Statement Oliver Zipse, Chairman of a Board of Management of BMW AG, Conference Call Half-Year Report to 30th Jun 2021

Good morning, Ladies and Gentlemen.


The opening of BMW is undisputed. As Nicolas Peter told us. We
are on a right track. We are creation a right decisions during a right
time: a decisions that will keep a association essential and
successful for a prolonged time to come.


Ladies and Gentlemen,

What is a universe many endangered with right now? What is a society
essay towards? What is a blazing emanate that unites us all? There
can be no doubt that it is drastically shortening CO2. We
share a same goal: of effectively combating meridian change. That is
where we would like to start today. And from there, I’ll go on to talk
about a following points:


How are we serve strengthening a digital expertise?
does a BMW Group mount in financial year 2021?


Let’s start with a initial point:

Our highway to meridian neutrality.


The 3 categorical regions of a world, many other countries and even
cities – all wish to turn CO neutral. That is also a mission
and shortcoming during a BMW Group. We have always taken a
forward-looking perspective. It is a substructure of a long-term
business indication a association is built on. It requires, by definition,
that all a decisions are formed on tolerable thinking. Our
vital march towards meridian neutrality advantages our
customers. At a same time, it also sends a clever vigilance to all our
stakeholders and a collateral market, that is increasingly looking to
deposit in sustainability. Not least, it sends a vigilance to a group and
their jobs! The banking that matters in a attention today: How big
is a vehicle’s CO footprint around a whole of a lifecycle?
The atmosphere – that is, a meridian – doesn’t caring either a
manufacturer adopts a BEV-only, BEV-centric or an open-technology
strategy. All that matters for a functions of meridian insurance is
a tangible volume of CO2 issued – and that means across
a board: from tender materials and other materials, around the
industrial prolongation routine and active use of a vehicle, all the
proceed to recycling a tender materials. Our clarity is that it is often
a box with 0 emissions that a louder a proclamations, the
broader a disclaimer and ubiquitous terms and conditions tend to be.


Not with us!

Already in summer 2020 we denounced petrify sustainability goals for
2030 – and geared a association towards them. We are documenting our
swell in a proceed that is pristine and verifiable for everybody – in
a Integrated Report; and, as a member of a Science-Based Targets Initiative.


Our clearly tangible targets – in suitability with a Paris Climate
Agreement – put us on a march that is significantly some-more ambitious
than a two-degree goal. And though a excellent print.


We are already concentrating on all 3 scopes where CO2
is emitted: a supply chain, prolongation and a use phase.


Our prophesy is of a value sequence that produces rebate and less
CO2, culminating in a round economy. Take a new BMW
iX, for example: Already today, a battery cells are constructed with
immature power, and we use 20 percent recycled plastics.


We will be presenting a round proceed during a IAA Mobility. Stay tuned!


By 2030, we aim to revoke a whole CO footprint per car by
during slightest a third from 2019 levels – opposite a whole lifecycle.


Production during all a locations worldwide is already net carbon
neutral as of this year. This relates to all a properties and
executive buildings as well.


We will be holding things adult a nick in a nearby future: The use phase
has a utterly clever impact on a CO footprint. But we could
suppose an even bigger CO2 rebate per car by 2030.
Already final year we overfulfilled a swift aim significantly –
and we will overfulfil it again this year.


The same relates to meridian neutrality as everywhere: There are
opposite ways of removing there. So, statute out certain approaches
isn’t helpful. None of these are wrong, as prolonged as they benefit
meridian protection. The proceed should always be useful and
manageable, and never ideological – in a interests of a greater
vision, a tellurian target.


The BMW Group is a tellurian manufacturer. That is because we always focus
on a large design – a GLOBAL perspective, if we like. That doesn’t
make things any easy or linear; on a contrary, it creates them
intensely multifaceted. Because a universe is, and will remain, diverse
– generally when it comes to people’s mobility and a necessary
conditions indispensable to safeguard it.


We solve a biggest hurdles for a universe by creation and
technological progress.


To do this, we use a ability to confederate rarely formidable technical
systems into a product in sequence to tailor it optimally to the
mandate of certain markets. In this way, we offer markets the
right technologies for their sole resources and gait of
change. We see this as a transparent rival advantage for BMW – one we
will continue to precedence to benefit marketplace share. Because, going
forward, regulations and what business wish will change from shred to
shred and from nation to country.


In Europe, for example, new car registrations in Norway and the
Netherlands are already dominated by battery-electric drivetrains;
while other countries in a EU don’t even have a easy charging infrastructure.


In a US, California continues to lead a proceed on e-mobility, but
direct for vehicles with explosion engines stays clever in many
other states.


In Asia, countries like Japan and Korea have a power for fuel
dungeon expostulate trains. China is pushing a gait on e-mobility.


E-fuels could also be an choice for certain regions.


