Statement Harald Krüger, Chairman of a Board of Management of BMW AG, 97th Annual General Meeting of BMW AG during Olympiahalle in Munich on 11th May 2017


Passionate about a future



Good morning Ladies and Gentlemen!


Welcome to a 97th Annual General Meeting of BMW AG!

I would also like to acquire everybody fasten us around a internet.

Digitalisation is changing a lives. Evolution has taught us that
change is partial of tellurian nature. Things we formerly suspicion were
unfit are now astonishing partial of a bland lives. Young people
currently grow adult holding record for granted. We see this in a own
children or grandchildren. More than anything else, a one attribute
companies need for long-term success in a digital age is future
viability. This has many facets. What it means for us is:


  • Exceeding a expectations of a customers
  • Profitability and innovative strength.
  • Market participation and clever brands.
  • Flexibility and quality.
  • And, of course, being an appealing employer.


That is a BMW way. “The BMW Group is not resting on a laurels. It
is actively moulding a future.” This was a effort of many media
during a centenary year. We know who we are: A association with a clever heritage.

And we know what we surpass during now and in a future:

Premium. This will sojourn a business model. At a same time, we
are pioneering new technologies. We are transforming from a mobility
provider to a record association for mobility and services in the
reward segment.


Strategy NUMBER ONE NEXT is a roadmap. It combines
profitability, operational value and uninformed thinking, fusing
together dual business models: On a one side, a successful core
business, an area where we contingency continue to excel. It is the
substructure and a hint for all new we undertake. On the
other side, new business segments with a start-up mentality. This
means quick action, new capabilities and team-work with partners. We
are mixing these dual approaches to emanate something even better.


You, a shareholders, also play a partial in this. You take a long-term
view, usually like we do. You are together with us as we embark on the
mutation of mobility. we can assure we that a 125,000
employees positively conclude your support. Dear Shareholders,
clearly, we contingency advantage from your investment.

For a centenary year 2016, a Board of Management and the
Supervisory Board are proposing a division of 3.50 euros per share of
common batch and 3.52 euros per share of elite stock. This is the
tip division a association has ever paid out. It means a third of
a net distinction for a year will be distributed to you, our
shareholders – adding adult to a sum of 2.3 billion euros.


Our employees should also advantage when we do well, that is given we
have distinction pity in Germany. This has a clever tradition during our
association and is a motivating factor. Many of a employees are watching
today, so this is a good eventuality to demonstrate a interjection to them.
Personally, and on interest of a whole Board of Management, we would
like to appreciate all a employees worldwide for your tremendous
accomplishments in a centenary year. Of course, also a really big
thank-you to all of a business around a globe. Naturally, this
also relates to a business partners, suppliers and sell organisation.


Ladies and Gentlemen,


The destiny is built not by machines and algorithms, though by humans
like us.

Last year, we showed we a print of a BMW Vision Vehicle. Today, it
is station right here in front of you. As we gifted privately in
Munich, Beijing and Los Angeles, people all over a universe are
preoccupied by a Vision Vehicles.

Sheer pushing pleasure will be remade into a totally new
mobility experience. And, by a way, pattern stays a most
critical reason for shopping a car. The groundbreaking, emotional
pattern of a Vision Vehicles sets a tinge for a destiny array models.


Dear Shareholders and Shareholder Representatives,

Dear Employees,


These are a categorical topics of today:


  1. Success is a foundation: a examination of 2016 and a opinion for 2017.
  2. Making decisions for tomorrow’s success: That is Strategy NUMBER


We exceeded a targets for a centenary year 2016:


  • We achieved new all-time highs for sales, Group revenues and
    advantage before tax.
  • The EBIT domain in a Automotive Segment has remained within our
    aim operation of 8 to 10 per cent for a past 7 years.
  • Our Financial Services Segment and BMW Motorrad finished a strong
    grant to a certain altogether result.


Your association stays a heading automobile association in terms of sales, in
a tellurian reward segment. You know that a BMW Group is an
desirous association – and that relates now some-more than ever. Competition
spurs us on. But destiny viability is about some-more than usually good sales
sum and meditative in “quarterly” terms. We are investing in the
future, given we trust that innovative strength is a pivotal to
long-term profitability. We invested 3.7 billion euros in products and
apparatus in 2016. Research and expansion spending totalled more
than 5 billion euros.


