Statement Oliver Zipse, Chairman of a Board of Management of BMW AG, Conference Call Quarterly Statement to 30 Sep 2021

A unequivocally comfortable acquire to all of you!

 

The BMW Group is essential and a association is growing. This is
interjection to a business around a universe as good as a clever demand
for a different operation of products and drivetrain technologies.

 

We delivered 1.9 million BMW, MINI and Rolls-Royce vehicles to
business in a initial 9 months of a year as good as 156,000 BMW
motorcycles and scooters. This represents an boost of 18 and 21
percent respectively above a prior year. BMW once again gained
marketplace share and prisoner 3.4 percent of a tellurian marketplace as a
reward manufacturer.

 

We were also means to enhance a clever rival position in key
markets, such as a US and China. BMW leads a reward shred in
countless countries. In serve to China and a US, this is also the
box in Mexico, Brazil and other markets in South America, as good as
South Africa and several European countries, including a domestic
marketplace of Germany.

 

This shows that: We are progressing a successful business
development.
And we can therefore endorse a practiced guidance
for 2021. Our profitability is of impassioned importance. In this way, we
are laying a substructure for continued investment in applicable future
areas of activity. This ambidexterity is indispensable now some-more than ever.
Just consider about a desirous domestic guidelines, diversified
mercantile and amicable developments around a world, new technological
possibilities and geopolitical tensions, and many other examples.

 

As a tellurian company, we have a shortcoming to safeguard a BMW
Group’s business denote is viable in a prolonged tenure underneath all possible
conditions. On a one hand, this means we have to proceed short-term
changes in a sourroundings with flexibility, though also with
consistency. At a same time, we continue to follow a strategic
instruction in line with a long-term goals and are creation the
required decisions.

 

I would like to plead these dual perspectives in some-more fact today:

  • What are we focused on right now?
  • And how are we environment ourselves adult for a years after 2025?

 

Directly to a initial point:

This year, we demonstrated once again that we are means of
overcoming formidable situations: This relates equally to a lingering
effects of a coronavirus pandemic, as good as to a current
conditions with semiconductor supplies. Our Divisions Purchasing,
Development and Production as good as Sales and Marketing are working
together unequivocally closely on this and burdensome all possibilities. Our
quick and credulous relations with suppliers worldwide also mean
that we have been means to pillow a impact for a business better
than many of a competitors.

 

Not usually all a brands, though also all vital regions of a universe saw
poignant expansion until September: Europe: some-more than 10 percent.
Asia: roughly 20 percent. The Americas: over 30 percent. Other markets
grew by roughly 30 percent.

 

As expected, and as formerly announced, a sales movement for our
electrified vehicles is quite strong: Our deliveries of
electric vehicles and plug-in variety doubled between Jan and
September, compared to a prior year. Our BEV sales were even 120
percent aloft year-on-year.

Our new creation flagships, a BMW i4 and BMW iX, have recently
begun rolling off a prolongation line. Both are pre-ordered several
months out. Many members of a media and automobile experts from around the
universe have already gifted a i4 and a iX for themselves and
they were thrilled.

 

We on a Board of Management get to exam a products on a regular
basis, of course. But recently, a comparison managers had a same
opportunity. They gathering roughly 600 km in a iX, from Munich to just
outward perfume – wholly electric and with all a latest digital
features. Their conclusion: E-mobility has wholly arrived in our
bland lives.

 

However, a charging infrastructure isn’t gripping up. Here in
Germany and all opposite Europe, it needs to be stretched quick and
noticeably – while also being contracting and ambitious. we am also
advocating for this as ACEA president. The expansion of electric cars
already exceeds a expansion of stream charging ability in Germany by
cause of five. Many EU countries still don’t have a charging network
during all. Without a awake framework, no record can be implemented
or turn widely accepted. This relates to both e-mobility and
hydrogen. That is since a subsequent stairs towards tighter CO2
reductions in Europe after 2030 should usually be motionless formed on the
charging infrastructure that has indeed been built by then. A review
in 2028 can afterwards conclude a right specifications for a rest of a journey.

