BMW Group and Daimler AG agree to combine mobility services

·       Automotive pioneers and innovation leaders to shape
sustainable urban mobility of the future

·       Strong alliance to create unique customer offering: seamless,
multimodal, fast and readily available

·       Ecosystem for on-demand mobility: single source for
CarSharing, Ride-Hailing, Parking, Charging and Multimodality

·       Sustainable solutions for challenges of urban mobility and
better quality of life in big cities

·       Joint-venture concept will ensure expansion of digital
business models at both companies

 

Munich/Stuttgart. The BMW Group and Daimler AG are
joining forces to offer customers a single source for sustainable
urban mobility services. The two companies today signed an agreement
to merge their mobility services business units. Subject to
examination and approval by the responsible competition authorities,
the BMW Group and Daimler AG plan to combine and strategically expand
their existing on-demand mobility offering in the areas of CarSharing,
Ride-Hailing, Parking, Charging and Multimodality. Each company will
hold a 50-percent stake in a joint-venture model comprising both
companies’ mobility services. The two companies will remain
competitors in their respective core businesses.

The aim of this transaction is to become a leading provider of
innovative mobility services. Both automotive manufacturers aim to
shape the mobility of the future to be able to offer their customers
unique experiences and support their partners, such as cities and
communes, in achieving sustainable urban mobility.

The partners intend to offer their customers a holistic ecosystem of
intelligent, seamlessly connected mobility services, available at the
tap of a finger. Together, the BMW Group and Daimler AG plan to grow
this new business model sustainably and enable rapid global scaling of
services. Working as partners, both companies are thereby addressing
the challenges arising from urban mobility and changing customer
wishes, and cooperating with cities, municipalities and other interest
groups to improve quality of life in major cities. The merger will
promote electromobility, for example, by offering electrified
CarSharing vehicles, as well as easy access to charging and parking
options. As a result, it will become even easier to experience and use
sustainable mobility services.  

“The BMW Group is shaping future mobility – and striking out in new
directions to do so. Our Strategy NUMBER ONE > NEXT provides the
BMW Group with a roadmap to a digital and emission-free future,” said
Harald Krüger, Chairman of the Board of Management
of BMW AG. “Combining our mobility services as planned will create a
unique digital ecosystem. This alliance will make it easier for our
customers to discover the emission-free mobility of the future. We
remain competitors when it comes to the best premium vehicles. The
planned merger of our mobility services will pool our resources and
sends a strong signal to our new competitors,” added Krüger.

“As pioneers in automotive engineering, we will not leave the task of
shaping future urban mobility to others. There will be more people
than ever before without a car who will still want to be extremely
mobile. We want to combine our expertise and experience to develop a
unique, sustainable ecosystem for urban mobility,” said Dieter
Zetsche
, Chairman of the Board of Management of Daimler AG
and head of Mercedes-Benz Cars. “At Daimler, we are vigorously and
systematically pursuing our transformation from automobile
manufacturer to provider of mobility services with our CASE strategy.
CASE stands for connectivity, automated driving, sharing &
services and electric mobility.”

“The future of mobility lies in cities: The key to more liveable
cities is in intelligent and seamless services that are easy to use
and combine sustainable modes of transport and mobility services,”
said Peter Schwarzenbauer, member of the Board of
Management of BMW AG, responsible for MINI, Rolls-Royce, BMW Motorrad,
Customer Engagement and Digital Business Innovation BMW Group. “The
pioneering work and commitment of the employees who provide our
services have laid a valuable foundation. I would like to thank them
very much indeed for all that they have done,” Schwarzenbauer continued.

“The sustainable mobility of tomorrow is flexible and connected – a
vision we share with our partner, the BMW Group,” explained
Bodo Uebber, member of the Board of Management of
Daimler AG, responsible for Finance & Controlling and Daimler
Financial Services. “Together, we can offer millions of customers
highly-attractive products and services to make their lives easier and
their environment a better place to live. The options offered by the
planned joint venture-concept will complement mobility services
offered by cities.”

The equally-owned joint venture model is designed to combine services
in the following five areas:

1)    Multimodal and on-demand mobility
with moovel and ReachNow: Intelligent and seamless
connectivity between different mobility offerings – including booking
and payment – will create significant added value for users. It will
also offer possible solutions for the challenges of urban private transport.

2)    CarSharing with Car2Go and DriveNow:

        Car2Go and DriveNow operate a total of 20,000 vehicles in 31
major international cities. CarSharing enables better utilisation of
vehicles and thus helps reduce the total number of vehicles in cities.
More than four million customers already use these CarSharing services.

3)    Ride-Hailing with mytaxi, Chauffeur Privé,
Clever Taxi and Beat:

With Europe’s largest taxi app, simply order a taxi or use a licensed
driver in France for a ride in the French metropolises. In total, 13
million customers and some 140,000 drivers are already using the
modern, practical and fast way of Ride-Hailing with mytaxi, Clever
Taxi and Beat or private hire vehicle service Chauffeur Privé.
Innovative offers such as mytaximatch, in which people not known to
each other share a taxi at a fingertip, make an important contribution
to reducing inner-city traffic by eliminating numerous individual
trips in the urban space.

4)    Parking with ParkNow and Parkmobile
Group/Parkmobile LLC:

Ticketless, cashless on-street parking or help finding, reserving and
paying for off-street parking in a garage. Innovative digital parking
services reduce the time and the amount of driving involved in finding
a parking space. This will reduce traffic significantly, as cars
searching for parking spaces currently account for around 30% of road traffic.

5)    Charging with ChargeNow and Digital Charging Solutions:

Easy access (incl. location, charging and payment) to the world’s
largest network of public charging stations with more than 143,000
charging points worldwide. Combined with parking privileges in cities,
this will support the expansion of electromobility, by helping people
get to know this drive technology and integrate it easily into their
mobility needs.

The formation of the joint venture will produce a significant
valuation and earnings effect at Daimler Financial Services. If the
approval of the competition authorities is received this year,
following adjustments will be made to the group outlook for Daimler
AG: The company expects EBIT for Daimler Financial Services to be
significantly higher than the previous year; for the Group as a whole,
this means EBIT is likely to be slightly higher than the previous year.

 

If approved by the relevant authorities in the course of this year,
the formation of the joint venture will trigger a one-time valuation
and earnings effect in the BMW AG’s group financial statement and thus
lead to an adjustment of the company’s guidance: Under these
circumstances, pre-tax earnings on Group level would increase slightly
in 2018 compared with the previous year. The valuation and earnings
effect would have no impact on the EBIT margin in the automotive segment.

The joint project is subject to examination and approval by the
respective competition authorities. The best-possible customer
experience is already the focus of both partners’ services. Therefore,
initially nothing will change for the millions of customers, with
existing services still being provided to the same extent and with the
same level of quality.

BMW Group

Glenn Schmidt

Head of Business and Finance Communications

Telephone: +49 89 382-24544

glenn.schmidt@bmwgroup.com

BMW Group

Max-Morten Borgmann

Business and Finance Communications

Telephone: +49 89 382-24118

max-morten.borgmann@bmwgroup.com

Daimler AG

Corporate Communications

Hendrik Sackmann

Telephone: +49 711 17-35014

hendrik.sackmann@daimler.com

Daimler AG

Corporate Communications

Silke Walters

Telephone: 49 711 17-40624

silke.walters@daimler.com

This document contains forward-looking statements that reflect our
current views about future events. The words “anticipate,” “assume,”
“believe,” “estimate,” “expect,” “intend,” “may,” “can,” “could,”
“plan,” “project,” “should” and similar expressions are used to
identify forward-looking statements. These statements are subject to
many risks and uncertainties, including an adverse development of
global economic conditions, in particular a decline of demand in our
most important markets; a deterioration of our refinancing
possibilities on the credit and financial markets; events of force
majeure including natural disasters, acts of terrorism, political
unrest, armed conflicts, industrial accidents and their effects on our
sales, purchasing, production or financial services activities;
changes in currency exchange rates; a shift in consumer preferences
towards smaller, lower-margin vehicles; a possible lack of acceptance
of our products or services which limits our ability to achieve prices
and adequately utilise our production capacities; price increases for
fuel or raw materials; disruption of production due to shortages of
materials, labour strikes or supplier insolvencies; a decline in
resale prices of used vehicles; the effective implementation of
cost-reduction and efficiency-optimisation measures; the business
outlook for companies in which we hold a significant equity interest;
the successful implementation of strategic cooperations and joint
ventures; changes in laws, regulations and government policies,
particularly those relating to vehicle emissions, fuel economy and
safety; the resolution of pending government investigations or of
investigations requested by governments and the conclusion of pending
or threatened future legal proceedings; and other risks and
uncertainties, some of which we describe under the heading “Risk and
Opportunity Report” in the current Annual Report. If any of these
risks and uncertainties materialises or if the assumptions underlying
any of our forward-looking statements prove to be incorrect, the
actual results may be materially different from those we express or
imply by such statements. We do not intend or assume any obligation to
update these forward-looking statements since they are based solely on
the circumstances at the date of publication.

