable supply distortions in Europe and suddenly intense
competition, given that countless aspirant models that had not yet
gained WLTP acceptance were purebred before a 1 September
deadline. Within a horizon of a stretchable prolongation and sales
strategy, a BMW Group responded to a conditions by shortening its
volume formulation to focus on gain quality. At the
same time, increasing orthodox and non-statutory guaranty measures
resulted in significantly aloft additions to supplies in the
Automotive segment. Ongoing general trade conflicts also served
to intensify a marketplace conditions and feed uncertainty. These
resources resulted in greater-than-expected distortions in demand
and astonishing vigour on pricing in several markets.


Nevertheless, deliveries of a BMW Group’s three
reward automotive brands (BMW, MINI and Rolls-Royce) grew by 1.1% to
a new record figure of 2,490,664 units in 2018 (2017: 2,463,526
units). At € 97,480 million, Group revenues were at
a prior year’s turn (2017: € 98,282 million: -0.8%). Adjusted
for banking factors, they increasing by 1.2%. Due to a various
inauspicious aspects outset in a third quarter, sum with high
levels of upfront output for investigate and development,
profit before financial outcome was € 9,121 million
(2017: € 9,899 million; -7.9%). At € 9,815 million, Group
distinction before tax
in 2018 was tolerably down on the
prior year, though but a second-best outcome ever recorded
in a company’s story (2017: € 10,675 million; -8.1%). At 10.1%
(2017: 10.9%), a lapse on sales before taxation (EBT
exceeded a aim value of 10 percent.


Group net distinction amounted to € 7,207 million (2017:
€ 8,675 million; -16.9%). In a prior year, net distinction was
unusually high due to gratefulness effects of around € 1 billion
outset in tie with a US taxation reform. Despite really challenging
conditions, a Automotive shred generated free cash
of € 2,713 million in 2018 (2017: € 4,459 million).


Based on a annual financial statement, a Board of Management and
a Supervisory Board will introduce remuneration of a
dividend of € 3.50 per share of common batch and
€ 3.52 per share of elite batch during a Annual General Meeting on
16 May 2019. This is a second top payout in a company’s
history. The sum division remuneration will volume to € 2.3 billion, or
32.0% of net distinction (previous year: 30.3%3).


Automotive shred unprotected to flighty business conditions


At € 85,846 million, Automotive shred revenues
were during a identical turn to a prior year (2017: € 85,742 million;
+0.1%). Influenced by a factors referred to above and sum with
high levels of upfront output for investigate and development,
EBIT was € 6,182 million (2017: € 7,888 million;
‑21.6%). Due to several inauspicious factors, a EBIT
came in during 7.2% (2017: 9.2%). Profit before
amounted to € 6,977 million (2017: € 8,717 million; ‑20.0%).


A sum of 2,125,026 BMW code vehicles were
delivered to business worldwide (2017: 2,088,283 units; +1.8%). As
good as a BMW 5 Series (382,753 units; +10.2%), a BMW X family in
sole benefited from clever direct during 2018, with worldwide
deliveries adult significantly on a prior year to 792,605 units
(+12.1%). The BMW X3 done an critical grant to this
performance, with deliveries adult by some-more than one third to 201,637
units (+37.7%).


Worldwide deliveries of MINI code vehicles during
a twelve-month duration totalled 361,531 units (2017: 371,388 units;
-2.8%). The MINI Countryman available double-digit
expansion with 99,750 units (+17.5%). Almost each seventh MINI
Countryman was a plug-in hybrid (13.3%).


In 2018, Rolls-Royce Motor Cars achieved a best
sales outcome in over 100 years of corporate story with 4,107
deliveries worldwide (2017: 3,362 units; +22.2%). The Rolls-Royce
Phantom contributed almost to this performance.


While deliveries of a BMW Group’s 3 automotive brands in
Europe remained during a prior year’s high level
(1,098,523; -0.3%), a Americas (457,715 units;
+1.5%) and Asia (876,614 units; +3.3%) regions
available slight growth. In China, volumes grew
significantly as internal prolongation of a new BMW X3 was ramped adult in
a second half of a year. A sum of 640,803 BMW Group vehicles
were delivered to business in a march of 2018 (+7.7%).


Motorcycles shred revises indication range


BMW Motorrad revised a 2018 product operation on a
large scale, adding 9 new models. Production adjustments
required during a ramp-up proviso had a disastrous impact on deliveries
during a initial half of a year. Over a full year, 165,566 BMW
motorcycles and maxi-scooters were delivered to business (2017:
164,153 units; +0.9%).


Revenues totalled € 2,173 million (2017: € 2,272
million; -4.4%). Profit before financial outcome came
in during € 175 million (2017: € 207 million; -15.5%), analogous to a
shred EBIT margin of 8.1% (2017: 9.1%).
Profit before tax amounted to € 169 million (2017:
€ 205 million; -17.6%).


Financial Services shred annals agreement portfolio expansion


The Financial Services segment continued to perform
good in 2018. In total, 1,908,640 new contracts were
sealed with sell business in 2018 (2017: 1,828,604; +4.4%). The
contract portfolio with sell business comprised
5,708,032 contracts during 31 Dec 2018 (31 Dec 2017: 5,380,785
contracts; +6.1%). Segment revenues totalled € 28,165
million (2017: € 27,567 million; +2.2%). Profit before
amounted to € 2,161 million (2017: € 2,207 million; -2.1%).


