BMW Group to expand BMW i product range
New BMW iNEXT to set standards for future technologies
Project i 2.0 will ensure leading role in automated driving
Digital services make mobile life easier for customers
New luxury-class models planned for most profitable segments
Profitability remains key focus – targets set until 2020
Harald Krüger: combining operational excellence and new ways of thinking
Munich.
Following its sixth record-breaking year in succession, the BMW
Group has revealed initial details of its new strategy. With its
Strategy NUMBER ONE NEXT, the world’s
leading provider of premium products and services for individual
mobility is setting out the framework to shape change in the
automobile sector. The BMW Group intends to remain the driving force
behind premium individual mobility. With a clear focus on people and
their environment, the BMW Group aims to deliver solutions that are
both ground-breaking and responsible.
“Throughout its 100-year history, the BMW Group has always
reinvented itself. As a pioneer of new technologies, the company has
shaped change, within both the industry and the world of mobility,”
commented Harald Krüger,
Chairman of the Board of Management of BMW AG, at
the Annual Accounts Press Conference in Munich on Wednesday. “We are
setting the standard with our Strategy NUMBER ONE NEXT, both
now and in the future. We will lead the BMW Group into a new era,
one in which we will transform and shape both individual mobility
and the entire sector in a permanent way.”
The BMW Group sees the changes sweeping across the world of
mobility through digitalisation as an excellent opportunity to make
mobile life simpler, safer and more convenient, thereby inspiring
completely new customer groups. In the coming years, the Group will
focus on broadening its technological expertise,
expanding the scope of digital connectivity between people,
vehicles and services and actively strengthening
sustainable mobility.
The technological focus will therefore be on consistently
achieving further advances in the fields of electric
mobility and automated driving. The BMW Group has proved
its credentials as a pioneer and visionary driver of innovation with
the BMW i brand, of which more than 50,000 vehicles have already
been sold, as well as with the latest version of its connected and
intelligent flagship BMW 7 Series.
BMW iNEXT as symbol of technology leadership
The BMW Group’s strategy will become driving reality, ushering
in the next decade in the form of a revolutionary new BMW i model
that will raise premium individual mobility to previously unknown
levels. Under the banner of BMW iNEXT, the BMW
Group brings new forms of automated driving and digital connectivity
together with a new generation of electric mobility, lightweight
construction and trailblazing interior design that will set new
standards for the customer’s mobility experience.
“BMW iNEXT heralds the next era of mobility,” stated Krüger.
“This symbol of our technology leadership will demonstrate how we
will bring the future of mobility into series production.” It also
underlines BMW i’s role as a driver of innovation and technological
trailblazer for the company. The brand develops trendsetting
technologies and services, subsequently transferring them to the BMW
model range.
The leading role of BMW i in terms of development is already
being reflected in the increased scale of electrification in other
models. The current plug-in hybrids are in their third generation
and are technological market leaders. With the fourth generation,
the electric range will be extended. Development of the fifth
generation, which will bring further progress in all areas is
already underway.
This technology transfer is the basis for the plug-in hybrid BMW
iPerformance models. From 2016 onwards the BMW
Group will have seven models in its range, which will be either
purely electrically powered, like the BMW i3, or feature a
combination of combustion engine and electric motor as plug-in
hybrid solutions. Further models are due to follow in the coming
years, including a plug-in hybrid MINI. In
addition, the award-winning plug-in hybrid sports car BMW i8
will be added to by an open-top BMW i8 roadster.
By the end of 2016, the Group’s electric vehicle portfolio
will be expanded to include a BMW i3 that features increased battery
capacity and additional range.
The BMW Group also continues to develop hydrogen
fuel-cell technology; the current test vehicles achieve a
range up to 700 kilometres. The company believes that a variety of
drivetrain systems will exist alongside each other in the future.
This expectation is fully reflected in the BMW Group’s current
vehicle architecture, which includes all
conventional and alternative drivetrain systems. This guarantees
maximum flexibility at all stages of development and production and,
thanks to benefits of scale, is also highly cost efficient.
Project i 2.0 to ensure a leading role in automated driving
The fact that the BMW Group has already made so much progress in
e-mobility is largely due to project i, through which the BMW Group
established itself as a true pioneer of sustainable mobility.
Project i enabled the company to build up the necessary expertise in
electric mobility early on, whilst at the same time ensuring it
could be realised on an industrial scale. With project i
2.0, the BMW Group is now following an equally ambitious
path with respect to automated and fully networked driving. By
bundling the potential opportunities offered by digitalisation, the
BMW Group will cement its position as technological leader in this
field, too.
