BMW Canada

Statement Harald Krüger, Chairman of a Board of Management of BMW AG, Conference Call Quarterly Report to 30 Sep 2018

Ladies and Gentlemen!


The BMW Group has dual organisation principles: We take a long-term approach,
and we draft a possess course. That is what has done us strong. Securing
a company’s destiny is a tip priority in all that we do. This is
generally loyal in flighty and severe times like these our
attention is now experiencing.

Thanks to a financial strength, we are means to deposit in new
technologies and services. This year alone, we will be channelling
another one billion euros into upfront investments in destiny mobility.
At a same time, we are gearing a whole association to be
future-oriented, fit and stretchable – in terms of a structures,
processes and know-how.


In new weeks and months, a business sourroundings has turn a lot
some-more difficult. But steering by headwinds, while progressing our
course, is partial of a BMW Group’s success story. The current
conditions is positively unique: We are saying an accumulation of
hurdles – on a geopolitical, trade and foe fronts. And
all of them change from one shred to another. Let me give we a few examples:


  • The designed CO2 targets for a EU from 2030.
  • The trade brawl between a US and China is straining a entire
    tellurian economy.
  • The probability of a “no-deal” Brexit stays – with all its
    implications for companies such as ours.
  • We are also carrying to make aloft supplies for goodwill and
    guaranty activities.
  • The BMW Group has successfully finished a changeover to a new
    WLTP exam procedure. But, in a European markets, we are now facing
    supply distortions and high vigour on prices.


All of these hurdles are inspiring a business in together and at
a really heated level. As a outcome of these factors, we had to adjust
a superintendence for 2018. But a targets sojourn ambitious. Our Strategy
NUMBER ONE NEXT sets transparent priorities for a entrance years. We
sojourn focused on a following pivotal areas:


  • Systematic foundation of all brands and indication series.
  • Development of unconstrained driving.
  • Expansion of mobility services by a designed corner venture
    with a Daimler Group.
  • Strategic expansion of a tellurian prolongation network.


Today, a BMW Group is a many some-more tellurian association than it was even
10 years ago. Our business in a 3 categorical mercantile regions have
opposite wants and needs. We are therefore stepping adult a commitment
in Europe, Asia and a Americas.


In Europe, we are
charity solutions for tolerable mobility in cities.


In Germany, we are ancillary a sovereign supervision and
municipalities in their efforts to urge civic atmosphere peculiarity with
effective measures. Three petrify examples:


  1. We have paid into a sovereign Environmental Fund, “Sustainable
    Mobility for Cities”. However, a income is still not being used
    sufficient in all cities. Here, a doubt contingency be asked:

    Can cities also afterwards anathema their diesel drivers, if they themselves
    are not burdensome their possess proceed possibilities – from power
    plants to city buses – to urge atmosphere quality?

  2. We fast grown a intentional program refurbish for a customers
    to urge comparison diesel models, usually as we concluded to in Aug 2017
    with a German sovereign government.
  3. With a new BMW environmental bonus+ we have a special offer:
    Customers in designated cities now influenced by specific
    supervision measures will accept 10,000 euros if they trade in their
    comparison diesel for a BMW i3, for example. And business who trade in
    their BMW or MINI Diesel Euro 4 or 5 will also accept a credit of
    6,000 euros. These offers are being good perceived by customers.


Ladies and Gentlemen,


These discussions per diesel vehicles focused on hardware
updates are usually holding place in Germany. Other countries are instead
focusing on a systematic renovation of automobile fleets or are promoting
e-mobility. We as a BMW Group are also pushing forward with a rapid
renovation of a fleet. These measures are significantly some-more efficient
and effective some-more fast than a hardware modification. Our diesel
vehicles perform really well. They achieved some of a lowest real
emissions within a swift normal of eccentric manufacturer
comparisons. In addition, there are good reasons why, for us, hardware
upgrades for Euro 5 diesels are not in any proceed a right approach. The
patron would have – notwithstanding clever automobile expansion – increased
peculiarity risk and reduction fit vehicles. Moreover, hardware upgrades
are not possibly before 2021.


Furthermore, a technical swell of diesel record cannot
simply be retroactively implemented in vehicles that were developed
about 10 years ago.


These vehicles were authorized in suitability with regulations and met
a technological standards during a time.


Our position stays unchanged: We are focussed on effective and
fit measures – and we are investing in a technologies of the
future. In Germany and Europe, we are forging forward with e-mobility
and prolongation of battery cells. And here we can give we 3 examples:


  1. We will be building a all-electric BMW i4 and a iNEXT in
    Munich and Dingolfing, respectively, from 2021. On a World Flight
    of a Vision Vehicle, we demonstrated that a iNEXT is many more
    than usually a car.


