BMW Canada

BMW Group stepping adult a pace

Munich. The BMW Group is stepping adult a gait in its
expostulate to figure tomorrow’s mobility. Two years after a launch of
Strategy NUMBER ONE  NEXT, a BMW Group intends
to boost upfront output on investigate and enlargement to an
all-time high in 2018, while during a same time remaining usually on
march for a ninth record-breaking year in duration through
profitable, tolerable growth.


“Our attention is now experiencing a proviso of unprecedented
technological change. At a same time, however, it needs to cope with
a plea of present-day volatilities. At a BMW Group, we think
in terms of opportunities and follow a transparent strategy. Because the
destiny of mobility is combined today. We are stepping adult a gait in
2018 and targeting a ninth unbroken record year,” stated
Harald Krüger, Chairman of a Board of Management
of BMW AG in Munich on Wednesday.

Despite vital changes impacting a mobility sector, a one
constant factor conversion a company’s strategic
decisions is fulfilling a needs of a customers.
“Their passion and fad is during a core of a enlargement strategy,”
emphasised Krüger. “That is because a BMW Group offers
a singular operation of products (from a BMW i3 to a Rolls-Royce
Phantom) and services (from customised financing to intelligent
mobility services), all of that minister towards creation our
customers’ lives easier. With this indicate in mind, we are on a approach to
apropos a customer-focused mobility and high-tech company.”


In 2018, a broadest product initiative ever
undertaken by a BMW Group continues: With a marketplace launch of the
BMW X2 in March, a ramping adult of a BMW X3 during 3 production
sites and a new era of a BMW X4, 2018 is certain to go down as
a “Year of X” for a world’s largest manufacturer
of reward vehicles. “We are bringing out totally new models and
introducing a new pattern denunciation for a whole product range. This is
a recipe to safeguard that a BMW code regains stick position in the
reward shred by 2020,” Krüger stated. “We gave the
open a ambience of these developments with a phenomenon of the
BMW Concept M8 Gran Coupé during a Geneva Motor Show
and a array chronicle will be presented in 2019.”


Strategic decisions will start to bear fruit in 2018


Numerous vital decisions, for that a BMW Group did the
grounds during an early theatre in and with a Strategy
NUMBER ONE NEXT, will start to bear fruit in
2018. For instance, a merger of Parkmobile LLC
was announced in January, creation a BMW Group a heading provider of
digital parking solutions. The merger of a automobile pity joint
try DriveNow closed in March. These two
exchange give a BMW Group control over a far-reaching operation of strategic
options for enhancing a operation of mobility services in a domain set to
make a essential grant to tolerable civic mobility going
forward. The BMW Group is aiming to have 100 million active
by 2025.


In February, a BMW Group and a Chinese manufacturer Great
sealed a minute of vigilant to settle a corner venture
for a internal prolongation of fully electric MINI
vehicles in China. This step is a serve transparent joining to the
electrified destiny of a MINI code and highlights the
importance of a Chinese market for a BMW Group.


At a Geneva Motor Show in early March, a BMW Group announced that
a BMW i Vision Dynamics, denounced during a Frankfurt Motor Show in
2017, will be launched as a all-electric BMW i4 and
done during a Munich plant. Today, a BMW Group already
manufactures electrified vehicles during 10 prolongation facilities. In
2019, Plant Oxford will join this list with a start of prolongation of
a fully-electric MINI. The BMW i4 is usually one of the
25 electrified models that a BMW Group intends to
move to marketplace by 2025. Half of these models will be
entirely electric. Powered by a fifth era of battery and
drivetrain technology, from 2021 a BMW Group will be able of
charity all-electric vehicles with a operation of adult to 700 kilometres
and plug-in variety with an electrical operation of adult to 100 kilometres.


Upfront output for tomorrow’s mobility during record level


Continuing swell in a domain of electric mobility is a pivotal reason
behind a BMW Group’s devise to allot an augmenting volume to
investigate and enlargement in a stream year. After a spend of € 6,108
million in 2017, upfront output for tomorrow’s mobility will
boost significantly in a financial year 2018. Investment will
arise by a serve high three-digit million-euro volume year-on-year,
essentially for a ongoing new indication commencement as good as continued
work on e-mobility and unconstrained driving. In extensive terms, the
volume could strech a 7 billion euro mark. The vital scale of
investment reflects a BMW Group’s integrity to play a leading
purpose in transforming a mobility zone with a future-oriented ACES
programme: Automated, Connected,
Electrified and Services.


