Over 200 million tonnes: BMW Group sets ambitious goal to reduce CO2 emissions by 2030

BMW:Over 200 million tonnes: BMW Group sets ambitious goal to reduce CO2 emissions by 2030

  • RE:THINK, RE:DUCE, RE:USE, RE:CYCLE – BMW Group makes circular
    economy central theme of IAA MOBILITY 2021
  • “Neue Klasse”: “Secondary first” approach to development
  • Next-generation battery cells: Carbon footprint of high-voltage
    batteries to be reduced by half
  • CO2 goals for 2030 validated by Science-Based Targets Initiative
  • All production and locations to become completely net carbon
    neutral from 2021
  • At least 50 percent of global sales from fully-electric models by 2030
  • Zipse: “We want to play a pioneering role in the circular economy”

 

 

Munich. The BMW Group is underpinning its mission for
sustainable mobility with ambitious goals for the reduction of
greenhouse gases: At today’s Annual General Meeting, the company
announced that it will avoid emission of over 200 million
tonnes of CO2
by 2030. This is equivalent to more than
20 times the annual CO2 emissions of a city with
over a million inhabitants, like Munich. To achieve this, the BMW
Group is reducing its vehicles’ carbon footprint throughout
their lifecycle
– from raw material extraction, through
production and the use phase, to end-of-life recycling. Going forward,
using fewer resources will be one of the priorities.

“A climate-friendly car is not created solely by using green power.
We must design our vehicles for sustainability from the very first day
of development: reducing the amount of material used to manufacture
them and, above all, planning for reuse and recycling from the very
beginning. In the face of rising raw material prices, this is not just
an environmental, but also a business imperative,” said Oliver
Zipse
, Chairman of the Board of Management of BMW AG, at the
Annual General Meeting in Munich on Wednesday. “The technology for
this is extremely demanding: That is why we want to lead the way on
the circular economy and play a pioneering role. We are already
working on quotas for the use of secondary material in our “Neue
Klasse” that are both concrete and ambitious to meet our high standards.

RE:THINK, RE:DUCE, RE:USE, RE:CYCLE – BMW Group makes circular
economy central theme of IAA MOBILITY 2021

The BMW Group will highlight the future potential of
the circular economy for environmental and climate
protection at the IAA MOBILITY 2021 in September. The
company’s “RE:THINK, RE:DUCE, RE:USE, RE:CYCLE” approach provides a
holistic view of how the use of primary raw materials can be
drastically reduced in the cars of the future.

The BMW Group already plans to take sustainability to a radically new
level in its “Neue Klasse” models from the middle of
the decade by significantly reducing its
resource consumption per vehicle. The aim is to
substantially increase the percentage of secondary
material
, such as recycled steel, plastics and aluminium.
Faced with a shortage of natural resources and rising
raw material prices, the BMW Group sees this step as a crucial lever
for sustainable business practices and creating
a clear efficiency imperative.

To achieve this, the BMW Group has initiated a paradigm
shift
in development with its “secondary
first
” approach, i.e. using secondary material wherever the
quality and availability of materials allow.

 

Carbon footprint of high-voltage battery to be reduced by more
than half

The high-voltage battery plays a unique role in
this: The process of manufacturing the battery and producing battery
cells is extremely energy-intensive and therefore an
important factor in the carbon footprint of any electric car. With the
next generation of battery technology to be
introduced in the “Neue Klasse”, the BMW Group aims
to reduce the carbon footprint of the high-voltage battery to
less than half the baseline value for the current
Gen5 technology.

In addition to the shift to green power already
implemented by cell manufacturers, the new battery and cell
concept,
combined with enhanced cell
chemistry
, will also make a significant contribution. Another
factor is the growing percentage of secondary
material
in the battery cells and high-voltage battery as a
whole. The housing in the BMW iX* already contains up
to 30 percent secondary aluminium and up to 50
percent secondary nickel, which is a key raw
material, is used in the battery cell. At the same time, the BMW Group
has limited its use of critical raw materials in the current
generation of battery cells and reduced the amount of
cobalt in the cathode material to less than
ten percent
. The electric motor no longer requires
the use of rare earths
.

 

“Circular design” as basis for circular economy

Recycling needs are already considered in the vehicle
design – because extracting materials in a very pure
form is a central challenge for current recycling
processes
. For example, the electrical system must be easy to
remove, prior to recycling, to avoid mixing the steel with copper from
the vehicle’s wiring harness. Otherwise, the secondary steel no longer
meets the automotive industry’s strict safety
requirements
. The use of mono-materials
for instance, in seats – must be significantly increased to enable the
maximum amount possible to be fed back into the material cycle.

Another key aspect is efficient dismantling
capability
. For secondary materials to be
able to compete in the marketplace, the vehicle and
individual components must be dismantled quickly and cost-effectively
as a preliminary to recycling. The prerequisites for this must be put
in place when designing the vehicle – for example, by
not securing connections with adhesive, but designing them so they can
be detached again at the end of the vehicle life and ensuring
different materials are not mixed with one another.

 

CO2 reduction goals validated by Science-Based Targets
Initiative – entire production will become

completely
net carbon neutral from 2021

The BMW Group made sustainability and resource efficiency the focus
of its strategic direction in 2020 and, with this realignment, is
pursuing a much more ambitious course than the goal
of limiting the increase in global temperature to two degrees.
Throughout the vehicle lifecycle and all three scopes considered, the
BMW Group has set measurable and verifiable goals
that have since been validated by the
Science-Based Targets Initiative:

Topic

CO2 reduction up to 2030 (from
2019)

Equivalent climate goal

Production and
locations
Scope 1+2

-80% per vehicle

more ambitious than 1.5°C
goal

Supply chain
Scope 3
upstream

at least -20% per
vehicle

1.75°C goal

Use phase
Scope 3
downstream

more than -40%
per vehicle/km

within
target range of 1.5 –
1.75°C goal

Entire lifecycle
Scope 1-3

at least -33% per vehicle

within target range of
1.5 – 1.75°C goal

Each of these goals represents a substantive reduction in
emissions
– in other words, a real decrease in CO2 emissions
per vehicle. A key factor is that BMW Group production and all
locations have been sourcing 100-percent green power since the end of
2020. Starting this year, the BMW Group is also
offsetting
its remaining CO2 emissions (Scope 1+2) through
selected offsetting measures, which also cover
emissions from company cars and business trips, for example. This
means that, from 2021 on, the BMW Group’s entire production, including
all its locations worldwide, will be completely
net carbon neutral.

For the BMW Group, one thing is certain: Such measures are an
important factor in offsetting
the net impact of climate-damaging emissions –
however, they must not delay substantive measures that can deliver a
real reduction in emissions. For this reason, the BMW Group
only applies these measures for its remaining
carbon emissions that are still unavoidable –
for example, from the use of highly efficient co-generation plants.

 

“As far as the BMW Group is concerned: Avoiding comes before
offsetting. In this way, we have already lowered our energy
consumption per vehicle produced by more than a third from 2006 levels
and were even able to reduce the corresponding CO2 emissions per
vehicle produced by over 70 percent,” said Zipse.

The BMW Group is the first automotive manufacturer
to set itself concrete targets for reducing CO2 emissions in its
supply chain by 2030. In addition to the use of
green power for the energy-intensive production of fifth-generation
battery cells, further measures have been initiated – for example,
solar power will be used in the future for
production of aluminium, which is also highly
energy-intensive. The BMW Group is also investing in an innovative
method for carbon-free steel production, developed by
US startup Boston Metal, through its venture
capital fund, BMW i Ventures.

 

2030: At least 50 percent of global sales fully electric

A key driver for the decarbonisation of individual mobility and the
most important factor in reducing CO2 emissions during the use phase
will be the massive ramp-up of electromobility – which the BMW Group
has stepped up even more in recent years. The company will offer five
fully-electric models by the end of this year: the BMW i3*, the
MINI SE* and the BMW iX3*, as well as the two main innovation
flagships, the BMW iX* and the BMW i4*. These will be followed in the
coming years by fully-electric versions of the high-volume BMW 5
Series and the BMW X1. They will also be joined by the BMW 7 Series,
the successor to the MINI Countryman and other models. By 2023, the
BMW Group will have at least one fully-electric model
on the roads in about 90 percent of its current market segments.

Between now and 2025, the BMW Group will
increase its sales of fully-electric models by an
average of well over 50 percent per year –
more than ten times the number of units sold in
2020. Based on its current market forecast, the company also expects
at least 50 percent of its global sales to come from
fully-electric vehicles in 2030
. The actual figure may vary
significantly from market to market and will ultimately depend to a
large extent on how much progress is made in expanding charging
infrastructure at regional level.

At this point, there will no longer be any segment position in the
BMW Group’s entire product portfolio where the
company does not offer at least one fully-electric model. Individual
segments may, in fact, be served exclusively by fully-electric models.
The company will also be capable of handling a much larger percentage
of fully-electric vehicles if demand develops accordingly. In total,
over the next ten years or so, the BMW Group will release about
ten million fully-electric vehicles onto the roads.

Definition CE 04 – Electric production vehicle to be unveiled
this summer

BMW Motorrad is also expanding its range of electric
vehicles on two wheels for urban spaces: At #NEXTGen 2020, the company
shared a concrete vision of what a production vehicle that could soon
take one-track electromobility in cities to a whole new level, both
technically and optically, might look like, with the BMW Motorrad
Definition CE 04. The BMW Group will be presenting the corresponding
production model this summer.

*Consumption/emissions data:

BMW iX: Power consumption in kWh/100 km: 22.5-19.5
WLTP. Data are preliminary and based on forecasts.

BMW i3 (120 Ah): Power consumption
in kWh/100 km combined: 13.1 NEDC, 16.3-15.3 WLTP.

BMW i3s (120 Ah): Power consumption
in kWh/100 km combined: 14.6-14.0 NEDC, 16.6-16.3 WLTP.

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

BMW iX3: Power consumption in kWh/100 km combined:
17.8-17.5 NEDC, 19.0-18.6 WLTP.

BMW i4: This is a pre-production model, no
homologation figures are available yet. 

If you have any questions, please contact:

Corporate Communications

Max-Morten Borgmann, Communications Corporate, Finance, Sales

Telephone: +49 89 382-24118, Max-Morten.Borgmann@bmwgroup.com

Eckhard Wannieck, head of Communications Corporate, Finance, Sales

Telephone: +49 89 382-24544, Eckhard.Wannieck@bmwgroup.com 

Media website: www.press.bmwgroup.com

Email: presse@bmwgroup.com

 

 

 

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 15 countries; the company has a global sales network in
more than 140 countries.

In 2020, the BMW Group sold over 2.3 million passenger vehicles and
more than 169,000 motorcycles worldwide. The profit before tax in the
financial year 2020 was € 5.222 billion on revenues amounting to
€ 98.990 billion. As of 31 December 2020, the BMW Group had a
workforce of 120,726 employees.

The success of the BMW Group has always been based on long-term
thinking and responsible action. The company set the course for the
future at an early stage and consistently makes sustainability and
efficient resource management central to its strategic direction, from
the supply chain through production to the end of the use phase of all products.

www.bmwgroup.com

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

Twitter: http://twitter.com/BMWGroup

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

Instagram: https://www.instagram.com/bmwgroup

LinkedIn: https://www.linkedin.com/company/bmw-group/

Original Press Release

Statement and Presentation by Oliver Zipse, Chairman of the Board of Management of BMW AG, 101st Annual General Meeting of BMW AG in Munich on 12th May 2021

BMW:Statement and Presentation by Oliver Zipse, Chairman of the Board of Management of BMW AG, 101st Annual General Meeting of BMW AG in Munich on 12th May 2021

Good Morning to all our shareholders!

