Statements by Harald Krüger, Chairman of a Board of Management of BMW AG, and Klaus Fröhlich, Member of a Board of Management of BMW AG, Development, IAA Preview 2017

On Sep 7, Harald Krüger, Chairman of a Board of Management
BMW AG, and Klaus Fröhlich, Member of a Board of Management BMW AG
for Development, provided an outlook on a International Motor Show
IAA 2017. Please find trustworthy a debate by Harald Krüger on the
critical fixing of a BMW Group with a clever concentration on
electro-mobility, as good as Klaus Fröhlich’s debate about the
technological doing of Strategy NUMBER ONE NEXT.




Harald Krüger

Chairman of a Board of Management of BMW AG

Preview IAA 2017

7 Sep 2017


Good morning, Ladies and Gentlemen!

For a century now, a BMW Group has demonstrated that it is willing
to develop – to set new ideas in motion. Technological care is
partial of a DNA. That’s since we are here now – to speak about what the
BMW Group has designed for a future.

There are dual categorical topics we would like to address:

1. The radical change in a business environment.

2. And, electro-mobility.

Regarding a initial topic:

The automotive attention is in a midst of a elemental change –
that is clear. I’d like to start by observant that a success of a BMW
Group has always been formed on long-term thinking. For decades, we
have been operative on a expansion of some-more fit and alternative
expostulate trains. In 2007 we launched Efficient Dynamics. On a approach to an
emission-free future, we will continue to optimize explosion engines.

In many of a stream discussions, a customer’s needs are often
ignored: Customer direct can't be forced. Customer needs contingency be
expected and met. Therefore, we do not disciple pushing bans and
quotas. We trust in convincing offers with modern, fit and
romantic vehicles. The plea at

hand is that industry, supervision and NGOs work together on realistic
solutions and timeframes. Only so, can we grasp a mandate for
sustainable, emission-free mobility – and broach appealing solutions
for a customers.

The BMW Group is a association with both tradition and vision. Around a
decade ago, we expected a “iconic change” and we put
brazen a transparent plan –

far brazen of a competitors. We have clearly taken critical stairs in
this transformation. Because: When a manners of a diversion change, we
wish to be a ones rewriting them.

We call a pushing army of destiny mobility a ACES: Automated,
Connected, Electrified, and Services – specifically, mobility
services. These are pivotal elements of a corporate strategy, NUMBER ONE
NEXT, a roadmap for a future. The BMW Group is apropos more
and some-more a “tech company” – and we are in an excellent
position to pierce brazen with a ACES. Many others are assured too:
Major players such as Intel, Mobileye, Delphi and Continental have
assimilated army with us to figure a destiny of programmed driving. Our
exam swift is now on a roads in Germany, Israel and a US – making
daily trips.

That brings me to my second topic. As a colonize in e-mobility, we
began contrast a MINI E swift worldwide behind in 2008. Valuable
imagination was integrated into a initial fully-electric prolongation car,
a BMW i3, a “original”. It’s been a world’s
top-selling electric automobile in a shred given a launch in 2013. We
are successfully transferring BMW i’s technologies to a core models.

And today, we are really unapproachable to offer business a broadest
operation of electrified reward cars worldwide. This fall, we will
have 10 electrified vehicles available: 9 electrified cars and
a fully-electric C evolution.

This year, we will broach 100,000 electrified vehicles to customers.
By a finish of 2017, there will be a sum of some-more than 200,000 BMW
Group electrified vehicles on a road.

What are a skeleton for a future?

Sustainable expansion and profitability play a pivotal purpose in moulding our
future. We broach on a promises: For 7 uninterrupted years, our
EBIT domain in a Automotive Segment has remained within a target
operation of 8-10 percent.

At a same time, we have been holding critical stairs in transforming our
company. As partial of NUMBER ONE NEXT, we aim to substantially
boost a sales and revenues in a oppulance class. The BMW X7 and 8
Series both play an critical partial in this. Furthermore, a BMW
Concept X7 demonstrates it is ideally probable to mix a large
sports activity automobile with an electric drivetrain. Our strong
fasten to e-mobility is underlined in NUMBER ONE NEXT. We
will be augmenting a share of electrified models opposite all brands
and indication series. And, yes, that also includes a Rolls-Royce brand
and BMW M vehicles.