The pivotal financials for 2016 have increased a certainty – an optimism
common by a collateral markets. The BMW Group has an glorious credit
rating, that is a tip of any automotive manufacturer in Europe
and a second-highest worldwide. We, and you, dear shareholders, can
be unapproachable of this.


BMW shares have achieved good over a prolonged term. Since Strategy
Number ONE was introduced in 2007, a value has some-more than doubled. In
2016, however, it followed a downward trend of a automotive index.


In 2017, we will once again uncover suggestion and determination.


  • We are targeting new all-time highs for deliveries, revenues and
    distinction before tax.
  • The EBIT domain in a Automotive Segment should sojourn within the
    operation of 8 to 10 per cent.


This is naturally presumption that conditions sojourn stable.


We are vital in a flighty world, with domestic doubt and
astonishing events.

Nevertheless, a prospects for 2017 demeanour good. Global economic
expansion is projected to rise. The worldwide automobile marketplace is approaching to
grow. The reward shred should grow as well, to strech some-more than 8.6
million vehicles.

In a universe full of uncertainty, a many stretchable companies are the
ones that will stay on top. At a BMW Group, we draft a possess course,
origination decisions for tomorrow’s success.


That is given Strategy NUMBER ONE NEXT will be my second subject today.


We have a transparent list of priorities.


  1. Electrification.
  2. Autonomous driving.
  3. Both of these technological advances will be accompanied by a full
    operation of services.


When it comes to e-mobility, we see dual trends: Demand will increase
significantly, and this expansion will mostly be driven by legislation.

Sustainable mobility is a marathon. We are origination good progress.


  • Among reward brands, BMW is a transparent array one for plug-in hybrids
  • Our BMW i3 is one of a top-three best-selling electric vehicles worldwide.
  • In 2017, we aim to sell 100,000 electrified vehicles. In a first
    quarter, we already sole roughly 20,000.
  • By 2025, electrified expostulate trains are expected to comment for 15 to
    25 per cent of a sum sales.


We are adding speed to a marathon, as we ensue with electrifying
all a brands and product lines:


  • In 2017, a MINI Countryman plug-in hybrid.
  • In 2018, a BMW i8 Roadster.
  • In 2019, a pristine electric MINI.
  • In 2020, a entirely electric BMW X3.
  • In 2021, a BMW iNEXT.


All of these decisions are a outcome of a strategy.


Sustainable mobility thrives wherever there is an effective
multiple of 3 factors: customer, legislation and
industrialisation. Anyone who has driven an electric automobile – and we do
this really mostly – knows that e-mobility is also perfect pushing pleasure
in a purest form. That is given 95 per cent of electric automobile owners
select an electric automobile as their subsequent car. Our car-sharing service
DriveNow is violation new ground: DriveNow business in Europe have
already finished 1.4 million trips on electric energy alone with a i3.
That is a sum of 250 all-electric trips around a world. And all of
these people knowledge e-mobility simply as partial of their bland lives.


If some-more electro-mobility is desired, some-more contingency be finished for it. There
needs to be a singular inner marketplace for e-mobility in a European
Union! And there need to be appealing incentives for customers! We
are saying what happens when incentives are rejected too soon, as in
a Netherlands. Up until recently, it was one of a heading markets
for electrified vehicles. Since a start of 2017, plug-in variety are
no longer subsidised, and suddenly, direct decreased by half.


Nevertheless, electro-mobility continues to advantage ground.

We are bettering a whole prolongation network to choice expostulate trains:


  1. We are strengthening a destiny record of e-mobility here in
    Germany. One could even call us a “Bavarian Electric Motor Works”.
    We will build a iNEXT, a new origination spearhead, during a plant
    in Dingolfing.
  2. From 2020, we wish to be means to build electric, plug-in hybrid
    and combustion-engine variants of any indication array on a same
    line. This will make us intensely flexible.
  3. We are also operative with Toyota on fuel cells and will be
    rising an initial small-series indication in 2021.