A very warm welcome from BMW Welt in Munich.

The Annual General Meeting is the most important event of the year
for us. It is where we answer to you – the owners of BMW AG – and show
you where your company is headed.

All members of the Board of Management and almost all the Supervisory
Board are here today – naturally in compliance with coronavirus
restrictions – as Dr Reithofer mentioned – and as a sign of our
respect for you.

BMW has a “WE” culture.

  • “WE” includes our customers; fans of BMW, MINI, Rolls-Royce
    and BMW Motorrad – all those who are the key to our success. Even in
    the year of the coronavirus, 2020, we delivered more than 2.3
    million vehicles to customers. That was only 8.4 percent less than
    in 2019.

I would therefore like to start by thanking all our customers
worldwide, who choose to buy our products and motivate us to do our
very best.

  • “WE” also refers to our associates – who share dedication,
    discipline and a tremendous passion for mobility. Together, we
    proved in 2020 that BMW can turn crisis into progress. On behalf of
    the entire Board of Management, I would like to thank each and every
    associate. It can be challenging working on the assembly line,
    wearing a mask, shift after shift. I’m sure, if we were in the
    Olympiahalle, all our shareholders would be applauding right now to
    show their appreciation.

We stand together – because that is our culture.
There might be
tough discussions sometimes between company managers and employee
representatives – but, at the end of the day, they always find the
best solution for BMW. That is something we learned from the
entrepreneur Herbert Quandt. He believed in BMW. He stepped in to
rescue the company in 1959, laying the foundations for our success.
This spirit lives on to this day. And we look forward to the next
generation carrying it together with us into the future.

  • “WE” includes our retailers and suppliers, whom we consider our
    partners, in whom we place our trust and who trust us.
  • “WE” also means you, Ladies and Gentlemen, our
    shareholders.
    You take the long term view, just like we do.
    This is our 101st Annual General Meeting. You give us stability and
    support – and so it is only natural that you should also share in
    our success.



The Board of Management and Supervisory Board propose a
dividend of 1.90 euros per share of common stock and  1.92 euros per
share of preferred stock for the financial year 2020. This is lower
than last year; however, we also earned less than last year: Our net
profit totalled 1.25 billion euros. The most important factor is the
payout ratio, which remains within our target range of 30 to 40
percent.

In good times and in bad, our dividend policy remains reliable – and
this year is no different.

Our employees have certainly earned their profit-sharing bonus for
2020. For 45 years, that has been the case, provided we are successful together.

Our “WE culture” also carries over to society – a society that
challenges us and asks:

  • How can you contribute to the common good?
  • How do your actions meet the needs of our global world?

You already know who we are:

We look far into the future and take bold, determined action in the
here and now.

This is the BMW road to 2050 – and I would like to describe this road
for you today.

The BMW Group is always focused on the future.

The most pressing question for you is: What are the prospects for
your company in a changing environment?

That is why I would like to begin my speech by looking ahead.

Technology is BMW’s core expertise – and that is why our approach is tech-forward.

We meet the requirements set by the global community with
technological innovations.

We believe in doing things our own way, like we have with Efficient
Dynamics since 2007 and the BMW i3 since 2013. To this day, the i3 is
the only electric car in the world with a sustainable 360-degree
approach. Our electro-offensive is another example.

Our capacity for innovation is rooted in our ability to implement and
scale highly complex requirements efficiently.

This physical industrialisation will retain its value to society even
in the digital age.

These days, technological progress comes from integrated interaction
between software, hardware and the customer experience – especially in
our industry, because the car is one of the most complex and most
sophisticated products there is.

Technology is the key to the future here.

One of the biggest and most important challenge for humanity
currently is effective climate protection.

This is another area where we can – and will – make a difference by
using technology in a targeted manner.

Climate neutrality unites people around the world; it touches our
lives and mobilises us.

The world’s three largest markets, Europe, the US and China, along
with other industrial nations, are firmly committed to climate neutrality.

The plans are ambitious, and the pace is getting faster.

At the BMW Group, we are already planning two steps ahead.

For us, AVOIDANCE comes before OFFSETTING.

We will use technology to avoid producing over 200 million tonnes of
CO2 by 2030.

That is 20 times more than a city with over a million inhabitants,
like Munich, emits in a year.

You know how ambitious BMW is.

Our goal for reducing our own CO2 emissions is more ambitious than
merely limiting the increase in global temperature to two degrees; in
some areas, it is even lower than the 1.5-degree goal.

We are only measuring ourselves against goals we can actually
achieve. That is why we joined the Science-Based Targets Initiative.

Our approach is holistic:

RE:THINK. RE:DUCE. RE:USE. RE:CYCLE.


That is also our core idea for the IAA MOBILITY in September and
the circular economy is our central theme.

How much energy do we consume?

How many resources?

What do we use them for?

Every business model will have to answer these questions in the future.

Humankind is still taking more than 100 billion tonnes of raw
materials out of the earth every year: This cannot work as a long-term solution.

Our electric cars are designed to be sustainable. This will be the
overall product of:

  • How efficiently we can create motion from electricity.
  • How consistently we can lower supply chain CO2 emissions.
  • How reliably we can avoid using so-called critical raw materials.
  • And how quickly and dramatically we can reduce our resource
    consumption as part of a circular economy.

The technology for this is extremely demanding, because a
climate-friendly car is not created simply by using green power.

We are completely rethinking our vehicles, from the very first moment
of their development.

The “NEUE KLASSE” is a radical new approach.

The name will be familiar to some of you, I’m sure.

BMW completely reinvented itself back in the early 60s.

BMW completely reinvented itself back in the early 60s.

Back then, our new mid-size models captured the spirit of the times –
fresh, dynamic and progressive.

Today, although the circumstances are different, we are once again
living through a time of change.

Now, by naming a whole vehicle generation the “NEUE KLASSE”, we are
once again sending a clear signal for the future and for the coming decades.

The “NEUE KLASSE” we will launch in 2025 is a radically new product
offering for the markets of the future.

Our combined know-how will go into this development, as well as
massive investment.

Electric. Digital. Circular.

That is what characterises the “NEUE KLASSE”.

It will bring a variety of very different and surprising vehicles.

It represents a decisive step in the transformation of your company
and includes a new vehicle architecture that is uncompromisingly
tailored to electric drive trains.

Our battery cells are not only powerful, safe and cost-effective –
they will also be recyclable.

The high-voltage battery is an important factor in the carbon
footprint of any electric car.

The next generation will reduce the battery’s carbon footprint by
half, compared to the current Gen5 technology.

One thing is clear: The situation in the global raw materials markets
will remain very difficult.

That’s why we are tying the “NEUE KLASSE” to a new efficiency imperative.

Instead of precious primary materials, we are using secondary
materials in our vehicles, such as recycled steel, plastics and aluminium.

I refer to this paradigm shift as “secondary first”.

We are creating a “NEUE KLASSE” for a new age and making your company
sustainable.

By 2030, we will reduce our carbon footprint per vehicle by at least
a third from 2019 levels.

This is not just an ambition or a vision; it is a binding target for
us, because attitudes are reflected in behaviour.

Long before the US elections, your company agreed on ambitious
climate goals with the State of California.

These are now being discussed with the Biden administration.

This is just one example of how we also act consistently in our
second home – in accordance with our convictions.

There will be no sudden U-turns from BMW.

This year, for the first time and as the first company in our
industry to do so, we are presenting an integrated report.

We are documenting our sustainable development and financial
indicators with equal weighting in a single report; both are subject
to the same degree of scrutiny.

Overall, our promise regarding e-mobility is: 80 – 40 – 20.

This is how we intend to reduce CO2 emissions per vehicle
throughout the entire lifecycle by 2030:

  • In production, by another 80 percent.
  • During the use phase, by over 40 percent.
  • In the supply chain, by more than 20 percent.
    Although
    CO2 emissions would actually increase significantly
    here due to the ramp-up of e-mobility.

Therefore our entire approach is holistic and implemented in
conjunction with our suppliers.
Take a look for yourselves.

BMW Annual Conference 2021 | Dr. Andreas Wend (Member of the Board of Management of BMW AG Purchasing and Supplier Network

Sustainability is like a jigsaw puzzle.

Together, the individual pieces create the perfect picture:

  • From 2021, production at all our locations will be net carbon neutral.
  • Our suppliers are using only green power to produce battery cells.
  • We have signed supply contracts for sustainable lithium from South America.
  • Half the aluminium for our light metal foundry in Landshut is
    produced using solar electricity from the desert outside of Dubai.
  • At the same time, we are working with the WWF to protect the deep
    seas and have pledged not to source minerals from deep-sea mining.

As you can see:

Your company is taking responsible action to create completely
sustainable mobility.

According to forecasts, e-mobility will continue to grow in leaps and
bounds from 2025.

That is why we are electrifying BMW faster than ever and our
production network is integrating electrification into the existing
plant structure.

Take a look at our e-mobility roadmap up to 2030:

  • We aim to deliver more than 100,000 fully-electric vehicles to
    customers in 2021 and currently have five electric models ready to go.
  • 2023 will be a tipping point for us, with 13 pure electric models
    on the roads that year. The number of vehicles is not the only
    criterion for us – so is the breadth of our product range: There
    will then be at least one fully-electric option for customers in 90
    percent of segments – from the compact class to the ultra-luxury
    segment. In fact, there are certain markets where demand could shift
    entirely to e-mobility in the next few years. We expect this to
    happen and we are prepared for it. Our customers can find the right
    model in their preferred segment. This is the way for us to gain
    market share and stay profitable.
  • By the end of 2025, we will have delivered around two million
    electric vehicles to customers – ten times more than in 2020.
  • In 2030, more than half the vehicles we sell worldwide will be
    fully electric. Over the next ten years, we will release a total of
    about ten million pure electric vehicles onto the roads.

Your company is growing and entering a new electric dimension.

How quickly this happens will also depend on charging infrastructure.
Everyone is asking how quickly it can be expanded: As far as I’m
concerned, it can’t happen quickly enough.

Right now, sales of electric cars are growing four times faster than
charging stations in Germany.

Individual manufacturers’ exclusive charging networks are of little
use in this respect.

Our charging station joint venture Ionity can be used by anyone for
high-power charging along motorways. By the end of the year, we will
have set up 400 charging stations with over 1,500 charging points.

E-mobility is a project for the whole of society.

If we do it right, it should become a flagship project for a
sustainable world – without having to make any sacrifices.

Let’s move on to the second topic:

We are laying the foundation for the BMW road to 2030 and beyond
right now.

Under the challenging conditions of the coronavirus pandemic, we
focused on two things:

  1. Steering the company with maximum flexibility and precision.
  2. Significantly upping the pace of our transformation.

You will remember that our last Annual General Meeting was held in
the middle of the global lockdown, a time full of uncertainty.

But the BMW Group never really stood still.

I promised you then that we were working on the best-possible restart
for your company – and, in fact, we did achieve our adjusted targets
for 2020.

  • Group earnings before tax of 5.2 billion euros.
  • An EBIT margin in the Automotive Segment at the high end of our
    adjusted target range: It already reached 7.7 percent in the fourth quarter.

In addition to this, our global market share increased during the
pandemic: from 2.9 percent in the first quarter of 2019 – i.e. before
the pandemic, to 3.3 percent in the first quarter of 2021.

2020 gave our electrified vehicles a real boost.

Sales of fully-electric vehicles were up 13 percent and plug-in
hybrids 40 percent – a combined increase of a third over the previous year.

Electrified vehicles accounted for 15 percent of our total European
sales last year.