 

The BMW Group

With its four brands BMW, MINI, Rolls-Royce and BMW Motorrad, the BMW
Group is the world’s leading premium manufacturer of automobiles and
motorcycles and also provides premium financial and mobility services.
The BMW Group production network comprises 30 production and assembly
facilities in 14 countries; the company has a global sales network in
more than 140 countries.

In 2017, the BMW Group sold over 2,463,500 passenger vehicles and
more than 164,000 motorcycles worldwide. The profit before tax in the
financial year 2017 was € 10.655 billion on revenues amounting to
€ 98.678 billion. As of 31 December 2017, the BMW Group had a
workforce of 129,932 employees.

The success of the BMW Group has always been based on long-term
thinking and responsible action. The company has therefore established
ecological and social sustainability throughout the value chain,
comprehensive product responsibility and a clear commitment to
conserving resources as an integral part of its strategy.

 

 

Daimler at a Glance

 

Daimler AG is one of the world’s most successful automotive
companies. With its divisions Mercedes-Benz Cars, Daimler Trucks,
Mercedes-Benz Vans, Daimler Buses and Daimler Financial Services, the
Daimler Group is one of the biggest producers of premium cars and the
world’s biggest manufacturer of commercial vehicles with a global
reach. Daimler Financial Services provides financing, leasing, fleet
management, insurance, financial investments, credit cards, and
innovative mobility services. The company’s founders, Gottlieb Daimler
and Carl Benz, made history with the invention of the automobile in
the year 1886. As a pioneer of automotive engineering, it is a
motivation and commitment of Daimler to shape safely and sustainably
the future of mobility: The Group’s focus is on innovative and green
technologies as well as on safe and superior automobiles that appeal
and fascinate. Daimler consequently invests in the development of
efficient drive trains with the long-term goal of locally
emission-free driving: from hightech combustion engines about hybrid
vehicles to electric drive trains powered by battery or fuel cell.
Furthermore, the company follows a consistent path towards intelligent
connectivity of its vehicles, autonomous driving and new mobility
concepts. This is just one example of how Daimler willingly accepts
the challenge of meeting its responsibility towards society and the
environment. Daimler sells its vehicles and services in nearly all the
countries of the world and has production facilities in Europe, North
and South America, Asia, and Africa. Its current brand portfolio
includes, in addition to the world’s most valuable premium automotive
brand, Mercedes-Benz (Source: Interbrand-Study „The Anatomy of
Growth“, 10/5/2016), as well as Mercedes-AMG, Mercedes-Maybach and
Mercedes me, the brands smart, EQ, Freightliner, Western Star,
BharatBenz, FUSO, Setra and Thomas Built Buses, and Daimler Financial
Services’ brands: Mercedes-Benz Bank, Mercedes-Benz Financial
Services, Daimler Truck Financial, moovel, car2go and mytaxi. The
company is listed on the stock exchanges of Frankfurt and Stuttgart
(stock exchange symbol DAI). With application of IFRS 15 and IFRS 9 in
financial year 2017, Group revenue would have amounted to €164.2
billion and Group EBIT would have amounted to €14.3 billion. Before
application of IFRS 15 and 9, Group revenue in 2017 amounted to €164.3
billion and Group EBIT amounted to €14.7 billion, as previously reported.

Original Press Release
Author:

Sustainable drive on the dream road: the MINI Countryman Panamericana Plug-In Hybrid.

Munich / New York. At the New York International Auto
Show (March 30 through April 8, 2018), MINI-style electro mobility
will conquer new terrain with the presentation of an exclusive model
specially designed for extremely challenging routes. With its
underpinnings taken from the brands first plug-in hybrid vehicle, the
MINI Countryman Panamericana has been designed for a long-distance
tour from North America to Tierra del Fuego, showcasing the power and
durability of the brand’s largest model.

Additional headlights, tires with emergency running
characteristics and a roof rack for transporting a spare wheel will
make the compact five-door fit for a road trip in a class of its own.
Based on the MINI Cooper SE Countryman ALL4 (fuel consumption
combined: 2.3 – 2.1 l / 100 km, combined power consumption: 14.0 –
13.2 kWh / 100 km, combined CO2 emissions from fuel: 52 – 49 g / km),
the combined power and versatility of its two engines make it the
perfect endurance athlete for the Panamericana adventure.

Three MINI Countryman Panamericana Plug-In Hybrid vehicles will
tackle the intercontinental route on the world’s longest north-south
road link. They will demonstrate the reliability and long-distance
performance of the Plug-In Hybrid drive technology used in the MINI
Cooper S Countryman ALL4.

The Plug-In Hybrid drive of the MINI Cooper SE Countryman ALL4
is an effective contribution to reducing CO2 emissions in road
traffic, even beyond urban environments. With a range of up to 40
kilometers, it can reach beyond the city limits and remain fully
electric on longer routes. The intelligently coordinated interaction
of the electric drive with the combustion engine combines the
possibility of local emission-free driving with the freedom of a long
range offered by a conventionally powered vehicle.

The Panamericana, also known as Pan-American Highway, Ruta
Panamericana or Interamericana depending on the region and language,
connects the US state of Alaska with the Argentinean Tierra del Fuego
and runs between the northernmost and the southernmost point over a
distance of about 25,750 kilometers. In both North and South America,
numerous intersections and alternative routes are part of the
Panamericana road network, covering a total length of more than 48,000
kilometers. In the border area between Panama and Colombia, a ship
passage is necessary to continue the journey, as an originally planned
section of about 90 kilometers in length, inter alia, to protect the
local rainforest area was not completed. The drive over the historic
dream road leads through diverse climatic zones, dense jungle and
challenging high mountain passes. In addition to well-developed
highways, gravel roads and narrow mountain passages are part of the
route network that the three MINI Countryman Panamericana Plug-In
Hybrids will have to cope with.

The MINI Cooper S Countryman ALL4 offers five full-size seats,
generous luggage space and numerous comfort features, ensuring an
enjoyable drive whatever the terrain. Its two engines generate a
combined system output of 165 kW / 224 hp. The precise control of the
interaction between the front and rear wheels with the electric motor
also ensures intelligent all-wheel drive. From rainy roads to sandy
surfaces, gravel tracks or snow-covered mountain passages, the MINI
Countryman Panamericana Plug-In Hybrid will tackle them all. Coverage
from the journey will be available through the MINI News Instagram
Channel at: www.instagram.com/mini.news
 

In case of queries please contact:



MINI Communications:

Matthias Bode, Communications MINI
Phone:
+49-89-382-61742, Fax: +49-89-382-28567
E-Mail: matthias.bode@mini.com

Andreas Lampka, Head of Communications MINI
Phone: +49-
89-382-23662, Fax: +49 89-382-28567
E-Mail: andreas.lampka@mini.com

Markus Sagemann, Head of Communications MINI, BMW
Motorrad
Phone: +49 89-382- 68796, Fax: +49
89-382-28567
E-Mail: markus.sagemann@bmw.de

 

The BMW Group

With its four brands BMW, MINI, Rolls-Royce and BMW Motorrad, the BMW
Group is the world’s leading premium manufacturer of automobiles and
motorcycles and also provides premium financial and mobility services.
The BMW Group production network comprises 31 production and assembly
facilities in 14 countries; the company has a global sales network in
more than 140 countries.

In 2017, the BMW Group sold over 2,463,500 passenger vehicles
and more than 164,000 motorcycles worldwide. The profit before tax in
the financial year 2016 was approximately € 9.67 billion on revenues
amounting to € 94.16 billion. As of 31 December 2016, the BMW Group
had a workforce of 124,729 employees.

The success of the BMW Group has always been based on long-term
thinking and responsible action. The company has therefore established
ecological and social sustainability throughout the value chain,
comprehensive product responsibility and a clear commitment to
conserving resources as an integral part of its strategy.

www.bmwgroup.com

Facebook: http://www.facebook.com/BMWGroup

Twitter: http://twitter.com/BMWGroup

YouTube: http://www.youtube.com/BMWGroupview

Google+: http://googleplus.bmwgroup.com

Original Press Release
Author:

A look back into the future: The classic Mini Electric.

Munich / New York. With the world premiere of an
extraordinary car at the New York International Auto Show (March 30 to
April 8, 2018), the British car manufacturer MINI once again
demonstrates its appetite for purely electric driving with a new take
on an icon.

The classic Mini Electric combines the historic look of the
world’s favorite small car with groundbreaking drive technology for
tomorrow’s urban mobility. With this unique vehicle, MINI sends out a
clear signal demonstrating its commitment to retaining the brand’s
unmistakable character whilst embracing innovative zero local emission technology.

The classic Mini Electric is the result of an imaginary journey
through time, where the story of classic model is extended by a
consecutive chapter. The original from the second half of the 20th
century becomes a sympathetic ambassador for environmental awareness
and a form of sustainable mobility whose future has just begun.

The urban electro mobility landscape will soon benefit from the
arrival of a brand new model, packed with charisma, individual style
and driving fun. The MINI Electric Concept was announced at the 2017
Frankfurt Motor Show, and paves the way for the brand’s first
all-electric vehicle which will be unveiled in 2019 – just in time for
the 60th anniversary of the classic Mini. The fully electric
production vehicle is currently in development, based on the MINI 3
Door, and will be produced for the first time at MINI Plant Oxford
next year.