A clear focus will be placed on high definition digital maps,
sensor technology, cloud
technology and artificial
intelligence, the decisive areas for success in this
segment. With the investment in HERE the BMW Group has already
secured the availability of high definition maps.
“Our focus is clear: we are securing the BMW Group’s position as
technological market leader,” said Klaus Fröhlich,
member of the Board of Management responsible for
Development. “With project i 2.0 we will lead the field of
autonomous driving. We will turn research projects into new kinds of
industrial processes, bringing future technology onto the road.“
Since October 2015, customers can experience the next levels of
automated driving innovation and a new quality of premium
mobility with the new BMW 7 Series. Equipped with a
stereo camera and five radar sensors, the BMW Group’s flagship model
stays in lane and maintains a safe distance to the vehicle ahead,
even when driving up to 210 km/h on motorways. The
BMW 7 Series is even able to drive itself into the garage at the push
of a button using Remote Control Parking. With gesture control and its
comprehensive connectivity, the BMW flagship is already the benchmark
in terms of user interface and connectivity.
To further extend its lead in the field of automated driving,
the BMW Group will be transferring these technologies to other
models during the coming years. New sensor technology and more
powerful software will allow rapid progress to be made in the field
of automated driving; the BMW iNEXT will set a new benchmark in this area.
Digitalisation makes mobile life easier for customers
New technologies not only make driving more comfortable, they
also forge the link between the mobility of the future and all other
areas of life. Connectivity is the prerequisite for realising this
vision – and it is precisely in this field that
ConnectedDrive has been setting standards for
several years now.
“In the future, all aspects of our products – whether design,
handling or everyday usage – will be modelled more closely than ever
before on the customer’s needs,” stated Fröhlich.
“Our technologies will learn to anticipate the needs of our
customers. By converting data into intelligence, we will be
enhancing the quality of life in a mobile world.”
BMW Connected
already acts as a personalised companion for our customers,
providing a broad array of information to serve their mobility
needs. The system becomes increasingly acquainted with the user’s
favourite routes and driving habits, thus enabling it to provide
warnings of road closures or congestion ahead and suggest
alternative routes.
The BMW Group was also quick to recognise the increasing
importance of other digital services, making products such as
DriveNow, ParkNow and
ChargeNow key factors in the BMW Group’s future
success. The BMW Group will announce the next steps in enhancing
these various services during the current year, consistently and
rapidly expanding its mobility services.
Apart from the services it is developing in its own right, the
BMW Group is also investing in a number of promising start-ups and
service providers via BMW i Ventures. This entity
enables the Group to swiftly identify and respond to
worldwide mobility trends, a crucial advantage in view of
the faster pace of development cycles in the IT sector compared to
the automotive world.
Traditional business will continue to play a significant role
New technologies and digital services will change today’s
business areas. But the long and capital-intensive investment cycles
that exist in the sector, combined with the product’s long life
span, mean these changes will not occur abruptly. The
BMW Group expects a transformation that will steadily gather pace,
but nevertheless stretch over a long period and develop diversely
from one region to the next. This is already fully reflected in the
BMW Group’s current vehicle architectures, which include all
conventional and alternative drivetrain systems.
One example of this is the combustion engine,
which will continue to play a major role for many years to come.
There will therefore be no let-up in the BMW Group’s efforts to
improve the efficiency of established processes and continually
optimise the technologies involved. Under the banner of
Efficient Dynamics NEXT, development work on
existing drivetrain technologies continues unabated, always looking
for ways to improve the efficiency of combustion engines.
“Our key to success going forward is a dual approach: We need to
manage our current business to perfection, while continuing to grow
in a targeted fashion, in order to secure the necessary investments
and headroom we need to achieve success, both tomorrow and beyond,”
explained Krüger. We are working to shape the future of mobility
ourselves by merging operative excellence and new ways of thinking
within one organisation.”
New models for BMW and BMW M
At a product level, the BMW Group continues to emulate its
highly successful mid- and upper-range segment strategy in the
premium class. The BMW 3 Series and the BMW 5 Series, including
their various derivative versions, have long since achieved and
retained segment leadership thanks to technological
innovation, compelling product quality and emotional design.
After leading the premium segment for more than ten consecutive
years, the BMW brand is now poised to strengthen its position on a
sustainable basis at the top end of its product portfolio, where
rates of return are at their highest. “We will be broadening our
model range with the BMW X7,” Krüger said. “We are
also taking an in-depth look at the additional potential of this
highly attractive segment.”
