Good morning and welcome!
Today, I would like to show you what sets the BMW Group apart from
our competition. Let’s first take a look at the recent past, and then
focus on the future. The BMW Group is successfully shaping the future
of mobility. We are doing so by consistently charting our own course:
· We are constantly redeveloping our business model. It has to
be profitable and successful in the digital age. For example, our new
joint venture with Daimler, which combines all our NOW services.
· We are strengthening our core business and our global
presence. For example, in China and the US.
· We deliver. We turn words into action. Our successful
transition to the new emissions standard WLTP is a good example of this.
In recent years, we have evolved from a manufacturer to a mobility
provider. Going forward, we aim to be a leading tech company for
premium mobility.
For this reason, we are providing our company a new and stronger
foundation: With regards to technology. In our relationships with
customers. And in our processes, structures and work environment. That
is no easy task. But, at the BMW Group, we are a very strong team.
We continue to make significant progress with our Strategy NUMBER ONE
NEXT. We have been implementing measures for the past three years.
Our focus extends up until 2025. We have a clear vision of the
future. Our journey has three stages, with milestones in 2018, 2021
and 2025.
The first stage, up
to 2018, has already successfully been completed.
What was the BMW way?
What sets us apart from others?
First of all, to make very clear: BMW Group vehicles are not
manipulated.
A fact that has now been confirmed again. We have
invested heavily – in new products, in new drive technologies and in
digitalisation. We have electrified many models and model series. Our
BMW i3 continues its success, year after year. Worldwide, the total
was more than 140,000 vehicles.
In addition, we successfully launched the biggest model offensive in
our history. This helps us to win market share across the globe. Since
2016, we have also made major advances in the development of
autonomous driving: Our Autonomous Driving Campus outside Munich is
now working at full speed. At the same time, we have strengthened our
footprint in all major regions of the world and expanded our capacity.
All of this shows: The BMW Group is a trusted partner and corporate
citizen. And, we are robust, fast and flexible.
We are now embarking on the second phase of NUMBER
ONE NEXT –
which will take us up to the end of 2021.
What are the challenges for our industry now?
· The business environment remains highly volatile.
· E-mobility will continue to grow.
- The development of highly-automated vehicles will continue to make advances.
What do we do differently
than others, and why?
We are systematically investing in our range of electrified vehicles
– for all customer needs. We also will create additional flexible
platforms for various types of drivetrains: combustion engines,
plug-in-hybrid and electric drive trains. From 2020, the popular BMW
X3 will be our first model that we will offer with all three drive
trains. The customer will continue to have choices in the future. This
broad approach allows us to respond flexibly. This is the most
efficient solution – a single platform for all.
We will keep our foot on the throttle with new model releases. This
year alone, we will launch more than 20 new or updated models. And we
are electrifying all our brands and model series. By the end of this
year, we will have 500,000 plug-in hybrid and electric vehicles on the roads.
As anyone who’s ever driven an electric car will tell you: E-mobility
is fun. Amazing acceleration and virtually silent – thanks to the
electric engine and battery. Together, they form the heart of every
electric vehicle. We produce the electric drive and high-voltage
system ourselves. This keeps essential e-mobility expertise firmly in
our own hands. Regarding battery cells, we will continue to build on
our existing expertise. This summer, we will open the new BMW Group
Battery Cell Competence Centre in Munich. This also includes
infrastructure: Charge NOW already gives our customers access to more
than 100,000 charging points in 25 countries. Charge NOW also
demonstrates that: Cooperation between companies is increasingly
important. We always seek out the most suitable partners in different fields.
In two important areas of future activity, we have embarked on a
long-term cooperation with Daimler AG. To provide more services in
more cities, we have created five joint ventures. More than 60 million
people already use NOW services. Together, we will invest over one
billion euros.
The benefit for customers is that everything comes from a single
source. And soon, from a single app. When it comes to autonomous
driving, both companies already have extensive know-how. Together, we
are developing next-level technology for autonomous driving for our
models from 2024 on.
