Statement by Harald Krüger, Chairman of a Board of Management of BMW AG, Conference Call Interim Report to 31 Mar 2017

Good morning, ladies and gentlemen!

 

The BMW Group always takes a long-term approach. The business
sourroundings stays flighty and noted by uncertainty. We continue to
draft a possess course. To this end, we make vital decisions and
enter into partnerships. This is how we will continue to secure the
destiny competitiveness of a BMW Group. As we pronounced during a Annual
Accounts Press Conference: We are going on a offensive. This means:

 

  1. We have set ourselves desirous goals for a stream financial
    year. After a initial quarter, we are on a right track. Our
    superintendence for a full year 2017 stays stable.
  2. We enthuse a customers. We are rising a biggest model
    descent in a company’s history. This year alone, we will launch
    some-more than 20 new and revised automobile models; with another 20 to follow
    subsequent year. There will also be 14 new BMW Motorrad models this year.
    Our business will be means to select between a far-reaching operation of
    opposite expostulate trains.
  3. We are sourroundings a march for a future. That is what a Strategy
    NUMBER ONE NEXT is all about. We are leveraging the
    possibilities of digitalisation to take mobility to a new dimension
    for a customers. This relates to both a vehicles and services.
    Our prolongation and inner processes are also apropos more
    digital. This will also significantly boost a speed of our
    actions. Our idea is clear: to be a record and innovation
    personality in mobility.

 

I would like to contend a few difference about all 3 of these areas. Let’s
start with a initial topic. You know a targets for a financial
year 2017:

 

  • A new all-time high for deliveries during Group turn – and a new
    record for Group distinction before tax.
  • We design a EBIT domain in a Automotive Segment to remain
    within a operation of 8 to 10 per cent.
  • And we have also set ourselves a idea of offered 100,000
    electrified vehicles.

 

After a initial quarter, we are good on track.

 

  • Group sales posted a record initial quarter.
  • Our BMW, MINI and BMW Motorrad brands also reported their
    best-ever initial quarter.
  • The BMW code delivered some-more than half a million vehicles in a
    singular entertain for a initial time.
  • The EBIT domain for a Automotive Segment reached 9.0 per cent.
  • Our pre-tax gain increasing significantly – to some-more than three
    billion euros. As formerly reported, this is especially due to
    gratefulness effects in a financial result. We are formulation high
    upfront investments for a full year. This will embody investment
    in a indication offensive, a locations worldwide and in future
    technologies, such as foundation and unconstrained driving. All
    these factors will impact a gain movement this year.
  • Electrification of a portfolio is a transparent priority. We know from
    knowledge that business cite to have some-more choices. In a first
    quarter, we delivered twice as many BMW plug-in hybrids, BMW i3s and
    i8s than in a same duration final year. Almost 20,000 business opted
    for an choice expostulate train. This means that electrified vehicles
    already comment for some-more than 3 per cent of sum BMW Group
    sales. When a new MINI Countryman Plug-in Hybrid arrives in
    summer, we will have a sum of 9 electrified models in showrooms.
  • Our electric BMW i3 was designed for civic mobility from the
    belligerent up. Unlike series-produced models with a explosion engine,
    a sales bend for a i3 is stability a ceiling course. In the
    initial entertain alone, sales sum were adult 50% over a same period
    of final year. Of course, a extended operation also contributed to this.

 

As we have said, electro-mobility is a marathon. New models will
yield us with serve momentum.

 

  • In 2018, a BMW i8 Roadster.
  • In 2019, a pristine electric MINI.
  • In 2020, a pristine electric BMW X3.

 

Our efforts will continue to need endless investment.

 

Let’s pierce on to a second aspect: We enthuse customers.

 

The new BMW 5 Series sets a benchmark in connected services. It
also offers a far-reaching operation of expostulate trains and extras. Customers like
that. The 5 Series Sedan is in good demand. In a initial months since
marketplace launch, we have sole some-more than twice as many cars than we did
of a successful prototype in a same timeframe. We are also very
gratified about a clever incoming orders for a plug-in hybrid model
and a M Performance variant, that have been on sale given March. In
June, a inheritor to a renouned prolonged wheelbase chronicle in China
will turn available, as good as a Touring. All these new models
will beget serve procedure for growth. Sales of a flagship BMW 7
Series were 50% aloft than in a initial entertain of final year. As you
know, we wish to boost a sales in a tip reward segment
significantly by 2020. To grasp this, we are selectively expanding
a operation in a oppulance class.

  • Towards a finish of a year, Rolls-Royce will launch a eighth
    era of a mythological Phantom. It will come with a new
    aluminium architecture.
  • For 2018, we have announced a BMW X7 – a indication with a very
    clever romantic appeal.
  • Other new models will also strengthen a position in the
    high-margin oppulance segment.

 

In further to a new tip model, a X7, a successful BMW X family
will also acquire appealing new additions in other segments:

  • the new BMW X3 after this year, and
  • a new BMW X2 subsequent year.