The BMW M brand will also strive to continue its 40-year-long
success story with its range of highly emotional and coveted
vehicles. Since it was founded in 1972, the legendary M GmbH has
been a pioneer in high-performance vehicles, producing vehicles
which offer unparalleled performance, agility precision and the
presence to own the road. While the legendary M1 (1978) remains
unforgotten, the latest addition to the fold, the BMW
M2, is currently impressing both press and public with its
superb driving dynamics and superior performance, broadening the BMW
M product range in a segment that is currently growing strongly. A
Further expansion of the M product range is
already being planned. Furthermore, the BMW Group intends to expand
its range of powerful M Performance models within
the higher volume segments, with a view to capitalising on the
growth and earnings potential of the BMW M brand.
The future of pure luxury motoring is already taking shape as
Rolls-Royce Motor Cars begins testing its new
aluminum space-frame architecture which will underpin all future
Rolls-Royce model lines. This is the first stage of a development that
will see a new generation of Rolls-Royce motor cars become available
from early 2018.
On the basis of its comprehensive strategy, the BMW
Motorcycles segment strives to sustain its profitable and
sustainable growth over the coming years. Its strategic goal is to
deliver 200,000 vehicles to customers in 2020. As part of its new
product strategy, BMW Motorrad will also be venturing into the
motorcycle segments below 500 cc with its new BMW G 310 R.
BMW Group expands profitability targets
The Group’s focus remains very much on profitable growth and the
continuous quest for efficiency. Despite considerable levels of
investment in, and upfront expenditure for, new technologies as well
as greater costs to meet increasingly rigorous regulatory
requirements, the BMW Group continues to target an EBIT
margin of between 8 and 10% in the Automotive segment.
The Financial Services segment continues to target a return on
equity (RoE) in excess of 18%.
“For us, strategy and profitability are inextricably
linked,” said Friedrich Eichiner,
member of the Board of Management responsible for
Finance. “Our financial strength today is the basis for
our success tomorrow.”
To do justice to the increasing importance of segments other
than the Automotive segment and their growing share of revenues, the
BMW Group is introducing additional performance figures from the
year 2017 onwards: At Group level the company will target an
EBT margin
of at least 10%. The Motorcycles segment will adopt
an EBIT margin target range of between 8 and 10%. Both figures will
at first be valid up to and including 2020.
Values are an important factor for corporate success
A strategy is worthless without the right people to implement it.
This is why the BMW Group is convinced that alongside technological
progress, the right framework within the corporate and
leadership culture is essential in order to shape future
change in the world of mobility.
“We need to be able to act swiftly in the digital world and be
prepared to take risks,” commented Krüger. “This is only
possible when we place our trust in the judgement and
decisions of our employees. What at first sight appears to be a
“soft” factor does in fact have a real economic value for
the BMW Group.”
For queries, please contact:
Corporate Communications
Max-Morten Borgmann, Business and Finance
Communications
Telephone: +49 89 382-24118, Fax: +49 89 382-24418
Max-morten.borgmann@bmwgroup.com
Nikolai Glies, Head of Business and Finance Communications
Telephone: +49 89 382-24544, Fax: +49 89 382-24418
Nikolai.Glies@bmwgroup.com
Internet:
www.press.bmwgroup.com
E-mail:
presse@bmw.de
The BMW Group
With its BMW, MINI and Rolls-Royce brands, the BMW Group is the
world’s leading premium manufacturer of cars and motorcycles and
provider of premium financing and mobility services. It operates
internationally with 30 production and assembly plants in 14 countries
and a global sales network represented in more than 140 countries.
During the financial year 2015, the BMW Group sold approximately
2.247 million cars and some 137,000 motorcycles worldwide. Group
profit before tax reached € 9.22 billion on revenues totalling € 92.18
billion € 92.18 billion. At 31 December 2015, the BMW Group had a
workforce of 122,244 employees.
Long-term thinking and responsible action have long been the
foundation of the BMW Group’s success. Ecological and social
sustainability along the entire value-added chain, full responsibility
for our products and an unequivocal commitment to preserving resources
are prime objectives firmly embedded in our corporate strategy.
Facebook:
http://www.facebook.com/BMWGroup
Twitter:
http://twitter.com/BMWGroup
YouTube:
http://www.youtube.com/BMWGroupview
Google+:
http://googleplus.bmwgroup.com