We had, after all, made a binding commitment to meet the
European Union’s CO2 goals for 2020.

We delivered on that promise, with fleet emissions of 99.1 g
CO2 per kilometre. This means that we are significantly
below the limit value assigned to us.

We will do the same again this year.

You might think this would make high-performance models less
desirable, but BMW M GmbH had its best year ever in 2020.

BMW Motorrad presented 13 new models and reported the second-best
sales result in its history.

We also made your company even leaner and more efficient in 2020.

Let me give you two examples:

  1. We are reducing complexity, with fewer variants and fewer drive
    trains – keeping only those for which there is real demand: About
    half the current drive train variants will no longer be offered by 2025.
  2. We are qualifying our team for the transition to e-mobility,
    developing expertise and reallocating competences. That is what
    transformation looks like at BMW. More than 5,000 colleagues took
    advantage of voluntary severance packages. At the same time, 4,000
    new experts were hired in future areas of activity, heralding a
    phase of renewal.

We promised to take everyone along with us – and you can see this at
our oldest plant in the heart of Munich: Our main plant is going
electric and becoming state-of-the-art. Engine production is being
relocated to make room for a new assembly.

To summarise the year 2020 for BMW:

  • We dealt successfully with the effects of the pandemic.
  • We achieved solid Group earnings.
  • Our global business model is robust.

We have learned once again that everything is constantly in motion.

Many trends can be predicted; others cannot.

For this reason, we must continue to pull together in 2021.

 

  • We anticipate a solid year-on-year increase in automotive
    deliveries and aim to build on our pre-coronavirus level of around
    2.5 million vehicles.
  • Our earnings before tax are expected to increase significantly.
  • The EBIT margin in the Automotive Segment should be at the high
    end of the 6 and 8 percent range.

We already got off to a good start:

Our customers bought more vehicles than ever before in a first
quarter, especially in our largest market, China.

April was another strong month, with sales up more than 10 percent,
compared to the comparable figure for the pre-coronavirus year 2019.

The Automotive Segment delivered an EBIT margin of 9.8 percent in the
first quarter – back within our usual medium-term target range of 8 to
10 percent for the first time in ten quarters.

Our good start to the year is also reflected in the BMW share price,
with the price of our common stock up around 15 percent since the
start of the year alone (updated 7 May, +16.1%).

However, there is still a long way to go until the end of the year –
and there are still a number of risks: the course of the coronavirus
pandemic; difficulties with semiconductor supplies; the situation in
the raw material markets.

Risks are part of our business – and companies aim to grow in every environment.

Global companies also face an additional challenge.

Whether they are progressive or established, they need to identify
where markets are headed.

We are targeting the milestone of three million vehicles per year
well before the end of the decade.

Our aim is to achieve profitable growth within our target range.

I am confident we will succeed because our product portfolio is
perfectly suited to the current demographic and economic trends, with
the technology to meet varied demand for different types of drive train.

Our intelligent vehicle architectures show how good your company is
at integrating very different systems and requirements in an optimal manner.

Our plants produce different types of drive trains within a single structure.

BMW is global.

We serve 140 markets – and that’s why offer our customers exactly the
drive trains they ask for – because we do not want to miss out on any
market opportunities; because we are not on a consolidation course;
and because we have the expertise to master the complexity.

This is referred to in tech jargon as “flexible exchangeability”.

The popular BMW X3 already comes with four drive train variants,
including the fully-electric iX3 built in China.

The iX3 received the highest praise from German magazine Auto Motor
und Sport, beating all its rivals in a comparative test.

Now, we are ramping things up with the BMW X1 model series, the 5
Series, 7 Series and the MINI Countryman – all with a choice of drive
technologies. 

Technology openness pays off – as shown by the fact that BMW is the
global market leader in plug-in hybrids.

At the same time, we are conducting research into e-fuels and hydrogen.

Next year we will unveil a BMW X5 with a fuel cell drive. A small
series of the BMW i Hydrogen NEXT will show how we envision the
hydrogen drive train.

Ladies and Gentlemen,

Climate protection through technological innovations is not just an
exciting area of activity – it is also a lot of joy.

When we, the Board of Management, get to test and rate our vehicles,
we always try to be as neutral as possible.

But, truth be told, we are always absolutely thrilled by our products.

And I was very happy to see for myself that the media had big smiles
on their faces last week when they tested our fully-electric BMW i4.
Their feedback was extremely positive. We are delighted – but not surprised.

The i4 comes right from the heart of BMW.

Last year, it was the BMW i4 concept car standing here.

Today, it is the production model that will be available as of
autumn, along with our innovation and technology flagship, the BMW iX,
which really has it all: up to 600 km electric range, according to
WLTP, short charging times and an experiential interior. It represents
technology in its purest form – but you don’t see it and you don’t
feel it, because everything is intuitive:

We call this shy tech.

Check it out for yourselves!

BMW Annual Conference 2021 | Pieter Nota (Member of the Board of Management of BMW AG
Customer, Brands, Sales)

The i4 and iX offer the very best of electric driving pleasure.

They are also produced using domestic hydroelectric power from the
Isar and Lech rivers.

Our new sales approach will come into effect with the launch of the
i4 and iX.

Our Sales and Marketing team is digitalising the product and
purchasing experience so mobility can be experienced in digital form:
Configuration, ordering and delivery are all available digital and
contact-free in more than 60 countries already.

It is our firm belief that digitalisation should serve humankind.

And because we all just expect it to work, without being too obvious,
we are making the technology in our vehicles simple and precise. Shy
tech is designed to inspire our customers and make their lives easier.

Together with Apple, we developed the BMW Digital Key, the first car
key integrated directly into the iPhone.

In the BMW iX, the Digital Key Plus comes with ultra-wideband
technology, making it even safer and more convenient.

The iX is a digital powerhouse, with our most powerful data
processing system ever:

Our BMW Operating System 8 with 5G processes 20 times more data than before.

We developed it ourselves for the new BMW iDrive.

Our new operating system – the simplest and most secure in our
industry – connects people with their cars.

Third-party services can be seamlessly integrated – whether they are
from Apple, Google, Tencent or Spotify.

Our customers can be sure that their vehicles come with the very
latest technology, which we update in real time over the air.

Take a look for yourselves.

BMW Annual Conference 2021 | Frank Weber (Member of the Board of Management of BMW AG Development)

We are not only digitalising our vehicles, but also processes across
the company and in production.

Take our partnership with NVIDIA, the global market leader in
graphics cards:

Together, we are creating a virtual version of our production network.

Imagine each plant having a digital twin.

This makes our planning processes even more precise, faster and more efficient.

Standing here next to me is the fully-electric MINI.

Customers love it – and our order books are full.

It has been 20 years since the first MINI developed by BMW rolled off
the production line at Plant Oxford. 

Since then, we have built more than five million MINIs in the UK. I
actually spent two years in charge of production in Oxford myself, so
I am especially pleased to share with you today that MINI will be our
first all-electric brand.

MINI is perfect for the city and for e-mobility. We will be releasing
the last model with a combustion-engine variant in 2025.

By the early 2030s, the brand will be exclusively fully electric.

BMW Motorrad also went electric a long time ago. 

Our Definition CE 04 is also perfect for the city.

Its world premiere will be in summer.

We will have a lot more to show you at the IAA MOBILITY.

The Rolls-Royce team is also hard at work on a fully-electric
offering. Look out for that!

Dear Shareholders,

Electric. Digital. Sustainable. This is your company.

For a new age, when individual mobility will no longer be a climate factor.

We are making big plans:

Because we want to and because we can.

Because we have an obligation towards our customers – so they can
stay mobile.

Because we want the investment made by you, our shareholders, to
continue to be worthwhile.

And because we have an obligation towards the BMW Group, our unique
company with emotional, globally desirable brands.

Our long-term perspective is our way of making an effective
contribution to society.

We are looking far into the future and laying the foundation today
for the BMW road to 2050.

We hope you will continue to stand by us. Stay healthy – and thank
you for your attention.

Original Press Release

The MINI Convertible: the future is ready for it.

BMW:The MINI Convertible: the future is ready for it.

Munich. Electrification, the conquest of new target
groups and a consistent customer orientation are at the heart of the
realignment with which the British premium brand MINI is setting the
course for its future model range. Following the announcement of a new
generation of the brand’s purely electric small cars, another decision
has now been made: The success story of the MINI Convertible will be
continued. The development of a successor to the only open-top
four-seater in the premium small car segment is a done deal. The new
model is scheduled to be unveiled in 2025. “The MINI Convertible
has a large and particularly loyal fan base. This is also shown by the
great demand for the latest, freshly updated model,” says Bernd
Körber, Head of the MINI brand. “We are therefore firmly
convinced of the success of this vehicle concept for the future.”

With the new edition of the MINI Convertible launched a few weeks
ago, the brand’s typical open-air driving pleasure has gained even
more appeal. The clear and reduced design expresses the vehicle’s
extravagant charisma more intensively than ever – especially with the
body paint in the new Zesty Yellow variant available exclusively for
the MINI Convertible. In addition, the unmistakable design features of
the open-top MINI are showcased particularly effectively. The
hexagonal radiator grille is larger than ever, the standard LED
headlights have been redesigned as have the Side Scuttles, the black
wheel arch surrounds have been given new contours, and the rear lights
in the striking Union Jack design are now standard equipment

With its fresh look, new standard and optional equipment and
innovative operating system, the MINI Convertible continues a success
story that began some three decades ago. After the prototype at the
British Motor Show in Birmingham in 1992 had already caused
enthusiastic reactions from the public, a convertible version was
added to the classic Mini for the first time. And even after the
relaunch of the brand, fans did not have to do without open-top
driving fun in typical MINI style. Since 2004, the combination of
go-kart feeling and open-air fun has thrilled discerning target groups
all over the world. At times, MINI’s open-top four-seater was the
best-selling convertible in the world.

The current MINI Convertible is not only the original in its vehicle
class, but also a true one-off as the only open-top model in the
premium small car segment. Three equally powerful and efficient
engines with MINI TwinPower Turbo technology ensure driving pleasure
made to measure. The MINI John Cooper Works Convertible (fuel
consumption combined: 7.4 – 7.1 l/100 km according to WLTP, 7.4 – 7.1
l/100 km according to NEDC; CO2 emissions combined: 167 – 161 g/km
according to WLTP, 169 – 163 g/km according to NEDC), with its 170
kW/231 hp engine, makes the wind blow even more powerfully.

The MINI Convertible enjoys particularly great popularity in the
German car market, followed by the USA and Great Britain. Especially
in these countries, but also in many other regions around the globe,
the news of the planned continuation of the model history is likely to
cause a sensation. “Last year, almost one in five MINI customers
in Germany opted for open-top driving fun,” said Bernd Körber.
“This demonstrates the great enthusiasm of the MINI community for
a vehicle concept like this in the future.”

In case of queries, please contact:

Corporate Communications

Julian Kisch, Press Spokesperson Product
Communication MINI
Tel.: +49-89-382-38072
E-mail: julian.kisch@mini.com

Andreas Lampka, Head of Communication MINI
Tel.:
+49-89-382-23662
E-mail: andreas.lampka@mini.com

Jennifer Treiber-Ruckenbrod, Head of Communication MINI and BMW
Motorrad
Tel.: +49-89-382-35108
E-mail: jennifer.ruckenbrod@bmwgroup.com

Fuel consumption, CO2 emission figures and power consumption were
measured using the methods required according to Regulation VO (EC)
2007/715 as amended. They refer to vehicles on the automotive market
in Germany. For ranges, the NEDC figures take into account
differences in the selected wheel and tyre size, while the WLTP
figures take into account the effects of any optional equipment.

