Statement by Harald Krüger, Chairman of the Board of Management of BMW AG, Press Conference THE NEXT 100 YEARS Beijing "Iconic Impulses. The BMW Group Future Experience"

Distinguished guests,

Ladies and Gentlemen,

ni men háo!

 

I am delighted to be back in China. Every time I come here, I am
reminded what a truly fascinating country this is. China has an
immensely rich past – but is clearly focused on tomorrow, looking
ahead towards an exciting future. This is something we share. The BMW
Group is celebrating its centenary this year. It has always looked
ahead, constantly challenging itself, convinced that: The best way to
predict the future is to shape it. Our ties with China go back a long
way and we are strongly committed to this market: we are here to stay!
This is underlined by the scale of our investment:

 

  • In just seven years, we have invested a total of over 22 billion
    renminbi in our plants in Shenyang.
  • Taking both plants together, we aim to increase our production
    capacity to 400,000 units over the long-term.
  • We now produce four models locally and this will increase to six
    in the next few years.
  • Early this year, we opened our new 3- and 4-cylinder engine plant
    in Shenyang.
  • Capacity is geared to the production volumes of the two automotive
    plants and now stands at up to 300,000 units per year.
  • It is a major milestone for our production in China that we will
    be able to equip all of our locally produced cars with locally
    produced engines.
  • We are also building up our local supplier base. In just six
    years, we have increased the number of suppliers in China six fold:
    from 150 to 950.
  • And together with our joint venture partner, Brilliance, we now
    have around 18,400 highly competent employees in China.

 

We are very proud of the success we have achieved together with our
partner Brilliance and we are proud to be a part of the Chinese
society. Since 2005, our sales have increased every year – as local
production has gone up several gears. With BMW, BMW Motorrad, MINI and
Rolls-Royce, we offer strong premium brands and products that win the
hearts of our Chinese customers. Our growth shows that they greatly
appreciate luxury, design and quality. China remains a market with
huge potential and we will continue to invest here! China is now the
BMW Group’s largest single market – and its importance for us extends
far beyond sales volume. Our commitment also includes an RD
office, a Designworks Studio and a ConnectedDrive Lab. These
facilities help us to gain even deeper insights into what our Chinese
customers want and how we can develop even stronger ties with China.

 

As we look ahead to the future – to the NEXT 100 Years – mobility
will change dramatically through advances in technology and changes in
customers’ demands. Mobility is becoming versatile. Looking ahead to
the next 100 years, the BMW Group will create ground-breaking and
responsible solutions. Our vision is – for future mobility – to be
effortless, available on demand and tailor-made for all our customers
and for their individual needs.

 

In China – the share of post 90s in the Chinese car market was 15% in
2015 and this will increase to 45% in 2025. In other words: the next
generation of customers were born into the digital age. Technology is
becoming human.

Our technologies will learn to learn from people. And Connectivity is
becoming second nature.

We aim to attract the young customers in China as they continue to
grow in numbers. Our intelligent use of data will enhance our
customers’ lifestyle.

 

The premium compact car segment is experiencing fast growth here. So
we will increase the share of compact cars in the BMW Group portfolio.
In January, we launched the BMW 2 Series Active Tourer in China. We
build this model in Tiexi. The all-new BMW X1 long wheelbase is
another perfect illustration of our focus on the Chinese customer and
our enduring commitment to the Chinese market. In addition, another
small sedan will be locally produced in China soon. The concept car
was shown at the Beijing Auto Show.

 

We see further potential for BMW Motorrad in China. Last year we
doubled our sales here and in the next twelve months, we will be
introducing a total of nine new models, including our all new 300 Series.

 

The BMW Group’s vision for the future is sustainable production for
sustainable mobility. We are genuinely committed to protecting the
environment. We aim to be at the forefront of e-mobility by providing
the most innovative products and services. From a very early stage,
the Chinese government has supported and promoted electric mobility.
This country has the potential to become the world’s largest market
for new energy vehicles. We truly appreciate local and national
Government support of BMW’s e-mobility.

 

The BMW i3 is listed in the “Catalogue of New Energy Vehicles
Exempted from Purchase Tax”. In 2016, we will offer an upgraded BMW i3
model. BMW offers the richest line-up of premium NEV products both
imported and locally produced, and ranging from BEV to PHEV. We will
extend our product line this year from four to six models. Part of our
strategy for e-mobility is the electrification of our whole fleet. Our
new 7 series is the most innovative car in the luxury class.

This year in China we will launch two additional iPerformance models
– the plug-in hybrid models of the new 7 Series and the X1.

 

Right now, the BMW Group is on the verge of making automated driving happen.

Studies confirm that China will be a major market for highly
automated driving (HAD). Chinese customers have:

  • the highest level of acceptance
  • the most desire to improve convenience, traffic flow and safety

 

Our cooperation with Baidu is the first joint project between a
premium auto brand and a local IT partner on HAD in China. This
collaboration underscores our commitment to the Chinese market, and
embodies our RD strategy, ‘In China, For China’.

 

Ladies and Gentlemen, We have a clear vision: To be the leader in
premium individual mobility – also in the next 100 years. In a moment,
you will see how we imagine the future. Our BMW VISION NEXT 100 offers
a vision of a new era in mobility – sustainable, connected and
automated driving. This is the beginning of an exciting, new era – and
China will be a vital part of it.

 

Xiexie Dajia! Thank you!

