On September 7, Harald Krüger, Chairman of the Board of Management
BMW AG, and Klaus Fröhlich, Member of the Board of Management BMW AG
for Development, provided an outlook on the International Motor Show
IAA 2017. Please find attached the speech by Harald Krüger on the
strategic alignment of the BMW Group with a strong focus on
electro-mobility, as well as Klaus Fröhlich’s speech about the
technological implementation of Strategy NUMBER ONE NEXT.
Statement
Harald Krüger
Chairman of the Board of Management of BMW AG
Preview IAA 2017
7 September 2017
Good morning, Ladies and Gentlemen!
For a century now, the BMW Group has demonstrated that it is willing
to evolve – to set new ideas in motion. Technological leadership is
part of our DNA. That’s why we are here today – to talk about what the
BMW Group has planned for the future.
There are two main topics I would like to address:
1. The radical change in our business environment.
2. And, electro-mobility.
Regarding the first topic:
The automotive industry is in the midst of a fundamental change –
that is clear. I’d like to begin by saying that the success of the BMW
Group has always been based on long-term thinking. For decades, we
have been working on the development of more efficient and alternative
drive trains. In 2007 we launched Efficient Dynamics. On the way to an
emission-free future, we will continue to optimize combustion engines.
In many of the current discussions, the customer’s needs are often
ignored: Customer demand cannot be forced. Customer needs must be
anticipated and met. Therefore, we do not advocate driving bans and
quotas. We believe in convincing offers with modern, efficient and
emotional vehicles. The challenge at
hand is that industry, government and NGOs work together on realistic
solutions and timeframes. Only so, can we achieve the requirements for
sustainable, emission-free mobility – and deliver attractive solutions
for our customers.
The BMW Group is a company with both tradition and vision. Around a
decade ago, we anticipated the “iconic change” and we put
forward a clear strategy –
far ahead of our competitors. We have clearly taken major steps in
this transformation. Because: When the rules of the game change, we
want to be the ones rewriting them.
We call the driving forces of future mobility the ACES: Automated,
Connected, Electrified, and Services – specifically, mobility
services. These are key elements of our corporate strategy, NUMBER ONE
NEXT, our roadmap for the future. The BMW Group is becoming more
and more a “tech company” – and we are in an excellent
position to move forward with the ACES. Many others are convinced too:
Major players such as Intel, Mobileye, Delphi and Continental have
joined forces with us to shape the future of automated driving. Our
test fleet is now on the roads in Germany, Israel and the US – making
daily trips.
That brings me to my second topic. As a pioneer in e-mobility, we
began testing our MINI E fleet worldwide back in 2008. Valuable
know-how was integrated into our first fully-electric production car,
the BMW i3, the “original”. It’s been the world’s
top-selling electric car in its segment since its launch in 2013. We
are successfully transferring BMW i’s technologies to our core models.
And today, we are very proud to offer customers the broadest
range of electrified premium cars worldwide. This fall, we will
have ten electrified vehicles available: nine electrified cars and
our fully-electric C evolution.
This year, we will deliver 100,000 electrified vehicles to customers.
By the end of 2017, there will be a total of more than 200,000 BMW
Group electrified vehicles on the road.
What are our plans for the future?
Sustainable growth and profitability play a key role in shaping our
future. We deliver on our promises: For seven consecutive years, our
EBIT margin in the Automotive Segment has remained within our target
range of 8-10 percent.
At the same time, we have been taking major steps in transforming our
company. As part of NUMBER ONE NEXT, we aim to substantially
increase our sales and revenues in the luxury class. The BMW X7 and 8
Series both play an important part in this. Furthermore, the BMW
Concept X7 demonstrates it is perfectly possible to combine a large
sports activity vehicle with an electric drivetrain. Our strong
commitment to e-mobility is underlined in NUMBER ONE NEXT. We
will be increasing the share of electrified models across all brands
and model series. And, yes, that also includes the Rolls-Royce brand
and BMW M vehicles.
Furthermore, we are currently gearing all BMW Group plants towards
e-mobility. In the future, we will be able to equip all our models
with every drive train. Two flexible vehicle architectures and a
flexible production network will allow us to respond quickly and efficiently.