As a global company, more than ever, we have to satisfy different
demands in different regions. In line with our Strategy NUMBER ONE
NEXT, we are targeting continued growth in all major regions of
the world and aim to expand our market share. To achieve this, we have
a specific strategy for each region:
-
China is our
largest single market and a strong driving force for e‑mobility.
Our approach is as follows: The new plant in Shenyang will
increase our capacity to 650,000 vehicles per year. Our new joint
venture with Great Wall will build fully-electric MINI vehicles.
From 2020, we will produce the first fully-electric BMW, the iX3,
which we will export from China to the rest of the world. -
In the US, we
continue to invest in the expansion of our Spartanburg plant. This
year, the plant celebrates its 25th anniversary. The
new BMW X7 signals our firm commitment to the US, our second home.
The US Department of Commerce has once again confirmed that BMW is
the leading US automotive exporter by value – for the fifth
consecutive year. Our new plant in Mexico will expand our sphere
of activity in the Americas. It will open in June. -
Europe is our
largest sales region and home to the most BMW Group plants and
employees. The political situation remains tense, due to the
uncertainty over Brexit. But we are well prepared for all scenarios.
The same principle applies to all regions: Our commitment is geared
towards the long term. Free access to markets is essential for all of
this. It ensures growth, prosperity and employment everywhere.
To become an agile tech company, we also need the right internal
organisation. Efficient structures have always been part of the BMW
Group. Two current examples include: Our cross-divisional Performance
NEXT programme, and our new Sales and Marketing structure.
We began implementing Performance NEXT some time ago. Our goal
is to become faster, profitable and more efficient. We are
concentrating specifically on three fields: “customer and sales”,
“vehicle” and “organisation and structures”. Performance NEXT
will permanently change the whole company. We are targeting a total
savings potential of more than 12 billion euros by the end of 2022.
Performance NEXT will have an impact well into the next decade.
Let’s take a look at my second example:
Our relationship with customers is vital to the success of our
business. Starting in April, we have ONE sales division for our BMW,
MINI and Rolls-Royce automotive brands. It will be known internally as
the C division. C stands for customer. This reflects our clear focus
on the customer. This division will be responsible for creating a
consistent brand experience across all touchpoints. Peter
Schwarzenbauer will leave the company in October at his own request
when he turns 60. We have no plans to refill this position. We believe
a smaller Board of Management sends the right signal for consistently
streamlined structures across the entire company.
Successful marketing supports our sales activities worldwide. Each of
our premium brands embodies emotions. The same goes for sports.
That is why sports have played a key role in our marketing for so
long. Here, too, we will be taking a new direction with strategic partnerships.
The third stage in
implementation of Strategy NUMBER ONE NEXT will take us all the
way to 2025.
Here, the BMW
approach is quite different from that of other companies:
Our new innovation and technology flagship, the BMW iNEXT, will take
individual mobility to a whole new level. It will enable the entire
company and all our brands to face the challenges of the future. The
concept car is here on stage with us. Other than its four wheels, it
doesn’t have much in common with a regular car.
The iNEXT combines several future technologies:
- Full connectivity.
- A futuristic interior.
- An electric range of up to 600 kilometres for everyday
driveability over both short and long distances. -
It also signals the launch of Level 3 highly-automated driving.
At the same time, we will also be testing Level 4 and 5
autonomous driving in urban areas with a fleet of iNEXT vehicles.
This opens a whole new chapter for the BMW Group.
Today, more than 80 percent of accidents are caused by driver error.
Autonomous driving can virtually eliminate these accidents. Safety is
our top priority in developing automated vehicles. That is why we go
to such lengths to safeguard these new technologies. By the time we
launch our Level 3 system in 2021, we will have clocked up more than
240 million test kilometres: around 95 percent in simulations.