Ladies and Gentlemen,


You know that we like to speak about issues plainly during a BMW Group –
even formidable topics – and that a arguments are formed on facts. The
same relates to a stream discuss about diesel. Dear Shareholders, I
can reaffirm that your association complies with a laws in every
country. We accommodate all contrast requirements. You can rest on that. For
us, reward also means charity a business diesel vehicles with
state-of-the-art empty gas treatment.


Diesel is entrance underneath a lot of criticism. The problem is, if we ban
diesel, we finish adult with some-more CO2. So, let’s hang to a facts: Diesel
has finished a vital grant to reduce CO2 emissions in Europe. Our
complicated diesels accommodate a Euro 6 standard. They devour during slightest 20 per
cent reduction fuel than a allied petrol model. And, they evacuate during least
15 per cent reduction CO2. Without complicated diesel technology, a EU targets
for 2020 are meaningless. There is no doubt – we need to reduce
particulate matter and nitrogen oxides in a cities. We need
comprehensive, cross-border solutions. But we would also like to say:
Let’s not retaliate a hundreds of thousands of people with older
diesels with unconditional pushing restrictions. Many of these people
count on their automobile on a day-today basement – commuters, relatives and
many others. Companies need domestic and legislative trustworthiness for
their planning. But consumers righteously wish confidence for their
purchasing decisions, too. So, let’s stop origination people capricious and
stop condemning complicated diesel!


The second large subject in a courtesy is unconstrained driving. Also
here, we are holding action, and we will see offer stairs this year:


  1. We will start contrast rarely unconstrained pushing in city centres.
    So don’t be astounded if we see a BMW pushing alongside we and the
    motorist doesn’t have their hands on a wheel!
  2. We will be concentrating all a imagination in this margin during our
    new Research and Development Centre for Autonomous Driving nearby Munich.


Silicon Valley isn’t a usually place where fast swell is being
finished in technology.

We have copiousness of intelligent people right here in Germany. The BMW Group
already hires some-more IT specialists than automatic engineers. We have a
transparent vision: We wish to be record personality and be during a forefront
of unconstrained driving.


Ladies and Gentlemen,


We have combined a critical prerequisites for unconstrained driving
with a merger of mapping use HERE, together with other
German reward manufacturers in 2015, and a team-work with Intel
and sensors dilettante Mobileye given 2016. Automated pushing frees up
profitable time, so in a future, we can relax or use a time to get
other things done.


This is a new universe of a digital vehicle. It integrates itself
into your lifestyle. It is operated intuitively. It gets to know we –
and learns from you.

At a BMW Group, we mount by a principles: We pledge the
confidence of a customers’ information and strengthen their privacy. That is our
bargain of premium.

IT providers have now also “discovered” automobiles – which
underlines that mobility is a business shred with a splendid future.


Of course, this also relates to services. Our NOW Family addresses
a categorical issues of civic mobility: parking, charging, atmosphere quality.


  • DriveNow has some-more than 860,000 business in Europe.
  • ReachNow is also accessible as an on-demand mobility use in the
    US and in China.
  • ChargeNow provides some-more than 65,000 charging points in 29 countries.
  • ParkNow finds a parking space for you.


Digital technologies and services are merging on a tellurian level. Our
prolongation network is global, though a roots will always be in Germany.
They are a substructure – generally when we are in a midst of
change. We deposit an normal of some-more than one billion euros per year
in a German locations.

We are committed to a home.


But, these days, home is also China, a US and Europe. Most of our
business live here in Europe. For us, it was always clear: We are
committed to a European community, and to a European single
market. This is what we trust in. We advantage from Europe and the
euro and, for that reason, we are committed to value origination in
Europe. We unequivocally wish those concerned in a Brexit negotiations
will adopt a useful approach. That means: No new barriers to trade,
and giveaway entrance for learned workers. Here, we are formulation for
opposite scenarios. As we know, we also furnish a MINI models at
VDL Nedcar in a Netherlands. We will stay flexible.