Slight boost in workforce


The BMW Group’s workforce comprised 134,682
employees during 31 Dec 2018, 3.7% some-more than during a finish of 2017. The
Group continues to partisan learned staff and IT specialists in
future-oriented areas such as digitalisation, unconstrained pushing and
electric mobility.


Business expansion in 2019 shabby by challenging


The BMW Group sets itself desirous targets, even in politically and
economically violent times. With a young product
, serve rejuvenated by new models such as a BMW
X7 and a seventh era of a BMW 3 Series, a Group aims to
sojourn a world’s heading manufacturer in a reward segment,
underpinned by expansion in all vital sales regions. In perspective of the
several indication changes now in progress, business is approaching to
rise some-more strongly in a second half of a year.


In 2019, a BMW Group will continue to deposit estimable amounts in
new technologies and a mobility of a future. However, costs are
also being driven adult in other areas, including a significantly
aloft cost of complying with stricter CO2 legislation. Against this
background, rising prolongation costs are approaching to
have a dampening outcome on earnings. Moreover, unlucky currency
factors and aloft tender materials prices are approaching to have a medium
to high three-digit million disastrous impact. At a same time, the
ongoing emanate of general trade conflicts stays a source of uncertainty.


Taking all these factors into consideration, a BMW Group is
assured of a ability to grasp volume expansion in the
Automotive segment, where it is targeting a slight
boost in a array of deliveries to business in 2019. Within a
fast business environment, an EBIT domain in a operation of 8 to 10%
stays a aspiration for a BMW Group. However, a ability to
change underlying conditions is limited. Based on a prevailing
conditions described above, an EBIT domain of 6 to 8% is foresee for
a Automotive shred in 2019.


The Motorcycles segment is foresee to grasp a
plain boost in deliveries to business interjection to a rejuvenated
indication range. As in 2018, a EBIT domain is approaching to be within the
aim operation of 8 to 10%. For a Financial Services
segment, a BMW Group forecasts a lapse on equity during a previous
year’s level, and therefore above a underlying aim of 14%.


In serve to a several disastrous influences described above, the
fact that some certain gratefulness effects available in 2018 will not be
steady in 2019 will outcome in a poignant decrease in a Group’s
financial result. Group distinction before tax is
therefore also approaching to be good next a prior year’s level.


Forecasts for a stream year are formed on a arrogance that
worldwide mercantile and domestic conditions will not
change significantly. Any decrease in conditions could have a
disastrous impact on a outlook.


The BMW Group will energetically continue to exercise measures
required to foster growth, softened opening and efficiency,
thereby formulating a leisure to capacitate it to shape the
and secure a possess competitiveness going forward.
Thanks to a operational and financial strength, a BMW Group is in
an glorious position to figure a stream mutation of the
automotive zone and serve rise a leading
in a industry.



The BMW Group – an Overview



Change in %

Deliveries to customers







thereof: BMW

























1                          (compared to









EBIT domain Automotive shred




-2.0 % pts

EBIT domain Motorcycles segment




-1.0 % pts

EBT domain BMW Group




-0.8 % pts







€ million





€ million





€ million




Financial Services

€ million




Other Entities

€ million





€ million









Profit before financial outcome (EBIT)

€ million





€ million





€ million




Financial Services

€ million




Other Entities

€ million




€ million








Profit before taxation (EBT)

€ million





€ million





€ million




Financial Services

€ million




Other Entities

€ million




€ million








Income taxes

€ million




Net distinction for a year

€ million




Earnings per share





1 Excluding asleep practice contracts, employees in the
work and non-work phases of pre-retirement part-time working
arrangements and low salary earners

2 Earnings per share of common stock/preferred stock

3 Prior year total practiced due to first-time application
of revised IAS 15, see note [6] to a Group Financial Statements

4 Value for 2018 (including a detriment from discontinued
operations of € 33 million)



For queries, greatfully contact:


Corporate Communications


Max-Morten Borgmann, Corporate Communications


+49 89 382-24118
, [email protected]


Mathias Schmidt, Head of Corporate and Culture Communications


+49 89 382-24544
, [email protected]



E-mail: [email protected]



The BMW Group


With a 4 brands BMW, MINI, Rolls-Royce and BMW Motorrad, a BMW
Group is a world’s heading reward manufacturer of automobiles and
motorcycles and also provides reward financial and mobility services.
The BMW Group prolongation network comprises 30 prolongation and assembly
comforts in 14 countries; a association has a tellurian sales network in
some-more than 140 countries.

In 2018, a BMW Group sole over 2,490,000 newcomer vehicles and
some-more than 165,000 motorcycles worldwide. The distinction before taxation in the
financial year 2018 was € 9.815 billion on revenues amounting to
€ 97.480 billion. As of 31 Dec 2018, a BMW Group had a
workforce of 134,682 employees.

The success of a BMW Group has always been formed on long-term
meditative and obliged action. The association has therefore established
ecological and amicable sustainability via a value chain,
extensive product shortcoming and a transparent joining to
conserving resources as an constituent partial of a strategy.