Despite a cost of these wide-ranging activities, a BMW Group
expects Group distinction before tax to be during slightest in
line with a record turn reported for 2017. “We will need to remain
indifferent in 2018 in sequence to grasp a aim of stating another
year of record pre-tax earnings,” stated Nicolas
, Member of a Board of Management of BMW AG, Finance.
“But we are an desirous company, constantly essay to urge the
potency of a business processes. We are shortening a complexity
of a operation of products and services, rigorously bringing it into
line with a mandate of a customers. This provides us with the
required resources for destiny investments. As ever, a devise is
driven by a enterprise to grasp long-term tolerable profitability.”


As partial of a Strategy NUMBER ONE NEXT, the
BMW Group is evenly expanding into marketplace segments with high
rates of lapse in sequence to financial a likewise high levels of
upfront output required to expostulate tomorrow’s mobility from a
position of underlying strength. Accordingly, a Group continues to
aim an EBIT margin within a operation of 8 to 10 per
cent for a Automotive and Motorcycles segments. Deliveries
to customers
are approaching to arise somewhat in a financial
year 2018, ensuing in a analogous slight boost in Automotive
shred revenues. The Motorcycles shred expects to
see plain enlargement in volume terms.


In 2017, a BMW Group delivered some-more than 100,000
electrified vehicles
to business for a initial time in a
singular year, especially driven by a opening of a all-electric BMW
i3, sales of that have risen any year given a marketplace launch in
2013. Last year, a BMW Group accounted for some-more newly registered
electrified vehicles (all-electric + plug-in hybrid) than any other
manufacturer in Europe, with a share of 21 percent. The BMW Group
intends to grow sales of a electrified vehicles to at least
140,000 units
globally in 2018 and is targeting
more than half a million units on a world’s roads
by a finish of 2019. “Our electric mobility devise is carrying a
certain impact: a extended operation of electrified models we now offer
enabled us to cut CO2 emissions opposite a EU swift nonetheless again in
2017,” CEO Harald Krüger pointed out.


This year, a BMW Group will also enlarge a bottom for adding value
worldwide. Further investments are designed in a pivotal regions of
China, a USA and Europe. Maintaining a clever local
, quite in a USA and China, is and remains
an essential exigency for being partial of destiny enlargement in these regions.


New sales volume, revenues and gain annals in 2017


Automotive sales volume increasing by 4.1% to a new
record turn of 2,463,526 units in 2017 (2016: 2,367,603 units). With
a 3 reward automotive brands, BMW, MINI and Rolls-Royce, the
BMW Group asserted a position as a world’s heading manufacturer of
reward vehicles. Deliveries of electrified vehicles
jumped by 65.6% to 103,080 units, driven by a all-electric BMW i3
sales that have risen any year given a model’s marketplace launch in
2013. The BMW Group intends to boost a sales volume of
electrified vehicles to during slightest 140,000 units in 2018 and move more
than half a million electrified vehicles onto a roads by a finish of 2019.


Group revenues rose to a new record turn of € 98,678
million in 2017 (2016: € 94,163 million; +4.8%), with banking effects
somewhat confining growth. Profit before financial
(EBIT) rose by 5.3% to € 9,880 million (2016: € 9,386
million). Group distinction before taxation (EBT) went up
significantly year-on-year, partly helped by enlightened valuation
effects, and – interjection to a 10.2% arise to € 10,655 million (2016:
€ 9,665 million) – finished a year for a initial time above the
ten-billion-euro mark. As in a prior year, all 3 operating
segments – Automotive, Motorcycles and Financial Services – reported
record pre-tax earnings, any creation a grant to gain growth
in 2017. The pre-tax lapse on sales (EBT margin) for
a Group softened to 10.8% (2016: 10.3%), ensuring that a BMW Group
stays one of a automotive industry’s leaders when it comes to profitability.


Income taxation expense amounted to € 1,949 million in the
year underneath news (2016: € 2,755 million). The significantly reduce tax
shortcoming in 2017 was especially due to a rebate in a US federal
corporate income taxation rate from 35% to 21% with outcome from 1 January
2018, that was taken into comment in a dimensions of deferred
taxes during 31 Dec 2017. The revaluation gave arise to a positive
impact of € 977 million on deferred taxes recognized by the
income statement. Group net profit benefitted
accordingly and rose to € 8,706 million (2016: € 6,910 million; +26.0%).