Let me make one thing very clear: In e-mobility, the BMW Group
will also be the leading provider in the premium segment. By 2025,
we will offer 25 electrified vehicles – 12 will be fully-electric.
Today, and at the IAA, you will see the concept vehicle for the
first series electric MINI, for release in 2019. As we have
announced, we will be introducing the first BMW core model – the
X3 – as a BEV in 2020. Going forward, all fully-electric BMWs will
belong to BMW i. This also applies to the X3. We have also
announced the BMW iNEXT – our next innovation spearhead – for
2021.
At this year’s IAA, we will unveil another significant milestone in
our roadmap for e-mobility. It is a vision of how we imagine a
four-door, fully-electric vehicle between the i3 and i8. It is a
vision we want to realize in the foreseeable future. And a further
step in our commitment to sustainable mobility.
Ladies and Gentlemen,
We believe in the mobility of the future – an individual mobility
that is connected and emission-free. Modern society needs mobility.
For many people, a car is a vital component of their everyday lives.
We take our responsibility to society, our customers, our employees,
and the environment seriously. That is why we are working hard and
fast on the shift towards sustainable mobility.
Thank you.
Statement
Klaus Fröhlich
Member of the Board of Management of BMW AG, Development
Preview IAA 2017
7 September 2017
Ladies and Gentlemen,
Welcome to our Research Innovation Centre!
Harald Krüger just outlined some of our company’s goals. I’d like to
show you how we are realizing them.
Since 2001, our BMW and MINI brands have focused on the premium
segment and Rolls-Royce on the pinnacle of luxury.
In 2007, Strategy Number ONE took us into a new dimension: we
launched new services and our BMW EfficientDynamics measures. And, of
course, we launched our concept for sustainable mobility: BMW i.
Strategy Number ONE was a success.
In 2016, it moved on to the next stage – Strategy NUMBER ONE
NEXT. This is already in full implementation and will set new
standards. Our development work and innovative strength are key
factors here.
To maintain our lead, we have stepped up our efforts and pace even
more over the last two years. And with good reason!
Because the environment is changing radically. It is more tense and
volatile than 10 years ago.
1. The actions of some have severely compromised the credibility and
trustworthiness of our industry. As a result, we now face tighter –
and sometimes irrational – approaches to legislation. Around the
world, regulations on fuel consumption, emissions and safety are
changing faster than ever before.
The BMW Group has had a clear stance throughout:
- We were the only ones to deliver on the voluntary agreement on CO2
emissions: Since 1995, we have cut our average fleet emissions by
over 40 percent. - And when it comes to cutting emissions, we don’t just follow the
letter of the law. We deliver on its principles. Independent tests
show that our emissions are the lowest. And we use superior
technologies to our competitors.
2. Established competitors are changing, and new ones are trying to
secure a market share for themselves. Electrification and
digitalisation are the two big game-changers. Our new competitors are
mainly digital companies. They focus on future technologies and
customer data.
To compete with them, we have developed our skills and expertise,
adapted our processes and forged intelligent partnerships. We will
maintain our leading position – not only in premium mobility but also
in electric mobility, autonomous driving and connected vehicles. And
BMW i – the original – is our innovation platform to do so.
Moving forward, we will explore new approaches.
Back in 2016, for example, we restructured our RD section to
focus on two key topic areas:
Digitalisation with a
focus on enhancing connectivity, using artificial intelligence and
developing self-driving premium vehicles.
Drive technologies
including Efficient Dynamics NEXT ICEs (internal combustion engines)
with 48-volt systems and the development of electrified vehicles
powered by battery or fuel-cell.
The trend towards electric mobility is irreversible. But it will
happen in different ways and at various speeds in different parts of
the world. (The change in China is just one example.) Customers all
over the world will prefer different types of powertrain for a very
long time.
So from 2020 onwards, we will meet their needs by offering all types
of drive trains in all vehicle classes. And we are the only car
company worldwide to do so. Our customers will be able to choose
between super-efficient, super-clean combustion engines, plug-in
hybrids, and all-electric battery-powered vehicles.
