BMW Canada

Statement Harald Krüger, Chairman of a Board of Management of BMW AG, Conference Call Interim Report to 30 Jun 2017

Good morning, Ladies and Gentlemen!


I’d like to start by observant a few difference about yesterday’s forum in
Berlin between Federal and State Government officials and the
automobile industry.


The assembly was an critical step. We support a beginning and are
investing in a Sustainable Urban Mobility fund.


State-of-the art diesels will really play an critical purpose in
destiny mobility, as well. Yesterday, this was clearly acknowledged.
Modern fit diesel engines safeguard reduce CO2 emissions. On
average, BMW Group diesel vehicles evacuate 40% reduction NOX than a German
average, as reported by a Germany Federal Environment group in
Apr 2017. This is also loyal for both a Euro 5 and Euro 6 vehicles.


We are pulling a transition to tolerable mobility as tough and
quick as possible. That’s because we will extend automobile owners opposite the
EU an environmental reward of adult to 2,000 euros, depending on a model.


This relates to owners of diesel vehicles that accommodate Euro 4 standards
or less, when they trade in their automobile and squeeze a new BMW or
MINI. The deputy contingency be possibly a BMW i3, a plug-in hybrid or a
Euro 6-standard automobile with CO2 emissions of adult to 130 grams per
kilometer (in a NEDC).


In addition, we are charity an optimisation of a exhaust-treatment
complement for 225,000 of a Euro 5 models now on a highway in
Germany, during no additional cost to a customer, of course.


As we emphasized again yesterday:

BMW Group vehicles are not fraudulent for contrast purposes. This has been
arguable by a formula of applicable central investigations during the
inhabitant and general level. And a business can continue to
rest on this.


The BMW Group instituted a change to tolerable mobility during an
early stage.

Currently we have some-more than 150,000 electrified vehicles on a road.


But it’s also transparent that tolerable mobility requires team-work –
within a attention and with partners from other areas. The automotive
attention will continue to play a pivotal purpose for growth, creation and
jobs in a country. And we can assure we – a BMW Group will also
continue to expostulate creation in tolerable mobility.


And now, we would like to pierce on to a daily business – and the
vital hurdles and opportunities that sojourn a concentration of our
efforts and innovations, regardless of stream developments.


There are dual topics we would like to residence in some-more detail:


What did we grasp in a initial half of 2017?


  1. Which stairs have we already taken underneath Strategy NUMBER ONE NEXT?


  1. In a initial 6 months, we continued a successful business
    expansion of new years.


Our sales total and Group gain once again reached new all-time highs:


We delivered some-more vehicles than ever before in a six-month period.
Total deliveries of BMW, MINI and Rolls-Royce vehicles exceeded 1.2 million.

This underlines a clever interest of a brands and a models. The
BMW code alone delivered some-more than one million vehicles. The main
expansion drivers were a BMW 7 Series and a BMW X models. We expect
a new BMW 5 Series, including a Touring and plug-in hybrid
variants, as good as a prolonged wheelbase chronicle in China, to provide
serve momentum. In autumn, these will be followed by a third
era of a really renouned BMW X3 – that will also be available
for a initial time as an M Performance model.


MINI sales also reached a new half-year high. The new Countryman has
been good perceived by a markets.


Rolls-Royce sales were reduce than final year. In a ultra-luxury
segment, domestic and mercantile uncertainties in a series of regions
have dampened consumer spending. We presented a new Phantom, “the
Pinnacle of Luxury” to a universe usually a few days ago in London.
Reactions have been really positive.


BMW Motorrad stays on lane for growth, with record deliveries. As
formerly announced, BMW Motorrad aims to broach some-more than 200,000
BMW motorcycles and scooters by 2020. This year alone, BMW Motorrad
fans will be means to select between 14 new and revised models –
including a new R NineT Pure and Racer models.


Group pre-tax gain climbed to a new all-time high of some-more than 6
billion euros – due to certain business expansion as good as
gratefulness effects from a initial quarter.


For a 29th uninterrupted quarter, a EBIT domain in a Automotive
Segment stays within a aim operation of 8 to 10 per cent.


The tellurian automotive marketplace reported usually slight expansion in a first
half of a year. Individual markets are building unevenly. In this
case, we advantage from a offset placement of sales across
Europe, Asia and a Americas.