Going forward, hydrogen record will turn some-more important,
alongside electric energy – and not, as is mostly rumoured, usually for
application vehicles. This is another area where we are delivering: Our
tiny series of a BMW i Hydrogen NEXT will be expelled subsequent year.


We are mostly asked either a BMW Group has a date for a full
transition to pristine electric expostulate trains. The answer, to put it
clearly and precisely, is:

We are 100 percent committed to BEVs – wherever a use of
battery-electric expostulate trains creates sense, and it is probable because
a conditions are right.


Our MINI formula is a best explanation of this.

From a early 2030s, it will be a initial all-electric formula –
though any disclaimers. Because MINI fans are generally active in civic spaces.


This is a accurate same instruction targeted by a new electric scooter
from BMW Motorrad. Our CE 04 is a ideal messenger for a urban
commuter. We recently denounced a prolongation model, that we will
start delivering early subsequent year.


All of this underlines that:

Achieving marketplace invasion with e-mobility hasn’t been a vehicle
supply emanate for utterly a while now. It depends, to a larger degree,
on how quick charging infrastructure is being expanded.


We have been committed to this for a prolonged time: We have already
commissioned some-more than 15,000 charging points worldwide. In Germany
alone, we work one of a biggest association charging networks in
and with E.ON. We now have a sum of 4,350 charging
points in use – by a finish of a year, it will be 5,000. All of
them run on immature energy and some are open to a public.


We will yield an refurbish on a swell in a autumn, as partial of
IONITY’s European High-Power Charging Network. IONITY is open to
anyone who wants to join. Expansion is critical to us. We contingency not
concede charging infrastructure to be a bottleneck that decides
either business buy an electric car or not. As a stream ACEA
president, we am fighting for this, so we can pierce brazen faster in
all 27 EU member states. We need a stronger joining to this.


With a Fit for 55 package it denounced in July, a European
Commission has once again tightened a rebate targets for
CO2 emissions. Every additional commission indicate the
targets are tightened means we need during slightest 200,000 some-more public
charging points – in serve to a 3 million already indispensable by 2030.


Companies are now approaching to revoke CO2 emissions from
their new car fleets by 55 percent from stream levels by 2030.
That is a Commission’s proposal, that forms a starting indicate for
a legislative process. It is homogeneous to tightening a aim by
around 18 commission points from a prior aim of reduction 37.5
percent. As we would design from BMW, we are holding a arguable and
unchanging proceed to this additional challenge.


By 2023, we will offer a business during slightest one BEV choice in
scarcely all a car segments. Over a subsequent 10 years or so, the
BMW Group aims to recover a sum of about 10 million fully-electric
vehicles onto a market.


For a targets adult to 2035, a examination by a Commission in 2028 will
establish either credit should be awarded for other zero-emission
technologies, such as e-fuels, in serve to BEVs and FCEVs.


In 2025 – usually 4 years from now – we will launch a NEUE KLASSE.
This all-new product charity is a response to a rarely complex
mandate of a entrance decades. In many respects, a NEUE KLASSE
is a genuine quantum jump – for destiny indication generations, toolkits,
technologies, team-work and a mindset opposite a BMW Group. Our
new car design is uncompromisingly electric, either with
battery energy or hydrogen.


It also comes with an wholly new IT and program architecture, as
good as a newly-developed high-performance electric expostulate sight and
battery generation. Systems formation is another one of a BMW
Group’s core competences that we will be demonstrating in a NEUE KLASSE.


For me, all of this underlines a forward-looking approach.


This brings me to my second topic:

We are serve strengthening a digital expertise.


In today’s cars, software, hardware and services work together in an
constituent way. This is how we are laying a technological foundation
that will capacitate us to offer a business new functions on an ongoing
basis. Our vehicles are always adult to date with a really latest
technology. For a past few years, we have been means to refurbish every
singular line of formula in a car over a atmosphere around Remote Software
Upgrade. There are usually dual firms means of this: One of them is in
California, a other in Munich.


By a finish of this year, a BMW Group will have over 2.5 million
vehicles with ascent capabilities on a roads – a largest swift of
this kind worldwide.


Our new era BMW iDrive leads a communication between driver
and car into a digital future. We lay a substructure for this
with a new BMW Operating System 8: A new era of displays,
controls and software, as good as intensely absolute information processing
designed for 5G. We are introducing it for a initial time in a BMW
iX and subsequently rolling it out broadly opposite all other models. We
are also integrating a digital services for navigation, parking and
charging into a BMW Maps cloud-based system. With a iX, customers
also have a coherence to book “functions on demand” during any time.