MINI is once again assuming a pioneering role for sustainable
mobility within the BMW Group. In 2008, the brand presented the MINI E
– based on the predecessor model of the current MINI 3 Door, about 600
examples were produced and used in a field trial under everyday
conditions. This trail played a central role in paving the way for the
development of the BMW i3, which has enjoyed worldwide success since
2013 (combined power consumption: 13.6 – 13.1 kWh / 100 km, combined
CO2 emissions: 0 g / km).

On the way to a new era in electro mobility, MINI has already
taken another step forward. In the MINI Cooper SE Countryman ALL4
Plug-In Hybrid model (fuel consumption combined: 2.3 – 2.1 l / 100 km,
combined power consumption: 14.0 – 13.2 kWh / 100 km combined with CO2
emissions from fuel: 52 – 49 g / km), the combination of an internal
combustion engine with an electric drive provides a system output of
165 kW / 224 hp and an intelligent hybrid-specific all-wheel drive
system. The capable five-door model in the premium compact segment
guarantees driving pleasure on any terrain. The vehicles draws its
power from both engines for powerful acceleration, whilst retaining
the ability to drive at up to 125 km / h in purely electric mode. With
these qualities, the MINI Cooper S E Countryman ALL4 makes a
significant contribution to the global market success of the BMW
Group’s electrified vehicle fleet.

By contrast, the classic Mini Electric presented in New York
will remain unique. A late and carefully restored example of the
classic Mini Cooper serves as the basis for this special vehicle. The
exterior red paint is complemented by a contrast white roof and
characteristic bonnet strip, with the yellow MINI Electric logo in the
brand emblem and on the wheel hubs. The electric classic remains true
to the brand, both in terms of its visual appearance and driving
characteristics. The spontaneous power of its electric motor provides
a new dimension to the unmistakable go-kart feeling that helped propel
the British small car in its original form to worldwide popularity.

The BMW Group

With its four brands BMW, MINI, Rolls-Royce and BMW Motorrad, the BMW
Group is the world’s leading premium manufacturer of automobiles and
motorcycles and also provides premium financial and mobility services.

 The BMW Group production network comprises 31 production and
assembly facilities in 14 countries; the company has a global sales
network in more than 140 countries.

In 2017, the BMW Group sold over 2,463,500 passenger vehicles
and more than 164,000 motorcycles worldwide. The profit before tax in
the financial year 2016 was approximately € 9.67 billion on revenues
amounting to € 94.16 billion. As of 31 December 2016, the BMW Group
had a workforce of 124,729 employees.

The success of the BMW Group has always been based on long-term
thinking and responsible action.

 The company has therefore established ecological and social
sustainability throughout the value chain, comprehensive product
responsibility and a clear commitment to conserving resources as an
integral part of its strategy.

www.bmwgroup.com

Facebook: http://www.facebook.com/BMWGroup

Twitter: http://twitter.com/BMWGroup

YouTube: http://www.youtube.com/BMWGroupview

Google+: http://googleplus.bmwgroup.com

Original Press Release
Author:

BMW Motorrad under new leadership.

Munich. On 1 May 2018 Dr Markus Schramm will take
over as director of BMW Motorrad. He will succeed Stephan Schaller,
who left the BMW Group at the end of February 2018 to head up the
management team at Voith GmbH & Co. KGaA, in Heidenheim, Germany.
In the interim, BMW Motorrad was under the provisional management of
Hubert Kühner, Head of Finance, who is due to enter retirement in
April 2018.

Dr Markus Schramm (55) has been with the BMW Group since 1991 and is
currently responsible for corporate and product strategy planning. He
has previously held several management roles in Sales, Aftersales,
Strategy, Planning and Controlling. Schramm is a passionate
motorcyclist and marathon runner.

With over 90 years of expertise, BMW Motorrad is the most successful
manufacturer of premium motorbikes and maxi-scooters. Over the last
few years, a number of new models have brought significant growth to
the brand, making it the leader in the upper-range motorcycle segment
in markets around the world. Last year, BMW Motorrad delivered 164,153
motorcycles to customers worldwide, clocking up its seventh sales
record in succession. BMW Motorrad currently sells its products
through over 1,200 dealers and importers in 90 countries.

Original Press Release
Author:

Sustainable drive on the dream road: the MINI Countryman Panamericana Plug-In Hybrid.

Munich / New York. At the New York International Auto
Show (March 30 through April 8, 2018), MINI-style electro mobility
will conquer new terrain with the presentation of an exclusive model
specially designed for extremely challenging routes. With its
underpinnings taken from the brands first plug-in hybrid vehicle, the
MINI Countryman Panamericana has been designed for a long-distance
tour from North America to Tierra del Fuego, showcasing the power and
durability of the brand’s largest model.

Additional headlights, tires with emergency running
characteristics and a roof rack for transporting a spare wheel will
make the compact five-door fit for a road trip in a class of its own.
Based on the MINI Cooper SE Countryman ALL4 (fuel consumption
combined: 2.3 – 2.1 l / 100 km, combined power consumption: 14.0 –
13.2 kWh / 100 km, combined CO2 emissions from fuel: 52 – 49 g / km),
the combined power and versatility of its two engines make it the
perfect endurance athlete for the Panamericana adventure.

Three MINI Countryman Panamericana Plug-In Hybrid vehicles will
tackle the intercontinental route on the world’s longest north-south
road link. They will demonstrate the reliability and long-distance
performance of the Plug-In Hybrid drive technology used in the MINI
Cooper S Countryman ALL4.

The Plug-In Hybrid drive of the MINI Cooper SE Countryman ALL4
is an effective contribution to reducing CO2 emissions in road
traffic, even beyond urban environments. With a range of up to 40
kilometers, it can reach beyond the city limits and remain fully
electric on longer routes. The intelligently coordinated interaction
of the electric drive with the combustion engine combines the
possibility of local emission-free driving with the freedom of a long
range offered by a conventionally powered vehicle.

The Panamericana, also known as Pan-American Highway, Ruta
Panamericana or Interamericana depending on the region and language,
connects the US state of Alaska with the Argentinean Tierra del Fuego
and runs between the northernmost and the southernmost point over a
distance of about 25,750 kilometers. In both North and South America,
numerous intersections and alternative routes are part of the
Panamericana road network, covering a total length of more than 48,000
kilometers. In the border area between Panama and Colombia, a ship
passage is necessary to continue the journey, as an originally planned
section of about 90 kilometers in length, inter alia, to protect the
local rainforest area was not completed. The drive over the historic
dream road leads through diverse climatic zones, dense jungle and
challenging high mountain passes. In addition to well-developed
highways, gravel roads and narrow mountain passages are part of the
route network that the three MINI Countryman Panamericana Plug-In
Hybrids will have to cope with.

The MINI Cooper S Countryman ALL4 offers five full-size seats,
generous luggage space and numerous comfort features, ensuring an
enjoyable drive whatever the terrain. Its two engines generate a
combined system output of 165 kW / 224 hp. The precise control of the
interaction between the front and rear wheels with the electric motor
also ensures intelligent all-wheel drive. From rainy roads to sandy
surfaces, gravel tracks or snow-covered mountain passages, the MINI
Countryman Panamericana Plug-In Hybrid will tackle them all. Coverage
from the journey will be available through the MINI News Instagram
Channel at: www.instagram.com/mini.news

The BMW Group

With its four brands BMW, MINI, Rolls-Royce and BMW Motorrad, the BMW
Group is the world’s leading premium manufacturer of automobiles and
motorcycles and also provides premium financial and mobility services.

The BMW Group production network comprises 31 production and
assembly facilities in 14 countries; the company has a global sales
network in more than 140 countries.

In 2017, the BMW Group sold over 2,463,500 passenger vehicles
and more than 164,000 motorcycles worldwide. The profit before tax in
the financial year 2016 was approximately € 9.67 billion on revenues
amounting to € 94.16 billion. As of 31 December 2016, the BMW Group
had a workforce of 124,729 employees.

The success of the BMW Group has always been based on long-term
thinking and responsible action.

The company has therefore established ecological and social
sustainability throughout the value chain, comprehensive product
responsibility and a clear commitment to conserving resources as an
integral part of its strategy.

www.bmwgroup.com

Facebook: http://www.facebook.com/BMWGroup

Twitter: http://twitter.com/BMWGroup

YouTube: http://www.youtube.com/BMWGroupview

Google+: http://googleplus.bmwgroup.com

Original Press Release
Author:

Technical specifications of the new BMW i8 Roadster, the new BMW i8 Coupe, valid from 05/2018.

Do you need help? Please contact our support team from 9 to 17 CET via support.pressclub@bmwgroup.com.

PressClub Global · Article.

Wed Mar 21 11:53:00 CET 2018 Fact & Figures

Attached please find the technical specifications of the new BMW i8 Roadster, the new BMW i8 Coupe, valid from 05/2018.

Attached please find the technical specifications of the new BMW i8
Roadster, the new BMW i8 Coupe, valid from 05/2018.