 

A elemental requirement is that a business are already
eager about e-drives today. And we can state that we are on the
right lane here. To quote a new headline: “The best 4 Series is
electric” – a new BMW i4 is removing a lot of regard like this. This
is how we emanate desirability. We are building a new i4 during our
oldest plant – where people of some-more than 50 nationalities work
together, right in a heart of a city.

 

Please concede me a brief digression – since this is where a change
is many visible: We are gradually relocating a engine prolongation to
other sites – but slicing jobs. Instead, an public plant for
electric cars is being built on a same site. That gets us moving
quickly: By 2023, during slightest half of all vehicles from Plant Munich will
have an electrified expostulate sight – a strenuous infancy of them
wholly electric. With a new car assembly, a plant will also be
means to furnish adult to 100 percent BEVs from 2026 onwards. This will be
dynamic wholly by demand. That is how systematic transformation
works. At a same time, we are also operative on emission-free
ride logistics for a categorical plant.

 

No one will get left behind. We have already lerned some-more than 50,000
specialists worldwide for e-mobility. Starting this month, a i4 and
iX will also be accessible alongside a electric pioneer, a BMW i3;
a successful civic model, a MINI SE*; and a BMW iX3*, that is
built in China. Over a subsequent dual years, these will be assimilated by fully
electric versions of a high-volume BMW 5 Series and X1, as good as
a 7 Series.

 

What does this meant for a customers?

 

By 2023, we will have during slightest one wholly electric denote in about 90
percent of a stream marketplace segments – giving a business the
ability to choose. Nevertheless, we still have a prolonged proceed to go until
all business in all countries around a universe are means to rely
only on electric driving. But, when it comes to meridian protection,
each singular gram of CO2 that we can equivocate currently counts.
Why should we dedicate to a singular technical resolution early in the
process, when that means withdrawal substantial intensity untapped in
a here and now?

 

This categorically includes serve CO2 reductions through
a use of state-of-the-art required expostulate technologies. From 2022
onwards, a modular motors will accept second era 48-volt technology.

This leads to a serve poignant boost in efficiency. For some
models that now burst true into a second stage, this can result
in reduction CO2 of adult to 20 percent. We need competition
between technologies – in a seductiveness of business and for less
CO2. Anything else would put us on a converging course.
Our intelligent car architectures will concede us to continue to
offer markets worldwide a right technologies for their individual
resources and gait of change.

 

Let’s pierce on to my second point:

How are we environment ourselves adult for a years after 2025?

 

We see technological change as a extensive event to strengthen
a business denote for a prolonged term. Technology can strengthen the
climate. We are evenly gearing a BMW Group towards climate
neutrality. What does that include?

 

First:

Continuing to ramp adult e-mobility for all a brands. MINI and
Rolls-Royce will be exclusively all-electric from a early 2030s. We
will be holding a core BMW formula into a new wholly electric dimension
with a NEUE KLASSE from 2025 onwards. The same relates to the
digital knowledge of mobility for a customers.

 

Second:
Our clever joining to climate-neutral mobility. To
grasp this, we have again tightened a desirous sustainability
goals for a supply chain, prolongation and a use phase.

And thirdly:
Our concentration on a round economy. We showed what
this looks like in use during a IAA Mobility:
We have
perceived intensely certain feedback worldwide on a BMW i Vision
Circular. It is done of 100-percent recycled element and is itself
100-percent recyclable. We don’t only make announcements; we let our
actions pronounce for themselves. For a NEUE KLASSE, for example, we are
sourcing “green” steel – made regulating hydrogen and immature energy –
from Swedish start adult H2 Green Steel. In this way, we can drastically
revoke CO2 emissions starting during a unequivocally commencement of the
supply chain.

 

The genuine question, after all, is: What is a vehicle’s altogether carbon
footprint via a lifecycle – from a use of tender materials,
by industrial production and active use, all a proceed to recycling?

 

The credit of this is totalled by either petrify movement can be
accurate during a end. That is since a BMW Group became a initial German
automotive manufacturer to join a Business Ambition for 1.5 degrees.
This entails a joining to meridian neutrality by 2050.