We have determined a clever sales network and prolongation bottom in all
these regions. We are a arguable internal partner and know our
customers’ needs.


Our sales total for a initial half-year constructed a following
picture: In Europe, sales were somewhat higher. China posted
double-digit growth. In a US, a sales decreased somewhat in a
disappearing altogether market.


As a tellurian company, a BMW Group is confronted with many risks on
a general automobile markets. Examples embody a impact of Brexit
and a domestic conditions in a Middle East.


Nevertheless, we have set ourselves desirous goals for a financial
year 2017: We are targeting a slight boost in deliveries and Group
gain before tax, both of that should strech new all-time highs. At
a finish of a initial 6 months, we are good on a approach to achieving
a goals for a year. The BMW Group intends to sojourn a personality in
a reward shred and grow profitably. For us, however, it is more
critical to be in a aim mezzanine than to grow strongly in
volume. We are creation serve vital decisions to strengthen our
innovative capabilities and a core business.


That brings me to a second topic: Which stairs have we taken under


I have always emphasised that electro-mobility is now a clear
priority. The mood is apropos increasingly positive.


In a initial half of a year, we sole some-more than 42,500 electrified
cars. That is around 80 per cent some-more than in a same duration last
year. This includes models from a BMW i family, a BMW iPerformance
vehicles and a new MINI Countryman Plug-In Hybrid, accessible given June.


We are a marketplace personality in plug-in variety in a reward segment.
The sales bend for a pristine electric BMW i3 shows a transparent upward
trend. Sales increasing by some-more than 50 per cent year-on-year. There
are copiousness of announcements being done in a attention during a moment.
We are formulating facts. We have some-more electrified vehicles on a roads
than any of a determined competitors. Our business can currently
select from 9 electrified models. Thanks to a growing
appropriateness and a extended operation of electrified expostulate trains, we am
really assured that: We will broach 100,000 electrified vehicles this
year. We are expanding a charity to all brands and segments. In
this way, we are already embarking on a second call of
electrification. Many business have already indifferent a BMW i8
Roadster, that launches subsequent year. we am certain a all-electric BMW X3
will also be a strike with many business from 2020.


Production of a initial fully-electric MINI will get underway in 2019
during a British plant in Oxford, where many of a MINI 3-Door cars are
built. MINI business will afterwards be means to select between 3 drive
sight variants: explosion engine, plug-in hybrid in a Countryman
and electric expostulate sight in a MINI Hatch.


In Germany, Lower Bavaria is home to a Dingolfing and Landshut
plants – it is a centre of cunning for electro-mobility.
Dingolfing will also build a new record flagship, a BMW iNEXT.
At a IAA in Frankfurt, we will benefaction a really sparkling surprise.


We are strengthening Germany’s standing as a prolongation plcae for
e-mobility. We aim to yield a business worldwide with emotional
and extensive tolerable mobility solutions – and we are enabling
a locations to grasp this: We now furnish electrified models
during 10 general locations. Going forward, scarcely all of our
plants will be means to build vehicles with explosion engines, plug-in
variety and all-electric models on a singular prolongation line. This
creates us intensely stretchable in how we respond to demand.


Autonomous pulling is a second vital area of activity – and we are
creation fast swell in this area, as well. We have been operative with
Intel and Mobileye for a past year. We have also been means to
partisan new and eminent partners for a platform, like Delphi and
Continental. This year, a initial engineers from a BMW Group, Intel
and Mobileye will pierce into a expansion campus outward of Munich.


We wish to offer all a business a right options for their own
particular mobility needs. This year and next, we will launch around
40 new and revised models. This will be a biggest indication descent in
a history. The BMW 8 Series Concept Vehicle provides a glance of
a nearby future. This rarely romantic automobile underlines a explain to
care in a oppulance segment.


Ladies and Gentlemen,

modern societies need mobility. The automobile is, for many people, an
essential component of their bland lives. It creates a lives easier
and some-more flexible. Digitalisation opens adult new possibilities to take
particular mobility to a new dimension: electric, connected and
autonomous. We are pulling forward with all of these topics as partial of
Strategy NUMBER ONE NEXT. We are mixing operational excellence
in a core business with profitability and uninformed thinking. This is
a roadmap for a destiny success. Thank you!