Consumption and Emission Data.

BMW i8 Roadster: combined fuel consumption 2,0 l/100
km; combined electricity consumption 14,5 kWh/100 km; combined CO2
emissions 46 g/km.

BMW i8 Coupe: combined fuel consumption 1,8 l/100 km;
combined electricity consumption 14,0 kWh/100 km; combined CO2
emissions 42 g/km.

(Calculated in the EU test cycle, in combination with standard tyres).

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Wednesday, 21. March 2018.
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CO2 emission information.

The fuel consumption, CO2 emissions and operating range figures were determined according to the prescribed test procedure in the version applicable at the time of type approval (Regulation No 715/2007). The figures refer to a vehicle with basic configuration in Germany and considers the different sizes of the selected wheels/tyres.

Further information on official fuel consumption figures, specific CO2 emission values and the electric power consumption of new passenger cars is included in the following guideline: “Leitfaden über Kraftstoffverbrauch, die CO2-Emissionen und den Stromverbrauch neuer Personenkraftwagen” (Guideline for fuel consumption, CO2 emissions and electric power consumption of new passenger cars), which can be obtained from all dealerships, from Deutsche Automobil Treuhand GmbH (DAT), Hellmuth-Hirth-Str. 1, 73760 Ostfildern-Scharnhausen and at http://www.dat.de.

Original Press Release
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Original Press Release
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Statements and Presentation by Harald Krüger, Chairman of the Board of Management of BMW AG, and Dr Nicolas Peter, Member of the Board of Management of BMW AG, Finance, Annual Accounts Press Conference 2018

Harald Krüger

Chairman of the Board of Management of BMW AG (part I)

Ladies and Gentlemen,

Good morning and welcome! I’d like to start by talking about how I
view the BMW Group’s current position. I have been with this company
for 26 years. During this time, we have experienced many challenges
and trends, and undergone various transformations.

At the BMW Group, we have always managed to reinvent our business.
The same applies to the financial year 2017: We achieved all of our
targets. We delivered more than 2.4 million automobiles and over
164,000 motorcycles last year – a new all-time high.

The BMW Group is the clear number one in the premium segment – and
has been for the past 14 years. We aim to make 2018 our ninth record
year. For deliveries and revenues in the Automotive segment we are
again striving for new all-time-highs. I am certain: The BMW Group has
a promising future. This company will definitely be instrumental in
shaping future mobility.

There are four good reasons for this:

First: The success of
the BMW Group is based on its four strong brands: BMW, MINI,
Rolls-Royce and BMW Motorrad. They all stand for premium and luxury.
Customers all over the world value our products and services. This is
reflected in Fortune’s current ranking of the “World’s Most Admired
Companies”: The BMW Group is in the Top 20. We are not only the best
car company, but also the best European company in this well-known ranking.

Almost 90 percent of our vehicles are sold outside Germany. The
biggest model offensive in our history is currently in full swing. We
are now in phase two. We will be releasing another 20 new and revised
models this year.

In other words, a major offensive. You can see our new BMW design
language in highly-emotional products like the 8 Series models, the Z4
and the i8 Roadster.

Customers can also choose from a wide range of different drive
trains: From fully-electric and plug-in hybrid to highly-efficient
combustion engines.

Second: We will get
to know our customers even better and inspire them even more. We will
continue to put the customer at the heart of all we do. Our approach
is consistently customer-centric.

Third: The BMW Group
will lead the technological change. We will be setting new strategic
directions for this in 2018. Soon, we will be opening our campus for
autonomous driving outside Munich. Over the course of the year, we
will present a number of pure-electric concept vehicles that will all
go into series production, like: The first all-electric BMW – the iX3.
Our new technology flagship, the BMW iNEXT, the captivating BMW i
Vision Dynamics, which I just announced in Geneva as the BMW i4. We
will produce both the iNEXT and the BMW i4 in Germany. These models
are proof of our innovative strength. Last year alone, we invested
almost a billion euros more than in 2016. At the same time, we spent
nearly a billion euros more on research and development.

Fourth: The BMW Group
is operating at a totally different level of performance and global
presence than it did just a few years ago. Thanks to our financial
strength, we have the resources to manage the transformation towards
sustainable and digital mobility. To achieve this, we are enabling our
worldwide team. We have invested more than 2.5 billion euros in
vocational and professional training for our associates since 2009.
BMW Group associates all share a spirit to succeed. Every kind of
competition spurs us on.

Our future is definitely electric. With our electric vehicles and
plug-in hybrid models, we are already the clear number one in Europe.
Efficient Dynamics and our modern diesels will also play a role on the
road to sustainable mobility. Last year we sold fewer diesels in
Germany and the UK.

As you know, they produce less CO2 than petrol vehicles.
Despite this, we were still able to lower our CO2 emissions
in Europe to 122 grams per kilometre.

For us, sustainable mobility also includes production and the supply
chain: More than 80 percent of the electricity we purchase worldwide,
already comes from renewable energies. In Europe, we achieved
completely CO2-free production for the first time in 2017.
By 2020, we also plan this for our locations worldwide. BMW i shows
that: Our responsibility goes far beyond the car. We look at the
entire value chain.

Ladies and Gentlemen,

Experience has shown that in volatile times, leadership, financial
strength and a clear focus are more important than ever. Profitability
remains top priority. Strategy NUMBER ONE > NEXT is our roadmap for
future goals – including: Customer satisfaction. Innovative strength
for future mobility. And being an attractive company for young
talents. A perfect example of this is seen in China, where we were
voted the top employer across all industries.

Thank you!

 

Dr Nicolas Peter

Member of the Board of Management of BMW AG, Finance

Good morning, Ladies and Gentlemen, and a warm welcome.

Despite a volatile environment, the BMW Group achieved another record
year in 2017. We may not be participating in the space race, but once
again we deliver on our down-to-earth targets. For the eighth
consecutive year, the EBIT margin for our core business was within our
target range of 8-10%, at 8.9%. We achieved this despite spending
significantly more money on research and development in 2017 than ever
before. A company that delivers such a consistently high level of
performance like the BMW Group can continue to achieve many great
things in the future. Especially in these volatile times, innovation
is key. For this, it is essential to remain profitable, be steadfast
and have a consistent strategic direction.

Now let’s take a look at the business figures for last year. The
Group EBT margin for 2017 was 10.8%. This also underlines our
continuity: In each of the past seven years, we have consistently met
– or exceeded – our target of 10%. Group revenues climbed to 98.68
billion euros. This increase of 4.8% over the previous year largely
stems from higher volumes. Revenue development was dampened by
currency effects, however, mainly due to the weaker US dollar and
British pound.

Pre-tax earnings topped the 10-billion-euro mark for the first time –
reaching nearly 10.7 billion euros. This also reflects our strong
operating performance at Group level. This 10.2% increase is slightly
higher than we forecast at the start of the year, due also to high
positive effects in the financial result.

Most notably: The strong performance of our Chinese joint venture,
BMW Brilliance: Its earnings contribution increased by 124 million
euros to 631 million euros, driven by new models such as the BMW 5
Series and the X1. A tailwind of 183 million euros from new investors
acquiring a stake in the mapping service HERE. The lower tax rate of
18.3% was mainly due to remeasurement of deferred taxes as a result of
the US tax reform. Without this effect, the effective tax rate would
have been around the same level as last year. As a result, net profit
for the financial year 2017 reached over 8.7 billion euros. For the
coming years we continue to expect a tax rate of around 30%.

The BMW Group posted a very strong fourth quarter, despite a
significant increase in costs for future-oriented projects. Group
revenues rose by 4.3% to around 26 billion euros. Group earnings
before tax increased significantly to 2.17 billion euros. This
increase resulted from the positive development in our operating
business, solid earnings of our Chinese joint venture, and negative
valuation effects in the previous year in the other financial result.
Despite high upfront investments, the EBIT margin for the fourth
quarter was slightly above last year´s level, at 8.4%.

Ladies and Gentlemen,

If we want to be at the forefront of future developments, we need to
invest today. There is no standing still for us. On the contrary: We
are intentionally maintaining a very high level of investment. At 4.69
billion euros, Group capital expenditure for 2017 was almost a billion
euros higher than the previous year. We are expanding and modernising
our production network, be it in Germany, Mexico, the US, South Africa
or China. At the same time, we are investing heavily in the expansion
of our development locations worldwide.

Flexible architectures and the integration of electrified vehicles
into our existing production network will enable us to respond quickly
to changes in customer demand.

We have set up our own development campus for autonomous driving just
outside Munich, where we are working closely with strong partners from
the IT and supplier industries and other OEMs. And we are also
strengthening our expertise in battery-cell research, with investments
in the three-digit million-euro-range over the coming years.

The capex ratio for 2017 increased to 4.8%, reflecting the high
upfront investments. In 2018, we will continue to make major
investments to secure the future competitiveness of our locations
worldwide. We are therefore assuming a capex ratio of up to 5% for
this year. Research and development expenditure also rose
significantly in 2017, to 6.11 billion euros. This is almost a billion
euros higher than the previous year. The R&D costs recognised in
the income statement increased by 626 million euros year-on-year. In
addition to upfront investments in the development of flexible vehicle
architectures, this amount also includes preparations for new models
like the BMW X3 and M models.

