BMW Canada

Statement by Harald Krüger, Chairman of a Board of Management of BMW AG, 99th Annual General Meeting of BMW AG in Munich on 16 May 2019

Maintaining a stance.

Leading a way.

Taking responsibility.


To all a shareholders,

Here in a Olympic Hall and those examination online, a really comfortable welcome!

I would also like to acquire a associates and all a other guests.

This is a 99th Annual General Meeting – an considerable number!

We have had a ups and downs, though we have always reason a own.


  • We have constantly reinvented ourselves.
  • We have revolutionised a courtesy and
  • We have done a business mobile by a innovations.


Recently, there has been some open discuss per a doubt of
tenure of BMW. There is usually one thing we have to contend about that:

I am really happy that we are all here today: You are a shareholders
of a BMW Group. we cruise we can all determine that your association is a
transparent instance of a amicable marketplace economy during work. We draft a own
march – also in a face of headwinds and in times of uncertainty.
You can rest on this!


Last year’s sales sum pronounce for themselves:


  • Every 13 seconds we sole a BMW, MINI or Rolls-Royce somewhere in
    a world: 2.5 million vehicles in total.
  • A BMW motorcycle was sole any 3 mins – adding adult to a
    sum of 165,000 units.
  • An electrified car was delivered to business any four
    mins – 142,000 in total.
  • Every minute, 19 people in Europe used a car-sharing service.

    Our DriveNow cars gathering some-more than 100 million kilometres: a
    third of those all-electric.


I would like to appreciate all of a business worldwide for placing
their trust in us!


What do these sales sum meant in financial terms?


  • 9.8 billion euros is a second-highest Group gain in a history.
  • Our Group EBT domain was above 10 percent.
  • Both BMW Motorrad and Financial Services once again done a clever contribution.
  • We invested roughly 6.9 billion euros in investigate and development.
    More than ever before: Investment is a usually proceed to secure a future.


Numbers are tough contribution – though they can also tell an romantic story.

I am really tender with how many joining and tough work have gone
into these figures.


You – a BMW associates – are ardent about all we do.
You emanate item value, day in, day out.

  • You rise and test: in a breeze tunnel, in a dried and on ice.
  • You calculate and we programme.
  • You negotiate with suppliers.
  • You work closely with a dealers.
  • But, above all else, we build illusory vehicles! You give more
    and some-more people joy.


We have led a reward shred for a past 15 years – and, for
this, we would like to contend a large appreciate we to all of you!


Ladies and Gentlemen,


Diversity is a strength. People from some-more than 150 countries work
together during a BMW Group – all pulling together in one instruction to
pierce a association forward.


  • Just a few years ago, we were still only a manufacturer of cars and motorcycles.
  • Today, we are a provider of premium
    mobility and services.
  • And by 2025, we aim to be a heading tech association for premium
    This is a goal, since digitalisation allows us
    to offer a business so many more: from particular services to
    unconstrained driving.


Our proceed is formed on Strategy NUMBER ONE NEXT, that creates
a new substructure for a company:


  • Technologically.
  • In a relations with customers.
  • And in a processes, structures and operative methods.


That is a lot of work – though we are a really clever team. we would now
like to uncover that we are investing in a right company. Start the
film, please!


Dear Shareholders,


You listened it from a employees and from a customers: BMW is a
clever family!

We have valid many times in a past that hurdles are opportunities.

In formidable times, we mount together and we reason a ground.


Take a diesel debate, for example: We did not rivet in deception.
This has also been reliable by a Munich Public Prosecutor’s Office
per a program fault. We produce a business with purify and
rarely fit diesel record that meets all authorised requirements.

Then, there’s a WLTP. We implemented a new contrast standards
early, but origination a bitch – since that is partial of a culture. We
are progressing a position once again right now, faced with the
European Commission’s antitrust proceedings.


Antitrust activities generally impute to tip agreements – for
instance, over prices or sales territories – that place business during a
disadvantage. But that was positively not a box here: Our objective
was official coordination of courtesy positions. Our engineers have
always grown a many innovative solutions. The fact that the
initial diesel in Europe to accept Euro 6 acceptance was a BMW –
prolonged before this was legally compulsory – is a good instance of this.


Our position is really clear: The allegations brought by a European
Commission are ungrounded and we will use all authorised means to defend
ourselves opposite these charges, if needed. It is vicious to fight
for what we believe. That is my opinion.


We were but compulsory to recognize a sustenance of 1.4 billion
euros in a initial quarter, that naturally influenced a earnings.
However, on a operational side, we sojourn on lane for a full year.


I am certain that we can continue a successful expansion –
generally now that a indication descent is temperament fruit. Our sales
done a good start to a year, with some-more vehicles delivered to
business in a initial entertain than ever before.

We are also gaining marketplace share:


  • In a US, we are series one in a reward segment, and
  • In China, we are outpacing all other reward manufacturers.


This certain trend continued in April. However, we also recognise
a concern of a charge that lies brazen – of formulating tolerable and
digitalised mobility: We are concentrating all a efforts on this,
with a following approach:


  1. We offer business a opposite operation of products and services.
  2. Our actions are market-based.
  3. We continue to labour a business model.


I would like to contend a few difference on these points.


Dear Shareholders,


For us, farrago is about carrying a brew of technologies. At this
point, no one can reliably envision how fast electromobility will
progress, or that expostulate sight will prevail. Our entrepreneurial
proceed means origination decisions for a prolonged tenure that are always
focused on a customer. Our business are revelation us utterly clearly
that they wish a choice of models and expostulate trains. There are two
advantages to carrying a accumulation of expostulate trains: We can do our
customers’ wishes and approve with CO2 regulations
worldwide. For some-more than 10 years now, we have been realigning the
BMW Group to concentration on tolerable mobility.


Since 2007, we have implemented Efficient Dynamics measures across
a fleet.


  • Since 2013, a entirely electric BMW i3 has been constructed in
    Leipzig. Many people contend it is a many environmentally-friendly car
    in a world.
  • In 2014, we expelled a initial plug-in hybrid: a BMW i8.
  • In 2017, we sole some-more than 100,000 electrified vehicles in a
    singular year for a initial time.
  • In 2018, that figure augmenting by another 40 percent. To put it
    clearly: We are a marketplace personality in vehicles charged from the
    hollow in both a European Union and Germany, and now offer
    no fewer than 10 electrified models.


We emanate facts, Ladies and Gentlemen, and now we are picking adult the
gait once again. Take a demeanour during a new electric-model offensive:


  • This year, a entirely electric MINI.
  • Next year, a BMW iX3.
  • And, in 2021, a BMW i4 and iNEXT.


However, not everybody has a event nor a enterprise to drive
entirely electric during this indicate in time. That is since we offer plug-in
variety with both a explosion engine and an electric expostulate train. I
expostulate a plug-in hybrid myself. Here in a city, I can get around
emission-free, and expostulate economically over prolonged distances as well.
That’s good news for a environment, as creditable studies show. we can
tell you, e-mobility is also a lot of fun, probably wordless with
extraordinary acceleration.


2019 is a year of a plug-in hybrid, with a BMW 3 Series, the
X3, X5 and a 7 Series. They all come with a fourth-generation
battery and electric engine technology, with an extended electric
operation adult to 80 kilometres.


As we all know, we like to set ourselves really desirous goals.


·       By a finish of 2019, we aim to have over 500,000 plug-in
variety and electric models on roads worldwide.

  • By 2025, we will have some-more than 25 electrified models – half of
    them pristine electric.


I’m certain we would also like to hear what is going on with fuel cells
– another area we are building serve with a partner, Toyota.
Drive trains with hydrogen fuel cells are characterised by their
extended range, brief refuelling times and 0 emissions.


There is never only one ideal resolution for any demand, so
opposite expostulate technologies will continue to coexist – and we are
regulating stretchable platforms to capacitate this.


Ladies and Gentlemen,


I do not trust it would be wise, from a business perspective, to
put all a eggs in one basket. The wilful thing is: We are capable
of holding whatever movement is indispensable and rarely stretchable in all
technologies. That is a BMW way.


We have no enterprise to tell a business what to do. We wish to
remonstrate them – with ideal products and services for their lives. A
climate-neutral multitude is positively a idea value determined to, and
something we all need to deposit in. We have a shortcoming to hand
over a universe value vital in to a children – and, as a father of
3 children myself, this is something we take really seriously.


At a BMW Group, we always cruise a interests of all our
stakeholders – customers, employees, shareholders and multitude as a
whole. Let me give we an instance from a universe of e-mobility:
Battery cells need certain tender materials, like cobalt, that is
used in high-voltage batteries in electric vehicles.

We ask:


·       Where does a cobalt come from?

·       Is it mined and processed underneath ethically obliged conditions?


To answer these questions, we are origination a supply sequence transparent
and even going a step further: From 2020, for a initial time, we will
buy a possess cobalt for new car projects directly from mines in
Australia that we have already legalised ourselves – with skeleton to do
a same in Morocco. For me, that is another instance of holding responsibility.


Dear Shareholders,


With such a opposite operation of products, it is always a pleasure for me
to uncover we a latest models and we would like to do so now. Our
product movement stays intensely strong, with 21 new or updated BMW
models to demeanour brazen to this year alone. The X5 and a Z4 were
launched really recently, only like a BMW 3 Series station right here
in front of you. Luxury is really vicious to many customers. We
therefore aim to boost sales and revenues significantly in this
segment. Our rarely essential models currently will assistance us financial the
mobility of a future.


  • The new 7 Series impresses with a superb pattern and new
    digital technologies.
  • Many business have been watchful for a new X7, and we have
    perceived a lot some-more pre-orders than expected.
  • The 8 Series Coupé is also off to a good start. It will now be
    assimilated by a Convertible and Gran Coupé, as good as a M models.

    Our Rolls-Royce oppulance code posted gains of roughly 50 percent in
    a initial entertain alone – mostly due to a new Cullinan.


We also have a indication descent in a compress class. Deliveries of
a new BMW 1 Series will get underway by a finish of a year. In
open 2020, we will launch a totally new BMW 2 Series Gran Coupé. I
cruise immature people will find a distinguished pattern generally appealing.


Our indication descent 2.0 is designed to excite customers, as we target
another all-time sales high for 2019.


Ladies and Gentlemen,


The second subject we wish to residence is a markets. We are gaining new
business and marketplace share in a 3 vital regions of a world,
with a specific plan for any region.


Let’s take a demeanour during Asia, with a largest singular market, China.

I revisit China on a unchanging basement – a nation where BMW has a very
clever reputation, as a code and as an employer. For a seventh
uninterrupted year, a BMW Group has been recognized as a “Best
Chinese Employer of a Year”.

We do not take this honour for granted. It is something we are very
unapproachable of.

China stays a expansion marketplace – and we continue to grow in China and
with China.


With a plants in Shenyang, we will shortly be means to furnish adult to
650,000 vehicles a year locally. As of this year, we are building
7 BMW models in China. Our corner try with Brilliance is a
win-win conditions – and has been so for some-more than 15 years. For this
reason, we are stepping adult a partnership and have extended our
agreement until 2040. We will also be augmenting a interest in a joint
try to 75 percent in 2022.


What President Li Keqiang betrothed is now being delivered by the
Chinese government. China is pushing electro mobility. We are
ancillary this routine with dual vicious decisions:


  • First of all, we will build entirely electric MINI vehicles in China
    and have sealed a new corner try agreement with Great Wall for
    this purpose.
  • Second, from 2020, we will furnish a initial entirely electric BMW,
    a iX3, in Shenyang and trade it from there to a rest of a world.


Let’s pierce on to a Americas, where a United States is a pivotal market.

Local value origination is an expectancy of a US government. We
produce roughly 70,000 jobs in a US, both directly and indirectly:
The Spartanburg facility, that non-stop 25 years ago, is a largest
plant worldwide. By a finish of 2018, we had invested around nine
billion dollars, with another 600 million designed adult to 2021. We are
strengthening a American economy:


  • On a one hand, BMW is a largest exporter of cars from a US
    by value.
  • On a other, some-more than 70 percent of a purchasing activities in
    a NAFTA segment are in a US – origination it a second-largest
    purchasing market.


As this shows, we sojourn committed to a US as a second home.


We are also expanding a globe of activity on a American continent.

Our new plant in San Luis Potosí in Mexico will open in Jun – with
immature employees we have been training on site for a past 3 years.


Now, let’s pierce on to Europe. A joined Europe has benefitted us a
good understanding over a years and we naturally find to give something back
in return. We occupy some-more than 110,000 people in Europe and many of
a plants are located here: in Germany, Austria and a UK – and, in
a future, also in Hungary.


Of march we approve with a European Union’s despotic regulations. By
2020, we will have reduced a CO2 emissions of a new
car swift by during slightest 50 percent compared to 1995. We also intend
to accommodate a targets for 2030 – as we would design from your company.


Although Brexit stays a source of uncertainty, we are prepared for
all probable scenarios. We are promulgation a transparent vigilance by building the
entirely electric MINI in Oxford.


Globality needs roots – and ours are here in Munich, in Bavaria, in
The nation of mobility. Actions pronounce louder than
words, so let me give we a few examples, only for Bavaria.


  1. Our subsequent era of electric cars, a i4 and a iNEXT, will
    be built in Munich and Dingolfing respectively.
  2. Research has been underway during a Autonomous Driving Campus in
    Unterschleissheim for a year now.
  3. This year will see a opening of a Battery Cell Competence
    Centre in Munich.
  4. We have also set adult a possess Data Centre nearby Munich.


These examples underline a extensive intensity we see here in
Germany for a new kind of mobility. This is where we invent the
technologies that renovate mobility worldwide – as a tellurian company
with roots in Bavaria. Wherever we are in a world, a joining is
for a prolonged term: We actively minister to value origination in those
regions. Public officials from Dingolfing, Leipzig and Regensburg,
Spartanburg, Shenyang and Rosslyn, always tell me how many that is appreciated.


Ladies and Gentlemen,


We are evenly enlightening a business indication for digitalisation,
and that is a third subject we would like to speak about today.


We have been charity services for about 10 years now. The first
miracle was a successful NOW family. Today, business design an
all-round service, tailored to their needs. To produce this, we
launched a corner try with Daimler AG in February.


This is YOUR NOW:


·       Five business units for all forms of mobility.

·       A singular source for all services for some-more than 60 million
business already.

·       And shortly a whole universe of mobility will be available
by an app on your smartphone.


In further to services, unconstrained pushing will be another major
area of destiny activity where both companies also have extensive
know-how. Together, we wish to rise technologies for a next
era of programmed driving. We will use it in a models as of
2024. We have sealed a Memorandum of Understanding.


Ladies and Gentlemen,


Your association has prolonged been a colonize in rarely programmed and
unconstrained driving. The latest explanation of this is right in front of you:
a BMW iNEXT Vision Vehicle. This will be a subsequent vital miracle –
environment trends and standards for destiny models opposite all a brands.
Let’s see a few impressions of it. Start a film, please!


You’ll be means to buy a iNEXT from 2021.


In a same year, we will also be rising a exam swift of 500 iNEXT
vehicles on a roads – all of them entirely unconstrained and already
able of Level 4. And unconstrained pushing can do so many more: For
one thing, there will be probably no some-more accidents. That, in itself,
is reason adequate to investigate and deposit in this technology! We are
analysing probable vicious pushing situations – on a highway and
by practical simulation: 240 million exam kilometres in sum so
far. That’s homogeneous to pushing around a earth 6,000 times.

We also take a holistic proceed to safety: defence a customers
from hackers and defence their information and privacy. To summarize in
one sentence: Safety is a comprehensive priority. That is what
differentiates your association from others.


Dear Shareholders,


The BMW Group is an investment of yours.

What is also vicious to you, no doubt, is a division and our
share price.


For 2018, we are proposing a second-highest division ever:

  • 3.50 euros per share of common stock, and
  • 3.52 euros per share of elite stock.


A sum of 2.3 billion euros.


The expansion of a BMW share cost reflects a long-term
thinking. From 10 May 2009 to 10 May 2019, it gained 158 percent in
value. You have therefore perceived an normal division produce of more
than 5 percent.


Ladies and Gentlemen,

The following topics were vicious to me today:


First, your association offers a opposite operation of products and
technologies – since that is what a business worldwide wish on
a highway to tolerable mobility.


Second, your association will continue a essential growth. Our global
change of prolongation is a genuine advantage – generally in a midst of
a stream trade disputes. That is since we pursue a specific strategy
for any of a categorical marketplace regions.


Third, your association is successfully transforming into a tech company
and forging conduct with unconstrained driving, with a iNEXT as a new
creation flagship for a whole company.


Ladies and Gentlemen,

We are unapproachable of a fact that we continue to mount by us. Your
association stays clever – by both ease and inclement times.


We are progressing a stance.

We are heading a proceed towards a future.

We are holding a shortcoming seriously.

We are pushing a mobility of tomorrow.

We are unapproachable to have we during a side.


Thank we for your attention.