Technologies from the iNEXT will be incorporated throughout our
entire model line-up. The BMW iNEXT will be released onto the market
in 2021.
Autonomous driving relies on, and generates, huge quantities of data.
This means data analytics will be a game changer. Next week, we will
be opening a data centre outside of Munich. But, by mid-2025, 500
petabytes will be available. That is needed to process data “off-board”.
Ladies and Gentlemen,
Being mobile will continue to be part of our lives in our
globally-connected world. At the BMW Group, we will continue to drive
sustainable, connected and autonomous mobility forwards. But that’s
enough for now. Later, I’ll show you the models that will inspire our
customers in the coming years. Thank you!
PART II – Statement Harald Krüger
Ladies and Gentlemen,
The BMW Group has been number one in premium segment sales for the
past 15 years. Despite the uncertainties we are facing across the
globe, we aim to continue our successful development. Our brands,
products and services are the basis for this. Our goal is to
outperform the premium segment. To achieve this, we will continue our
model offensive, driving full speed ahead.
2019 will be our year of the plug-in hybrid. BMW will release the 3
Series, X5 and 7 Series all as PHEVs. The X3 will also be available
for the first time as a plug-in hybrid. All these models come with the
fourth generation of our battery and electric-drive-train technology.
This enables an electric range of up to 80 kilometres. The 2 Series
and 5 Series models will also get a battery update in the summer.
I myself drive a plug-in hybrid. It’s a great way to get customers
excited about electric driving. This technology offers a pragmatic
approach that goes a long way towards improving air quality in cities
quickly. Studies have found that plug-in hybrids with an electric
range of at least 60 km are driven just as far in electric mode as
pure-electric models. We are taking this a step further with our
“Electric City Drive” pilot project. Together with the City of
Rotterdam, we are currently encouraging plug-in-hybrid drivers to use
pure-electric mode in the city by providing them with relevant data on
their smartphone.
BMW and MINI will also release fully-electric models:
- The emotional MINI Electric will be launched this year. Media
representatives have already had a chance to test it. - This will be followed in 2020 by the iX3.
- 2021 will then be the year of the BMW i4 and the BMW iNEXT.
By the end of 2020, we will have brought more than ten new and
updated models with electrified drive trains to the market. For me,
this is a clear statement. With Strategy NUMBER ONE NEXT, we will
not only boost sales of electrified vehicles.
We also aim to increase sales and revenues significantly in the upper
segments in particular:
· The new X5 is now fully available for the whole year.
· The new 7 Series will be released onto the market later this month.
· The X7 will follow mid-year.
· And the 8 Series Coupé will be joined by the Convertible and
the Gran Coupé, as well as the corresponding M models.
In the mid-size segment, our top-selling model the new BMW 3 Series
has been in showrooms since early March. The new 3 Series has been
well received by customers, particularly due to the extensive
connectivity features.
We also have attractive new models in the compact class: The new
BMW 1 Series will be available for delivery by the end of this year. I
would also like to announce a completely new model today: the BMW 2
Series Gran Coupé. It will celebrate its world premiere in November at
the LA Auto Show and is scheduled for release in early 2020. This
model will especially appeal to young, urban target groups, with a
fresh and stunning design.
As you can see: We remain consistently on the offensive.
The BMW Group is firmly setting its course for the future. Customers
– with all their wishes and mobility needs – remain the clear focus of
all that we do. Innovative solutions are how we ensure every customer
experiences mobility in a wholly individual way.
There has been a lot of talk recently about the purpose of companies.
At the end of the day, it all comes down to sustainably earning money
with a particular business model. Only then can the continued
existence of one’s own company be ensured. Only then can we create
jobs and innovations. And only then can a company make an effective
contribution to society. None of these prerequisites will change in
the digital age.
The BMW Group remains today among the most profitable automotive
companies in the world. We will continue to be a reliable and
profitable investment for our shareholders moving forward. And we have
a clear objective for the future to remain a leader in everything we do.
Thank you.