 

Our trail to achieving this is scientifically validated, transparent
and measurable. It is positively clear: Resources are becoming
increasingly wanting – and, as a result, prices for tender materials are
rising. That is since we are already meditative about a subsequent logical
step in a transformation: how to significantly revoke a resource
consumption. This will be a essential push to achieving sustainable
expansion and essential expansion in a future.

 

The BMW Group will gradually boost a commission of secondary
element it uses in a vehicles to 50 percent. This is a challenge
for all of us. That is since we can no longer consider in a fragmented way.
In light of a ongoing UN Climate Change Conference in Glasgow, I
will residence these issues during a COP’s Sustainable Innovation Forum
subsequent Monday. Our common idea of obscure CO2 emissions
quick and on a large scale final team-work during a global
level. This relates privately to CO2 pricing.
We
support pricing as a many fit magnitude to quell CO emissions
– supposing it is regulated opposite inhabitant borders and in a uniform
manner. It is unequivocally critical that a steering outcome of routine is
directed in this direction.

 

In all sectors, sustainability and digitisation have prolonged been
closely linked. That is precisely since we have determined the
industrial flagship plan Catena-X – that we now find to strengthen further.

 

Catena-X creates transparency, from tiny suppliers to OEMs. This
cross-sectoral connectivity is a genuine advantage for Europe as a
production location. Today’s complicated vehicles are already shaped
mostly by software. With investigate and expansion activities during 10
locations worldwide – a possess and, also, during a corner ventures – we
have a sum of around 10,000 IT and program specialists operative on
digitisation of vehicles. We have been relocating brazen with
connectivity in a vehicles for some-more than dual decades. And we are
saying this again right now:

 

By a finish of this year, a BMW Group will have a world’s largest
swift of vehicles on a highway with “over-the-air” refurbish and upgrade
capabilities. With Remote Software Upgrade, a vehicles always have
a unequivocally latest record – only like a updates we are all used to
on a smartphones.

 

This advantages a business directly: Their car is not only
always adult to date; it also keeps on removing improved since we can
entrance each line of programming formula in a vehicle. Our customers
can also squeeze or allow to new functions and features. With
high-end connectivity, such as 5G in a iX, a vehicles are
remade into a intelligent device within a customer’s possess digital ecosystem.

 

Standardisation is pivotal to a digitisation of cars.

We trust it creates clarity to rise common, stereotyped basic
elements for car handling systems in and with other OEMs
and suppliers. The use of open-source program is rarely applicable in
this honour – to make certain we are all vocalization a same language.
There is no need to reinvent a wheel. We can safeguard a high turn of
mercantile potency and, during a same time, make use of existing
digital ecosystems, such as Google’s Android Open-Source Project.

 

In this process, we are operative with tech players like Apple, Amazon,
Tencent, Google and Intel – while still competing with them. we see
this reduction as a strife between OEMs and tech giants, and some-more as an
countenance of a marketplace existence in a digital age and a proceed to
pledge serve progress.

 

Ladies and Gentlemen,

In a multi-layered mutation process, employees are a meaningful
seismograph that provides a essential denote of a state of a
company.
We perceived over 100,000 responses to a Employee
Survey in Oct – a top ever. And a formula uncover a very
certain trend in all categories compared to a surveys in 2017 and
2019. They showed that a immeasurable infancy of a tellurian group are
assured about a destiny of a BMW Group – opposite all groups and
hierarchy levels.

 

This suggestion and confidence denote to me that:

  • Our group unequivocally sees a mutation as an opportunity.
  • We have a right change of intrusion and stability.
  • We consistently mix change and responsibility.

 

We are anticipating solutions and relocating quick – and holding a people
along with us. This is how a BMW Group will sojourn on march for
long-term success – by being profitable, innovative and responsible.
Thank you!

 

 

*Consumption/emissions data:

MINI Cooper SE: Power expenditure in kWh/100 km
combined: 16.9-14.9 NEDC, 17.6-15.2 WLTP.

BMW iX3: Power expenditure in kWh/100 km combined:
18.9-18.5 WLTP.