Furthermore, we are now gearing all BMW Group plants towards
e-mobility. In a future, we will be means to supply all a models
with each expostulate train. Two stretchable automobile architectures and a
stretchable prolongation network will concede us to respond quick and efficiently.

Let me make one thing really clear: In e-mobility, a BMW Group
will also be a heading provider in a reward segment. By 2025,
we will offer 25 electrified vehicles – 12 will be fully-electric.
Today, and during a IAA, we will see a judgment automobile for the
initial array electric MINI, for recover in 2019. As we have
announced, we will be introducing a initial BMW core indication – the
X3 – as a BEV in 2020. Going forward, all fully-electric BMWs will
go to BMW i. This also relates to a X3. We have also
announced a BMW iNEXT – a subsequent origination spearhead – for

At this year’s IAA, we will betray another poignant miracle in
a roadmap for e-mobility. It is a prophesy of how we suppose a
four-door, fully-electric automobile between a i3 and i8. It is a
prophesy we wish to comprehend in a foreseeable future. And a further
step in a fasten to tolerable mobility.

Ladies and Gentlemen,

We trust in a mobility of a destiny – an particular mobility
that is connected and emission-free. Modern multitude needs mobility.
For many people, a automobile is a critical member of their bland lives.
We take a shortcoming to society, a customers, a employees,
and a sourroundings seriously. That is since we are operative tough and
quick on a change towards tolerable mobility.

Thank you.





Klaus Fröhlich

Member of a Board of Management of BMW AG, Development

Preview IAA 2017

7 Sep 2017


Ladies and Gentlemen,


Welcome to a Research Innovation Centre!

Harald Krüger usually summarized some of a company’s goals. I’d like to
uncover we how we are realizing them.


Since 2001, a BMW and MINI brands have focused on a premium
shred and Rolls-Royce on a apex of luxury.


In 2007, Strategy Number ONE took us into a new dimension: we
launched new services and a BMW EfficientDynamics measures. And, of
course, we launched a judgment for tolerable mobility: BMW i.


Strategy Number ONE was a success.


In 2016, it changed on to a subsequent theatre – Strategy NUMBER ONE
NEXT. This is already in full doing and will set new
standards. Our expansion work and innovative strength are key
factors here.


To say a lead, we have stepped adult a efforts and gait even
some-more over a final dual years. And with good reason!


Because a sourroundings is changing radically. It is some-more moving and
flighty than 10 years ago.


1. The actions of some have exceedingly compromised a credit and
honesty of a industry. As a result, we now face tighter –
and infrequently undiscerning – approaches to legislation. Around the
world, regulations on fuel consumption, emissions and reserve are
changing faster than ever before.


The BMW Group has had a transparent position throughout:

  • We were a usually ones to broach on a intentional agreement on CO2
    emissions: Since 1995, we have cut a normal swift emissions by
    over 40 percent.
  • And when it comes to slicing emissions, we don’t usually follow the
    minute of a law. We broach on a principles. Independent tests
    uncover that a emissions are a lowest. And we use superior
    technologies to a competitors.

2. Established competitors are changing, and new ones are perplexing to
secure a marketplace share for themselves. Electrification and
digitalisation are a dual large game-changers. Our new competitors are
especially digital companies. They concentration on destiny technologies and
patron data.


To contest with them, we have grown a skills and expertise,
blending a processes and fake intelligent partnerships. We will
say a heading position – not usually in reward mobility though also
in electric mobility, unconstrained pushing and connected vehicles. And
BMW i – a strange – is a origination height to do so.


Moving forward, we will try new approaches.


Back in 2016, for example, we restructured a RD territory to
concentration on dual pivotal subject areas:


Digitalisation with a
concentration on enhancing connectivity, regulating synthetic comprehension and
building self-driving reward vehicles.


Drive technologies
including Efficient Dynamics NEXT ICEs (internal explosion engines)
with 48-volt systems and a expansion of electrified vehicles
powered by battery or fuel-cell.  


The trend towards electric mobility is irreversible. But it will
occur in opposite ways and during several speeds in opposite tools of
a world. (The change in China is usually one example.) Customers all
over a universe will cite opposite forms of powertrain for a very
prolonged time.


So from 2020 onwards, we will accommodate their needs by charity all types
of expostulate trains in all automobile classes. And we are a usually car
association worldwide to do so. Our business will be means to choose
between super-efficient, super-clean explosion engines, plug-in
hybrids, and all-electric battery-powered vehicles.


