BMW Canada

Statement by Harald Krüger, Chairman of a Board of Management of BMW AG, Conference Call Interim Report to 31 Mar 2019

Good morning, Ladies and Gentlemen!


At a BMW Group, we are always relocating brazen – with a sights set
on a future. Our actions are geared towards a prolonged term. We
continue to intentionally draft a possess course.


Two areas will be essential for us:

1.     Strengthening a core business, and

2.     Moving brazen with critical destiny projects.


I would like to contend a few difference about each. First, on a core business.


We are now focusing here on 3 pivotal areas:

•      Our indication and record descent 2.0.

•      Targeted enlargement of a marketplace presence, and

•      Our inner programme: Performance NEXT.


In 2019, we aim to lead a tellurian reward shred once again, with
a 3 brands, BMW, MINI and Rolls-Royce. We also wish to increase
a marketplace share.


And we positively did that in a initial quarter.


We delivered some-more than 605,000 vehicles to customers. That is our
ninth uninterrupted best start into a year. We are also doing well
compared with a competitors.

In March, we kick a trend, recording sales expansion in several key
markets, including a US and China. We also posted a many dynamic
first-quarter expansion of any reward automobile association in China, a largest
singular market. In Europe, we confirmed a same turn as final year.
And, in a US, we were array one in a reward shred in a initial quarter.


Our core BMW brand, Rolls-Royce and BMW Motorrad all reported their
best-ever initial quarter. The BMW X models and new 8 Series, as good as
a Rolls-Royce Cullinan, valid generally popular.


Our product movement stays intensely strong:


At BMW alone, business can demeanour brazen to 21 new or updated models
this year. There will also be new models from MINI and BMW Motorrad.
Fresh on a marketplace are a BMW 3 Series, a Z4, a X5, a X7 and
a 8 Series Coupé. The new 7 Series, with a new pattern denunciation and
rarely innovative infotainment and motorist assistance systems, is
already a strike with customers. It will be followed after this year by
a new 1 Series in a compress class.


In a oppulance segment, we are gradually realising a vital goal
of significantly augmenting sales and revenues. The 8 Series
Convertible and Gran Coupé are prepared for marketplace launch. Many customers
are energetically grouping a new X7. The incoming orders – both for
markets abroad as good as Europa – are surpassing all of a expectations.


As partial of a indication offensive, we will continue to introduce
tolerable expostulate technologies opposite a swift – as set out in our
Strategy NUMBER ONE NEXT. In a initial entertain alone, we sold
some-more than 27,000 electrified vehicles. And, by a finish of this year,
we will have half a million electrified vehicles on a roads.

In Europe, a commission of electrified vehicles delivered is three
times a attention average. In 2018, we were a marketplace personality for
foundation in both Europe and Germany – not usually in a premium
segment, though in a marketplace as a whole.


We devise to say a heading position going brazen – both in Europe
and worldwide.


To do so, we will continue to deliver some-more electrified models
opposite all brands and indication series. This also includes Rolls-Royce and
BMW M. Plug-in hybrid record will be a concentration for us in 2019: The 3
Series, X3, X5 and a 7 Series all come with a fourth era of
a electric expostulate sight technology. This gives these vehicles an
increasing electric operation of adult to 80 kilometres. Our entirely electric
BMW i3 has been on a marketplace for about 6 years now. During this
time, a operation has doubled. This is one of a reasons it continues
to post such clever growth.


MINI fans will also shortly be means to go entirely electric. Production
will start this year for a MINI Electric. Pre-production exam drives
have been really good perceived by a media. As we know, a MINI
Electric will be built in Oxford. This also underlines a continued
joining to a UK. On a BMW side, we are expanding a fully
electric operation with a serve of a iX3 from 2020 and a BMW i4
and iNEXT from 2021. By 2025, we will have during slightest 25 electrified
vehicles in a line-up: 12 of them pristine electric.


As we can see: We are clearly not betting on any singular technology.
From my viewpoint that would be a wrong approach. We are relying
on a extended portfolio of technologies – with stretchable platforms for
explosion engines, plug-in variety and electric expostulate trains.


We are also conducting serve investigate into fuel cells with our
partner Toyota.

Over a prolonged term, expostulate trains with hydrogen fuel cells will offer
larger internal emission-free range, with really brief refuelling times.
These will element a battery-electric vehicles. Every customer
has opposite needs and each marketplace opposite business conditions. We
can usually grasp a coherence indispensable for entirely tolerable mobility
around a universe by staying open to opposite technologies. We are
entirely committed to this approach.