  1. We have sealed a agreement value some-more than 4 billion euros with
    CATL for smoothness of battery cells. A new plant will be built in Thüringen.


  1. We have presented a offer for a record consortium with
    Northvolt and Umicore to a European Commission. We wish to produce
    battery cells in Europe and settle a whole value sequence for
    dungeon manufacturing.


Now to a second region: Asia.


The BMW Group is widely reputable in China. We are now holding our
internal footprint to a subsequent level: We will be a initial foreign
carmaker authorised to enhance a share in a Chinese corner venture. And
we devise to boost a interest in a try with Brilliance to 75
percent. BBA will be investing some-more than 3 billion euros in its
plants in Shenyang over a subsequent few years. In 2020, we will start
building a initial fully-electric BMW in China. This iX3 will be
exported from there. It will be a initial indication to come with a
fifth-generation electric expostulate sight – one that does not use singular earths.


And, finally, a third region: a Americas.


The United States is a second home. The BMW Group is not usually the
largest net exporter of vehicles from a US. We also emanate a total
of roughly 70,000 proceed and surreptitious jobs in a US. In new years,
we have invested scarcely 9 billion euros in a largest plant,
located in South Carolina. Another 600 million will follow, adult to
2021. At a finish of this year, a totally new automobile concept, the
BMW X7, will start rolling off a prolongation line in Spartanburg.
Many business in North America, China, Russia and a Middle East are
energetically accessible this, a biggest X model. The X7 is another building
retard in a descent in a fast-growing oppulance segment. It has
perceived really certain reviews in a media – generally for its
design. The X7 will have a universe premiere in LA in 3 weeks’ time.


Ladies and Gentlemen,


No matter what shred a BMW Group is active in – wherever we go, we
are a certain force for expansion and prosperity. This will also be the
box from Jun 2019 in Mexico and, after also in Hungary. Thanks to
a rarely stretchable prolongation network, we are means to change out
many marketplace fluctuations and etiquette barriers. We ceaselessly target
long-term expansion with a appealing and technologically different portfolio.


Because: Our products are some-more fascinating than ever. From Jan to
Sep of this year, we sole some-more vehicles than ever before in this
nine-month period. This relates to both a BMW Group and a BMW
brand. The BMW Group is shred leader. Rolls-Royce also posted
poignant gains. BMW Motorrad stays on a standard with a previous
year; MINI somewhat below.


On a foundation side, we are right on lane to sell some-more than
140,000 vehicles this year. There are now over 313,000 electrified BMW
Group vehicles on a roads.


The BMW 3 Series is a many successful model, with some-more than 15
million sold. The new era sets new standards for connectivity –
generally with a operation of digital services and motorist assistance
options. This offers a business a new turn of perfect driving
pleasure. Production is now ramping adult during a Munich Plant. Next
year, a 3 Series will also be rolling off a prolongation line during our
new plant in Mexico and in China.


Our indication descent continues during full speed.


The roughly totally renewed BMW X family will also play a
poignant partial in this. The new X3 is a strike with business – with
sales adult some-more than 60 percent in a third quarter. The X4 has been
accessible given July. The new X5 will be expelled this month. Next
year, these will be assimilated by M models of a X3 and X4, as good as X3
and X5 plug-in hybrids. All these models will strengthen a leading
position in plug-in hybrids.


The initial 8 Series Coupés are being delivered to business right now.
Last week, we expelled a initial cinema of a 8 Series Convertible.
We will be rising this indication in open of subsequent year. In 2019, a 8
Series Gran Coupé and a analogous M models will finish a new
8 Series operation in a oppulance segment.


As we can see: We will continue to beget clever product momentum
over a subsequent few years.


Ladies and Gentlemen,


The tellurian sourroundings is expected to stay flighty for a foreseeable
destiny – and a turn of complexity will sojourn usually as challenging.
The expansion foresee for both a tellurian economy and a Eurozone has
been lowered for 2018.


The BMW Group has some-more than 100 years of knowledge traffic with
change. We do not bashful divided from any challenge. We work towards
solutions and pave new roads to success. We are investing in our
business in this instruction and winning new business for a four
reward brands.


We are on lane to accommodate a practiced targets for a stream year.


I would like to clearly emphasize: We sojourn a profitable, arguable company.


And we will continue to lead a association into a future.


Thank you!