Our fully flexible architectures and modular systems ensure we can
act quickly and in response to market conditions. Our future vehicle
architectures and flexible production facilities mean we can take fast
decisions about which models to make, and with what type of drivetrain.
Back in 2010, we were also the first manufacturer to decide to fully
integrate PHEVs into our rear- and front-wheel drive architectures.
As a result, we are already in a position to offer nine electrified
vehicles in 2017.
We are already the third largest provider of electric mobility, worldwide.
As the enhancement of the two architectures continues and with double
battery capacity, we are now ready to integrate BEVs as well. Our
vehicle architectures on the one hand, and our modular systems for
powertrains on the other will give us unique flexibility.
Gen 5 fully-electric drivetrains will be with us in 2021, launched
with the BMW iNEXT. Based on a scalable modular system, Gen 5
technologies will also fit into models we are launching today. So we
will be able to electrify all of our products – fully or partially –
in order to meet demand.
So now, everything we need is in place:
Battery-powered vehicles will enter mass-production and become widely
accessible. And with up to 700 km of range, they will be practical for
daily use.
Our plug-in hybrids – or “Power PHEVs” will set new standards in
performance and with ranges of up to 100 km.
And our combustion-powered drives will incorporate 48-volt
recuperation systems. With minimum emissions, they will continue to
set standards.
When it comes to electric drives, we have greater expertise and more
in-house value creation than any of our competitors. We are just
investing for example €200 million in our new battery technology
research centre alone.
From electric motors to power electronics and battery systems: for
us, in-house production or build-to-print are the way forward. We want
full technical control of our systems.
At the moment, we are gradually adapting all of our vehicle
production plants for electric drives. And our efforts are paying off:
Our market share for electric drives in Europe is already three times
higher than our market share for combustion-powered cars. This year,
we will deliver over 100,000 BEVs and PHEVs to customers. By 2025, our
customers will have 25 all-electric or partially electric vehicles to
choose from.
So, to sum up:
Electrified products will be available from all of our brands. We
will offer the broadest range in the market … as well as supreme
flexibility. We will be the NUMBER ONE in the world of premium
electric mobility – against established and new competitors.
As BMW i enters its second stage of development, our competitors
continue to invest in solitary platforms. But BMW i is about more than
just electric mobility.
BMW i is – and always has been – our incubator, our hub for
innovations. BMW i is the original! And with the launch of the BMW
iNEXT, it will be at the vanguard of future technologies.
This brings me to the topic of autonomous driving.
The car of the future will be even more intelligent, and capable of
driving itself. So it will have additional functions for our customers.
Here, as ever, we focus on customer value: we want the customer to
decide how they will drive. Because without choice, there can be no
“Sheer Driving Pleasure”.
From the 7 Series to the whole range, BMW vehicles already use partly
automated assistance systems every day, for extra safety and comfort.
Lane-keeping and longitudinal control on motorways, for example, are
done purely by the car. Not just at up to 60 km/h but at up to 210
km/h – and they have been since 2015!
Now, however, it’s time to forge ahead – not just step by step,
incrementally working our way up from level 2, but by mastering level
5 from the very beginning. That’s because autonomous driving requires
the full range of factors: system leaps, additional redundancy
requirements, computing power and connectivity.
This is why we are preparing to offer highly autonomous driving by
2021, when the iNEXT is launched – wherever legislation allows it. And
based on this, we will implement – again fully flexible – levels 3 to
5 in our vehicle range.
We are in a good position to realize all four enablers: HD real-time
mapping, sensor technologies, artificial intelligence and environment
modelling, and motion control.
Over the last ten years, we have developed our own expertise. But we
are also partnering the world’s top innovators.
Over the longer term however, safety systems will no longer be
differentiators. State-of-the-art technology will take hold worldwide.
That’s why more and more OEMs and TIER1s are joining our open
platform – which is becoming a center of excellence for autonomous driving.
So, that was my update on our Strategy NUMBER ONE NEXT
technology campaign.
Thank you!