The latest generation of our infotainment, communication and driver
assistance systems will be released onto the market in 2018. And of
course, we will continue to focus our efforts on further development
of our electric drive trains and autonomous driving.

The R&D ratio for 2017 rose to 6.2% and, as previously announced,
was therefore above our target range of 5 to 5.5%. Due to the high
upfront investments necessary for the second half of the model
offensive and new technologies, we expect the ratio for 2018 to be
between 6.5 and 7%.

In the following two years, it is likely to remain above our target
range, but lower than in 2018.

Despite these significantly higher upfront investments for future
technologies, the BMW Group met or exceeded all of its targets for the
financial year 2017.

Our shareholders will also benefit from these strong results. The
Board of Management and Supervisory Board will therefore propose a
dividend of 4.00 euros per share of common stock and 4.02 euros per
share of preferred stock for 2017. This will be the highest dividend
the BMW Group has ever paid in its history, with a total dividend
pay-out of 2.63 billion euros. As a result, 30.2% of our net profit
for the year will be paid out to shareholders.

Let’s now turn to the individual segments, starting with the
Automotive Segment. Our core business continued on its successful
course in 2017. Segment revenues increased slightly in 2017, as
forecast, to 88.58 billion euros. Adjusted for negative currency
translation effects, revenues rose by 3.9%, in line with deliveries.
The segment EBIT reflects our operating strength: In 2017, EBIT for
the segment reached a new all-time high of more than 7.86 billion
euros. The EBIT margin of 8.9% remained on a par with last year and
within our target range, as planned – despite the extensive upfront
investments for future projects. Unlike other manufacturers, our
margin encompasses only a portion of our very profitable operating
business in China.

In the operating income bridge, you can see the main effects that
contributed to the positive EBIT development for the year. Our new
models have been well received by customers. Volume and mix effects –
including the launch of the new 5 Series – had a positive impact.
Other operating income and expenses reduced earnings by 373 million euros.

This item mainly covers additions to provisions for legal disputes
and other litigation risks, which are not related to the cartel allegations.

Our forward-looking hedging strategy for currencies and commodities
is paying off. As expected, these effects produced a tailwind in the
low three-digit-million-euro range compared to 2016.

Other cost changes resulted in a negative effect of 370 million euros
– mainly due to the high research and development costs already
referred to and higher personnel costs. Significant improvements from
ongoing efficiency measures are partly compensating this. These
measures include constantly refining and streamlining our core
processes. We are also simplifying the structure of our product and
service offering. In this way, we were able to compensate overall for
the high level of spending on future-oriented projects in 2017.

Let us turn to the cash flow statement. Free cash flow in the
Automotive Segment remained strong in 2017, at 4.46 billion euros,
despite significantly higher investment. The level of investment will
increase again in 2018. However, due to the positive business outlook,
we expect to maintain a healthy free cash flow of more than three
billion euros for the current year.

Financial strength and flexibility are the hallmarks of the BMW
Group. These are the success factors that enable us to keep
independently charting our own course. The BMW Group’s liquidity
position remains very solid. At the end of the year, Group liquidity
totalled 14.5 billion euros. As a result, we are well prepared for
volatility in the financial markets, as well as political and economic
challenges. With sustained high profitability and solid finances, we
once again earned our investors’ trust in 2017. We continue to have
the second-highest rating of any car company worldwide.

That brings me to the Financial Services Segment, which relies on
having favourable access to the capital markets. Our Financial
Services business performed well in a highly competitive environment
in 2017.

The total number of new contracts with retail customers increased
slightly to 1.83 million contracts – with slight gains in credit
financing and a slight decrease in new leasing contracts. Leasing
accounts for about a third of our total new Financial Services business.

The total portfolio of financing and leasing contracts with retail
customers grew by 4.7% to around 4.93 million contracts. The
penetration rate of 46.8% was lower than the previous year – largely
due to regulatory limits on financing volumes in China. Pre-tax
earnings posted a slight year-on-year increase to 2.21 billion euros,
partly as a result of higher business volumes.

The risk situation for the entire segment portfolio remained stable
overall in 2017. The net credit loss ratio of 0.34% is still very low.
Residual value losses increased last year, as expected. This also
reflects the situation in the used-car markets in North America and
parts of Europe. As usual, we adjusted our residual value expectations
accordingly. These residual value risks are therefore fully covered
through our risk provisions.

Let’s move on to the Motorcycles segment, which performed very well
in 2017. The large number of new models boosted growth. For the first
time, deliveries increased to 164,000 motorcycles. The EBIT margin of
9.1% was within our target range of 8-10%. Pre-tax segment earnings
climbed above 200 million euros for the first time – a significant
increase of 10.8% over the previous year.

Intersegment eliminations, mainly of inter-segment profits between
the Automotive and Financial Services segments, reduced Group profit
by 528 million euros. This improvement over the previous year is
partly due to the lower volume of new leasing business in 2017.

In 2018, we expect the positive business development to continue in
all segments. The introduction of the new IFRS 15 accounting standard,
which is valid from 1 January 2018, will require a slight adjustment
of the comparative figures for the previous year for a number of our
KPIs. Our outlook for 2018 is therefore based on the adjusted figures
for 2017.

Let’s take a look at our key performance indicators in detail:

In 2018, we will set the course for continued growth. Despite
substantial upfront investments in future technologies and high
positive valuation effects in 2017, we are targeting Group earnings
before tax at least on par with the high level of the previous year.

In the Automotive Segment, we expect to achieve new all-time highs in
2018. As long as conditions remain stable, we should see a slight
increase in deliveries – from growth in China and the US, in
particular. Automotive Segment revenues should also increase slightly
in line with sales volume development. Despite strong headwinds, we
remain committed to keeping the EBIT margin within our target range of
8-10% in the Automotive Segment. This shows that we can combine a
clear focus on the future while having a high level of profitability.

In the Motorcycles Segment, thanks to its recently updated model
line-up, we anticipate a solid increase in deliveries in 2018. Here,
we also continue to target an EBIT margin of between 8 and 10%.

We expect another strong performance from the Financial Services
Segment this year. With growing capital requirements worldwide, return
on equity is likely to decrease slightly in 2018. Due to regulatory
requirements, we must continue to expand our equity base over the next
few years. We will therefore be targeting a return on equity of at
least 14% going forward. Our guidance assumes that economic and
political conditions will not deteriorate significantly.

The figures for 2017 confirm once again: The BMW Group has the right
foundation. Achieving this high level of profitability for eight years
in a row is no coincidence. It is the result of a strict orientation
towards performance and a clear strategic focus.

We are investing our profits in the future – and sending a clear
message to our customers. Our sustained high margins, financial
strength and consistency are also a signal for our current and future
investors. The BMW Group continues to follow its own path: focused,
determined and with a clear strategy. Thank you.

 

 

Harald Krüger

Chairman of the Board of Management of BMW AG (part II)

 

Ladies and Gentlemen,

Our guidance for 2018 clearly shows that: We are maintaining our
successful performance. It is our goal to create solutions and
innovations that inspire our customers. Strategy NUMBER ONE > NEXT
is the path to the BMW Group’s success over the long-term. It provides
a roadmap for our transformation towards sustainable and digital mobility.

On the one hand, we are focusing on operational excellence in our
core business and improving it.

On the other, we are making targeted investments in new technologies
and services. Everything we do, we want to do much faster. That is
very important to me and my colleagues on the Board. We are making
good progress with our strategy. You can see this in the decisions we
have made:

1.      On the market side.

2.      In our products, and

3.      In our services.

Let’s take a look at the first point:

The BMW Group has a decisive advantage in an ever more connected
world: We are a global company through and through – and extremely
flexible. We have 30 production sites in 14 countries. We are already
producing electrified models at ten locations worldwide. Next year we
will also begin producing the all-electric MINI at Oxford. Also in
2019, our plant in Mexico will start production. Mexico has one of the
most open trade policies in the world – and has benefitted from this.
Our new plant will produce for the global market.

We want to remain in a strong position to take advantage of
opportunities in individual markets. To achieve this, we are
increasing our footprint in all major market regions.

Here’s a brief look at our most important markets:

In the US, we
delivered more than 350,000 vehicles to customers last year. In 2018,
we expect to see slight growth. Spartanburg is our biggest plant. We
have invested almost nine billion euros in the site so far, with
another 600 million euros to follow between 2018 and 2021. Over 70
percent of the vehicles produced in Spartanburg last year were
exported. Most of those to China followed by Germany. According to the
US Department of Commerce, BMW Plant Spartanburg is the leading US
automotive exporter by value. We are proud to be responsible for
around 70,000 jobs in the US – including dealer network and suppliers.
The US is our second-largest purchasing market, with a volume of 4.7
billion euros. None of this would be possible without free trade.