We have also been during home in China for many years. In 2016, we opened
a new engine plant – a fourth worldwide. Our Tiexi and Dadong
automotive plants furnish 5 models for Chinese customers. Every
time we revisit China, I realise it is not usually a pushing force for
electro-mobility, though also a nation with an unquenchable lust for
innovation. That fits really good with a truth during BMW.


We have been unapproachable to call a USA a “second home” for 25 years
now. Spartanburg is a largest plant in a tellurian prolongation network
and another heart of value creation: We occupy around 70,000 people
directly and indirectly in a US. Our trade volume totalled nearly
11 billion dollars in 2016. BMW is a United States’ leading
automotive exporter. This was reliable by a US Department of
Commerce. The German Chancellor has addressed a critical future
subject of vocational preparation with a new US administration.

Dialogue is always a good place to start.


The universe of work is changing – during each one of a 31 locations in
14 countries.

Assembly lines and wiring are now being supplemented by
synthetic intelligence, with innovative forms of automation opening
adult new possibilities for production. Today, people and machines work
side by side in harmony.

Our employees are upheld by assistance systems, wherever it is
profitable to do so. Lightweight robots are already used during all our
locations for lifting complicated tools – origination work easier for our
employees and improving a fortitude of a processes. Our guiding
element is that record should offer humans – not a other proceed round.


Ladies and Gentlemen,


Future viability starts here and now. We find to enthuse our
business and, to do this, we are rising a largest model
descent in a story of a company: We will be introducing more
than 40 new and revised models this year and next. The categorical concentration will
be a new BMW 5 Series, a many innovative 5 Series of all time, as
reliable by awards such as “Best Connected Car of a Year”. The
Sedan, plug-in hybrid various and a M Performance indication have all
been accessible for usually a few weeks, but, in this brief space of time,
30,000 business have already bought a new 5 Series. That array is
significantly aloft than sales of a predecessor. In summer, we will
launch a Touring and a Long Wheelbase Version of a Sedan for
China. BMW M fans can also demeanour brazen to a new M5.


The BMW 4 Series has been revised. All models are even sportier, more
upscale, with tip connectivity. Today we announced a mint BMW 1
and 2 Series. we am unapproachable to uncover we a really initial pictures. Many
business adore a BMW X models. In 2016, one in 3 BMW vehicles
sole was an X model. We will replenish and enhance a BMW X family with
a new X3 in 2017, and a X2 and a X7 in 2018.


We have also totally renewed a MINI indication line-up. The new MINI
Countryman is a second MINI in a reward compress class.


Rolls-Royce is a apex of luxury. The Dawn was launched in 2016.
At a same time, a Black Badge models of a Ghost and Wraith are
also attracting new aim groups. These will be followed after in the
year by a eighth epoch of a mythological Phantom.


BMW Motorrad fans can demeanour brazen to 14 new models this year, in
line with BMW Motorrad’s desirous idea to sell 200,000 motorcycles
and scooters in 2020.


As we can see, we are going on a offensive. We are lovely our
whole product portfolio and strengthening a opening side. Our
plan will concentration on a oppulance segment, where there are high
margins to be earned. We wish to make BMW a strongest code in this
shred and boost sales and revenues in a oppulance class
significantly by 2020. Today, we can exclusively announce a new model
series: a BMW 8 Series. The 8 Series Coupé will entrance subsequent year. It
will be a genuine sports coupé. We are reinforcing a explain to
care in a oppulance class.


Dear Shareholders,


We are ardent about a future!


Together, we are entering a new era, and we are right to have high
expectations. we also set high expectations for myself – and for my
team. We have launched a outrageous call of mobilisation, with strategy
camps for a executives, and a NEXT EXPERIENCE eventuality for some-more than
14,000 employees during all government levels, including a plant
supervisors. The response from both formats has been really clear: Our
employees wish to figure a change in a courtesy and are prepared to
mangle new ground. They are ardent about destiny mobility. This
passion for origination is partial of a really DNA. It unites everybody at
a BMW Group. Our values will pave a proceed for us into a new era.


Dear Shareholders,


I can assure we that:


BMW AG will sojourn an appealing investment and that it is a viable
association with a clever future. Your trust gives us strength. We will
continue to clear this trust in a future.


Thank we for your attention.