All figures are already calculated on the basis of the new WLTP
test cycle. NEDC values listed have been calculated back to the NEDC
measurement procedure where applicable. WLTP values are used as a
basis for the definition of taxes and other vehicle-related levies
that are (also) based on CO2 emissions and, where applicable, for
the purposes of vehicle-specific subsidies. Further information on
the WLTP and NEDC measurement procedures is also available at www.bmw.de/wltp can be found.

For further details of the official fuel consumption figures and
official specific CO2 emissions of new cars, please refer to the
“Manual on the fuel consumption, CO2 emissions and power consumption
of new cars”, available at sales outlets, from Deutsche Automobil
Treuhand GmbH (DAT), Hellmuth-Hirth-Str. 1, 73760
Ostfildern-Scharnhausen and at https://www.dat.de/co2/.

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 15 countries; the company has a global sales network in
more than 140 countries.

In 2020, the BMW Group sold over 2.3 million passenger vehicles and
more than 169,000 motorcycles worldwide. The profit before tax in the
financial year 2020 was € 5.222 billion on revenues amounting to €
98.990 billion. As of 31 December 2020, the BMW Group had a workforce
of 120,726 employees.

The success of the BMW Group has always been based on long-term
thinking and responsible action. The company set the course for the
future at an early stage and consistently makes sustainability and
efficient resource management central to its strategic direction, from
the supply chain through production to the end of the use phase of all products.

www.bmwgroup.com
www.press.bmwgroup.com/deutschland

Facebook: http://www.facebook.com/BMWGroup
Twitter:
http://twitter.com/BMWGroup
YouTube:
http://www.youtube.com/BMWGroupView
YouTube
https://www.youtube.com/MINI
Instagram:
https://www.instagram.com/bmwgroup
Instagram
https://www.instagram.com/mini.news
LinkedIn:
https://www.linkedin.com/company/bmw-group/

Original Press Release

BMW Motorrad expands equipment range for the R 18 and R 18 Classic.

BMW:BMW Motorrad expands equipment range for the R 18 and R 18 Classic.

Munich. The existing range of optional equipment and
the still growing range of Original BMW Motorrad accessories offer
many possibilities for customizing the R 18 and R 18 Classic according
to your own preferences. With the introduction of the Option 719
parts, BMW Motorrad is now adding features that enable highest-level
bike customisation based on historical roots. After all, the internal
code “719” at BMW Motorrad already stood for particularly
high-quality and exclusive special equipment, unusual special requests
and unique items decades ago. The new Option 719 parts will be
available from September 2021.

Option 719 Design Package AERO.
The Option 719
Design Package AERO includes the cylinder head covers on the left and
right, the front cover and the intake snorkel cover on the left and
right. All parts are made of aluminium sheet with a brushed,
colourless anodised surface. The cylinder head covers feature finely
wrought air vents reminiscent of the “streamliners” of the 1920s and
1930s. The highlight is a badge on the front and side covers: This is
made of solid copper which is chrome-plated and partially finished in
white. The white paint enclosing the number sequence “719” is
reminiscent of historical emblems that were typically lined with
enamel during that era.

Option 719 seat.

For the new R 18 and R 18 Classic, the Option 719 seat is a
particularly exclusive alternative to the standard seat. In addition
to the standard seat height, it offers integrated seat heating as well
as a fascinating material selection and finish. For example, two black
upper materials are used, which are combined with diamond-shaped
quilted embossing. An embroidered BMW logo and the 719 symbol on the
side round off this exclusive seat.

Option 719 Paint finish Galaxy Dust metallic/Titanium Silver 2 metallic.

The colour Galaxy Dust metallic is a flip-flop finish that
shimmers in a spectrum from violet to turquoise blue, depending on the
incidence of light. In addition, the many large effect pigments create
a unique visual effect when exposed to sunlight. This special finish
is combined with a Titanium Silver 2 metallic mirror on the fuel tank.
The transition between the two colour surfaces consists of a
hand-applied smoke effect familiar from the legendary R 90 S. In
addition, the mirror surface is surrounded by a classic white double line.

Option 719 Wheels AERO and ICON.

The two Option 719 wheel sets AERO and ICON in the basic colours
matt silver and matt black, respectively, provide a particularly
refined and technically sophisticated look. The cast alloy wheels
feature a six-spoke design. The milled filigree ribs of the spokes are
a real eye-catcher. The milled areas give the aluminium a fascinating
contrast with the paint colour of the wheels – hence the name Contrast Cut.

R 18 and R 18 Classic: Successful market launch with the First
Edition models.


BMW Motorrad entered the cruiser segment with the market launch
of the R 18 in September 2020, followed in February 2021 by the R 18
Classic, the second member of the new model series. The R 18 Classic
embodies the nostalgic tourer, echoing the beginnings of the big
cruisers suitable for touring. Compared to the very purist R 18, the R
18 Classic is characterised above all by the large windshield, the
pillion seat, the saddlebags, the LED auxiliary headlights and the
16-inch front wheel.

Both R 18 models are rooted in the tradition of historic BMW
motorcycles. Both technically and visually, they borrow from renowned
models such as the BMW R 5 and focus back on the essentials of the
motorcycle: purist, straight-up technology and the boxer engine as the
epicentre of riding pleasure, combined with “good vibrations”.

The very successful market launch of the BMW R 18 and the R 18
Classic was carried out with the First Edition models. Production of
these exclusive, limited-edition models will already cease at the end
of July 2021, after more than 13,000 units have been manufactured to date.

You will find press material on BMW motorcycles and BMW Motorrad
rider equipment in the BMW Group PressClub at www.press.bmwgroup.com.

In case of queries please contact:

Dominik Schaidnagel, BMW Motorrad Communications

Tel.: +49-89-382-50181, Dominik.Schaidnagel@bmw.de

Tim Diehl-Thiele, Head of Communications BMW Motorrad

Tel.: +49-89-382-57505, Tim.Diehl-Thiele@bmw.de


Jennifer Treiber-Ruckenbrod, Head of Communications MINI and BMW Motorrad

Tel.: +49-89-382-35108, Jennifer.Ruckenbrod@bmwgroup.de


Internet: www.press.bmw.de

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 motorbikes and also provides premium financial and
mobility services. The BMW Group production network comprises 31
production and assembly facilities in 15 countries; the company has a
global sales network in more than 140 countries.

In 2020, the BMW Group sold over 2.3 million passenger vehicles
and more than 169,000 motorbikes worldwide. The profit before tax in
the financial year 2020 was € 5.222 billion on revenues amounting to €
98.990 billion. As of 31 December 2020, the BMW Group had a workforce
of 120,726 employees.

The success of the BMW Group has always been based on long-term
thinking and responsible action. The company set the course for the
future at an early stage and consistently makes sustainability and
efficient resource management central to its strategic direction, from
the supply chain through production to the end of the use phase of all products.

www.bmwgroup.com

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

Twitter: http://twitter.com/BMWGroup

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

Instagram: https://www.instagram.com/bmwgroup

LinkedIn: https://www.linkedin.com/company/bmw-group/

Original Press Release

BMW M GmbH and Hans Zimmer co-develop the emotionally engaging driving sound for electrified BMW M models.

BMW:BMW M GmbH and Hans Zimmer co-develop the emotionally engaging driving sound for electrified BMW M models.

Munich.

The future of driving pleasure is electric, locally emission-free –
and characterised by a typically BMW sporting flair expressed not only
in dynamic talent, but also through an emotionally rich aural
experience. BMW IconicSounds Electric brings an unmistakable sound
portfolio to BMW models powered by a fully electric or plug-in hybrid
drive system. The collaboration between composer and curator Hans
Zimmer and Renzo Vitale, Creative Director Sound at the BMW Group, has
produced a distinctive driving sound which customers will soon be able
to experience in a version developed specially for electric BMW M
cars. “Every BMW has its own character, which is reflected in the
sound it makes,” says film music creator and Academy Award winner
Zimmer. “So for the electrically driven BMW M models we have developed
a driving sound which accentuates their emotional driving experience
particularly vividly and ensures their performance can be felt with
even greater intensity.”

Hans Zimmer had previously been involved in the development of an
inspiring ready-to-drive sound for electrically powered BMWs which
instils a sense of excitement at the prospect of electric driving when
the Start/Stop button is pressed. The latest chapter in this
collaboration covers drive sounds for the BMW iX and BMW i4, including
a differentiated sound for the M-specification version of the BMW i4.

While the hush of electric driving offers an unprecedented level of
comfort, the driving experience loses a degree of emotionality. This
is where BMW IconicSounds Electric steps in to put smiles on the faces
of customers keen to experience Sheer Driving Pleasure with all the
senses. In the future, electric driving pleasure will be enhanced by
acoustic feedback to every movement of the accelerator. Like the
on-board driving modes selectable at the touch of a button, the
driving sound also takes its cues from the driving situation at hand
and the driver’s personal preferences. In the basic setting, BMW
IconicSounds Electric employs a strikingly transparent timbre with
spherical components to convey the basic character of an electrically
driven BMW brand model. An immersive and pleasant atmosphere is
created initially in the BMW i4 in COMFORT mode. But when the driver
steps on the accelerator, the direct relationship between how the car
is being driven and the sounds it makes is immediately revealed: the
sound experience deepens as load and speed increase. In SPORT mode, in
particular, the car’s aural spectrum is more dominant and powerful,
the sound providing a constant commentary on the driving situation.
Drive system processes are registered within milliseconds and
acceleration, load changes or recuperation given a suitable acoustic
accompaniment. Only when the vehicle is travelling in ECO PRO mode is
the acoustic feedback reduced to nothing. Here, the silence of the
drive system underscores the driver’s decision to adopt an
ultra-efficient driving style.

In the version developed specifically for electrified BMW M models,
the drive sound of the BMW i4 is charged with extra energy. Added to
which, the differentiation between COMFORT and SPORT mode is
especially strong. Overall, the drive system note displays a less
harmonious but engagingly rousing and technical sonic profile.
Acceleration sparks a rich intensification of the soundtrack’s
development, authentically reflecting the car’s performance character.
“When you press the pedal of an M car, you suddenly get goosebumps all
over your body,” says sound designer Renzo Vitale. “We translated this
feeling into a drive sound that expresses a fusion of superior power
and flowing energy.”

Hans Zimmer and Renzo Vitale had already co-developed the driving
sound for the BMW Vision M NEXT revealed in 2019 and the BMW Concept
i4 presented the following year. Numerous learnings from this creative
process have now been channelled into the design of the sound for
future series-produced vehicles.

The new drive sounds developed as part of the collaboration with Hans
Zimmer are expected to feature in the BMW i4 and BMW iX over the
course of 2022. IconicSounds Electric comes as standard in the BMW iX
and can be specified as an option for the BMW i4. In cars with earlier
build dates, the new sounds can be imported retrospectively via Remote
Software Upgrade, should the customer wish. The new spectrum includes
one ready-to-drive sound and one stop sound, plus a driving sound
which will be made available in the relevant version for BMW models
and BMW M cars with electrified drive system.

Original Press Release

Maximilian Günther reaches fifth position in Monaco as best-placed German driver.

BMW:Maximilian Günther reaches fifth position in Monaco as best-placed German driver.

Monaco. In the seventh race of the season in the ABB FIA
Formula E World Championship, Maximilian Günther (GER) crossed the
finish line fifth in his adopted country, Monaco (MON). He just
missed out on the podium but equalled the best result of the season
and scored ten important points in the overall standings. After a
tight, thrilling race, Günther missed out on second place by just
four-tenths of a second in the #28 BMW iFE.21. Having won the
Valencia E-Prix (ESP), Jake Dennis (GBR) suffered back luck this
time. A not-at-fault collision early in the race put him at the back
of the field and he was unable to score any points. With the first
half of the season completed, BMW i Andretti Motorsport is now in
fifth place in the team standings with 55 points.

Günther finished third in qualifying to reach Super Pole where he
secured fifth position on the grid. The BMW i Andretti Motorsport
driver was involved in some close-fought duels on the Formula 1
circuit in the principality. He moved up as high as third place and
was battling for his first podium finish of the season. Günther fell
back to fifth place as drivers attempted to get their ATTACK MODE
timings right, but sound energy management gave him the opportunity to
make up some ground towards the end of the race. A minor collision saw
Günther’s chance of a podium finish disappear however, when Oliver
Rowland (GBR, Nissan) clipped him from behind in the port chicane.
Victory went to António Félix da Costa (POR, DS Techeetah).

Dennis’ first race in Monaco, and the first after his maiden Formula
E victory in Valencia, did not go according to plan. Starting from
14th on the grid, he was involved in a not-at-fault
accident on the very first lap and dropped to the back of the field.
He subsequently also received a drive-through penalty for excessive
energy use. Dennis finished the race in 16th place in the
#27 BMW iFE.21.

The FIA Formula E Safety Car, the MINI Electric Pacesetter inspired
by JCW, pulled the field back together around 15 minutes before the
end after René Rast (GER, Audi) had retired, ensuring that there would
be plenty of excitement in the final stage of the race.

Races eight and nine of this season’s ABB FIA Formula E World
Championship take place on 19th and 20th June in
Puebla (MEX).

 

Reactions to Race 7 in Monaco.

 

Roger Griffiths (BMW i Andretti Motorsport Team Principal,
team standings: 5th place):

“It was fantastic to be back here in Monaco and race on the full
track. It’s been a day of mixed fortunes for our two drivers. Fifth
place for Maximilian after P5 in qualifying is a very good result.
It’s important for him to be back in the points and it’s also a good
finish for the team. Unfortunately for Jake it wasn’t the strong
result we had hoped for after such an impressive weekend in Valencia.
We go into the six-week break now and look forward to continuing our
progression up the standings.”

Maximilian Günther (#28 BMW iFE.21, starting position:
5th place, race result: 5th place, points: 22,
driver standings: 16th place):

“First of all P5 was a good start position for us. The race itself
was very spectacular and very strategic. When do you take the ATTACK
MODE, when do you use energy? Every overtaking move was right on the
edge. At one point I was running in P3 but then after the ATTACK MODES
I ended up in P5 fighting with Jean-Éric Vergne. He slightly touched
me in turn 6 and then had the better run through the tunnel to
overtake me. To sum it up, a bit of a shame to have missed the podium
here, but we had a good race and scored good points. That was
important for everybody.  All in all it was a positive day in Monaco.”

Jake Dennis (#27 BMW iFE.21, starting position:
14th place, race result: 16th place, points:
33, driver standings: 10th place):

“My race was a bit unfortunate. I was in the middle of the pack and
there was a backlog into turn 7. As I got hit, the car flipped into
reverse gear and I lost a lot of time. After that we managed the race
and hoped for a safety car. It came out towards the end but it just
wasn’t enough to gain a lot of positions. I think the biggest thing we
can take away from here is that we learned the track in Monaco. The
performance wasn’t that bad. It is what it is and we move on now.”

 

The FANBOOST vote.

FANBOOST gives Formula E fans the opportunity to vote for their
favourite driver and award them an extra boost of power during the
race. The five drivers with the most FANBOOST votes receive an extra
100 kJ of power, which they can make use of during a brief time frame
in the second half of the race. Fans can vote for their favourite
driver in the four days prior to, and leading up to 15 minutes into,
each race. Each fan can vote once per day. There are two ways to vote:
Online at https://fanboost.fiaformulae.com/
or via the official Formula E App.

 

The BMW Group Safety Cars.

The BMW Group has been represented in the ABB FIA Formula E
World Championship as ‘Official Vehicle Partner’ since the very
beginning and will continue to provide the fleet of safety cars for
season 7 of the fully-electric racing series. Alongside the BMW i8
Roadster Safety Car (fuel consumption (combined): 2.0 l /100 km;
energy use (combined): 14.5 kWh /100 km; combined CO2
emissions: 46 g/km)*, which has been modified specially for racing
use, the MINI Electric Pacesetter inspired by JCW appears as a new
safety car since the Rome E-Prix. The development of the car based on
the new MINI Cooper SE represents a hitherto unique collaboration
between MINI Design, BMW Motorsport, the FIA and Formula E. The fleet
also includes the BMW i3s (Power consumption in kWh/100: 14.6-14.0
(NEDC); 16.6-16.3 (WLTP), electric range in km: 278-283 (WLTP))* as
‘Race Director Car’ and the BMW iX3 (Power consumption in kWh/100:
17.8-17.5 (NEDC); 19.0-18.6 (WLTP), electric range in km: 450-458
(WLTP))* in its roles as ‘Medical Car’ and ‘Rescue Car’.

*Offizielle Angaben zu Kraftstoffverbrauch, CO2-Emissionen und
Stromverbrauch wurden nach dem vorgeschriebenen Messverfahren
ermittelt und entsprechen der VO (EU) 715/2007 in der jeweils
geltenden Fassung. Angaben im NEFZ berücksichtigen bei Spannbreiten
Unterschiede in der gewählten Rad- und Reifengröße, im WLTP jeglicher
Sonderausstattung. Für die Bemessung von Steuern und anderen
fahrzeugbezogenen Abgaben, die (auch) auf den CO2-Ausstoß abstellen,
sowie ggf. für die Zwecke von fahrzeugspezifischen Förderungen werden
WLTP-Werte verwendet. Aufgeführte NEFZ-Werte wurden ggf. auf Basis des
neuen WLTP-Messverfahrens ermittelt und zur Vergleichbarkeit auf das
NEFZ-Messverfahren zurückgerechnet. Weitere Informationen zu den
Messverfahren WLTP und NEFZ finden Sie unter www.bmw.de/wltp.
Weitere Informationen zum offiziellen Kraftstoffverbrauch und den
offiziellen spezifischen CO2- Emissionen neuer Personenkraftwagen
können dem ‘Leitfaden über den Kraftstoffverbrauch, die CO2-
Emissionen und den Stromverbrauch neuer Personenkraftwagen’ entnommen
werden, der an allen Verkaufsstellen, bei der Deutschen Automobil
Treuhand GmbH (DAT), Hellmuth-Hirth-Str. 1, 73760
Ostfildern-Scharnhausen, und unter https://www.dat.de/co2/
unentgeltlich erhältlich ist.

Original Press Release

Statement Oliver Zipse, Chairman of the Board of Management of BMW AG, Conference Call Interim Report to 31 March 2021

BMW:Statement Oliver Zipse, Chairman of the Board of Management of BMW AG, Conference Call Interim Report to 31 March 2021

Good morning, Ladies and Gentlemen.

The BMW Group is a global company.

We leveraged this strategic strength both during the financial year
2020 and in the first quarter of 2021.

When the market situation is difficult in individual regions of the
world, the other markets carry us through.

Since the start of the pandemic, we have done everything possible to
create a safe working environment for our employees. We also offer
safe and contact-free delivery of vehicles to customers.

In more than 60 markets we have set up Mobile Sales Offices. Our new
Customer, Brands and Sales System is taking advantage of the momentum
and growing acceptance of digital services that has been building over
the past year.

Our strong results underline the viability of our business model –
even during one of the worst crises the global economy has faced. It
is robust, in demand all over the world and full of innovations.

In many areas, we have picked up the pace once again.

I would like to give you a brief overview, focusing on three main points:

  1. We are on course for growth – and we are growing profitably.
  2. We are growing sustainably and have a clear roadmap into the future.
  3. We are shaping the technology for tomorrow’s mobility.

Let’s start with the first point.

The BMW Group delivered excellent results in the first quarter of 2021.

  • Markets worldwide are recovering.
  • Our diverse product portfolio is reaching large groups of customers.
  • And our ongoing efficiency measures are paying off.

This shows clearly: our strategy is having a real impact.

The Automotive Segment delivered an EBIT margin of 9.8 percent in the
first quarter – back within our strategic medium-term target range for
the first time in ten quarters. As in the past, this EBIT margin does
not include the at-equity result from our BBA joint venture in China.

Another indicator of our operating strength is our free cash flow of
2.5 billion euros in the Automotive Segment – our best figure ever for
a first quarter.

Our first-quarter deliveries also reached a new all-time high.
Compared with the first quarter of 2019 – in other words, the
comparable period before the crisis – Group sales increased by six percent.

Our total market share worldwide has climbed up to 3.3 percent –
from 2.9 percent in the same period 2019.

Our performance in the Chinese market stands out, in particular.
Compared to the first quarter of 2019 – again, pre-crisis – our China
sales increased by more than 36 percent.

We recently presented our model line-up for our largest market at
Auto Shanghai 2021. With highly innovative, digitalised, electric and,
above all, exceptionally high-quality products, like the BMW iX3, the
BMW iX and the BMW i4, we intend to sustain our growth in China.

Our electrified models are also in high demand globally. In the first
quarter, we were the biggest manufacturer of plug-in hybrids worldwide.

With more than 70,000 electrified vehicles sold in the first three
months of 2021, we are on track to have a total of one million
fully-electric vehicles and plug-in hybrids on the roads by the end of
the year.

This also illustrates the success of our flexible architecture strategy.

The BMW iX3 is receiving consistently outstanding ratings from the
automotive press: not only because of its many impressive
characteristics – such as its quality, comfort, connectivity,
operating ease and dynamic performance – but also its range.

Its efficient drive train puts it on a par with electric models with
the highest ranges among all brands within its segment.

Just yesterday, I met with journalists testing pre-production models
of the BMW i4. This car will put e-mobility right at the heart of the
BMW brand.

I am extremely confident we will be able to build on our e-mobility
successes with the BMW i4 and BMW iX.

Growth remains our industry’s strongest currency.

Before the end of the decade, we want to reach the milestone of three
million delivered vehicles annually. As far as the BMW Group is
concerned, we are also growing profitably and sustainably – and we
will make sure this continues.

That brings me to my second point:

We are growing sustainably.

Sustainability is the new language that connects the world.

The three major world markets, Europe, the US and China, as well as
other industrial nations, have set themselves ambitious goals on the
road to climate neutrality. They have recently confirmed – and even
stepped up – these targets.

The next big, binding step will be the year 2030 – also for the BMW Group.

We have geared our company entirely towards sustainability. By 2030,
we aim to reduce our actual carbon footprint per vehicle by at least a
third from 2019 levels – in a verifiable and transparent manner,
everywhere around the world.

During our Annual Conference, we published an integrated BMW Group
Report for the first time, which documents our progress and, most
importantly, gives equal weighting to our sustainable development and
financial indicators.

A company does not become sustainable simply by flipping a switch or
buying certificates. What counts is not alleged sustainability – but
verifiable measures that deliver a real impact.

That is why we joined the Science Based Targets Initiative.

We think about sustainability in a way that goes far beyond emissions.

Energy and resource consumption will be the next, much bigger issue.

Raw materials are becoming more expensive. Water and many mineral
resources are scarce and valuable commodities.

We are seeing that especially right now. This is why it is so
important to think in terms of a circular model and reduce our use of
materials from the outset.

To achieve this, we are relying on partnerships and collaboration
across our industry, with NGOs as well as political institutions.

This requires hard work, investment and an ongoing commitment.

We firmly believe: we will add value for society in this way, and
also become a stronger company in the long term. 

Let me give you a few examples from the last few months alone:

  • We significantly overfulfilled our CO2 fleet targets in Europe
    last year – and we are strategically on course to meet the goals for
    2021 and beyond. Both further development of our conventional drive
    trains and our electromobility offensive will play a big part in this.
  • With support from the strategic EU programs IPCEI – which stands
    for Important Projects of Common European Interest – we are involved
    in another project that is advancing battery technology. We are
    conducting research into a new generation of sustainable batteries
    optimised for use in a circular model – for vehicle use, then for
    stationary energy storage and, finally, for efficient dismantling
    and reuse of materials.
  • Our suppliers rely on 100% green power to produce battery cells;
    at the same time, we are increasing our use of secondary material.
    To give you a concrete example: In the BMW iX, we are reducing
    carbon emissions in the supply chain by 17%, compared to the same
    vehicle produced without these measures.
  • We have signed multi-year supply contracts for sustainable lithium
    from South America with the American company Livent. Livent uses a
    special method that minimises the impact of lithium extraction on
    the surrounding ecosystem.
  • With immediate effect, we will be sourcing half the aluminium
    needed by our light metal foundry in Landshut from Emirates Global
    Aluminium. The aluminium is produced using electricity from one of
    the world’s largest solar parks.
  • With an investment in Boston Metal, we are also promoting green
    innovations in steel production. Boston Metal is working on
    industrialisation of electrolysis processes in production of liquid
    iron. We aim to reduce our CO2 emissions from steel by about two
    million tonnes by 2030.
  • Additionally, we have launched an initiative to protect the deep
    seas with the WWF, Google, Samsung SDI and the Volvo Group. We will
    not source minerals from deep-sea mining until there has been a full
    scientific investigation into the impact.

All these examples show that:

Sustainability cannot be taken for granted. It takes a lot of
different measures to achieve a large-scale effect – as well as a
conscious openness towards choosing the most effective technology in
each case.

Our ambition is clear:

The greenest electric car will be a BMW.

However, we also know that we always have to – and we will – combine
sustainability with technology, innovation and inspiring products for
our customers.

That is the BMW way. And we will continue full speed ahead.

That brings me to my third and final point:

We are shaping the technology for tomorrow’s mobility.

  • We are once again upping the pace of our electromobility offensive
    and plan to deliver more than 100,000 fully-electric vehicles to
    customers this year.
  • By 2023, we will have at least one fully-electric model on the
    roads in all key segments – from the compact segment to the
    ultra-luxury class.
  • By 2030, at least half our global sales will come from
    fully-electric vehicles.

We are electrifying all our brands to achieve this.

  • MINI will release its final model with a combustion-engine variant
    in 2025.
  • At Rolls-Royce, electric driving will soon define a new form of luxury.
  • At BMW, we are ready for a strong market ramp-up for the i4, iX,
    7 Series, X1, 5 Series and other models.

We will also be introducing our new and self-developed BMW Operating
System 8 with the BMW iX: a new generation of performance, user
experience and intelligent driver assistance.

In combination with high-performance hardware, we are capable of
processing more data live than ever before. The data transfer is 10 to
20 times faster than in previous systems.

We have also enhanced our award-winning and safe display and
operating concept. 

BMW Operating System 8 is designed for 5G connectivity, with complete
functionality for applications like our powerful cloud-based
navigation software BMW Maps. 

Third-party services can be fully integrated into the operating
system.
This applies, for instance, to services from Apple,
Google, Tencent and Spotify, which can transform the vehicle into the
perfect digital companion.

We already introduced over-the-air updates for our vehicles with
BMW Operating System 7. More than one million vehicles have already
received upgrades.

This was a huge success that we will continue to build on. In many
cases, our vehicles can be configured with functions on demand at a
later date.

By the end of the year, we will have the largest connected fleet in
the world, with around 2.5 million vehicles with Remote Software
Upgrade capabilities.

And we are already planning the next big step.

At the Annual Conference, we unveiled the broad strokes of our
vehicle strategy from the middle of the decade:

the Neue Klasse – electric, digital and circular.

It will be key to the future success of the BMW Group. We are putting
all our know-how and considerable investment into this development.

The Neue Klasse will establish a new generation of technology modules
– targeting maximum synergies and scalability for our entire vehicle portfolio.

We will be introducing a new digital architecture and a new
generation of electrical system.

We will also be taking the next leap with our electric powertrain and
leveraging the opportunities of the new architecture to redesign our
batteries. At our Battery Cell Competence Centre, we are currently
testing different cell chemistries, formats and modules.

We aim to realise an automotive-compatible solid-state battery in
collaboration with the battery specialist Solid Power by the end of
the decade. We will present an initial demonstrator vehicle with these
batteries well before 2025.

Ladies and Gentlemen,

The BMW Group is on course for success.

We are growing and reaching more customers than ever.
We are
focused on our goal of reaching three million units sold in a single
financial year within this decade.

In recent years, we have been working hard to get back on a
profitable track. Today, we are seeing the benefits of this strategy.

We are setting the standard with our sustainable global business model.

We will eliminate mobility as a climate factor in the long term – by
implementing impactful and transparent measures in the BMW style.

And we are paving the way for the next leaps in technology – that
will inspire our customers even ten years from now.

Thank you for your attention.

Original Press Release

Statement Dr Nicolas Peter, Member of the Board of Management of BMW AG, Finance, Conference Call Interim Report to 31 March 2021

BMW:Statement Dr Nicolas Peter, Member of the Board of Management of BMW AG, Finance, Conference Call Interim Report to 31 March 2021

Ladies and Gentlemen,

Good morning!

The BMW Group made a good start to the financial year 2021. Our
operating result in the first quarter was at a very high level and we
exceeded market expectations.

We achieved all of this despite growing headwinds from rising raw
material prices and in a market environment that remains volatile due
to the coronavirus pandemic.

We were also able to maintain the supply of semiconductors in the
first quarter. As a result, there were no interruptions in production
during the reporting period. However, the situation remains difficult.

Significantly improved pricing was a key driver for our strong Group
earnings. Additionally, the positive trend of the second half-year in
2020 continued during the first quarter in all major regions of the
world with over 636,000 vehicles delivered.

In particular, our electrified vehicle fleet once again proved to be
an engine for growth. Our sales of electrified vehicles more than
doubled from the same period of last year to over 70,000 units (2020:
30,692, +129.8%). This means more than one in ten vehicles we sell is
already electrified. This underlines the high – and steadily growing –
importance of electromobility to our company.

We took advantage of the past year to make ourselves more efficient
and more profitable for the long term. In addition to the better
pricing I mentioned before, this includes strict management of fixed
costs, a focus on controlling our inventory levels and cost-efficient
personnel structures.

The company-wide Performance Programme continues to deliver important
contributions to sustainable earnings growth.

Ladies and Gentlemen,

All these factors are having a positive impact on our financial figures.

Let’s now take a closer look at our financial performance.

Group revenues for the first quarter of 2021 totalled around 26.8
billion euros (2020: 23.3 billion euros, +15.2%). Group earnings
before tax reached 3.76 billion euros (2020: 798 million euros) and
were therefore significantly higher than the previous year. The EBT
margin stood at 14%.

The development in pre-owned car markets also contributed to the
margin increase through higher prices for the sale of end-of-lease vehicles.

Manufacturing costs rose compared to the previous year, mainly driven
by the overall increase in sales volume and the growing share of
electrified vehicles. But also rising raw material prices contributed
to the increase. These increases, however, were partially offset by
lower risk provisioning.

These results show that we remain on track with our transformation
process. Today’s profitability will secure our future competitiveness.
We continue to make systematic investments in important future areas
of activity, such as digitisation and electrification. This year
alone, two more all-electric vehicles will be released onto the
market: the BMW i4 and the BMW iX – important milestones in our
electromobility offensive.

Research and development expenditure was almost on a par with last
year, at around 1.3 billion euros (2020: 1.34 billion euros/-2.8%).
Our R&D ratio of 4.8% was lower than in 2020, due to the company’s
high revenues (2020: 5.7%). The ratio of capitalised development costs
of 22.6% was also lower year-on-year (2020: 28.4%).

The financial result of 732 million euros for the first quarter
climbed more than 1.3 billion euros from the same period of last year
(2020: -577 million euros). One the one hand, this was mainly due to
significantly higher earnings of 503 million euros from BMW Brilliance
Automotive, which had been heavily impacted in the previous year by
China’s lockdown in response to the pandemic (2020: 162 million euros).

On the other hand, the other financial result improved significantly
year-on-year to reach a total of 334 million euros. This was due in
particular to positive valuation effects compared to the previous year.

Group liquidity increased to 20.1 billion euros in the first quarter
– reflecting the strong operating result and positive free cash flow
(2020: 17.8 billion euros). Over the coming months, we will bring
liquidity back within our target range of 17-18 billion euros.

Ladies and Gentlemen,

Let’s move on to the segments, beginning with the Automotive Segment.

The segment’s EBIT margin for the first quarter was 9.8% and
underlines the company’s excellent performance.

The key drivers here were the improved pricing, the significant
increase in sales and higher aftersales revenues. Significant growth
was posted by all three BMW Group brands: BMW (+36.1%), MINI (+15.9%)
and Rolls Royce (+61.8%). Rolls-Royce had its best quarter ever,
selling a total of 1,380 automobiles. At BMW, in addition to the
electrified vehicles, the BMW X models were especially in demand, as
well as the BMW 3 Series and BMW 5 Series.

The high earnings quality is also reflected in our strong free cash
flow of 2.52 billion euros (2020: -2.218 billion euros).

A key driver, in addition to the significant increase in earnings
before tax, was the strict management of our working capital.

The segment’s net financial assets rose significantly year-on-year to
21.3 billion euros (2020: 18.5 billion euros) due to the strong free
cash flow.

Let’s turn now to the Financial Services Segment.

This segment also got off to a good start this year, with around
489,000 new financing and leasing contracts concluded with retail
customers during the reporting period. This represents a solid
increase of 8.8% over the previous year (2020: 449,687 contracts).

The recovery in new business with retail customers can be attributed
to significant growth in financing business (+15.2%).

Segment earnings before tax increased significantly to 787 million
euros (2020: 484 million euros, +62.6%).

The improved result was mostly due to the positive development of the
pre-owned vehicle markets, and the related improvement in the risk
situation for the Segment.

In the prior-year quarter, additional risk provisioning for
anticipated credit and residual value risks was needed, due to the
uncertainty created by the pandemic.

Credit losses remain at a low level.

The Financial Services Segment makes comprehensive provisions for its
main business risks on an ongoing basis. Current assessments confirm that residual
value and credit risks are appropriately covered.

The Motorcycles Segment successfully continued its growth strategy in
the first quarter. Over the past year, 13 new models were released
onto the market. During the reporting period, more than 42,500
motorcycles were delivered to customers.

This is significantly more than in the same period of last year
(+22.5%). The EBIT margin in this segment was 17.9% (2020: 12.9%).

Ladies and Gentlemen,

Let’s take a look at our guidance for the year.

We made a strong start to 2021. Despite this, we expect to see
increasing volatility and we will continuously reassess the risk situation.

The semiconductor supply situation will remain difficult, for
instance. Additional headwinds are also expected due to rising raw
material prices, particularly for rhodium and palladium and steel.

The volatile situation continues to affect the BMW Group’s business performance.

Based on current information, we are able to confirm our guidance for
2021. The following forecast for the main key figures does not take
into account possible effects in connection with the European
Commission’s ongoing antitrust proceedings.

We expect to see a significant increase in Group pre-tax earnings
this year.

The Automotive Segment should post a solid increase in the number of
BMW, MINI and Rolls-Royce vehicles delivered to customers compared to
the previous year.

We expect the EBIT margin in the Automotive Segment to be at the
higher end of our target range of 6 to 8%, with a significant increase
in RoCE for the automotive business.

Our share of electrified vehicles in our deliveries will also
continue to increase over the course of the year.

In the Financial Services Segment, we expect return on equity to be
at the higher end of our target range of 12 to 15%.

In the Motorcycles Segment, we anticipate a solid increase in
deliveries. The EBIT margin should be within our target range of 8 to
10% and RoCE for the segment should also be significantly higher year-on-year.

Now, let’s take a look at the non-financial indicators.

The percentage of female managers at the BMW Group will increase
slightly in 2021, as planned.

We will significantly reduce CO₂ emissions in our new vehicle fleet
once again, from today’s adjusted benchmark. According to the
planning, CO2 emissions per vehicle produced are likely to fall moderately.

Thanks to ongoing personnel restructuring measures, it should be
possible to achieve the above-mentioned goals with a slightly smaller
workforce size than the previous year.

Ladies and Gentlemen,

Our thinking and actions are always geared towards the long term. We
are setting the right course today to achieve our short, medium and
long-term goals. This applies, in particular, to our focus areas of
digitalisation, electrification, and sustainability.

Our products are in demand and our operating business is performing
well. For the remainder of the year, we expect a free cash flow of
over four billion euros.

We have the right strategy to successfully continue our
transformation process based on our high profitability. And, although
we expect the second half of the year to be more volatile, we are
optimistic about the future.

Thank you for your attention.

Original Press Release

Quarterly Statement to 31 March 2021

BMW:Quarterly Statement to 31 March 2021

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CO2 emission information.

The following applies to consumption figures for vehicles with new type approval, September 2017 onward: The figures for fuel consumption, CO2 emissions and energy consumption are obtained in accordance with the specified measuring procedure (EC Regulation No. 715/2007), as issued and amended. The figures are for a basic-version vehicle in Germany. The bandwidths allow for differences in the choice of wheel and tire sizes and items of optional equipment and can be changed by the configuration.

Obtained on the basis of the new “Worldwide harmonized Light vehicles Test Procedure” (WLTP), the figures are converted back to the “New European Driving Cycle” (NEDC) for the sake of comparability. Values other than those stated here may be used for the purposes of taxation and for other vehicle-related duties relating to CO2 emissions.

More information about official fuel consumption figures and the official specific CO2 emissions of new passenger cars can be obtained from the “guideline on fuel consumption, CO2 emissions and current consumption of new passenger cars”, available here: https://www.dat.de/co2/.

Original Press Release

First quarter: Transformation accelerated – core business significantly strengthened

BMW:First quarter: Transformation accelerated – core business significantly strengthened

Munich. The BMW Group continued to grow extremely
dynamically in the first quarter 2021 – as demonstrated by its
outstanding reported figures. The Group is systematically driving its
transformation process at a high pace, reaching new milestones in
terms of e-mobility, digitisation and sustainability. At the same
time, it was able to strengthen its business model in the first
quarter of the year and to grow further.

“The first quarter shows that our global business model is a
successful one, even in times of crisis. We remain firmly on track for
continued sustainable, profitable growth,” said Oliver
Zipse, Chairman of the Board of Management of BMW AG
, in
Munich on Friday. “Our strategy is based on retaining a keen
focus on providing attractive high-tech products that are destined to
shape the changing world of mobility going forward. With this clear
vision, we are already developing the next major technological leaps
that will continue to fascinate our customers ten years from now.”

The main thrust of the Group’s work is on digitally
connected, sustainable electric mobility.
The
breakthrough of e-mobility has been expedited by
the holistic approach adopted by the BMW Group, driven in particular
by the systematic addition of electrified drivetrain technologies to
its model portfolio and the target of increasing its sales of
fully electric vehicles
by an average of more than 50 per
cent per year through to 2025. By then, the BMW Group
plans to have some two million fully electric
vehicles
on roads worldwide, also putting it firmly on track
from a strategic perspective to achieve the
EU’s ambitious
decarbonisation targets by 2030.

As part of this strategy, the BMW Group is keen to play a leading
role in the development of battery technology. Within
the framework of its second EU-coordinated ‘IPCEI’ project
(‘Important Project of Common European Interest’), the focus
is on developing the next generation of lithium-ion battery cells. The
all-solid-state battery (ASSB) for automobiles is expected to be more
cost-effective, more sustainable and optimised for the
circular reuse of raw materials to take account of
the increasingly limited availability of natural resources worldwide.
After their deployment in vehicles, the intention is to use the
batteries as stationary storage devices, with the ultimate aim of
processing all their raw materials for subsequent reuse. The second
IPCEI project also promotes the continued development of process
technologies and the construction of a prototype production plant for
innovative battery modules and systems. The BMW Group recently signed
an agreement with the US company Solid Power for the
industrialisation of new solid-state batteries. As part of a pilot
project, the latter will supply solid-state battery cells with a
higher capacity of 100 Ah already from 2022 onwards.

By adopting this sustainable reuse approach, the BMW Group intends to
make a valuable contribution to preserving limited natural
resources
. Circularity is also a proactive way of
counteracting price hikes of scarce commodities going forward.

“This example of combatting resource scarcity clearly shows how
sustainability has economic as well as ecological benefits and
validates the comprehensive approach to sustainability applied
throughout the enterprise,” stated Oliver Zipse.

At the same time, the BMW Group is also extensively involved in
expanding public and private charging
infrastructures
. Since 2013, it has participated in some 50
international projects with various partners, jointly installing over
15,000 public charging points. By mid-year, it will
have established around 4,100 charging points for its own employees in
parking areas at various Group locations, around half of which will be
accessible to the general public, all powered fully by electricity
from renewable sources.

The BMW Group is also fostering the rapid expansion of and ubiquitous
access to an open charging infrastructure in Europe in the form of a
recently agreed collaboration of the YOUR NOW subsidiary
CHARGE NOW with the energy company bp
(formerly: BP British
Petroleum). With the same objective in mind, the BMW Group is also a
co-founder and partner of Ionity and its high-power charging
network
. So far, Ionity has set up around 350 charging
stations across Europe, with the number expected to rise to over 400
by the end of the year. These charging facilities each provide an
average of four fast-charging points and are conveniently located on
motorways and main traffic routes. The all-electric
BMW iX3*, for instance, can be recharged
within 10 minutes for a range of up to 100 km (WLTP)
at one
of these fast-charging points. The Ionity network is due to be
successively expanded, also within towns and cities.

The BMW Group’s mission to build the ‘greenest’ electric car has been
furthered by its involvement in a number of projects during the past quarter.

For example, it has concluded multi-year supply agreements with the
US company Livent to purchase sustainable lithium
sourced from South America. Livent utilises a special process that
reduces the impact of lithium extraction on the surrounding ecosystem
to a minimum.

With immediate effect, one half of the aluminium required by the
light metal foundry in Landshut will be supplied by the Abu
Dhabi-based company Emirates Global Aluminium. The
raw material is produced using electricity generated by one of the
world’s largest solar farms.

The BMW Group also has a stake in Boston Metal, a
company that aims to make steel production more sustainable. Boston
Metal is working on industrialising low-emission electrolysis
processes for producing liquid iron.

In collaboration with the WWF (World Wide Fund For Nature), Google,
Samsung SDI and Volvo, the BMW Group has launched an
initiative to protect the deep seas. Accordingly,
the practise of extracting minerals from deep-sea mining is considered
taboo as long as the consequences have not been comprehensively
scientifically investigated.

World’s largest fleet capable of over-the-air upgrades set to
be on roads by end of 2021

Apart from the electric drivetrain itself, other crucial factors
driving the transformation process include software systems
and their digital interaction
with the vehicle.

Since 2014, customers have been able to book and pay for services
online directly from the vehicle via the BMW Connected
Drive
Store. Moreover, since 2018, BMW drivers have been able
to keep vehicle connectivity up to date at all times with the help of
remote software upgrades, much like they have
already become used to doing with their smartphones. By the end of
2021, the BMW Group will already have the world’s largest
fleet
on the road, with around 2.5 million vehicles that can
be updated with new and enhanced functions over the air.

The BMW iX* will be the first vehicle to feature the
new BMW Operating System 8 − the most powerful data
processing system devised for cars to date − enabling high-speed
over-the-air upgrades, which will provide an even
broader range of functions on demand that can be
ordered and installed over the air at any time with complete flexibility.

BMW Group on growth course in first quarter

Compared to the previous year’s pandemic-affected first-quarter
performance, key financial figures developed positively in the first
three months of the financial year 2021. The significant recovery of
the markets, which began in mid-2020, continued to gain momentum
during the first three months of the year. Within a favourable
environment, the BMW Group set a new record for first-quarter
deliveries with an increase of 33.4% compared to the previous year to
636,606 units (2020: 477,111 units).

Sales of electrified vehicles more than doubled in the first
quarter

Strong demand for
electrified vehicles (plug-in hybrids and fully
electric vehicles) contributed substantially to the outstanding sales
performance, with deliveries more than doubling compared to the same
quarter one year earlier.

This dynamic growth rate is testimony to the success of the BMW
Group’s electrification strategy, with a total of 70,207
electrified vehicles
delivered to customers during the
three-month period (2020: 30,692 units; +128.7%), including 14,161
units of the fully electric BMW iX3*, BMW i3* and MINI
Cooper SE* models (2020: 6,457 units; +119.3%). In the
course of 2021, two key innovation leaders – the BMW
iX*
and the BMW i4* – will be added to the
core segments of the BMW brand.

Significant growth in Group revenues and earnings

The greatly improved level of revenues and earnings was driven by a
combination of higher sales volume figures across all regions of the
world, particularly in China, and improved selling prices. Positive
effects also came from the robust situation on pre-owned vehicle
markets, causing revenues from the sale of previously leased vehicles
to rise, above all in the USA.

Group revenues grew by 15.2% to € 26,778
million
(2020: € 23,252 million; +18.9% adjusted for currency factors).

The Group’s research and development expenditure
totalled € 1,287 million (2020: € 1,324 million;
-2.8%), slightly lower than one year earlier, with costs arising in
the first quarter 2021 primarily for electrification and digitisation
as well as for preparing the production ramp-up of the BMW iX*. The
increase in revenues caused the R&D ratio to fall
to 4.8% (2020: 5.7%). At 22.6%,
the capitalisation rate was also lower than one year
earlier (2020: 28.4%).

In light of the various positive effects described above,
Group profit before financial result for the
three-month period rose significantly to € 
3,025 million (2020: € 1,375 million; +120%).

The improved financial result also contributed to
earnings growth. In particular, the Group’s share of the profit in the
Chinese joint venture BMW Brilliance Automotive amounting to € 503
million (2020: € 162 million) as well as positive valuation effects
arising on interest rate hedges and individual investments gave rise
to a significant improvement in the first-quarter financial
result
, which turned around from a net negative amount of
€ 577 million to a net positive amount of € 732 million.

Group profit before tax improved to € 3,757
million
(2020: € 798 million). The EBT
margin
for the Group came in at 14.0% (2020:
3.4%). Group net profit amounted to € 2,833
million
(2020: € 574 million).

“Profitability is a key aspect of our transformation journey.
Our operational strength enables us to manage the move towards a world
of digitally connected, sustainable mobility. With this aim in mind,
we are investing specifically in low-emission drivetrain systems and
attractive, highly innovative products and equipment. Furthermore, we
continue to streamline our processes and structures in order to boost
performance,” said Dr Nicolas Peter, Member of the Board
of Management of BMW AG, Finance
in Munich on Friday.