China remains our
largest single market with more than 595,000 vehicles sold last year.
In China, we operate two car production plants and one engine plant.
In 2018, we are targeting solid growth there. Here are two examples of
how we are positioning ourselves in China: We are stepping up our
partnership with Brilliance as part of our joint venture and have
decided to build the new X3 in China, starting in mid-2018. This
high-volume vehicle will be the sixth localised model. The popular
long-wheelbase version of the new BMW 5 Series is now also available
as a plug-in hybrid. Chinese customers therefore have six different
electrified models to choose from. This gives us an excellent
foundation for the years ahead. We recently signed a “Letter of
Intent” for a further joint venture, with Chinese manufacturer Great
Wall Motor. In the future, we also plan to produce pure electric MINI
vehicles in China.

Now let’s move on to Europe: We sell more
vehicles in Europe than anywhere else: The total number for 2017 was
over 1.1 million. This year, we expect another slight increase in
sales. We invested more than six billion euros in our German locations
between 2012 and 2016. The UK will remain an important production
location for us – even after it leaves the European Union.

As you can see: All over the world, wherever the BMW Group does
business, we create jobs. We are part of local value creation and make
a definite contribution to the society at large.

And now to my second topic: Products.

The BMW Group leads the premium segment worldwide. We are striving to
lead in all segments, where we are present. In phase two of our model
offensive, we will be making a huge push, focusing on two aspects:
Luxury and X.

Over the next 18 months alone, we will be launching eight new models
in the highly-profitable luxury segment. This summer, the new BMW 8
Series Coupé marks the start of a completely new model series: With
the 8 Series Coupé, Convertible and Gran Coupé, as well as the three
corresponding M models. The new BMW X7 is extremely spacious and has a
magnificent presence. Customers in the US, Asia and Russia have been
waiting for a vehicle like this. We will begin producing the X7 in
late 2018. Rolls-Royce is the pinnacle of luxury and elegance. The
same applies to the new Phantom and the Cullinan, the first
ultra-luxury SUV.

2018 will also be our X YEAR. Customers love the new X3. This year,
we will begin building it in South Africa and China, in addition to
Spartanburg. The cool-looking X2 has been scoring top marks in the
fast-growing compact class since March. The new X4 is athletic from
top to bottom. It will be available in summer.

Our model offensive is also a drive train offensive. We are using
scalable modular kits for electrification. From 2020, we will be able
to fit all model series with any type of drive train. And there is
more to come: In 2020, BMW will launch the iX3. More on that soon at
the auto show in Beijing. 2019 will see the first pure electric MINI.
The first MINI plug-in hybrid – the Countryman – is already proving
very popular. As an urban brand, MINI is practically made for e-mobility.

The new BMW i8 Roadster and BMW i8 Coupé will be available starting
in May of this year. Both models come with fourth-generation BMW
eDrive technology. This will boost the electric range of these plug-in
hybrids by more than 40 percent. With the fifth generation of eDrive,
our vehicles will be able to drive 550 to 700 kilometres on electric
power, depending on the model. We will achieve this in the BMW i4 and
the iNEXT.

The BMW iNEXT is far more than just a car. By that, we mean it is a
future-proof, scalable modular system. It will enable the entire
company and all our brands in terms of technology, design and new
approaches. The iNEXT combines Autonomous Driving, Connectivity,
Electrification and Services.

I have set clear goals for sustainable mobility: More than 140,000
electrified vehicles sold this year. A total of half a million
electric vehicles and plug-in hybrids on the roads by the end of 2019.
25 electrified models, 12 of them pure electric, by 2025.

Now I would like to say a few words about diesel: Our diesels are
among the best in the world. That has been confirmed by independent
tests worldwide. Diesel is important for meeting CO2
targets. We believe banning diesel vehicles is the wrong approach. We
stand by our commitments from the Diesel Summit. We have promised our
leasing customers in Germany that we will take back our BMW diesels if
bans are introduced. Through this, we want to strengthen people’s
trust in our diesels. It would also be helpful if the discussion about
nitrogen oxides and particulate matter were based more on reality and facts.

Sustainable mobility and autonomous driving go hand in hand for us.
We will be launching autonomous driving in the iNEXT in 2021. That
means: We will technically master Levels 3 to 5. The system will be
fully integrated and safe. Our test fleet for Levels 4 and 5 will take
to the roads at the same time as the iNEXT. When it comes to
autonomous driving, safety is our absolute priority. This year, we
will double the size of our autonomous test fleet, to around 80 vehicles.

And now, to my third point: Mobility services.

At the start of the year, we took full ownership of DriveNow. We also
acquired Parkmobile LLC – making the BMW Group the largest
international provider of digital parking solutions. We now have all
the options we need for continued strategic development of our
mobility services. We want to be customers’ first stop for individual
mobility. We will build a customer base of 100 million active
customers by 2025. Our goal is to create a complete, all-inclusive
ecosystem for customers. The potential is huge – both for customers
and for our business success.

Despite the challenges and headwinds: We remain optimistic,
determined and fully focussed. We intend to make 2018 our ninth record
year. And as you know: We always deliver on our promises. In all areas
of our business, we are pushing forward at top-speed. Our future is
electric and connected. And the customer will always be at the heart
of everything we do.

Thank you.

Original Press Release
Author:

BMW Group stepping up the pace

Munich. The BMW Group is stepping up the pace in its
drive to shape tomorrow’s mobility. Two years after the launch of
Strategy NUMBER ONE > NEXT, the BMW Group intends
to increase upfront expenditure on research and development to an
all-time high in 2018, while at the same time remaining steadily on
course for a ninth record-breaking year in succession through
profitable, sustainable growth.

“Our industry is currently experiencing a phase of unprecedented
technological change. At the same time, however, it needs to cope with
the challenge of present-day volatilities. At the BMW Group, we think
in terms of opportunities and follow a clear strategy. Because the
future of mobility is created today. We are stepping up the pace in
2018 and targeting our ninth successive record year,” stated
Harald Krüger, Chairman of the Board of Management
of BMW AG in Munich on Wednesday.

Despite major changes impacting the mobility sector, the one
constant factor influencing the company’s strategic
decisions is fulfilling the needs of its customers.
“Their passion and excitement is at the core of our growth strategy,”
emphasised Krüger. “That is why the BMW Group offers
a unique range of products (from the BMW i3 to the Rolls-Royce
Phantom) and services (from customised financing to intelligent
mobility services), all of which contribute towards making our
customers’ lives easier. With this point in mind, we are on our way to
becoming a customer-focused mobility and high-tech company.”

In 2018, the broadest product initiative ever
undertaken by the BMW Group continues: With the market launch of the
BMW X2 in March, the ramping up of the BMW X3 at three production
sites and the new generation of the BMW X4, 2018 is sure to go down as
the “Year of X” for the world’s largest manufacturer
of premium vehicles. “We are bringing out completely new models and
introducing a new design language for the whole product range. This is
our recipe to ensure that the BMW brand regains pole position in the
premium segment by 2020,” Krüger stated. “We gave the
public a taste of these developments with the unveiling of the
BMW Concept M8 Gran Coupé at the Geneva Motor Show
and the series version will be presented in 2019.”

Strategic decisions will begin to bear fruit in 2018

Numerous strategic decisions, for which the BMW Group did the
groundwork at an early stage in conjunction with its Strategy
NUMBER ONE > NEXT, will begin to bear fruit in
2018. For instance, the acquisition of Parkmobile LLC
was announced in January, making the BMW Group the leading provider of
digital parking solutions. The acquisition of the car sharing joint
venture DriveNow closed in March. These two
transactions give the BMW Group control over a wide range of strategic
options for enhancing its range of mobility services in a field set to
make a crucial contribution to sustainable urban mobility going
forward. The BMW Group is aiming to have 100 million active
customers
by 2025.

In February, the BMW Group and the Chinese manufacturer Great
Wall
signed a letter of intent to establish a joint venture
for the local production of fully electric MINI
vehicles in China. This step is a further clear commitment to the
electrified future of the MINI brand and highlights the
importance of the Chinese market for the BMW Group.

At the Geneva Motor Show in early March, the BMW Group announced that
the BMW i Vision Dynamics, unveiled at the Frankfurt Motor Show in
2017, will be launched as the all-electric BMW i4 and
manufactured at the Munich plant. Today, the BMW Group already
manufactures electrified vehicles at ten production facilities. In
2019, Plant Oxford will join this list with the start of production of
the fully-electric MINI. The BMW i4 is just one of the
25 electrified models that the BMW Group intends to
bring to market by 2025. Half of these models will be
fully electric. Powered by the fifth generation of battery and
drivetrain technology, from 2021 the BMW Group will be capable of
offering all-electric vehicles with a range of up to 700 kilometres
and plug-in hybrids with an electrical range of up to 100 kilometres.

Upfront expenditure for tomorrow’s mobility at record level

Continuing progress in the field of electric mobility is a key reason
behind the BMW Group’s plan to allocate an increasing amount to
research and development in the current year. After a spend of € 6,108
million in 2017, upfront expenditure for tomorrow’s mobility will
increase significantly in the financial year 2018. Investment will
rise by a further high three-digit million-euro amount year-on-year,
primarily for the ongoing new model initiative as well as continued
work on e-mobility and autonomous driving. In absolute terms, the
amount could reach the 7 billion euro mark. The major scale of
investment reflects the BMW Group’s determination to play a leading
role in transforming the mobility sector with its future-oriented ACES
programme: Automated, Connected,
Electrified and Services.