We design several expostulate forms to continue to exist alongside one
another. Our business conclude a far-reaching operation of models and drive
trains we offer.


This year, we will again be targeting new all-time highs, with:

•      slight expansion on a automotive side, and

•      plain expansion during BMW Motorrad.


More appealing models will be expelled over a subsequent few months in
all segments. We therefore design to see stronger sales in a second
half of a year.


The BMW Group is tellurian in each respect.


In 2019, we will be targeting expansion in all vital regions. To achieve
this, we are strengthening a participation in a markets and expanding
ability where needed. Our idea stays a same: to change global
prolongation between Europe, Asia and a Americas.


In a Americas region, we will open a Mexico plant in June. This
prolongation trickery will set new standards for capability and sustainability:

•      Most of a plant’s energy will come from a solar complement on the
drift and is 100 percent CO2-free.

•      The automobile portrayal routine does not furnish any wastewater.
The H2O used is processed and recycled.

We are formulating some-more than 1,000 learned jobs in San Luis Potosí. In
2015, we launched a successful twin training indication during a plant.
Since then, we have lerned scarcely 250 immature Mexicans for their destiny careers.


Ladies and Gentlemen,


Our core business is also about looking inwards: We are constantly
optimising a processes and structures – so that we can align
ourselves for a different tasks of a future. In 2017, we launched
a company-wide Performance NEXT programme. We are operative tough to
turn some-more efficient, some-more essential and many faster. Nothing is off
limits. We are withdrawal no mill unturned.


Our idea is to make constructional potency improvements via the
whole value chain.


We are already implementing many of a decisions – and are now
stepping adult a efforts in all areas. By a finish of 2022, these
improvements will save us some-more than 12 billion euros.


Let me give we a few petrify examples:

1.     We are leveraging poignant synergies and efficiencies in
surreptitious purchasing and element and prolongation costs.

2.     We are cutting complexity in a vehicles – wherever it makes
clarity to do so.

3.     We are cutting a expansion routine for new models by up
to a third.

4.     We are regulating digital simulations on a many wider scale: By
2024, as many as 2,500 dear antecedent vehicles will no longer be needed.

5.     On a product side, adult to 50 percent of a current
drive-train variants will be dropped as we transition to flexible
automobile architectures from 2021 on. We will concentration on what customers
wish a most.

6.     There will be no inheritor to a BMW 3 Series Gran Turismo.

7.     At a Annual Accounts Press Conference, we announced that the
distance of a workforce will sojourn about a same as final year. We met
this idea in a initial quarter.


All these measures will have a certain impact fluctuating good into
a subsequent decade.


That brings me to my second point: Future projects.


We are a pushing force for sustainable, connected and autonomous
mobility. Step by step, we are gradually formulating a necessary
conditions for rarely programmed and entirely unconstrained driving.


In March, we non-stop a information centre with a high-performance D3
platform. With an initial storage ability of around 240 petabytes, it
eclipses anything we have had in this area in a past.


On a product side, a iNEXT is scheduled for launch in 2021. For
a initial time, we are mixing electric and Level 3 highly-automated
pushing with high-end connectivity and a digitalised interior. All in
one vehicle.


What this means for business is: A totally new knowledge of
mobility and bland pushing qualities, with an electric operation of
some-more than 600 kilometres.


In 2021, we will put a commander swift of 500 BMW iNEXT vehicles with
Level 4 and 5 functionality on a roads. The required technical
mandate and changes to general regulations and liability
laws are now in progress.

One thing will not change: Customer reserve stays a comprehensive priority.


We do not use any record in series-production vehicles until we
have totally mastered it. Together with Daimler, we wish to develop
next-level record for unconstrained driving. This should be available
in a models from 2024 on.


We are also already operative with Daimler to enhance a mobility
services – since destiny mobility will not be probable without
analogous services. Customers design a 360-degree proceed to all
their particular needs.


This is a starting indicate for a new NOW family.


Our mobility powerhouse YOUR NOW will yield business solutions for
all their mobility needs: From individually-owned cars to
ride-hailing, to automobile pity and a far-reaching operation of other services. Our
corner try is now done adult of 5 straight business entities,
with a plain bottom of 60 million customers.


Ladies and Gentlemen,


2019 will be another severe year. Our sourroundings remains
flighty and dominated by uncertainty.


Nevertheless, we will continue a certain business expansion – as
we evenly ready for a technological hurdles of the
future. We clearly see ourselves as one of a pushing forces.


With a Strategy NUMBER ONE NEXT, we will continue to set the
march for long-term essential expansion as a record personality in our
attention and beyond.


Thank you.