Dynamic sales growth for all Group brands

Higher sales volume in the first quarter 2021 resulted in
corresponding increases in Automotive segment revenues and earnings.

Worldwide deliveries of BMW brand vehicles totalled
560,543 units (2020: 411,809 units; +36.1%). The
figure included excellent contributions from the highly successful BMW
5 Series and BMW 3 Series, both of which recorded year-on-year growth
of more than 40%. The popular X-family models were also in high demand
during the three-month period.

At 74,683 units, MINI brand sales
were 16% higher than one year earlier (2020: 64,449 units; +15.9%).
Demand for the MINI Countryman was extremely high, with deliveries up
by more than one third (+35.9%) as well as for the John Cooper Works
models (+20.5%) with their sporty flair.

Rolls-Royce Motor Cars delivered 1,380
ultra-luxury automobiles
to customers, the highest number
ever achieved in a single quarter (2020: 853 units; +61.8%), with
China, the USA and the Asia-Pacific region the biggest contributors to
this growth.

Deliveries up in all major regions of the world

In Europe, the number of vehicles delivered by the
BMW Group rose by a solid 8.1% to 239,018 units
(2020: 221,024 units) despite the adverse effects of the coronavirus pandemic.

Customers in Germany took delivery of 62,696
units
(2020: 66,004 units; -5.0%) and customers in the UK
42,413
units (2020: 44,474 units; -4.6%). In other countries
and regions of Europe such as France, Italy and northern Europe, the
BMW Group recorded double-digit sales volume growth year on year.

Deliveries to customers in the Americas region rose
to 96,352 units (2020: 82,078 units; +17.4%) as
markets continued to pick up, most notably in the
USA, where sales were up by more than one fifth to
78,067 units (2020: 64,956 units; +20.2%).

In Asia, the BMW Group delivered a total of
287,697 units, up by 77% on the same quarter last
year and a new all-time high (2020: 162,940 units; +76.6%). Sales
figures for China nearly doubled year-on-year,
jumping by 98% to 230,193 units (2020: 116,577 units;
+97.5%), partly reflecting the weaker performance one year earlier.

 

Automotive segment records high revenue growth

Segment revenues totalled € 22,762
million
in the first quarter (2020: € 17,989 million; +26.5%,
currency-adjusted +30.4%), driven primarily by the continued upward
trend in sales volume. In addition, positive product mix effects due
to higher sales of the X5 and X6, among other models, as well as
improved price penetration boosted revenues. Revenues generated with
the Chinese joint venture BMW Brilliance Automotive also rose year-on-year.

Segment EBIT amounted to € 2,236
million
(2020: € 229 million) and segment
profit before tax to € 2,776 million
(2020: € 80 million). The EBIT margin came in at
9.8% and therefore within the defined long-term
target range (2020: 1.3%).

Free cash flow generated by the Automotive segment increased to €
2,522 million, mainly reflecting improved earnings before tax and
continued rigorous working capital management.

 

Financial Services: solid increase in new business with retail customers

In total, 489,066 new credit financing and leasing
contracts
were signed with retail customers during the first
quarter 2021, up by a solid 8.8% compared to one year earlier (2020:
449,687 contracts), mainly due to the sharp rise in credit financing
business (+15.2%), particularly in China. The total volume of
new credit financing and leasing contracts
concluded with
retail customers increased by 9.1% to
€ 15,351 million (2020: € 14,075 million).

Significant improvement in Financial Services segment earnings

Revenues generated by the Financial
Services segment in the first quarter increased
slightly to € 7,906 million (2020: € 7,598 million;
+4.1%) due to positive effects from business with end-of-contract
leasing vehicles.

Earnings improved at an even more pronounced rate, largely thanks to
the improved risk situation on the one hand and higher marketing
revenues from the sale of returned lease vehicles on the other,
particularly on the US market, with segment profit before
tax
rising to € 787 million (2020: € 484
million; +62.6%). The Financial Services segment makes provision on an
ongoing and comprehensive basis to take account of significant
business risks. Current assessments confirm that residual value and
credit risks are appropriately covered.

Remainder of year expected to remain volatile

The coronavirus pandemic will continue to influence the course of
business for the BMW Group throughout the current financial year −
both directly and indirectly. Vaccination measures being taken
worldwide should, however, have a positive effect on the situation and
increasingly reduce the adverse impact of the pandemic on global
economic growth. Nevertheless, negative consequences for the BMW Group
cannot be ruled out in the further course of the year. Furthermore,
rising raw materials prices could have a dampening impact on earnings
going forward. In light of the current dynamic environment, the
BMW Group reaffirms its outlook for the full year, expecting business
performance continuing to develop positively. New models and digital
services covering various aspects of individual mobility are likely to
ensure that demand remains buoyant. Group profit before tax is
therefore predicted to rise significantly during the outlook period.

The Automotive segment is expected to record a solid
year-on-year increase in the number of BMW, MINI and Rolls-Royce brand
vehicles delivered to customers. The segment’s EBIT margin is set to
improve significantly on the previous year’s figure and come in at the
upper end of the forecast range between 6 and 8%, with segment RoCE
therefore also improving significantly. Segment free cash flow is
likely to exceed € 4 billion over the year as a whole.

In the Financial Services segment, the Return on
Equity (RoE) is forecast to come in at the upper end of the range
between 12 and 15%.

The Motorcycles segment is expected to record a
solid increase in deliveries to customers. The EBIT margin is
predicted to lie within a target range of 8 to 10%, enabling the
segment to record a significantly higher level of RoCE than one year earlier.

The BMW Group also reaffirms its forecast for non-financial
performance indicators.
Accordingly, the proportion of
women in management functions is expected to increase slightly. At the
same time, the BMW Group is targeting a further significant reduction
in the carbon emissions generated by its new vehicle fleet. According
to current forecasts, carbon emissions per vehicle produced are likely
to fall moderately.

The Group’s targets for the year are to be met with a
slightly smaller workforce. Ongoing uncertainty –
particularly regarding the further course of the corona pandemic,
macroeconomic and political developments as well as international
trade and customs policies – could have a negative impact on economic
conditions in many regions. These eventualities could hold down growth
and thereby have a further significant impact on the business
performance of the BMW Group.

The BMW Group – an overview

1st quarter



2021

1st quarter



2020

Change in %

Deliveries to customers

       

Automobiles
1

units

636,606

477,111

33.4

thereof: 
BMW1

units

560,543

411,809

36.1

 MINI1

units

74,683

64,449

15.9

 Rolls-Royce1

units

1,380

853

61.8

Motorcycles

units

42,592

34,774

22.5

 

 

 

Employees
                                         (as
of 31.12.2020)

120,726

 

-4.2
2

 

Automotive segment
EBIT margin

%

9.8

1.3

8.5 % points

Motorcycles
segment EBIT margin

%

17.9

12.9

5 % points

Pre-tax return on sales
3

%

14.0

3.4

10.6 % points

 

 

 

 

Revenues

€ million

26,778

23,252

15.2

thereof:
Automotive

€ million

22,762

17,989

26.5

Motorcycles

€ million

753

557

35.2

Financial
Services

€ million

7,906

7,598

4.1

Other
Entities

€ million

1

1

Eliminations

€ million

-4,644

-2,893

60.5

 

 

 

 

Profit before financial result
(EBIT)

€ million

3,025

1,375

120.0

thereof:
Automotive

€ million

2,236

229

Motorcycles

€ million

135

72

87.5

Financial
Services

€ million

767

542

41.5

Other
Entities

€ million

-6

12

Eliminations

€ million

-107

520

 

 

 

 

Profit before tax (EBT)

€ million

3,757

798

thereof:
Automotive

€ million

2,776

80

Motorcycles

€ million

135

72

87.5

Financial
Services

€ million

787

484

62.6

Other
Entities

€ million

141

-344

Eliminations

€ million

-82

506

 

 

 

 

Group income taxes

€ million

-924

-224

Group net profit

€ million

2,833

574

Earnings per share
(common/preferred share)

 €

4.26/4.26

0.84/0.84

-/-

1In connection with a review of its sales practices and
related reporting practices, the BMW Group has examined prior-period
vehicle delivery data and ascertained that certain vehicle deliveries
were not reported in the correct periods. The BMW Group has revised
its vehicle delivery data retrospectively for previous years. Further
information on this matter is provided in the BMW Group Report 2020 on
pages 128 and 129.

2 Percentage change in the number of employees compared to
the same period of the previous year (31.12.2019, number of employees: 126,016).

3 Group profit before tax as a percentage of Group revenues

*Consumption/emissions data:

 

BMW iX3: Power consumption in kWh/100 km combined:
17.8-17.5 NEDC, 19.0-18.6 WLTP.

BMW iX: Power consumption in kWh/100 km: 22.5-19.5
WLTP. Data are preliminary and based on forecasts.

BMW i3 (120 Ah): Power consumption
in kWh/100 km combined: 13.1 NEDC, 16.3-15.3 WLTP.

BMW i3s (120 Ah): Power consumption
in kWh/100 km combined: 14.6-14.0 NEDC, 16.6-16.3 WLTP.

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

BMW i4: This is a pre-production model, no
homologation figures are available yet.  

 
 

 

 

GLOSSARY – explanatory comments on key performance indicators

 

Deliveries


A new or pre-owned vehicle is recorded as a delivery when handed
over to the end user. Business with retail customers also includes
lessees under lease agreements with BMW Financial Services and, within
the USA and Canada, dealerships if they classify a vehicle as a
workshop replacement vehicle or demonstration vehicle. In the case of
pre-owned vehicles, end users may include dealerships and other third
parties when they purchase a vehicle at auction or directly from the
BMW Group. Vehicles designated for the end user that suffer total loss
in transit are also recorded as deliveries. Deliveries may be made by
BMW AG, one of its international subsidiaries, a BMW Group retail
outlet or independent dealerships. The vast majority of deliveries –
and hence the reporting to the BMW Group of deliveries – is made by
independent third-party dealers.

EBIT

Profit/loss before financial result, comprising revenues less cost of
sales, selling and administrative expenses and the net amount of other
operating income and expenses.

EBIT margin

Profit/loss before financial result as a percentage of revenues.

EBT

EBIT plus financial result.

If you have any queries, please contact:

Corporate Communications

Max-Morten Borgmann, Communications Corporate, Finance, Sales

Telephone: +49 89 382-24118, Max-Morten.Borgmann@bmwgroup.com

Dr Britta Ullrich, Communications Corporate, Finance, Sales

Telephone: +49 89 382-18364, Britta.Ullrich@bmwgroup.com

Eckhard Wannieck, Head of Communications Corporate, Finance, Sales

Telephone: +49 89 382-24544, Eckhard.Wannieck@bmwgroup.com

Internet: www.press.bmwgroup.com

E-mail: presse@bmwgroup.com

 

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 15 countries; the company has a global sales network
with representatives in more than 140 countries.

In 2020, the BMW Group sold over 2.3 million passenger vehicles and
more than 169,000 motorcycles worldwide. The profit before tax in the
financial year 2020 was € 5.222 billion on revenues amounting to
€ 98.990 billion. As of 31 December 2020, the BMW Group had a
workforce of 120,726 employees.

The success of the BMW Group has always been based on long-term
thinking and responsible action. The Group set the course for the
future at an early stage and consistently makes sustainability and
efficient resource management central to its strategy, from the supply
chain through production to the end of the use phase of all its products. 

www.bmwgroup.com

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Original Press Release