 

Also, a whole BMW 4 Series operation has been revised. All 4 Series
models, including a M4 Coupé and M4 Convertible, are even more
sporty, connected and upscale. At MINI, a new Countryman has had a
good start, usually like a John Cooper Works model. The Plug-in Hybrid
will be accessible in June.

 

On to a third topic: We are sourroundings a march for a future.

 

One of a BMW Group’s strengths is a high turn of coherence in
all areas.

 

  • Our equivalent placement of sales and a participation in a main
    marketplace regions of a universe assistance us equivalent informal fluctuations.
  • For production, we can rest on a highly-efficient tellurian network
    of 31 locations in 14 countries. This allows us to adjust a model
    brew fast in response to changes in demand.
  • When it comes to expostulate technologies, we cite a extended and
    stretchable approach. It is still too early for accurate predictions
    about that expostulate sight will overcome in that marketplace, and when.
    That’s because it’s even some-more critical for us to stay discerning and ready
    to react.

Strategy NUMBER ONE NEXT will take Efficient Dynamics to the
subsequent level: Efficient Dynamics 2.0.

 

  • We will continue to make a explosion engines even some-more efficient.
  • An critical cause stays a aerodynamic optimisation of all
    a models.
  • By 2025, all a vehicles with explosion engines will be fitted
    with electric ELV recuperation systems. This will move a further
    CO2 rebate of around 5 to 7 per cent.
  • We are operative on fuel cells for longer distances with our
    partner, Toyota.

 

The complicated diesel expostulate sight is also a member of Efficient
Dynamics 2.0. There is many being pronounced about diesel. However, we
cite a some-more fact-based and receptive discussion. we would now like to
contend something formed on a facts. One thing is certain: Diesel plays a
pivotal purpose in Europe’s desirous meridian policy. Clean diesel vehicles
of a Euro 6 era use during slightest 25 per cent reduction fuel than
allied petrol models. Therefore they evacuate during slightest 15 per cent
reduction CO2. It will not be probable to accommodate a EU’s despotic CO2 targets
for 2020 but diesel. We will continue to need purify diesel drive
trains in a future. That’s because we supply a new models with a most
complicated technologies for empty gas treatment. As a array of Euro 6
vehicles in a marketplace grows, diesels will comment for reduction and less
of altogether particulate matter and NOx emissions. Particulate matter is
anyway usually an emanate for diesel cars over 10 years aged but a
molecule filter. Particulate emissions from engines usually comment for a
really tiny commission of a sum volume. However, in public
discussions, “air peculiarity alert” and “banning diesels vehicles” are
mostly mentioned in a same breath. Without a facts, a debate
about diesel creates uncertainty. Especially for a owners of older
diesel models. Additionally, automobile owners could be encouraged by the
right incentives to switch to new technologies – like electro-mobility
– or to newer and some-more fit explosion engines.

 

Big cities advantage many from an intelligent brew of solutions, for
example: softened trade flow, support for e-mobility and charging
infrastructure, graduation of car-sharing with modern, low-emission
vehicles, reduction overload and easier parking by digitalisation,
as good as environmentally-friendly buses and taxis.

 

As a tellurian company, we need formulation trustworthiness for a investment
decisions. The same relates to business and their purchasing
decisions. But: How is anyone ostensible to make a preference when every
nation has opposite regulations – and each large city has a own
judgment for low-emission zones? Planning trustworthiness comes from joint
solutions. Individual mobility – and diesel – need a coherent
horizon – both during a inhabitant turn here in Germany and opposite the
European Union.

 

With a strategy, we have a transparent roadmap for a future. Let me
give we dual stream examples:

 

  1. Autonomous driving:

We are operative intensively with Intel and Mobileye on a development
of unconstrained vehicles. We are creation good progress.

  1. Electro-mobility: We are strengthening this critical future
    record during a home bottom in Germany. We have a top turn of
    in-house growth in electric engines, energy wiring and
    battery, of any of a competitors.

 

We are now electrifying all a brands and indication series. We are
formulating stretchable car architectures for both required and
electrified expostulate trains. This enables us to accommodate a varying needs
and direct in a markets. Already today, 9 locations worldwide
furnish 9 electrified models, 8 of that are plug-in hybrids.
From 2021, a iNEXT will be a new creation spearhead. We have
motionless to build a iNEXT during a Dingolfing plant.

Together with a Landshut plant, we are expanding Dingolfing as our
second cunning centre for e-mobility, alongside a Leipzig plant.
Dingolfing has many knowledge in lightweight construction, highly
formidable indication array and connected vehicles. The iNEXT – a incomparable BMW
i car – fits into this spectrum.

 

Ladies and gentlemen,

 

All of this shows: We are implementing a strategy, step by step. We
expect trends in a business sourroundings and conflict dynamically
and flexibly to astonishing changes. Our clever financial foundation
and a operational strength capacitate us to continue to figure a possess future.

 

Thank you!