Our entirely stretchable architectures and modular systems safeguard we can
act quick and in response to marketplace conditions. Our destiny vehicle
architectures and stretchable prolongation comforts meant we can take fast
decisions about that models to make, and with what form of drivetrain.


Back in 2010, we were also a initial manufacturer to confirm to fully
confederate PHEVs into a rear- and front-wheel expostulate architectures.

As a result, we are already in a position to offer 9 electrified
vehicles in 2017.


We are already a third largest provider of electric mobility, worldwide.


As a encouragement of a dual architectures continues and with double
battery capacity, we are now prepared to confederate BEVs as well. Our
automobile architectures on a one hand, and a modular systems for
powertrains on a other will give us singular flexibility.


Gen 5 fully-electric drivetrains will be with us in 2021, launched
with a BMW iNEXT. Based on a scalable modular system, Gen 5
technologies will also fit into models we are rising today. So we
will be means to electrify all of a products – entirely or partially –
in sequence to accommodate demand.


So now, all we need is in place:


Battery-powered vehicles will enter mass-production and turn widely
accessible. And with adult to 700 km of range, they will be unsentimental for
daily use.


Our plug-in variety – or “Power PHEVs” will set new standards in
opening and with ranges of adult to 100 km.


And a combustion-powered drives will incorporate 48-volt
recuperation systems. With smallest emissions, they will continue to
set standards.


When it comes to electric drives, we have larger imagination and more
in-house value origination than any of a competitors. We are just
investing for instance €200 million in a new battery technology
investigate centre alone.


From electric motors to energy wiring and battery systems: for
us, in-house prolongation or build-to-print are a approach forward. We want
full technical control of a systems.


At a moment, we are gradually bettering all of a vehicle
prolongation plants for electric drives. And a efforts are profitable off:


Our marketplace share for electric drives in Europe is already 3 times
aloft than a marketplace share for combustion-powered cars. This year,
we will broach over 100,000 BEVs and PHEVs to customers. By 2025, our
business will have 25 all-electric or partially electric vehicles to
select from.


So, to sum up:

Electrified products will be accessible from all of a brands. We
will offer a broadest operation in a marketplace … as good as supreme
flexibility. We will be a NUMBER ONE in a universe of premium
electric mobility – opposite determined and new competitors.


As BMW i enters a second theatre of development, a competitors
continue to deposit in unique platforms. But BMW i is about some-more than
usually electric mobility.


BMW i is – and always has been – a incubator, a heart for
innovations. BMW i is a original! And with a launch of a BMW
iNEXT, it will be during a vanguard of destiny technologies.


This brings me to a subject of unconstrained driving.

The automobile of a destiny will be even some-more intelligent, and able of
pushing itself. So it will have additional functions for a customers.


Here, as ever, we concentration on patron value: we wish a patron to
confirm how they will drive. Because though choice, there can be no
“Sheer Driving Pleasure”.


From a 7 Series to a whole range, BMW vehicles already use partly
programmed assistance systems each day, for additional reserve and comfort.
Lane-keeping and longitudinal control on motorways, for example, are
finished quite by a car. Not usually during adult to 60 km/h though during adult to 210
km/h – and they have been given 2015!


Now, however, it’s time to forge brazen – not usually step by step,
incrementally operative a approach adult from turn 2, though by mastering level
5 from a really beginning. That’s since unconstrained pushing requires
a full operation of factors: complement leaps, additional redundancy
requirements, computing energy and connectivity.


This is since we are scheming to offer rarely unconstrained pushing by
2021, when a iNEXT is launched – wherever legislation allows it. And
formed on this, we will exercise – again entirely stretchable – levels 3 to
5 in a automobile range.


We are in a good position to comprehend all 4 enablers: HD real-time
mapping, sensor technologies, synthetic comprehension and environment
modelling, and suit control.


Over a final 10 years, we have grown a possess expertise. But we
are also partnering a world’s tip innovators.

Over a longer tenure however, reserve systems will no longer be
differentiators. State-of-the-art record will take reason worldwide.

That’s since some-more and some-more OEMs and TIER1s are fasten a open
height – that is apropos a core of value for unconstrained driving.


So, that was my refurbish on a Strategy NUMBER ONE NEXT
record campaign.


Thank you!