Despite the cost of these wide-ranging activities, the BMW Group
expects Group profit before tax to be at least in
line with the record level reported for 2017. “We will need to remain
steadfast in 2018 in order to achieve our target of reporting another
year of record pre-tax earnings,” stated Nicolas
Peter
, Member of the Board of Management of BMW AG, Finance.
“But we are an ambitious company, constantly striving to improve the
efficiency of our business processes. We are reducing the complexity
of our range of products and services, rigorously bringing it into
line with the requirements of our customers. This provides us with the
necessary resources for future investments. As ever, our strategy is
driven by the desire to achieve long-term sustainable profitability.”

As part of its Strategy NUMBER ONE > NEXT, the
BMW Group is systematically expanding into market segments with high
rates of return in order to finance the similarly high levels of
upfront expenditure necessary to drive tomorrow’s mobility from a
position of underlying strength. Accordingly, the Group continues to
target an EBIT margin within a range of 8 to 10 per
cent for its Automotive and Motorcycles segments. Deliveries
to customers
are expected to rise slightly in the financial
year 2018, resulting in a corresponding slight increase in Automotive
segment revenues. The Motorcycles segment expects to
see solid growth in volume terms.

In 2017, the BMW Group delivered more than 100,000
electrified vehicles
to customers for the first time in a
single year, mainly driven by the performance of the all-electric BMW
i3, sales of which have risen every year since its market launch in
2013. Last year, the BMW Group accounted for more newly registered
electrified vehicles (all-electric + plug-in hybrid) than any other
manufacturer in Europe, with a share of 21 percent. The BMW Group
intends to grow sales of its electrified vehicles to at least
140,000 units
globally in 2018 and is targeting
more than half a million units on the world’s roads
by the end of 2019. “Our electric mobility strategy is having a
positive impact: the broad range of electrified models we now offer
enabled us to cut CO2 emissions across our EU fleet yet again in
2017,” CEO Harald Krüger pointed out.

This year, the BMW Group will also broaden its base for adding value
worldwide. Further investments are planned in the key regions of
China, the USA and Europe. Maintaining a strong local
presence
, particularly in the USA and China, is and remains
an essential prerequisite for being part of future growth in these regions.

New sales volume, revenues and earnings records in 2017

Automotive sales volume increased by 4.1% to a new
record level of 2,463,526 units in 2017 (2016: 2,367,603 units). With
its three premium automotive brands, BMW, MINI and Rolls-Royce, the
BMW Group asserted its position as the world’s leading manufacturer of
premium vehicles. Deliveries of electrified vehicles
jumped by 65.6% to 103,080 units, driven by the all-electric BMW i3
sales which have risen every year since the model’s market launch in
2013. The BMW Group intends to increase the sales volume of
electrified vehicles to at least 140,000 units in 2018 and bring more
than half a million electrified vehicles onto the roads by the end of 2019.

Group revenues rose to a new record level of € 98,678
million in 2017 (2016: € 94,163 million; +4.8%), with currency effects
slightly restraining growth. Profit before financial
result
(EBIT) rose by 5.3% to € 9,880 million (2016: € 9,386
million). Group profit before tax (EBT) went up
significantly year-on-year, partly helped by favourable valuation
effects, and – thanks to a 10.2% rise to € 10,655 million (2016:
€ 9,665 million) – finished the year for the first time above the
ten-billion-euro mark. As in the previous year, all three operating
segments – Automotive, Motorcycles and Financial Services – reported
record pre-tax earnings, each making a contribution to earnings growth
in 2017. The pre-tax return on sales (EBT margin) for
the Group improved to 10.8% (2016: 10.3%), ensuring that the BMW Group
remains one of the automotive industry’s leaders when it comes to profitability.

Income tax expense amounted to € 1,949 million in the
year under report (2016: € 2,755 million). The significantly lower tax
expense in 2017 was mainly due to the reduction in the US federal
corporate income tax rate from 35% to 21% with effect from 1 January
2018, which was taken into account in the measurement of deferred
taxes at 31 December 2017. The revaluation gave rise to a positive
impact of € 977 million on deferred taxes recognised through the
income statement. Group net profit benefitted
accordingly and rose to € 8,706 million (2016: € 6,910 million; +26.0%).

Free cash flow generated by the Automotive segment in
2017 again exceeded the target of € 3 billion despite an increase in
the cash outflow from investing activities by € 1.1 billion. During
the twelve-month period, free cash flow amounted to € 4,459 million
(2016: € 5,792 million).

Dividend of € 4.00 per share of common stock proposed

“A company is only as good as its workforce. With their exemplary
dedication, our employees are the driving force behind our success
story,” stated Krüger. “That is why, we pay our
permanent staff in Germany the highest profit share in the sector.” At
the Annual General Meeting on 17 May 2018, the Board of Management and
the Supervisory Board will propose to shareholders that the
dividend be increased to a new high of € 4.00
(2016: € 3.50) per share of common stock and € 4.02 (2016: € 3.52) per
share of preferred stock. The distribution rate of
30.2% (2016: 33.3%) will be within the BMW Group’s target range of
between 30 and 40%. “The proposal to raise the dividend by a
significant amount is a clear sign of the BMW Group’s confidence that
it is ideally placed to perform well in the future on a sustainable
basis,” said Krüger.

Consistently high profitability in Automotive segment

 

Automotive segment
revenues grew by 2.5% to € 88,581 million
(2016: € 86,424 million) on the back of positive sales volume figures.
EBIT improved slightly by 2.2% to € 7,863 million
(2016: € 7,695 million). The EBIT margin came in at
8.9%, unchanged from the previous year, thus finishing within the
target range of between 8 and 10% or higher for the eighth financial
year in a row since 2010. Segment profit before tax
increased by 9.8% to set a new record of € 8,691 million (2016:
€ 7,916 million).

In 2017, the Group again delivered over two million
BMW
brand vehicles to customers. Sales volume rose by 4.2% to
2,088,283 units year-on-year (2016: 2,003,359 units). The BMW
X family
remained a significant growth driver, with 9.6%
more vehicles delivered to customers – an excellent performance
considering the BMW X3 model change has been in
progress since the second half of the year. Following the completion
of the BMW 5 Series Sedan model change, December
sales of the world’s leading premium business sedan were more than 55%
up on the previous year, while sales volume for the year as a whole
grew by 6.3% to 291,856 units. Other models contributing to growth in
2017 included the BMW 1 Series (201,968 units;
+14.7%) and the brand’s flagship BMW 7 Series (64,311
units; +4.5%).

The MINI brand set a new sales volume record in 2017
with 371,881 deliveries worldwide and 3.2% year-on-year growth. Sales
of the new MINI Countryman jumped by 30.0% (84,441
units). The MINI Convertible also made an important
contribution to the brand’s successful performance, recording sales
volume growth of 12.0% (33,317 units).

Rolls-Royce Motor Cars delivered 3,362 units (-16.2%)
to customers in almost 50 countries around the globe. The figure was
achieved despite volatility in key Middle East markets and the Phantom
being unavailable throughout the year due to model change. The new
Phantom was unveiled to the acclaim of an international public in
London in July and has already received a large number of pre-orders.
First customer deliveries commenced at the beginning of this year.

The BMW Group remains committed to its strategy of achieving a
balanced distribution of sales worldwide.

The BMW Group again recorded high growth in Asia,
where a total of 848,826 BMW, MINI and Rolls-Royce brand vehicles were
sold, representing double-digit growth of 13.6% (2016: 747,291 units).
The Chinese market made a key contribution to this performance with
595,020 units delivered to customers (2016: 516,785 units; +15.1%).

In Europe, the BMW Group sold a total of 1,101,760
units across its three brands, thus remaining at the previous year’s
high level (2016: 1,092,155 units; +0.9%). The sales volume figure of
241,674 units for Great Britain was down on the previous year (2016:
252,205 units; -4.2%). Deliveries to customers in France increased to
89,957 units (2016: 84,305 / +6.7%). The sales volume also increased
in Italy with 86,663 deliveries (2016: 83,765 / +3.5%).

The Americas region saw a slight decrease in the
number of deliveries over the year as a whole (451,136 units; -2.0%),
with the limited availability of BMW X models having an impact on
volumes. In a highly competitive market environment, deliveries in the
USA dipped slightly to 353,819 units (2016: 366,493 units; -3.5%). In
the fourth quarter of 2017, however, a turnaround was perceptible in
both the USA (98,137 units; 2016: 96,609 units; +1.6%) and in the
Americas as a whole (124,547 units; 2016: 122,393 units; +1.8%).

Motorcycles segment deliveries surpass 150,000 units for the
first time

2017 was also a record-breaking year for the Motorcycles
segment
. Motorcycle and maxi-scooter deliveries rose by 13.2%
to 164,153 units (2016: 145,032 units), making it the seventh
consecutive record-breaking year and the first in which more than
150,000 units were sold. Segment revenues also rose
significantly to € 2,283 million (2016: € 2,069 million; +10.3%).
Similarly, EBIT improved to € 207 million (2016:
€ 187 million; +10.7%). As in the Automotive segment, the BMW Group is
also targeting an EBIT margin within a range of 8 to
10% in the Motorcycles segment. In the financial year 2017, the margin
came in at 9.1% (2016: 9.0%). Profit before tax
increased by 10.8% to € 205 million (2016: € 185 million).