Free money upsurge generated by a Automotive shred in
2017 again exceeded a aim of € 3 billion notwithstanding an boost in
a money outflow from investing activities by € 1.1 billion. During
a twelve-month period, giveaway money upsurge amounted to € 4,459 million
(2016: € 5,792 million).


Dividend of € 4.00 per share of common batch proposed


“A association is usually as good as a workforce. With their exemplary
dedication, a employees are a pushing force behind a success
story,” settled Krüger. “That is why, we compensate our
permanent staff in Germany a top distinction share in a sector.” At
a Annual General Meeting on 17 May 2018, a Board of Management and
a Supervisory Board will introduce to shareholders that the
dividend be increasing to a new high of € 4.00
(2016: € 3.50) per share of common batch and € 4.02 (2016: € 3.52) per
share of elite stock. The distribution rate of
30.2% (2016: 33.3%) will be within a BMW Group’s aim operation of
between 30 and 40%. “The offer to lift a division by a
poignant volume is a transparent pointer of a BMW Group’s certainty that
it is ideally placed to perform good in a destiny on a sustainable
basis,” pronounced Krüger.


Consistently high profitability in Automotive segment


Automotive segment
revenues grew by 2.5% to € 88,581 million
(2016: € 86,424 million) on a behind of certain sales volume figures.
EBIT softened somewhat by 2.2% to € 7,863 million
(2016: € 7,695 million). The EBIT margin came in at
8.9%, unvaried from a prior year, so finishing within the
aim operation of between 8 and 10% or aloft for a eighth financial
year in a quarrel given 2010. Segment distinction before tax
increasing by 9.8% to set a new record of € 8,691 million (2016:
€ 7,916 million).


In 2017, a Group again delivered over dual million
code vehicles to customers. Sales volume rose by 4.2% to
2,088,283 units year-on-year (2016: 2,003,359 units). The BMW
X family
remained a poignant enlargement driver, with 9.6%
some-more vehicles delivered to business – an glorious performance
deliberation a BMW X3 indication change has been in
swell given a second half of a year. Following a completion
of a BMW 5 Series Sedan indication change, December
sales of a world’s heading reward business sedan were some-more than 55%
adult on a prior year, while sales volume for a year as a whole
grew by 6.3% to 291,856 units. Other models contributing to enlargement in
2017 enclosed a BMW 1 Series (201,968 units;
+14.7%) and a brand’s flagship BMW 7 Series (64,311
units; +4.5%).


The MINI code set a new sales volume record in 2017
with 371,881 deliveries worldwide and 3.2% year-on-year growth. Sales
of a new MINI Countryman jumped by 30.0% (84,441
units). The MINI Convertible also done an important
grant to a brand’s successful performance, recording sales
volume enlargement of 12.0% (33,317 units).


Rolls-Royce Motor Cars delivered 3,362 units (-16.2%)
to business in roughly 50 countries around a globe. The figure was
achieved notwithstanding sensitivity in pivotal Middle East markets and a Phantom
being taken via a year due to indication change. The new
Phantom was denounced to a commend of an general open in
London in Jul and has already perceived a vast series of pre-orders.
First patron deliveries commenced during a commencement of this year.


The BMW Group stays committed to a devise of achieving a
offset placement of sales worldwide.


The BMW Group again available high enlargement in Asia,
where a sum of 848,826 BMW, MINI and Rolls-Royce code vehicles were
sold, representing double-digit enlargement of 13.6% (2016: 747,291 units).
The Chinese marketplace done a pivotal grant to this opening with
595,020 units delivered to business (2016: 516,785 units; +15.1%).


In Europe, a BMW Group sole a sum of 1,101,760
units opposite a 3 brands, so remaining during a prior year’s
high turn (2016: 1,092,155 units; +0.9%). The sales volume figure of
241,674 units for Great Britain was down on a prior year (2016:
252,205 units; -4.2%). Deliveries to business in France increasing to
89,957 units (2016: 84,305 / +6.7%). The sales volume also increased
in Italy with 86,663 deliveries (2016: 83,765 / +3.5%).


The Americas shred saw a slight diminution in the
series of deliveries over a year as a whole (451,136 units; -2.0%),
with a singular accessibility of BMW X models carrying an impact on
volumes. In a rarely rival marketplace environment, deliveries in the
USA dipped somewhat to 353,819 units (2016: 366,493 units; -3.5%). In
a fourth entertain of 2017, however, a turnaround was obvious in
both a USA (98,137 units; 2016: 96,609 units; +1.6%) and in the
Americas as a whole (124,547 units; 2016: 122,393 units; +1.8%).


Motorcycles shred deliveries transcend 150,000 units for the
initial time


2017 was also a record-breaking year for a Motorcycles
. Motorcycle and maxi-scooter deliveries rose by 13.2%
to 164,153 units (2016: 145,032 units), creation it a seventh
uninterrupted record-breaking year and a initial in that some-more than
150,000 units were sold. Segment revenues also rose
significantly to € 2,283 million (2016: € 2,069 million; +10.3%).
Similarly, EBIT softened to € 207 million (2016:
€ 187 million; +10.7%). As in a Automotive segment, a BMW Group is
also targeting an EBIT margin within a operation of 8 to
10% in a Motorcycles segment. In a financial year 2017, a margin
came in during 9.1% (2016: 9.0%). Profit before tax
increasing by 10.8% to € 205 million (2016: € 185 million).


Financial Services shred continues to mangle records


The Financial Services shred also continued to perform good in
2017. The series of new contracts resolved with
sell business rose somewhat to 1,828,604 contracts (2016: 1,811,157
contracts; +1.0%) during a twelve-month period. At 31 Dec 2017,
a contract portfolio comprised 5,380,785 contracts,
so flourishing by 5.2% year-on-year (2016: 5,114,906 contracts).
Segment revenues were 7.3% aloft during € 27,567
million (2016: € 25,681 million). Profit before tax
increasing somewhat to € 2,207 million (2016: € 2,166 million; +1.9%).


Increase in workforce and series of apprentices


The distance of a workforce grew by 4.2% in 2017. At
31 December, a BMW Group employed 129,932 people worldwide (2016:
124,729 employees). Projects relating to car foundation and
unconstrained driving, as good as a continued enlargement of the
general prolongation network, played a vital purpose in the
additional recruitment. Growth in automotive and motorcycle business
on a one palm and a enlargement of financial and mobility services
on a other also contributed to a rise. The BMW Group continues to
place good importance on a trainee programme and has again invested
some € 350 million in simple and serve training. Overall, some-more than
4,750 immature people worldwide were employed in vocational
and training programmes for immature talent during 31
Dec 2017.


Supervisory Board


At a Annual General Meeting to be hold on 17 May 2018, the
Supervisory Board will introduce that Prof. Dr. Reinhard Hüttl, Chairman
of a Executive Board of Helmholtz-Centre Potsdam – GFZ German
Research Centre for Geosciences, Dr. Karl-Ludwig Kley, Chairman of the
Supervisory Board of E.ON SE and Deutsche Lufthansa AG and Prof. Dr.
Renate Köcher, Director of Institut für Demoskopie Allensbach
Gesellschaft zum Studium der öffentlichen Meinung mbH, be re-elected
to a BMW AG Supervisory Board.


Furthermore, a Supervisory Board will introduce to a shareholders
that Dr. Kurt Bock, Chairman of a Board of Executive Directors of
BASF SE, be inaugurated to a Supervisory Board of BMW AG. In agreement
with a Supervisory Board, Dr. h.c. Robert Lane will renounce effective
a finish of a Annual General Meeting. The Supervisory Board would
like to appreciate Dr. h.c. Lane for several years of useful and
devoted cooperation.



The BMW Group – an Overview



Change in %

Deliveries to customers







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shred EBIT margin




shred EBIT margin




+0.1 % points

EBT domain BMW Group




+0.5 % points

Free money upsurge Automotive segment

€ million










€ million




thereof: Automotive

€ million





€ million




Financial Services

€ million




Other Entities

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Profit before financial result

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thereof: Automotive

€ million





€ million




Financial Services

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Other Entities

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Profit before taxation (EBT)

€ million




thereof: Automotive

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€ million




Financial Services

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Other Entities

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€ million









Income taxes

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Net profit

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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



For questions greatfully contact:


Corporate Communications


Max-Morten Borgmann, Business and Finance Communications

Telephone: +49 89 382-24118, fax: +49 89 382-24418

[email protected]


Glenn Schmidt, Head of Business and Finance Communications

Telephone: +49 89 382-24544, fax: +49 89 382-24418

[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 2017, a BMW Group sole over 2,463,500 newcomer vehicles and
some-more than 164,000 motorcycles worldwide. The distinction before taxation in the
financial year 2017 was € 10.655 billion on revenues amounting to
€ 98.678 billion. As of 31 Dec 2017, a BMW Group had a
workforce of 129,932 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.