 

Statement by Harald Krüger, Chairman of the Board of Management of BMW AG, Press Conference THE NEXT 100 YEARS Beijing "Iconic Impulses. The BMW Group Future Experience"

Distinguished guests,

Ladies and Gentlemen,

ni men háo!

 

I am delighted to be back in China. Every time I come here, I am
reminded what a truly fascinating country this is. China has an
immensely rich past – but is clearly focused on tomorrow, looking
ahead towards an exciting future. This is something we share. The BMW
Group is celebrating its centenary this year. It has always looked
ahead, constantly challenging itself, convinced that: The best way to
predict the future is to shape it. Our ties with China go back a long
way and we are strongly committed to this market: we are here to stay!
This is underlined by the scale of our investment:

 

  • In just seven years, we have invested a total of over 22 billion
    renminbi in our plants in Shenyang.
  • Taking both plants together, we aim to increase our production
    capacity to 400,000 units over the long-term.
  • We now produce four models locally and this will increase to six
    in the next few years.
  • Early this year, we opened our new 3- and 4-cylinder engine plant
    in Shenyang.
  • Capacity is geared to the production volumes of the two automotive
    plants and now stands at up to 300,000 units per year.
  • It is a major milestone for our production in China that we will
    be able to equip all of our locally produced cars with locally
    produced engines.
  • We are also building up our local supplier base. In just six
    years, we have increased the number of suppliers in China six fold:
    from 150 to 950.
  • And together with our joint venture partner, Brilliance, we now
    have around 18,400 highly competent employees in China.

 

We are very proud of the success we have achieved together with our
partner Brilliance and we are proud to be a part of the Chinese
society. Since 2005, our sales have increased every year – as local
production has gone up several gears. With BMW, BMW Motorrad, MINI and
Rolls-Royce, we offer strong premium brands and products that win the
hearts of our Chinese customers. Our growth shows that they greatly
appreciate luxury, design and quality. China remains a market with
huge potential and we will continue to invest here! China is now the
BMW Group’s largest single market – and its importance for us extends
far beyond sales volume. Our commitment also includes an RD
office, a Designworks Studio and a ConnectedDrive Lab. These
facilities help us to gain even deeper insights into what our Chinese
customers want and how we can develop even stronger ties with China.

 

As we look ahead to the future – to the NEXT 100 Years – mobility
will change dramatically through advances in technology and changes in
customers’ demands. Mobility is becoming versatile. Looking ahead to
the next 100 years, the BMW Group will create ground-breaking and
responsible solutions. Our vision is – for future mobility – to be
effortless, available on demand and tailor-made for all our customers
and for their individual needs.

 

In China – the share of post 90s in the Chinese car market was 15% in
2015 and this will increase to 45% in 2025. In other words: the next
generation of customers were born into the digital age. Technology is
becoming human.

Our technologies will learn to learn from people. And Connectivity is
becoming second nature.

We aim to attract the young customers in China as they continue to
grow in numbers. Our intelligent use of data will enhance our
customers’ lifestyle.

 

The premium compact car segment is experiencing fast growth here. So
we will increase the share of compact cars in the BMW Group portfolio.
In January, we launched the BMW 2 Series Active Tourer in China. We
build this model in Tiexi. The all-new BMW X1 long wheelbase is
another perfect illustration of our focus on the Chinese customer and
our enduring commitment to the Chinese market. In addition, another
small sedan will be locally produced in China soon. The concept car
was shown at the Beijing Auto Show.

 

We see further potential for BMW Motorrad in China. Last year we
doubled our sales here and in the next twelve months, we will be
introducing a total of nine new models, including our all new 300 Series.

 

The BMW Group’s vision for the future is sustainable production for
sustainable mobility. We are genuinely committed to protecting the
environment. We aim to be at the forefront of e-mobility by providing
the most innovative products and services. From a very early stage,
the Chinese government has supported and promoted electric mobility.
This country has the potential to become the world’s largest market
for new energy vehicles. We truly appreciate local and national
Government support of BMW’s e-mobility.

 

The BMW i3 is listed in the “Catalogue of New Energy Vehicles
Exempted from Purchase Tax”. In 2016, we will offer an upgraded BMW i3
model. BMW offers the richest line-up of premium NEV products both
imported and locally produced, and ranging from BEV to PHEV. We will
extend our product line this year from four to six models. Part of our
strategy for e-mobility is the electrification of our whole fleet. Our
new 7 series is the most innovative car in the luxury class.

This year in China we will launch two additional iPerformance models
– the plug-in hybrid models of the new 7 Series and the X1.

 

Right now, the BMW Group is on the verge of making automated driving happen.

Studies confirm that China will be a major market for highly
automated driving (HAD). Chinese customers have:

  • the highest level of acceptance
  • the most desire to improve convenience, traffic flow and safety

 

Our cooperation with Baidu is the first joint project between a
premium auto brand and a local IT partner on HAD in China. This
collaboration underscores our commitment to the Chinese market, and
embodies our RD strategy, ‘In China, For China’.

 

Ladies and Gentlemen, We have a clear vision: To be the leader in
premium individual mobility – also in the next 100 years. In a moment,
you will see how we imagine the future. Our BMW VISION NEXT 100 offers
a vision of a new era in mobility – sustainable, connected and
automated driving. This is the beginning of an exciting, new era – and
China will be a vital part of it.

 

Xiexie Dajia! Thank you!