For a digital ecosystem in a vehicle, as good as digitalised
prolongation and digitalised processes opposite a company, we are
building adult a required skills and competencies. Here, we are
concentrating on specific areas:


  • Smart prolongation and logistics, including robotics.
  • Big information and information analysis.
  • Software design and flexible program development.
  • Artificial comprehension and unconstrained driving; and
  • E-mobility as good as innovative expostulate and lightweight technologies.


At a BMW Group, around 10,000 employees are operative in a IT and
program development. In a final few years alone, we have brought in
2,400 new experts in a expansion division. Our 14 tech offices
camber a universe – from California to a new FIZ Nord in Munich to
Shanghai and Tokyo. In addition, we have corner ventures such as
Critical TechWorks in Portugal.


When it comes to in-car IT applications, in particular, business in
opposite regions of a world, privately in China, Europe and the
USA, use opposite services and providers – that is a diverse
markets we mentioned earlier. For each region, we yield seamless
formation of third-party services, such as Apple, Google, Tencent or Spotify.


Let’s hang adult with my third point:

To sum adult in usually a few words: Yes, we had a clever initial half
of a year.


Our extended operation of uninformed new models and several expostulate technologies
met with sharp-witted demand. This relates to all a brands, BMW, MINI and
Rolls-Royce, as well as to M GmbH, BMW Motorrad and all regions of the
world. Around 1.34 million vehicles represents expansion of roughly 40
percent, compared to a initial half of 2020. Sales for a initial six
months of a year were a tip in a history.


But we all know that, in many regions of a world, a initial half of
2020 was strike generally tough by a restrictions due to the
coronavirus pandemic. That is because a comparison with a initial half of
a pre-crisis year 2019 is some-more meaningful: Compared to that period,
a sales increasing by 7.1 percent. In Jul this year as well, our
figure was above Jul 2019.


As expected, a business are shopping significantly some-more electrified
vehicles right now. In a initial half of a year a sales grew by
roughly 150 percent. In a domestic marketplace of Germany, scarcely one in
4 BMWs and around 30 percent of MINIs sole already have an electric
expostulate train.


By a finish of a year, we aim to have a sum of one million
fully-electric and plug-in hybrid vehicles on a roads and, by 2025,
dual million pristine electric vehicles. By then, we aim to broach ten
times a series of BEVs we sole in 2020.


The fully-electric BMW iX3* has been accessible given a start of
this year. It was not designed privately for e-mobility. Despite
that, it is winning analogous tests with a rivals. The BMW iX and
i4 will both be launched in a autumn. Both are extraordinary
vehicles that offer a illusory pushing experience. High orders for
both are already surpassing a expectations. The designed annual volume
of a BMW iX, for example, is already mostly sole out in Europe.
This underlines a high turn of seductiveness in this technologically
singular vehicle. We are naturally really gratified with a positive
feedback in a media and on amicable media.


New models will be entrance in quick period from here on: In the
subsequent dual years, we will launch all-electric versions of a BMW 7
Series, X1 and 5 Series.


Ladies and Gentlemen,

2021 is proof to be a singular financial year for us, with both
tailwinds and headwinds.

On 20 May, we re-evaluated a sustenance of 1.4 billion euros in
tie with antitrust record by a European Commission. The
Commission totally withdrew a allegations opposite a BMW Group.
The Commission reliable once again in this tie that: There is
and was never any claim of bootleg strategy of empty gas
diagnosis by a BMW Group. The record were resolved on 8 July
with a allotment and a excellent of 372.8 million euros.

The revaluation of a sustenance has led to a certain earnings
outcome of around one billion euros in a second entertain of 2021. As a
result, a aim mezzanine for a EBIT domain in a Automotive
shred increasing by one commission point.


There are, however – on tip of a impact of a coronavirus pandemic
– additional risks for a ongoing business opening that we are
holding really seriously. Our attention can't omit a tellurian shortage
of microchips. So distant – compared to other manufacturers – we have been
means to catch a impact of this well. A few of a plants have also
been influenced recently – though with varying degrees of intensity. We
consider a conditions on a daily basement and are holding appropriate
measures with a suppliers.


In serve to semiconductor supply bottlenecks, we also face rising
tender element prices. This is another reason because a round approach
creates sense.


Lastly, impassioned weather, such as a harmful floods in Germany,
Europe and other tools of a universe show: Forecasts and expectations
can change quick – utterly detached from a measureless pang people in the
influenced regions are facing.


Confronted with all these risks, a second half-year will be more
severe for a BMW Group than a first. Nevertheless, we are
assured that we will grasp a targets for a full year.


We are convinced:

Our holistic proceed is positively effective.


The mandate for a automotive attention are rarely complex.
There are no elementary truths.


What depends – for meridian insurance as with all a other major
destiny fields – is effectiveness. This is what a BMW Group stands for.


Thank you!




*Consumption/emissions data:

BMW iX3: Power expenditure in kWh/100 km combined:
17.8-17.5 NEDC, 19.0-18.6 WL