 

Financial Services segment continues to break records

 

The Financial Services segment also continued to perform well in
2017. The number of new contracts concluded with
retail customers rose slightly to 1,828,604 contracts (2016: 1,811,157
contracts; +1.0%) during the twelve-month period. At 31 December 2017,
the contract portfolio comprised 5,380,785 contracts,
thus growing by 5.2% year-on-year (2016: 5,114,906 contracts).
Segment revenues were 7.3% higher at € 27,567
million (2016: € 25,681 million). Profit before tax
increased slightly to € 2,207 million (2016: € 2,166 million; +1.9%).

 

Increase in workforce and number of apprentices

 

The size of the workforce grew by 4.2% in 2017. At
31 December, the BMW Group employed 129,932 people worldwide (2016:
124,729 employees). Projects relating to vehicle electrification and
autonomous driving, as well as the continued expansion of the
international production network, played a major role in the
additional recruitment. Growth in automotive and motorcycle business
on the one hand and the expansion of financial and mobility services
on the other also contributed to the rise. The BMW Group continues to
place great emphasis on its trainee programme and has again invested
some € 350 million in basic and further training. Overall, more than
4,750 young people worldwide were employed in vocational
training
and training programmes for young talent at 31
December 2017.

 

Supervisory Board

At the Annual General Meeting to be held on 17 May 2018, the
Supervisory Board will propose that Prof. Dr. Reinhard Hüttl, Chairman
of the Executive Board of Helmholtz-Centre Potsdam – GFZ German
Research Centre for Geosciences, Dr. Karl-Ludwig Kley, Chairman of the
Supervisory Board of E.ON SE and Deutsche Lufthansa AG and Prof. Dr.
Renate Köcher, Director of Institut für Demoskopie Allensbach
Gesellschaft zum Studium der öffentlichen Meinung mbH, be re-elected
to the BMW AG Supervisory Board.

Furthermore, the Supervisory Board will propose to the shareholders
that Dr. Kurt Bock, Chairman of the Board of Executive Directors of
BASF SE, be elected to the Supervisory Board of BMW AG. In agreement
with the Supervisory Board, Dr. h.c. Robert Lane will resign effective
the end of the Annual General Meeting. The Supervisory Board would
like to thank Dr. h.c. Lane for several years of invaluable and
trusted cooperation.

The BMW Group – an Overview

2017

2016

Change in %

Deliveries to customers

       

Automotive

units

2,463,526

2,367,603

4.1

thereof: BMW

units

2,088,283

2,003,359

4.2

 MINI

units

371,881

360,233

3.2

 Rolls-Royce

units

3,362

4,011

-16.2

Motorcycles

units

164,153

145,032

13.2

 

 

 

 

Workforce
1

 

129,932

124,729

4.2

 

 

 

 

Automotive
segment EBIT margin

%

8.9

8.9

Motorcycles
segment EBIT margin

%

9.1

9.0

+0.1 % points

EBT margin BMW Group

%

10.8

10.3

+0.5 % points

Free cash flow Automotive segment

€ million

4,459

5,792

-23.0

 

 

 

 

Revenues

€ million

98,678

94,163

4.8

thereof: Automotive

€ million

88,581

86,424

2.5

Motorcycles

€ million

2,283

2,069

10.3

Financial Services

€ million

27,567

25,681

7.3

Other Entities

€ million

7

6

16.7

Eliminations

€ million

-19,760

-20,017

1.3

 

 

 

 

Profit before financial result
(EBIT)

€ million

9,880

9,386

5.3

thereof: Automotive

€ million

7,863

7,695

2.2

Motorcycles

€ million

207

187

10.7

Financial Services

€ million

2,194

2,184

0.5

Other Entities

€ million

14

-17

Eliminations

€ million

-398

-663

40.0

 

 

 

 

Profit before tax (EBT)

€ million

10,655

9,665

10.2

thereof: Automotive

€ million

8,691

7,916

9.8

Motorcycles

€ million

205

185

10.8

Financial Services

€ million

2,207

2,166

1.9

Other Entities

€ million

80

170

-52.9

Eliminations

€ million

-528

-772

31.6

 

 

 

 

Income taxes

€ million

-1,949

-2,755

29.3

Net profit

€ million

8,706

6,910

26.0

Earnings per share
2

 €

13.12/13.14

10.45/10.47

25.6/25.5

1 Excluding dormant employment contracts, employees in the
work and non-work phases of pre-retirement part-time working
arrangements and low wage earners

2 Earnings per share of common stock/preferred stock

For questions please contact:

Corporate Communications

Max-Morten Borgmann, Business and Finance Communications

Telephone: +49 89 382-24118, fax: +49 89 382-24418

Max-Morten.Borgmann@bmwgroup.com

Glenn Schmidt, Head of Business and Finance Communications

Telephone: +49 89 382-24544, fax: +49 89 382-24418

glenn.schmidt@bmwgroup.com

Internet: www.press.bmwgroup.com

E-mail: presse@bmw.de

The BMW Group

With its four brands BMW, MINI, Rolls-Royce and BMW Motorrad, the BMW
Group is the world’s leading premium manufacturer of automobiles and
motorcycles and also provides premium financial and mobility services.
The BMW Group production network comprises 30 production and assembly
facilities in 14 countries; the company has a global sales network in
more than 140 countries.

In 2017, the BMW Group sold over 2,463,500 passenger vehicles and
more than 164,000 motorcycles worldwide. The profit before tax in the
financial year 2017 was € 10.655 billion on revenues amounting to
€ 98.678 billion. As of 31 December 2017, the BMW Group had a
workforce of 129,932 employees.

The success of the BMW Group has always been based on long-term
thinking and responsible action. The company has therefore established
ecological and social sustainability throughout the value chain,
comprehensive product responsibility and a clear commitment to
conserving resources as an integral part of its strategy.

www.bmwgroup.com

Facebook: http://www.facebook.com/BMWGroup

Twitter: http://twitter.com/BMWGroup

YouTube: http://www.youtube.com/BMWGroupview

Google+: http://googleplus.bmwgroup.com

Original Press Release
Author:

BMW Group statement concerning the ongoing investigation by the public prosecutor’s office Munich

Munich. The BMW Group confirms that the Munich public
prosecutor has opened an investigation regarding a software update
which has been mistakenly allocated to around 11,400 BMW 750d and BMW
M550d vehicles. On 20 March, employees of the prosecutor’s office
searched two BMW Group locations in connection with the investigation.

As previously communicated, in the course of internal testing, the
BMW Group realized that a correctly developed software module had been
allocated in error to models for which it was not suited. Therefore
the BMW Group plans to recall 11,400 vehicles, for which a corrected
software will be made available as soon as it has been approved by the
relevant authorities.

All further steps are being taken in close co-operation with the
relevant authorities.

The BMW Group takes the situation very seriously and has a
significant interest in the circumstances being fully explained. The
company is co-operating fully with the authorities. In addition, the
company had already started an internal investigation and will
obviously forward all information gathered so far to the authorities.
The BMW Group continues to assume that the situation was caused by an
incorrect allocation of the software and does not represent a
deliberate attempt to manipulate exhaust emissions.

Many of the affected vehicles were initially sold with the correct
software and ran correctly for over two years. The incorrect software
was employed a significant time after these models originally started production.

If you have any questions, please contact:

 

BMW Group Corporate Communications

Max-Morten Borgmann, Business and Finance Communications,
Max-Morten.Borgmann@bmw.de

Phone: +49 89 382-24118

Glenn Schmidt, Business and Finance Communications,
Glenn.Schmidt@bmw.de

Phone: +49 89 382-24544

Media website: www.press.bmwgroup.com

Email: presse@bmw.de

 

 

The BMW Group

With its four brands BMW, MINI, Rolls-Royce and BMW Motorrad, the BMW
Group is the world’s leading premium manufacturer of automobiles and
motorcycles and also provides premium financial and mobility services.
The BMW Group production network comprises 30 production and assembly
facilities in 14 countries; the company has a global sales network in
more than 140 countries.

In 2017, the BMW Group sold over 2,463,500 passenger vehicles and
more than 164,000 motorcycles worldwide. The profit before tax in the
financial year 2017 was € 10.655 billion on revenues amounting to
€ 98.678 billion. As of 31 December 2017, the BMW Group had a
workforce of 129,932 employees.

The success of the BMW Group has always been based on long-term
thinking and responsible action. The company has therefore established
ecological and social sustainability throughout the value chain,
comprehensive product responsibility and a clear commitment to
conserving resources as an integral part of its strategy.

www.bmwgroup.com

Facebook: http://www.facebook.com/BMWGroup

Twitter: http://twitter.com/BMWGroup

YouTube: http://www.youtube.com/BMWGroupview

Google+: http://googleplus.bmwgroup.com

Original Press Release
Author: