BMW Group expands e-drive production network: Start of battery component production in Leipzig and Regensburg

BMW:BMW Group expands e-drive production network: Start of battery component production in Leipzig and Regensburg

  • BMW Group now producing high-voltage batteries and
    battery
    components at three locations in Germany alone:
    Dingolfing,
    Leipzig and Regensburg
  • Less than a year from decision to start of production in

    Leipzig and Regensburg
  • Production of battery components for BMW Group’s fifth generation
    of fully-electric vehicles

 

Munich/Leipzig/Regensburg. The BMW Group is launching
production of battery components at its plants in Leipzig and
Regensburg and expanding its e-drive production network. It has been
less than a year since the decision was made to expand production
capacity for e-drives in Germany. BMW Group Plant Leipzig will launch
series production of battery modules on Monday, 3 May 2021, while BMW
Group Plant Regensburg began coating battery cells for high-voltage
batteries in April 2021. High-voltage batteries will also be produced
in Regensburg from 2022. “We expect at least 50 percent of the
vehicles we deliver to our customers worldwide to be fully electric by
2030,” said Michael Nikolaides, Senior Vice President Production
Engines and E-Drives. “And we are systematically expanding our
production network for electric drive trains in response to this.”

The company is investing more than 250 million euros in its
Regensburg and Leipzig locations alone to supply the BMW Group’s
growing number of electrified vehicles with high-voltage batteries.
High-voltage battery components will be used in production of the BMW
iX* and BMW i4, both of which will be released onto the market
shortly. The production systems are highly flexible and will also
supply battery components for other BMW Group electrified vehicles in
the future.

“We are increasing capacity at existing locations and developing
capabilities at others. In this way, we can make the most of our
associates’ expertise and experience and offer them long-term, secure
jobs,” Nikolaides added. The BMW Group is investing a total of around
790 million euros in expanding production capacity for drivetrain
components for electrified vehicles at its Dingolfing, Leipzig,
Regensburg and Steyr locations between 2020 and 2022.



Production of battery modules at BMW Group Plant Leipzig

Leipzig is the BMW Group’s pioneer plant for electromobility and has
been building the BMW Group’s first fully-electric vehicle, the BMW
i3*, since 2013. Now, the location will also produce electric
drivetrain components.

“We are continuing on this track with the launch of battery module
production and further enhancing the plant’s future viability for
electromobility,” confirmed Hans-Peter Kemser, Plant Director of BMW
Group Plant Leipzig. “Plant Leipzig will play an important role in
supplying the growing number of BMW Group electrified vehicles with
battery components.” The successor to the MINI Countryman, scheduled
to come off the production line in Leipzig from 2023, will be released
onto the market with an electric drive train. “The expertise and
experience gained by staff at our location over the years can be put
to good use. Construction of the battery module lines will make a
major contribution to long-term job security,” emphasised Kemser.

From May 2021, the 10,000 sq. m. production area previously reserved
for the BMW i8 will be used for manufacturing battery modules.
Production will get underway with 80 employees working in battery
module production; by the end of the year, there will be a staff of
around 150. The company will invest more than 100 million euros in the
initial phase of battery module production at the Leipzig location
between 2020 and 2022.

However, the production line for battery modules that just ramped up
is only the beginning: The company has already decided to further
increase capacity for battery module production at its Leipzig
location. A second production line will come on stream in 2022. This
will ensure the company has sufficient volumes to meet growing demand
for drivetrains.



Production of battery components and high-voltage
batteries at BMW Group Plant Regensburg

BMW Group Plant Regensburg already produces two electrified models –
plug-in hybrid variants of the BMW X1* and BMW X2* – and will start
building the fully-electric BMW X1 in 2022. The site’s e-mobility
expertise and experience will now also be used in production of
battery components and high-voltage batteries.

The first of four coating lines for fifth-generation battery cells
went on stream in April 2021, occupying a production and logistics
area of more than 40,000 sq. m. “Regensburg has made a successful
start to production of electric drivetrain components – this is an
important milestone in our transformation,” according to Frank
Bachmann, Plant Director of BMW Group Plant Regensburg. The three
other systems will ramp up in stages between now and the end of 2021
to supply the growing volumes needed for the BMW Group’s fully
electric vehicles. Up until now, battery cells have been coated at BMW
Group Plant Dingolfing and the BMW Brilliance Automotive Plant
Powertrain in Shenyang, China.

Coating increases the battery cell’s mechanical robustness and
thermal conductivity. This helps improve insulation and cooling of the
fifth-generation e-drive’s even more powerful battery cells. From
2022, the plant in Regensburg will produce high-voltage batteries from
battery modules. A total of 100 employees already work in battery
component production at the Regensburg site; by the end of 2022, there
will be more than 300. The company will invest more than 150 million
euros in ramping up production of battery components and high-voltage
batteries between 2020 and 2022.

Holistic approach to sustainability

The BMW Group has a clear mission to ensure the “greenest electric
vehicle comes from the BMW Group”, starting in production. The BMW
Group already sources only green power for its manufacturing locations worldwide.

The BMW Group’s energy goals are geared towards the long term. The
company reduced its emissions per vehicle produced by more than 70
percent between 2019 and 2006.The aim is to lower these CO2 emissions
by another 80 percent by 2030. This means the BMW Group will have
reduced its CO2 emissions from production to less than ten percent of
what they were in 2006.

A further corporate objective is to reduce CO2 emissions in the
supplier network by 20 percent by 2030. At the same time, the BMW
Group has reached an agreement with its suppliers that they will only
use renewable green power for producing fifth-generation battery
cells.


From battery cell to high-voltage battery

Production of high-voltage batteries can be broken down into two
stages: Battery modules are produced in a highly automated process.
The lithium-ion cells first undergo a plasma cleaning, before a
specially developed system coats the cells to ensure optimal
insulation. Next, the battery cells are assembled into a larger unit,
the so-called battery module. The BMW Group obtains its battery cells
from partners who produce them to the company’s exact specifications.
The BMW Group uses different battery cells, depending on which
provides the best properties for each vehicle concept.

The battery modules are then installed in an aluminium housing,
together with the connections to the vehicle, and the control and
cooling units. The size and shape of the aluminium housing and the
number of battery modules used differ according to the vehicle
variant. This ensures the high-voltage battery is optimally adjusted
to the vehicle.

Global e-drive production network focused in Germany

The high-voltage batteries and battery components needed for all BMW
and MINI electrified vehicles come from the company’s own battery
factories in Dingolfing, Leipzig and Regensburg in Germany, as well as
from Spartanburg (USA) and Shenyang (China). The BMW Group has also
localised production of high-voltage batteries in Thailand, at its
Rayong plant, and is working with the Dräxlmaier Group for this.
Munich is home to the e-drive pilot plant and the Battery Cell
Competence Centre, where the BMW Group is conducting a full analysis
of battery cell value creation processes and refining technology for
its production processes.

The company produces electric motors at the Competence Centre for
E-Drive Production in Dingolfing and at BMW Group Plant Landshut. BMW
Group Plant Steyr builds the housing for the highly integrated
fifth-generation e-drive.

With the BMW Group’s electro-offensive now in full swing, increased
production capacity is needed for electric drivetrain components.
Thanks to intelligent vehicle architectures and a highly flexible
production network, the BMW Group will have about a dozen
fully-electric models on the roads from 2023. The BMW i3*, MINI Cooper
SE* and BMW iX3* already on the market will be joined later this year
by the BMW iX* and BMW i4. 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. By the end of 2025, the company will have delivered a total of
around two million fully-electric vehicles to customers. Based on
current market forecasts, the BMW Group expects at least 50 percent of
its global sales to come from fully-electric vehicles in 2030. In
total, over the next ten years or so, the company will release about
ten million fully-electric vehicles onto the roads.

This means the BMW Group is strategically on track to reach the
European Union’s ambitious CO2 reduction targets for 2025 and 2030 as well.

BMW
i3: Fuel consumption combined: 0.0 l/100 km; power
consumption combined: 16.3-15.3 kWh/100 km WLTP; CO2
emissions combined: 0 g/km.

BMW
i3s: Fuel consumption combined: 0.0 l/100 km; power
consumption combined: 16.6-16.3 kWh/100 km WLTP; CO2
emissions combined: 0 g/km.

MINI Cooper SE: Fuel consumption combined: 0.0 l/100
km; power consumption combined: 17.6-15.2 kWh/100 km WLTP,
CO2 emissions combined: 0 g/km

BMW iX3: Fuel consumption combined: 0.0 l/100 km;
power consumption combined: 17.8-17.5 kWh/100 km WLTP, CO2
emissions combined: 0 g/km.

BMW iX xDrive50: Power consumption combined: < 21 kWh/100 km in the WLTP test cycle; CO2 emissions combined:
0 g/km (data is provisional and based on forecasts)

BMW iX xDrive40: Power consumption combined: < 20 kWh/100 km in the WLTP test cycle; CO2 emissions combined:
0 g/km (data is provisional and based on forecasts)

BMW X1 xDrive25e: Fuel consumption combined: 1.9-1.7
l/100 km WLTP, power consumption combined: 15.4-15.0 kWh/100 km WLTP;
CO2 emissions combined: 43 g/km. 

BMW X2 xDrive25e: Fuel consumption combined: 1.9
l/100 km WLTP; power consumption combined: 13.7 kWh/100 km WLTP,
CO2 emissions combined: 43 g/km. 

Original Press Release

BMW Group paves the way for production network of the future

BMW:BMW Group paves the way for production network of the future

Systematic transformation towards electromobility +++ Investment of
400 million euros in new assembly for plant in Munich +++ Fixed
costs reduced by 500 million euros +++ New cluster vehicle
architecture from mid-decade on +++ Smart management of plant
capacity strengthens competitiveness

Munich. The BMW Group is speeding up the shift
towards electromobility and strengthening its global network for
production of electrified vehicles. The company is investing 400
million euros in a new vehicle assembly at the main plant in Munich
and concentrating its European production activities for internal
combustion engines at the Steyr and Hams Hall locations. “We are
systematically implementing our electrification strategy. By the end
of 2022, each of our German plants will be producing at least one
fully electric vehicle,” according to Milan Nedeljković, member of the
Board of Management of BMW AG responsible for Production.

The BMW Group has one of the automotive industry’s most flexible
production systems worldwide. “We are capable of producing both
vehicles with combustion engines and electric drive trains on a single
line and responding flexibly to customer requests,” said Nedeljković:
“This is a crucial success factor.” Nedeljković has been in charge of
the Production Division for just over a year. “During the Covid-19
crisis, we have proved that we can respond swiftly and effectively to
even highly volatile market developments and, at the same time,
permanently improve our cost structure,” underlined the Production
head. “The progress made this year will reduce our fixed costs by
about half a billion euros by the end of the coming year.

Construction of new vehicle assembly at Plant Munich

The BMW Group is systematically gearing its main plant in Munich
towards the future. Following the expansion of the body shop and
construction of a new resource-efficient paint shop between 2016 and
2018, the company will be investing around 400 million euros in a new
vehicle assembly between now and 2026. “We are continually developing
Plant Munich towards electromobility and creating efficient and
competitive production structures for this purpose,” explained
Nedeljković. “This decision signals our strong commitment to the
Munich location.”

Manfred Schoch, Deputy Chairman of the Supervisory Board and Chairman
of the European and General Works Council of BMW AG: “The decision to
build a new assembly at our almost 100-year-old Munich plant shows
that transformation can secure, and even create, industrial jobs in
the heart of the city – if it is approached strategically, and with
courage. This decision provides a model for successful transformation
in the German industry.”

The future assembly and its production processes will be designed for
a new cluster architecture geared towards electric drive trains.
Nedeljković: “This architecture will be in use from the middle of the
decade. It will ramp up for the first time at our future plant in
Debrecen, Hungary, before being rolled out across our global
production network in stages.”

The new assembly in Munich will be built on the site currently used
for engine production. The combustion engines with four, six, eight
and 12 cylinders produced there will be manufactured at the company’s
locations in Steyr in Austria and Hams Hall in the UK going forward.
“Restructuring our engine production network is a strategic move
geared towards the future. We are also boosting our efficiency and
optimising our capacity utilisation,” explained Nedeljković.

Engine production will be relocated from
Munich in stages by no later than 2024.

The employees will go on to work in different planning and production
areas at the Munich location or other sites in Bavaria. At its
Competence Centre for E-Drive Production in Dingolfing alone, the
company will increase employee numbers from 1,000 currently to up to
2,000. “The transformation of our plants and securing future jobs go
hand in hand,” underlined Ilka Horstmeier, member of the Board of
Management of BMW AG responsible for Human Resources, with regard to
the upcoming structural changes in engine production. “Here in Munich,
we will prove once again that the BMW workforce can handle change. Our
employees will receive intensive support and training throughout this
process.” More than 50,000 people at BMW Group have already been
trained for electromobility since 2009.

Transformation towards electromobility

The realignment of the production network is based on three
priorities: transformation towards electromobility and digitalisation;
efficiency of processes and structures; and sustainability in
production and logistics. The expansion of electromobility in the
production network continues. Our Chinese plant in Dadong also began
producing the BMW iX3* this year. “By the end of 2022, all German
plants will have at least one fully-electric vehicle in their
programme,” underlined Nedeljković. From next year, the BMW i4 and
BMW iX* will come off the production lines in Munich and Dingolfing
respectively. Fully-electric variants of the new BMW 7 Series and the
future BMW 5 Series are also ready to go in Dingolfing. Plant
Regensburg will also start manufacturing the new BMW X1 in 2022, which
will be available both with an combustion engine and a fully-electric
drive train. From 2023, BMW Group Plant Leipzig, which has built the
iconic BMW i3* electric car since 2013, will produce the successor to
the MINI Countryman, with a combustion engine and as a fully-electric variant.

At the same time, the BMW Group is expanding its capacity for
manufacturing electric drive trains. The company is investing in
production equipment for highly integrated e-drives and high-voltage
batteries at the Competence Centre for E-Drive Production in
Dingolfing. The Leipzig and Regensburg locations are also currently
setting up equipment for production of battery modules and
high-voltage batteries from 2021. In parallel, the company is also
increasing production capacity for e-drive housings at Plant Steyr.

“Allocating capacity in this way places a deliberate emphasis on the
flexibility of our plants and makes them more efficient and more
competitive. Long-term agreements with employee representatives also
play an important part in this,” added Nedeljković.

Sustainability in production

The BMW Group has reduced resource consumption and CO2
emissions in vehicle production by 50 percent since 2006 – which is
much more than other European manufacturers. The amount of
CO2 generated per vehicle will be reduced by another 40
percent from 2019 levels by 2025 and 80 percent by 2030.
“Sustainability is a fundamental aspect of modern production,”
underlined Milan Nedeljković, adding: “By the end of this year, our
plants worldwide will obtain their electricity exclusively, 100
percent, from renewable energy sources.” To do so they will take
advantage of the best options at each location – from solar energy in
Oxford, Mexico and China, to biogas in South Africa, to wind power in Leipzig. 

In addition to using renewable energies, water, solvent, gas and
electricity consumption will be further reduced in parallel. For
example, the company is using data analytics to minimise machines’
power consumption. The amount of waste per vehicle is also
continuously decreasing, making the BMW Group one of the world’s most
sustainable automotive manufacturers. The BMW Group’s position as
sector leader in the “Automobiles” category of the Dow Jones
Sustainability Indices World and Europe, announced just a few days
ago, underlines this.

*) Consumption/emissions data:

BMW i3: fuel consumption combined: 0,0 l/100 km;
power consumption combined: 13,1 kWh/100 km; CO2 emissions combined: 0 g/km

BMW iX3: fuel consumption combined: 0.0 l/100 km;
power consumption combined: 17.8-17.5 kWh/100 km; CO2 emissions
combined 0 g/km

BMW iX: fuel consumption combined: 0,0 l/100 km;
power consumption combined: < 21 kWh/100km in the WLTP test cycle*; CO2 emissions combined: 0 g/km. Data are preliminary and based on forecasts.

Original Press Release

Statement Dr Nicolas Peter, Member of the Board of Management of BMW AG, Finance, Conference Call Interim Report to 30 September 2020

BMW:Statement Dr Nicolas Peter, Member of the Board of Management of BMW AG, Finance, Conference Call Interim Report to 30 September 2020

Good morning, Ladies and Gentlemen,

I hope you are all staying safe and healthy!

Over the past several months, the BMW Group has again proven its
ability to act flexibly in highly volatile market environments and to
adapt quickly to new circumstances.

After experiencing the full force of the coronavirus pandemic
initially in the second quarter, we delivered a strong performance in
the third quarter. We were able to increase sales and Group earnings.
This earnings quality is also reflected in our free cash flow.
Currently, however, the situation is worsening again, particularly in
Europe, and again requires a great degree of flexibility.

The measures we introduced in the first half of the year to lower
costs, together with our investments, are now paying off. This shows
that we are safely steering the company and are making the right
decisions – enabling us to limit the effects of the pandemic.

Our strict cost discipline is having a positive impact on earnings,
supported by additional measures, such as focused management of our
working capital.

One of the main drivers for this strong performance in the third
quarter was the recovery in customer demand in many countries,
including China and Korea, but also in major European markets, like
Germany, the Benelux countries and Italy.

Electromobility has proven to be a substantial growth driver. Our
sales of electrified vehicles increased significantly from the
previous year, both in the third quarter and in the year to date.

Performance was also bolstered by pent-up demand in many markets.

Ladies and Gentlemen,

As mentioned, the business environment has remained extremely
volatile – as underlined by sales development in the past two
quarters. The BMW Group delivered 675,000 vehicles to customers in the
third quarter – the highest quarterly sales in the company’s history.
But, just before that, in the second quarter, we posted our
largest-ever decrease in sales. Now the situation in Europe is
worsening again. We have never recorded swings like this within such a
short space of time.

Setting the right course has therefore been especially important in
recent months.

The market developments and performance measures I just referred to
are having a positive impact across the company and in our individual segments.

Let me go into detail, beginning with the financial figures for the Group.

Group revenues for the third quarter totalled around 26.3 billion
euros. Due to the suspension of sales and coronavirus restrictions,
however, revenues for the first nine months were moderately lower
year-on-year, at 69.5 billion euros.

Group earnings before tax for the third quarter reached almost 2.5
billion euros – up 9.6% on the previous year. The figure for the first
nine months was just under three billion euros, and therefore
significantly under the previous year.

The Group reported an EBT margin of 9.4% for the third quarter and
4.3% for the first nine months. I would like to point out that we
achieved this in an extremely volatile and challenging environment.

Ladies and Gentlemen,

The BMW Group remains well on course, as the automotive industry
undergoes a transformation. We are investing in the future and
continuing to forge ahead, particularly with electrification and
digitisation. A good example of this is the iNEXT, which will
celebrate its world premiere in the next few days.

Research and development activities accounted for around 4.4 billion
euros in the first nine months, with an R&D ratio of 6.3%, as expected.

A word about our capital expenditure, which was around 2.4 billion
euros: In the year to date, we have systematically prioritised and
focused our efforts without deviating from our roadmap for future
mobility and innovation. We were able to reduce capital expenditure
significantly from the 3.3 billion euros reported in the same period
of 2019. This also had a positive effect on our free cash flow.

The third-quarter financial result stood at 540 million euros.

A key driver for this was the BMW Brilliance Automotive result of 430
million euros. Thanks to effective pricing and high volumes, this
figure was significantly higher than the previous year.

Ladies and Gentlemen,

Let’s move on to the individual segments. I would like to start with
the Automotive Segment.

The segment’s EBIT margin for the third quarter was 6.7%. Its
operating result was 1.5 billion euros for the quarter and 152 million
euros for the first nine months. This means, that despite losses in
the first half of 2020, earnings were back in the positive range,
although still lower year-on-year.

This stems from healthy third-quarter sales, a strong model mix and
better pricing from our young and attractive model line-up.

Sales of our electrified vehicles are providing crucial contributions
for complying with the European Union’s CO2 limits. In the first nine
months of 2020, we sold over 116,000 electrified BMW and MINI models.
That is 20% more than in the same period of last year.

Strict management of our fixed costs boosted earnings quality,
despite expenses incurred for provisions in the mid-to
high-three-digit million-euro range for restructuring measures,
including for personnel costs.

I would like to give a special mention to our Performance Programme,
which is making valuable contributions to BMW Group targets across the
company. I’d like to highlight three initiatives briefly. First is
more effective pricing due to optimized sales management. Second is on
the product side – specifically in reducing manufacturing costs and
product complexity. And thirdly, we are also optimising new
initiatives, such as future work structures. These will enhance the
performance capabilities of the entire company. The decisions made so
far are already having an impact, as seen in our quarterly result.

We are therefore on course to meet our EBIT margin guidance of 0-3%
in the Automotive Segment, as planned.

Ladies and Gentlemen,

Let’s take a look at free cash flow in the Automotive Segment, which
totalled almost 3.1 billion euros in the third quarter and benefited
from the positive effect of pre-tax earnings.

It was also bolstered by focused working capital management, as well
as strict cost and investment management. At the end of September,
free cash flow stood at 552 million euros.

Group liquidity at the end of September totalled 21.8 billion euros.
By the end of the year, Group liquidity will be back towards its
pre-crisis level, at about 17 billion euros.

We have the liquidity reserves we need to remain flexible and able to
take action at all times if the situation should deteriorate.

Let’s turn now to the Financial Services Segment.

We also saw a recovery in new financing and leasing business with
retail customers. Between July and September 2020, we reported a solid
upward trend of 6.8%, with a total of 538,000 new contracts. This is
primarily due to demand in Europe and China.

We also saw definite signs of recovery in new financing business for
used cars in key sales markets in the third quarter.

The segment’s third-quarter pre-tax earnings trended significantly
lower year-on-year, at 458 million euros. As in the first six months,
the main reason for this was higher risk provisioning compared with
the previous year, in a low-three digit-million euro-range. This was
necessary after adjusting expectations for credit risks, specifically,
and, to a lesser extent, for residual value risks.

The Financial Services Segment makes extensive provisions for its
main business risks on an ongoing basis, as is customary in this
sector. Based on current assessments, we are appropriately hedged
against residual value and credit risks.

Let’s move on to the Motorcycles Segment.

Here, we saw clear signs of recovery in many important markets in the
third quarter.

The segment achieved an EBIT of 45 million euros in the third quarter
– an increase of over 28% compared with the previous year. A total of
more than 52,000 motorcycles were delivered to customers in the third
quarter, and over 129,000 per September. The EBIT margin for the first
nine months was 6.4%.

Ladies and Gentlemen,

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

As of today, we are on track to meet our targets for the year and can
confirm our guidance for 2020.

However, the volatility of the environment means our forecast is
clouded by considerable uncertainty. Our outlook does not factor in
the possible impact of rising infection numbers and the measures to
contain them. The situation is currently deteriorating, and, if this
continues over the coming months, it can have a significant impact on
business development. Pending political decisions like unresolved
Brexit issues are also contributing to this uncertainty.

Although car markets recovered faster than predicted in the third
quarter, we still expect to see a significant decrease in sales of
just over 10% in the premium segment for the full year. We are
therefore still assuming that the BMW Group’s global sales will be
significantly lower in 2020 than last year. We cannot expect the
pent-up demand seen in the third quarter to continue throughout the
rest of the year. In the Automotive Segment, we still expect the EBIT
margin to be within the range of 0 and 3%.

Deliveries in the Motorcycles Segment are forecast to decrease
moderately during the forecast period. Based on our assessments, the
EBIT margin should be between 3 and 5%.

On the Financial Services side, we anticipate a moderate decrease in
return on equity, mainly due to increased risk provisioning and a
decline in new business.

Group earnings before tax will remain well below last year’s figure.

As planned, our workforce size will be slightly lower in 2020 than
last year.

Ladies and Gentlemen,

We continue to focus our financial management on high profitability
and consistent cost management, while at the same time creating leeway
to fund necessary future projects. We are benefiting today from our
strategic focus on the high-end luxury segment. For example: Thanks to
our attractive 8 Series models and the BMW X7, we have been able to
grow sales of highly profitable models by more than 70% since 2018.

Over the coming months, our main focus will be on safeguarding
earnings and continuing to improve our free cash flow.

We are now striving to achieve a free cash flow of at least 1.5
billion euros for the full year. Any cash outflow in connection with
the antitrust allegations by the European Commission, as well as a
significant intensification of the impact of the corona pandemic is
not included in this assessment. 

Capitalising on all business opportunities and absolute cost
discipline will remain a clear focus for all areas of the company
until the end of the year.

We will continue to respond quickly and flexibly, if needed, to what
remains an extremely volatile business environment. Our production,
sales and purchasing networks have handled these challenges
exceptionally well so far. Aligning our production closely with demand
has proven successful – and we will continue to do so moving forward.

Ladies and Gentlemen,

At the BMW Group, we think long-term. High profitability is the basis
to achieve our strategic objectives, such as electrification and
digitisation. The same applies in these challenging and volatile times.

We are making the right decisions and setting the right course today
to secure the long-term success and profitability of the company into
the future.

Thank you.

Original Press Release

Seven principles for AI: BMW Group sets out code of ethics for the use of artificial intelligence.

BMW:Seven principles for AI: BMW Group sets out code of ethics for the use of artificial intelligence.

Munich. The use of artificial intelligence (AI) is a
central element of the digital transformation process at the BMW
Group. The BMW Group already uses AI throughout the value chain to
generate added value for customers, products, employees and processes.

Michael Würtenberger, Head of “Project AI”: “Artificial intelligence
is the key technology in the process of digital transformation. But
for us the focus remains on people. AI supports our employees and
improves the customer experience. We are proceeding purposefully and
with caution in the expansion of AI applications within the company.
The seven principles for AI at the BMW Group provide the basis for our approach.”

The BMW Group continues to follow global developments in terms of
both technological innovations and regulatory and ethical issues.
Together with other companies and organisations, the BMW Group is
involved in shaping and developing a set of rules for working with AI,
and the company has taken an active role in the European Commission’s
ongoing consultation process.

Building on the fundamental requirements formulated by the EU for
trustworthy AI, the BMW Group has worked out seven basic principles
covering the use of AI within the company. These will be continuously
refined and adapted as required according to the multi-layered
application of AI across all areas of the company. In this way, the
BMW Group will pave the way for extending the use of AI and increase
awareness among its employees of the need for sensitivity when working
with AI technologies.

 Seven principles for AI at the BMW Group. (10/2020)

Seven principles covering the development and application of
artificial intelligence at the BMW Group:

  • Human agency and oversight.
    The BMW Group
    implements appropriate human monitoring of decisions made by AI
    applications and considers possible ways that humans can overrule
    algorithmic decisions.
  • Technical robustness and safety.
    The BMW
    Group aims to develop robust AI applications and observes the
    applicable safety standards designed to decrease the risk of
    unintended consequences and errors.
  • Privacy and data governance.

    The BMW Group extends its state-of-the-art data privacy and
    data security measures to cover storage and processing in AI applications.
  • Transparency.

    The BMW Group aims for explainability of AI applications and
    open communication where respective technologies are used.
  • Diversity, non-discrimination and fairness.

    The BMW Group respects human dignity and therefore sets out to
    build fair AI applications. This includes preventing non-compliance
    by AI applications.
  • Environmental and societal well-being.
    The
    BMW Group is committed to developing and using AI applications that
    promote the well-being of customers, employees and partners. This
    aligns with the BMW Group’s goals in the areas of human rights and
    sustainability, which includes climate change and environmental protection.
  • Accountability.

    The BMW Group’s AI applications should be implemented so they
    work responsibly. The BMW Group will identify, assess, report and
    mitigate risks, in accordance with good corporate governance.

Overall centre of competence for the company: “Project
AI”.
“Project AI” was launched in 2018 to ensure that AI
technologies are used ethically and efficiently. As the BMW Group’s
centre of competence for data analytics and machine learning, it
ensures rapid knowledge and technology sharing across the company.
Project AI therefore plays a key role in the ongoing process of
digital transformation at the BMW Group and supports the efficient
development and scaling of smart data and AI technologies. One of the
developments to come out of Project AI is a portfolio tool which
creates transparency in the company-wide application of technologies
making data-driven decisions. This D³ (Data Driven Decisions) portfolio
currently spans 400 use cases, of which more than 50 are available for
regular operation.

 

WHERE IS THE BMW GROUP ALREADY USING AI?
USE CASES FROM
DIFFERENT AREAS OF THE COMPANY.

The following examples show that Project AI pushes the BMW Group
forward with AI focused, company-wide networking and knowledge
transfer. The fundamentally identical technology forms of AI can
generate added value for customers, employees and business processes.
For example, the customer benefits from natural language processing
(NLP) with the Intelligent Personal Assistant directly in the vehicle
and employees are supported with translation tools and
context-processing assistants in administrative processes. Intelligent
data analysis and machine learning are used to optimise energy
management both in buildings and in vehicles. And image processing AI
relieves both the customer with driver assistance systems from
monotonous driving tasks and employees in production from monotonous
processing steps.

E
XAMPLES FROM RESEARCH & DEVELOPMENT.

AI-based energy management in vehicles.
A
vehicle contains a large number of electric consumers, such as seat
heating, the entertainment system, the air conditioning, etc. In many
cases, the driver is not aware that using these consumers also has an
effect on CO2 emissions and/or the range of the vehicle. AI
experts at the BMW Group are conducting R&D work on AI-based
software for in-vehicle energy management. Taking user behaviour and
route information as a basis, the system learns how to adjust energy
consumption in the car as effectively as possible to the driver’s
requirements and the need for energy efficiency. In this way,
CO2 emissions can be reduced, energy saved and operating
range increased.

Acoustic analytics: sensory enhancement in the sensor model
for automated driving functions.
The BMW Group is
taking an all-encompassing approach to monitoring the vehicle
environment. One of the areas the company is exploring to this end is
how acoustic signal processing can be added to the AI sensor fusion.
Incorporating auditory perception can have benefits for urban
scenarios, in particular, going forward.

AI in requirements management.

At the BMW Group there are over 33,000 requirement specification
documents containing more than 30 million individual requirements for
vehicles, components and characteristics. That’s an enormous amount of
data. AI technologies can help employees to process large quantities
of data more quickly and carefully. Here, an application has been
developed which uses natural language processing methods to improve
the quality and analysis of individual requirements in specification
documents. The web-based tool allows thousands of requirements to be
automatically translated and checked – in real time – for linguistic
quality, similarity and consistency.

EXAMPLES FROM SUPPLY CHAIN MANAGEMENT AND LOGISTICS.

Integrating AI with facility and robot control systems.


The first smart AI control application at the BMW
Group celebrated its premiere at the BMW Group’s Steyr plant. This
application speeds up logistics processes by preventing the
unnecessary transport of empty containers on conveyor belts. To this
end, the containers pass through a camera station. Using stored image
data marked by employees, the AI application recognises if a container
needs to be lashed onto a pallet or whether – in the case of large,
stable boxes – no additional securing is required. If no lashing is
required, the AI application directs a container by the shortest route
to the removal station for the forklift truck.

Besides the application in Steyr, AI can be found in numerous other
logistics
innovations
at the BMW Group. It also supports virtual layout
planning, which creates high-resolution 3D scans of buildings and
factories. AI ultimately contributes to the recognition of individual
objects in the 3D scans, such as containers, building structures and
machines. In this way, robotics applications out-perform the
technology used previously in their coordination skills and ability to
recognise people and objects. Navigation improvements enable obstacles
such as forklift trucks, tugger trains and employees to be detected
more quickly and clearly, and alternative routes to be calculated
within milliseconds. The AI-based technology helps the robotics
applications to learn and apply different reactions to people and
objects.  

 

EXAMPLES FROM PRODUCTION.

Since 2018, the BMW Group has been using various AI applications in
series production. One focus is automated image recognition: In these
processes, AI evaluates component images in ongoing production and
compares them in milliseconds to hundreds of other images of the same
sequence. This way, the AI application determines deviations from the
standard in real time and checks, for instance, whether all required
parts have been mounted and whether they are mounted in the right
place. At the BMW Group, flexible, cost-effective, AI-based
applications are gradually replacing permanently installed camera
portals. Implementation is comparatively simple. A mobile standard
camera is all that is needed to take the relevant pictures in the
production hall. The AI solution can be set up quickly too. Employees
take pictures of the component from different angles and mark
potential deviations on the images. This way, they create an image
database in order to build a neural network, which can later evaluate
the images without human intervention.

Name plate checks.
In the final inspection area
at the BMW Group’s Dingolfing plant, an AI application compares the
vehicle order data with a live image of the newly produced car’s model
badge. Model designation badges and other identification plates (such
as “xDrive” for all-wheel drive vehicles and all generally approved
combinations) are stored in the image database. If the live image and
order data don’t correspond – if a designation is missing, for example
– the final inspection team receives a notification. You can find more
information here.

Dust particle analysis in the paint shop.

AI can control the operation of highly sensitive automotive
production equipment even more precisely, as a pilot project in the
paint shop at the BMW Group’s Munich plant has shown. If levels of
dust increase due to the time of year or a sustained dry period, the
algorithm picks up on the trend at an early stage and brings forward
the timing of a filter change, for example. Working in conjunction
with other analysis tools, additional patterns can be recognised.
Another result of the analysis might be that fine adjustments need to
be made to the machine using ostrich feathers to remove dust particles
from the car body. The BMW Group’s AI experts see great potential in
dust particle analysis. Supplied with information from numerous
sensors and data from surface inspection, the algorithm monitors more
than 160 features of the body and can predict the quality of a paint
application with great accuracy. You can find more information here.

AI control application in the press shop reliably prevents pseudo-defects.


At the press shop, flat sheet metal parts are turned
into high-precision components for the car body. Dust particles or oil
residues that remain on the components after forming can easily be
confused with very fine cracks, which occur in rare cases during the
process. Previous camera-based quality control systems at the BMW
Group’s plant in Dingolfing occasionally also identified these
pseudo-defects (deviations from the target values, but with no actual
fault). With the new AI application, these pseudo-defects no longer
occur because the neural network can access around 100 real images per
feature – i.e. around 100 images of the perfect component, 100 images
with dust particles, another 100 images with oil droplets on the
component, etc. This is particularly relevant in the case of the
visually close calls that have previously led to pseudo-defects. You
can find more information here.

BMW
won the Connected Car Pioneer Award 2020
in recognition of its
versatile use of AI in production.

 

EXAMPLES FROM AFTERSALES & CUSTOMER SERVICE.

AI at dealer service desks.
If a BMW customer
visits a dealer reporting a problem with their car, the problem needs
to be identified quickly and the right solution found reliably. To
help them do this, the service employee has the use of a knowledge
database, which has been expanded using a powerful software stack to
include both an intelligent and scalable search facility and AI (for
processing problem cases and knowledge data). AI incorporates context
information into the search process, enabling it to flag up identical
and similar cases. Added to which, an automatic translation function
breaks down the language barrier in the fault analysis process.

AI-based customer interaction in WeChat.

Chatbots help to significantly increase the quality and
availability of customer service. In China, BMW Financial Services
offers its customers an AI-based chatbot via the widely used WeChat
app. The chatbot allows customers to ask questions regarding their
personal finance agreement or make changes to their agreement. These
bots are first trained to deal with the topics for which most
questions are received by the call centre. If the chatbot cannot
answer a question, the enquiry is passed to a human member of staff.
This means that customers’ most frequently asked questions can be
answered quickly and with a consistently high level of quality around
the clock.

EXAMPLE IN BUILDINGS MANAGEMENT.

Increasing energy efficiency in BMW Group
buildings.
Since 2006 the BMW Group has been able to
consistently increase energy efficiency at its locations around the
world. It has now reached such a high level that identifying further
potential for improvement using conventional means is getting more and
more difficult. This is where the use of smart data and AI comes into
play. The BMW Group systematically processes all the energy-relevant
data at its locations so previously undiscovered energy consumption
patterns can be established using AI. Weather-related data can also be
incorporated into this process, enabling buildings to be heated and
cooled more intelligently and efficiently. In a pilot project in
Munich, this approach has allowed approximately 1,200 MWh of thermal
energy to be saved annually in the IT centre. This equates to the
energy consumption of approximately 60 family homes. This experience
and a rigorous process of data collection and analysis have also led
to positive energy efficiency results at office buildings such as the
BMW four-cylinder building, FIZ Projekthaus, Campus Freimann and the
dynamics centre at Dingolfing.

EXAMPLE FOR ADMINISTRATION & SUPPORT FUNCTIONS.

Customized Machine Translation (CMT) – machine translation
that learns the language of BMW.
The BMW Group is a
multinational company with a presence in over 100 countries. Its
customers, dealers and employees speak hundreds of languages and there
is an enormous daily influx of multilingual texts from external
sources. Human translation of all multilingual data does not make
sense due to the volume and costs involved. Freely available
translation solutions are not permitted for reasons of information
protection and often fail to provide the correct translation of
technical terms and formulations – the correct “BMW language”. With
this in mind, BMW Group IT has developed its own translation solution
specialising in BMW texts. BMW Group employees are now feeding over
2,000 sentences into the system every day.

 

EXAMPLES FOR CUSTOMER AND VEHICLE FUNCTIONS.

Driver assistance.
AI is the key to automated
driving – and is already present in current driver assistance systems
such as Driving Assistant Professional. Automation-based functions
help customers to drive safely, park and stay connected. On motorways,
they can take over longitudinal and lateral guidance of the vehicle
for extended periods. The customer remains responsible for the car,
but their task is now only to monitor what is happening.

BMW Intelligent Personal Assistant.

The BMW Group has revolutionised driving pleasure with the BMW
Intelligent Personal Assistant. Introduced in 2019, this intelligent
digital on-board companion responds to the prompt “Hey BMW”. The BMW
Intelligent Personal Assistant increasingly allows the car to be
operated, functions to be accessed and information obtained by voice
command alone. This technology enables direct communication and
natural interaction with the vehicle – helped by AI.

Original Press Release

Live discussion with CEO Jamie Reigle on Formula E at the FUTURE FORUM by BMW Welt.

BMW:Live discussion with CEO Jamie Reigle on Formula E at the FUTURE FORUM by BMW Welt.

Munich. On July 16, 2020 at 4 pm (CET), BMW Welt is
inviting fans to a virtual panel discussion about the ABB FIA Formula
E Championship, the first race series for all-electric single-seater
vehicles. This year, following the enforced break due to Covid-19, the
series will resume from August 5 with a total of six races, all in Berlin. 

High-profile guests for this exclusive panel discussion will include
Jamie Reigle, CEO of Formula E, Stefan Ponikva, Vice President Brand
Experience BMW, Maximilian Günther, BMW i Andretti Motorsport Driver,
Rupert Buchsteiner, Vice President at Magna International, Andreas
Buchner, Head of Development High Voltage electric Machine and eDrive
Unit, BMW Group, and Rudolf Dittrich, General Manager BMW Motorsport
Vehicle Development. Anyone can take part in the event at the FUTURE
FORUM by BMW Welt free of charge via social media channels or the BMW
Welt website and get insights into the concept and vision of Formula E
as well as its technical background and impact. The event will be
hosted by Nicki Shields, TV presenter and journalist. 

Formula E – the pioneer in motor racing.

To kick off the event, Jamie Reigle will talk about the pioneering
spirit of Formula E, followed by the first topic for the panel
discussion: the vision and success factors of Formula E. The panel
will then consider the following questions: How did Formula E come
about? What is the basic concept of the platform? Are efficiency and
energy management its success factors? What makes Formula E different
from other race series and why are there so many familiar faces from
the other race series? The panel will also look at the future of
Formula E and the impact of Covid-19 on the motor racing industry. 

The second part of the event will focus on the technology of the new
race series: Why is Formula E an innovation lab for the BMW Group and
an important player in the development of future mobility? How does
BMW series production benefit from the rapid developments in Formula E
and which specific product innovations can car owners expect to see in
the future? The experts will then be available to take questions from
online participants. 

The discussions will be held in English. For more information on the
event and the live stream go to https://www.bmw-welt.com/futureforum.

The FUTURE FORUM by BMW Welt.

The FUTURE FORUM by BMW Welt is dedicated to issues of the future.
Since October 2019 it has been a new meeting place and a modern dialog
platform for the movers and shakers of tomorrow. In May the focus was
on the continuing electrification of our world, followed by events
relating to the sounds of the future. During the rest of the year
there will be more exciting live formats and live streams on topics
such as future technologies, next generation and sustainability. 

The ABB FIA Formula E Championship.

The ABB FIA Formula E Championship is the world’s first race series
for all-electric single-seater vehicles. Sitting in the cockpits and
delivering exciting races on fascinating street courses in major
cities are some of the best racing drivers in the world. Formula E
comes to fans in city centers, bringing electric mobility directly to
the people in shows packed with action and emotion and set in stunning
locations. BMW i and Formula E have been partners right from the
start. As an Official Vehicle Partner, BMW i has been providing the
entire fleet of safety vehicles since the first season and has been
actively involved in the development of the race series. BMW i
Andretti Motorsport is currently competing in its second season as a
works team.

 

The dates at a glance:

 

Panel discussion “Formula E – a
pioneering racing series”. Live stream from the FUTURE FORUM by BMW
Welt at BMW Welt: 

When:              July 16, 2020, from 4 (CET)

Where:             FUTURE FORUM by BMW Welt 

Admission:      Livestream from the Future Forum,
online on any BMW Welt social media channel or at 
https://www.bmw-welt.com/futureforum

Experts:           Jamie Reigle, CEO of Formula E

                          Stefan Ponikva, Vice President Brand
Experience BMW 

Maximilian Günther, BMW i Andretti Motorsport Driver 

Rupert Buchsteiner, Vice President, Magna International

Andreas Buchner, Head of Development High Voltage electric Machine
and eDrive Unit, BMW Group

Rudolf Dittrich, General Manager BMW Motorsport Vehicle Development

Original Press Release

Statement and Presentation by Oliver Zipse, Chairman of the Board of Management of BMW AG, Annual Accounts Press Conference 2020

BMW:Statement and Presentation by Oliver Zipse, Chairman of the Board of Management of BMW AG, Annual Accounts Press Conference 2020

Oliver Zipse, Chairman of
the Board of Management of BMW AG

Good morning Ladies and Gentlemen!

In times like these, we need responsible behaviour in society. We
find ourselves in highly unusual times. All of us are personally
affected. Medical experts and scientists are giving clear directions
as to what we need to do to slow and contain the spread of the
coronavirus pandemic. The next few weeks will be critical. Many
countries have taken significant measures, which we support.

In this situation, as a company we have diverse responsibilities:

•      To protect our employees and their families as best we can.

•      To support our society in its fight against the virus.

•      And at the same time, to maintain our operational capabilities
and prepare for what comes “after the virus”.

We have made far-reaching decisions that affect our daily business.
Many people are focusing on their health and well-being and what is
most essential right now. In light of this, we have already
temporarily closed the first dealerships in Europe. Demand for cars,
like many other goods, will decrease significantly.

Our production is geared towards sales development forecasts – and we
are adjusting our production volumes flexibly in line with demand.
Since yesterday: We began to shut down our European and Rosslyn
automotive plants, which will close by the end of the week. The
interruption of production for the mentioned plants is currently
planned to run until April 19.

The BMW Group has highly flexible and effective work time
instruments. This applies to both direct areas, like production, and
also in indirect areas, such as administration. Now, we will reap the
benefits of this. We will continue to ensure our ability to operate as
a company. At the same time, we want to reduce the risk of infection
for our employees. We have therefore put a comprehensive package of
measures into effect. For example, employees will be able to work from
home, when it is possible and when it makes sense. I would like to
thank our social partners, that we were able to find solutions quickly
in true BMW tradition. And I would also like to thank all employees
for helping us to get through this situation.

Thank you also to our purchasing and logistics experts and partners
for their flexibility. And of course I would like to thank our Corona
competence team.

The BMW Group knows how to manage difficult situations. We have
proven this many times in the past:

·       We opened our plant in Dingolfing in the early 70s, in the
midst of the oil crisis. Next year, our new technology flagship, the
iNEXT, will roll off its production line in 2021.

·       During the 2008/2009 global economic and financial crisis, we
earned a profit and got the first all-round sustainable electric
production vehicle off the ground. Today, the BMW i3 is one of the
world’s best-selling electric cars.

Even in the current situation, we remain confident. There will be a
time during the coronavirus. And there will be a time after the
coronavirus. That is why we have decided, today, to give you an
outlook of everything we have planned.

The current situation requires a strong joint effort. But we are
strong – and we will fight this fight together. That’s all I wish to
say for the time being.

Now, Nicolas Peter will present the figures for the financial year
2019, as well as our forecast for the current year 2020, which we have
adjusted at short notice to the current situation.

Oliver Zipse, Chairman of
the Board of Management of BMW AG

Ladies and Gentlemen,

The topic of the coronavirus is currently dominating all areas of our
lives. However, we must also think ahead to the time that comes afterwards.

The BMW Group is a company that thinks long-term and acts responsibly.

I firmly believe that: The far-reaching technological transformation
and social changes currently taking place will actually strengthen our
business model.

Why do I say that?

·       Because we are realising our customers’ desires and
expectations with intelligent solutions and opening up new
possibilities for them.

·       Because our innovations give technological progress a face
and, in this way, we can also change and advance our society.

·       And because we are effective in what we do.

Despite the coronavirus, our ambition is clear: To emerge as a winner
and driver of this transformation!

Profitability remains essential for capitalising on future
opportunities. And this is what we aim to do! We will invest more than
30 billion euros in research and development by 2025. We firmly
believe we can continue to drive transformation and offer appropriate solutions.

I took over as Chairman of the Board of Management seven months ago.
I have spoken with a lot of people since then: Associates, peers and
colleagues within the industry, investors, journalists and political
representatives. Many people are uncertain about the future prospects
of our industry. And, in actual fact, the challenges are immense. For
one thing, because each of these challenges is immense in itself.

And, also, because a wide range of different demands must be
managed well at the same time. Being successful is not just about
mastering individual technologies perfectly. Another aspect that is
crucial to long-term success at the highest level – on top of
everything else – is that: Our focus cannot be on a singular approach.
We need to meet diverse and complex requirements at the same time
under constantly changing conditions. This, if you like, is the
central management challenge of the 21st century.

A good example of this is how we determine our strategy. One the one
hand, our business environment is shaped by stable trends. 

·       The growth forecast for the global premium segment up to 2030,

·       A faster uptake of e-mobility,

·       And historically important drivers for car ownership, like
household size, income and location.

On the other hand, there are uncertain developments in the world,
which require a quick response, such as: Trade conflicts, Brexit, the
impact of the coronavirus.

Defining our strategy is a constant, ongoing task for us.

The Board of Management has geared the BMW Group’s strategy towards
the relevant areas of future significance and adjusted some core
elements. We have defined a clear position for ourselves. What does
the BMW Group stand for? We take on business, environmental and
societal challenges.

We take responsibility for the mobility of today and tomorrow, with
compelling offers and through sustainable management. This applies to
all the factors we can shape and influence. We also defined: How can
we achieve this? Our values remain the basis for this. Because they
are the right ones and fit perfectly with our corporate culture. At
the BMW Group, we continue to chart our own course.

We do things the way we think they should be done – based on our
analyses and conclusions. And we tackle challenges early: Because we
believe in delivering instead of just talking!

What are the dominant
questions facing our industry – and what sets the BMW Group apart?


First, how can we continue to lead in a fiercely competitive car
market? Our vehicles are more in demand than ever. In 2019, we posted
record sales for the ninth consecutive year – with new all-time highs
for our BMW, Rolls-Royce and BMW Motorrad brands.

Second, how can we meet
strict CO2 targets?


Today, we are one of the world’s leading car companies in the
field of electrification. In 2019, we delivered more than 146,000
electric vehicles and plug-in hybrids to customers. By the end of the
year, we had more than half a million electrified vehicles on the
roads. And now, we are winning over customers with attractive new
models. The new MINI Cooper SE was released just a few days ago. We
have already received more than 8,000 orders. Most of the people who
placed these orders did not previously drive a MINI. This shows that
the MINI Electric has captured the spirit of the times and is perfect
for urban areas.

Third, how can we manage the
coexistence of different drive technologies in an efficient and
intelligent manner?



We install modular, scalable and intelligent
architectures at our plants. Because of this, we are able to scale
production quickly and flexibly to meet demand. We currently build
electrified vehicles at 11 of our plants. Customers will always get a
true BMW or MINI, whichever drive train they choose. Our customers can
rely on all the typical BMW characteristics in the best overall package.

Fourth, what is the right
way to steer employee numbers through the transformation?


We will keep employee numbers stable. We are qualifying staff
for new tasks on an ongoing basis. In 2019 alone, we invested around
370 million euros in vocational and further education. That is equal
to the budget of a top-ranking football club. One in three employees
has been trained in e-mobility. That adds up to more than 46,000. We
have the highest vertical integration among our competitors, since we
manufacture electric motors and high-voltage batteries in-house. We
are rapidly expanding the production of electric powertrain components
at our Plant Dingolfing in Bavaria, which will employ 2,000 people
over the medium term. At the same time, it is also important for our
customers that we enable our retail organisation: More than 100,000
staff members have already been trained for e-mobility.

Fifth, where can we find IT
talents and software know-how?
The BMW Group is one of
the biggest IT employers in Germany. Some 7,200 employees work in IT
and software alone. Another 5,300 employees at the company were
trained in data analytics. In 2018, we established the joint venture
Critical Techworks in Portugal with more than 600 employees to secure
exactly these skills. This start-up is creating digital services,
sales and aftersales platforms.

Sixth, how do we maintain
long-term profitability?

We launched Performance > NEXT back in 2017. This will leverage at
least 12 billion euros in efficiency potential by the end of 2022.
Nicolas Peter can answer further questions on that. The BMW Group
still has the best long-term ratings of any European car company.

Seventh, how can we offset
regional fluctuations and stay efficient?
Our production
network of 31 locations in 15 countries is highly flexible.

We are located close to customers and can take advantage of
potential for growth in markets at short notice. Our plant in Mexico
has also been a part of this, since summer 2019. Preparations for our
new plant in Hungary are underway.

And eighth, where do we get
battery cells from? And how do we secure the raw materials needed
for e-mobility?


We have long-term supply contracts with CATL and Samsung SDI.
Starting this year, we will be sourcing the key raw materials – cobalt
and lithium – ourselves and making them available to our suppliers.
Andreas Wendt is the person responsible in our Board of Management. We
have our own competence centre for battery cells in Munich, where we
have pooled all our knowledge in battery cell chemistry, mechanics and
physics. We aim to double the range of our battery cells, compared to
the current BMW i3, by 2030.

In a nutshell: We are about delivering long-term, viable solutions.
We know what we are doing and why we are doing it. I believe the
decisive factor in securing our future is: Being able to further
develop the highly complex and digitally connected car to benefit
customers and meet society’s demands.

We call this system integration. A car is the most complex technical
overall system you can buy as a customer today. Unlike consumer
electronics products, a car has to be able to run safely and reliably
for 10 to 20 years. There is nothing comparable, with such complex
safety-critical interactions, in the hands of individual customers.

Today’s vehicle manufacturing is less about “bending sheet metal” and
more about integrating hardware and software to create a harmonious
overall driving experience. To achieve this, we integrate market
requirements, regulations, customer requests and technologies. First,
we industrialise and then, we scale.

What does that involve?

·       A high level of vertical integration.

·       Dovetailing development and industrial production.

·       Worldwide delivery capabilities.

·       Customised products manufactured in the thousands every day.

·       A strong regional footprint.

·       A deep understanding of customers and technological and
social development in 150 countries.

All these capabilities must fit together – smoothly and precisely.
And the complexity just keeps on growing.

The transformation in the automotive industry is taking place amid
growing and concurrent requirements. We have the expertise and
experience it takes to master this complexity. We see this as a
definite competitive edge for us.

All of this will benefit our customers. The car enables individual
mobility and allows for a sphere of privacy like no other mode of
transport. Customers’ mobility demands vary increasingly between
different regions of the world and different countries and, also,
between urban and rural areas.

This means the “one model for the world” approach no longer works.
Different drive technologies will coexist alongside one another into
the long term. We are firmly convinced of this. It is up to us to
create and offer a corresponding range of products. Customers will
always decide for themselves what is right for their needs, naturally
based within a given political framework. We don’t want to tell our
customers what to do – we want to truly convince them. This is what
The Power of Choice is all about.

The new targets set by legislators in Europe mean – more or less –
that electrified vehicles must account for around 40 percent of sales
by 2030.

Attractive choices for customers will be more important than ever.

The popular BMW X3 is a good example. Starting this year, it will be
available with four different drive train variants: efficient diesel
and petrol, plug-in hybrid and as the pure-electric iX3. We are
producing the iX3 in China and exporting it from there. We will also
offer future model series with different drive trains.

And I can tell you officially today: That our BMW 7 Series flagship
will be one of them. The next-generation 7 Series will be available
with four drive train variants: petrol, diesel, plug-in hybrid and
fully-electric. All drive trains will be based on a single
architecture. And the top, most powerful 7 Series will be fully electric!

The BMW i4 concept car is right here on stage. We were very pleased
with the outstanding media reviews and social network response to the
world premiere two weeks ago. I can confirm again today: The design is
very close to the production model we will release onto the market
next year. We are putting e-mobility right at the heart of the core
BMW brand. The i4 is e-mobility without compromise: With a range of up
to 600 km according to WLTP and up to 530 horsepower, it is a true
BMW. The i4 will be built at our main plant in Munich.

The fully-electric i4 and the conventionally powered BMW 4 Series
Gran Coupé will come off the same production line. This means they
will use the same structures in the press plant, body and paint shops
and assembly. The i4 demonstrates that you cannot divide our industry
into electric cars and cars with conventional engines. Both of them
have their place. The i4 is powered by the fifth generation of our
electric drive train, which is a completely new unit we developed
ourselves. Our electric engines are designed so they no longer need
rare earths.

The i4 is just a taste of what is to come. In 2021 we will launch the
iNEXT, which will be built at our plant in Dingolfing. It is the next
milestone – fully-electric and, at the same time, enabled for highly
automated driving with Level 3 functions for motorways.

BMW already has 14 million connected vehicles on the roads, making
driving even safer. Our Active Level 2 systems have already reduced
the number of accidents by 35 percent. The reliability of the systems
involved and the benefits for customers are our top priority. This
will not change.

You are already familiar with our electric roadmap: We aim to have a
quarter of our European new vehicle fleet electrified in 2021; a third
in 2025; and half in 2030. The first few months of this year have been
very encouraging: Up to the end of February, global sales of our
electrified vehicles climbed more than 26 percent. About one in ten
vehicles we sold in Europe in January and February was electrified.

A recent study by McKinsey refers to Europe as an “electro-mobility
hotspot”. The uptake here is particularly dynamic. In 2019, Europe
increased its share of the global market to more than a quarter. BMW
clearly leads the market for electrified vehicles in Germany, with a
share of 21 percent. In 2019, the average share of battery-electric
vehicles and plug-in hybrids in the EU plus Norway was three percent.
The BMW Group figure was more than twice as high. By the end of 2019,
we had delivered a total of more than 330,000 plug-in hybrids to customers.

These will now be joined by more new BMW models: The X1, X2 and 3
Series Touring to follow the 3 Series Sedan. Plug-in hybrids can make
an important contribution to climate protection. They are already
helping to lower CO2 emissions and save fossil fuels, as
well as improving air quality in our cities. They are also key
enablers for the political goal of carbon-neutral mobility by 2050. We
are making it easier for our customers to use them effectively.

BMW eDrive Zones went live on 12 March in the first six countries,
with more cities and countries to be added over the course of the year.

Our new plug-in hybrids automatically switch to electric mode
whenever they drive into a green zone or city centre. In this way, we
are able to maximise electric – and therefore locally emission-free –
driving in city centres, precisely where it has the biggest impact.
The corresponding software can also be downloaded retroactively over
the air. We have programmed around 80 cities for the start: including
all major cities with green zones in Germany, as well as cities in The
Netherlands, Belgium, France, Austria and Switzerland. And we would be
happy to include more cities. We are extending that invitation to mayors!

E-mobility continues to gain ground. However, the conventional engine
remains the best drive train choice for a lot of people’s mobility
needs in many regions of the world. Anything else would be out of
touch with reality. That is why it makes a lot of sense to continue
improving our combustion engines’ efficiency.

Not enough attention is paid to these effects – even though they have
a quick impact. In other words: Anyone who does not continue to invest
in this area is accepting the status quo and not acting in the
interests of climate protection.

We have been implementing Efficient Dynamics in our fleet since 2007,
with a whole range of measures. I can assure you that Efficient
Dynamics is alive and well! Take the new BMW 1 Series: We have reduced
CO2 emissions by up to 15 percent from previous models,
depending on the variant.

This shows that we are driving climate protection in all vehicle
segments and with all drive trains. This is how we are defining
responsibility. We are now stepping up electrification by introducing
an additional component: We will be systematically rolling out our
48-volt mild hybrid systems throughout our combustion engine fleet. We
are purposely starting with our highest-volume engine variants. This
saves up to 0.4 litres per 100 km, which is up to

9 grams less CO2 per km (NEDC correlated), depending on
the vehicle and engine variant.

All these measures show that we take climate protection seriously. We
have set all levers in motion simultaneously to have a real impact.
And we want to meet Europe’s CO2 targets for 2020 and 2021.
In simple terms, this is how we want to meet the 2020 CO2
fleet target: With conventional vehicle measures contributing one
third, and two thirds coming from e-mobility.

Climate protection has the biggest impact when it is actually
implemented – and quickly. And when customers want it and use the
technologies on offer. Our understanding of responsibility has always
been about the entire value chain.

So, this is nothing new for us. We have already achieved nearly all
the sustainability goals for 2020 we set ourselves in 2012.

Let me give you four examples:

One: Last year alone, we reduced CO2 emissions from
production by 25 percent from the previous year. Two: The “footprint”
of every new plug-in hybrid is certified: from raw material
procurement, through the supply chain, production and use phase, all
the way to recycling. Three: Our water consumption per vehicle is the
lowest in our industry. That makes us benchmark in the industry. And
four: By the end of this year, all our locations worldwide will obtain
their externally purchased electricity exclusively from renewable sources.

We are clearly committed to the Paris Climate Agreement. Currently,
we are discussing next steps in the Board of Management, focusing on
the decisions we in the Board of Management can make today and areas
where our success can be measured. And not on what our successors may
– or may not – have to answer for. That would be too easy. We are not
offloading responsibility onto future generations. We are taking
action today. Our thinking is headed in this direction: We will get
much more involved in upstream supply chains and take a very close
look at our tendering processes in terms of sustainability.
Of
course, we will continue to work together in partnership with our
suppliers around the world in a fair manner.

The same approach applies to our sustainability strategy as to our IT
strategy: Both are anchored in our corporate strategy. This means
sustainable actions and IT are automatically channelled into all areas
of the company. Already today, the BMW Group is a digital company.  We
rely on an IT organisation deeply integrated within the company. It
identifies needs early, together with the business departments, and
promptly develops flexible solutions.

We put all our employees – from the worker on the assembly line to
our Board of Management members – in a position to make data-driven
decisions in the interests of our customers and the company. I’d like
to give you four examples of this:

First, in Purchasing,
Blockchain technology enables tamper-proof data sharing with our
suppliers. We are using it to track components in the n-tier supply
chain at the push of a button. We are now rolling out this technology
with more suppliers.

Second, in Financial
Services, digitalised processes will give our customers the option of
completing the entire financing process online. This is already
possible in Germany – from selecting the right financing product, all
the way to contract processing.

Third, with
Artificial intelligence. Producing a car generates substantial
quantities of data. Using AI and smart data analysis, we can analyse
and manage production processes intelligently. In vehicle assembly, we
use AI for automated image recognition to compare images of components
in milliseconds and identify deviations from the norm in real time.

And fourth, with “in
vehicle” digitalisation: “Over-the-air” updates ensure that a vehicle
is regularly brought up-to-date. They will also be used in the future
to expand vehicle functionality.
We can already “digitally
retrofit” the high-beam headlight assistant in just a few minutes.
Android Auto will also be available in BMW vehicles from July, as well
as Apple Car Play. Smartphone displays are integrated into the Control
Display and – in modified form – in the Info and Head-up Display.

Services enhance our mobility offer. Our mobility powerhouse YOUR NOW
was created in 2019. In collaboration with the Daimler Group, we want
to play a major role in this highly dynamic market. Three business
units were formed under the YOUR NOW holding company to maximise
synergies. This consolidation paves the way for further expansion of
sustainable mobility in urban areas.

We remain fully convinced of the potential of YOUR NOW. That is why
we are making investments to expand our product and service offering
in the field of mobility services. YOUR NOW services are now available
to customers in more than 1,300 cities. 90 million people already use
them. In the future, we will be focusing on those cities that promise
long-term profitable growth. YOUR NOW is open to other partners and
investors, so we can continue successfully expanding this business.

Ladies and Gentlemen,

At the BMW Group, the customer is the focus of everything we do. We
have updated nearly all series over the last two years. They will be
joined this year by new models like the BMW 2 Series Gran Coupé,
highly profitable BMW M models, new plug-in hybrids and electric
models. There is something for every customer – and we are challenging
the competition in every segment.

At the moment, for all of us, our first priority as a society is to
overcome the corona pandemic and then to find our way back to normal life.

I sincerely wish that you and your families stay healthy. Thank you!

Original Press Release

Statement Oliver Zipse, Chairman of the Board of Management of BMW AG, Conference Call Quarterly Report to 30 September 2019

BMW:Statement Oliver Zipse, Chairman of the Board of Management of BMW AG, Conference Call Quarterly Report to 30 September 2019

Good morning, Ladies and Gentlemen!

In recent years, much has been written about how car manufacturers
need to change their business model. What people don’t talk about
enough is the fact that the real transformation is taking place in the
vehicle itself. That is where the real challenge lies.

The car is a highly complex product. Our mission at the BMW Group is
to make it fit for the future for our growing customer base worldwide.
This is where we can make full use of our strengths.

On the one hand, our business environment remains volatile –
dominated by political changes in direction and emotional discussions.
On the other, there are a number of very stable trends that support
our business model.

Especially in this environment, we operate with a clear focus:

  • What are our capabilities and how can we make the most of them to
    benefit our business?
  • What are the really important decisions when it comes to mobility?
  • What do our customers want and what do they really need?

These factors form the basis for our strategic actions. We do not see
our strategy as a one-off, all-encompassing task, but rather as an
ongoing process, that we need to constantly fine-tune and adapt.

Our strategic work is based on a clear competence profile of the BMW
Group: Our core expertise lies in premium vehicles – optimised for the
desires of our target group and their connectivity needs. Our further
development of the vehicle represents a viable, profitable business
model – now and in the future. Everything we do starts with the
customer: This is key to staying ahead of tough competition in the
long run.

And it is equally important if we want to succeed in the shift
towards climate neutrality, called for by politics and society. It is
also what we want to achieve. As a company, we are an integral part of
society. That has been, and always will be, a large part of who we
are. The same applies to sustainable mobility, as to all our products,
technologies and innovations: The solution that wins through in the
end will be the one accepted by customers.

Today, we sell our premium vehicles in around 160 countries. This
already makes it clear, how diverse our customers’ needs are:

  • This applies to customers as individuals, with their specific
    everyday mobility needs.
  • It applies more than ever on a regional level, in the main regions
    of the world, Europe, Asia and the Americas.
  • And, it is also increasingly true at a local level, where needs
    differ from one city to the next.

No less diverse are the legal and technical regulations we face worldwide.

As a global company, the BMW Group has already established its own
production and value creation in the major regions worldwide. We will
now be focusing even more on this growing differentiation: in China,
the US and Europe, we are purposely seeking dialogue with local
experts to discuss relevant regional requirements and needs. We will
be increasing our efforts here – you can expect to hear more about
that soon.

The insights we gain will be integrated directly into our strategic
approach. This will enable us to offer tailored products, drive
trains, equipment options and services in these regions in the future.

At the same time, we are gaining a better understanding of our
customers and improving our customer centric approach.

One example of this is China, where our customers are significantly
younger. Vehicle connectivity is an important purchasing consideration
for them. Continued strong growth in overall prosperity is also
affecting the market for premium vehicles. I have already met with
Premier Li Keqiang twice, since taking office as CEO. I had the
impression: The BMW Group is highly relevant in China, people listen
to our opinion and regard us as a sought-after partner.

Soon, I will also travel to the USA. Individual mobility will remain
a stable, long-term business prospect in all regions of the world. The
premium segment is forecast to grow at a higher rate than the total
market. Based on this, we aim to make the most of the opportunities in
the growing global car market. And our goal is to outperform the
premium segment.

In the third quarter of 2019, the BMW Group reported growth in its
core markets in all major regions:

  • In Asia and China, despite the model changeover for the BMW 3
    Series Long-Wheelbase*.
  • In the Americas and the US, despite a stagnant market.
  • And in Europe, despite uncertainty over Brexit and in our domestic
    market, Germany.

As a result, our third-quarter deliveries rose year-on-year to over
610,000 vehicles – an increase of 3.6 percent.

In other words, we are bucking the trend. We also achieved a new
all-time high in sales in both the third quarter and the first nine
months for BMW and Rolls-Royce. The brand MINI also posted growth.

BMW Motorrad is also heading for its ninth consecutive record year.
In the third quarter, it reported growth of almost 10 percent. At the
EICMA yesterday, we presented three new production models for 2020.

Our financial figures for the third quarter were as follows:

  • Group earnings before tax: over 2.2 billion euros –
    an
    increase of 23.4 percent over the same period of last year.
  • Net profit: over 1.5 billion euros – up 11.5 percent.
  • The EBIT margin in the Automotive Segment was 6.6 percent.
    Despite challenging conditions, we aim to achieve our target range
    of 8-10 percent in the long term. That remains our underlying
    goal. It is also what the capital markets expect – and we are
    working systematically on this.

In light of the positive development in the third quarter, we are
able to confirm our guidance for the financial year 2019.

The biggest model offensive in BMW Group’s history continues. As well
as attractive models, it also includes different drive technologies
and the latest standards in connectivity. We see this as an effective
contribution towards limiting climate change and reducing emissions.

If we turn to our customers: They look first and foremost for the
vehicle segment that best suits their lifestyle and mobility needs.
Then, they think about the best drivetrain that would suit their needs
– fully electric, or a plug-in hybrid, or an efficient combustion engine.

Above all, our customers always expect a true BMW, regardless of the
drivetrain. We are able to offer customers the model they want – for
example the BMW 5 Series Sedan or the X3 – with different drive
technologies. This is what we call the “Power of Choice”.

For this purpose, we are designing the next generation of our vehicle
platforms from 2021 to be flexible, for rear and front-wheel drive: We
can manufacture various drives on one architecture and integrate them
into our plant structures. We are also capable of integrating vehicles
customised for e-mobility, such as the iNEXT, at plant Dingolfing from 2021.

For the customer, there is no noticeable difference regarding the
vehicle architecture on which the car has been built.

We expect e-mobility to make significant advances from 2021 on – once
the European Union’s new CO2 standards take effect. We
remain strongly committed to meet regulatory requirements in the EU
and worldwide. We have always complied with legislation and been
well-prepared in advance to implement any necessary changes. For
example, with WLTP and RDE I.

This now also applies to RDE II and the NCAP Crash Test:

  • RDE II means further tightening of the standards for
    nitrogen-oxide emissions. These will apply to new vehicle types from
    2020 and all new vehicle registrations from 2021.
  • The European NCAP Crash Test requires all vehicle classes to have
    a whole series of expanded assistance systems from 2022 on. These
    requirements will increase further in 2024.

Our new, fully-electric vehicles will be ready for launch right on
time for the EU’s new CO2 standards:

  • The BMW iX3 from 2020.
  • The BMW i4 from 2021.
  • And our new technology flagship, the iNEXT, also from 2021.

The biggest market for the iX3 will be China. That is why we will
produce it there – and export it to the rest of the world.

As you can see, we are certainly benefiting from our experience with electro-mobility.

Our BMW i3 has been available since 2013. It is not just an
e-mobility pioneer; still today it remains a true game changer and
continues to be a benchmark for a sustainable approach. Our customers
appreciate this, and i3 sales are climbing from year to year: 

  • We have already sold more than 160,000 i3s altogether.
  • In the year to the end of September, sales were up by about a
    fifth compared to the same period of 2018.
  • In October it will probably gain +3.4 per cent, year on year.

And we continue to offer updates that make it even more attractive.

Since 2016, the BMW Group has been market leader in electromobility
in Germany. Currently, our market share of electrified vehicles is 21
per cent in our home market.

The first fully-electric MINI* will also be launched before the end
of the year. This is an important step for a brand that has always
been at home in the urban environment. Customers have been waiting for
it – and the number of registered prospective customers reflects this:
78,000 so far.

 

To step up the pace of electro-mobility, we are also making headway
with battery cell technology: Next week, our new Competence Center for
Battery Cells in Munich will begin operation. There, we will pool and
deepen our comprehensive know-how in battery cell technology.

For over ten years, we have been developing and analyzing battery
cells. We are currently working on the cells of the coming decades.
This way we can influence the functional performance and the costs of
the battery, to our benefit.

Already today, we produce prototypes of battery cells. This has the
advantage that we can specifically request how the battery cells are
to be produced, regarding their chemical composition and design.

And, in addition, we are able to define in detail the associated
production processes. This places us in a strong strategic position.
We will then have all options in hand, regardless of how the global
market for cells develops.

Ladies and Gentlemen,

The BMW Group is whole-heartedly committed to the aims of the Paris
Climate Agreement – and we are taking action: Over the past 20 years,
we have lowered the CO2 emissions of our European vehicle
fleet by an average of 40 percent. There will be another slight
decrease in our CO2-fleet emissions again this year. This
places us in a better position than our competitors.

Over the next few years, we will continue to increase the amount of
electrified vehicles in our line-up. In Europe, we are following an
ambitious growth logic for our electrified vehicles:

  • a quarter of our sales volume in 2021;
  • a third in 2025;
  • half in 2030.

Hydrogen fuel cells also remain an option for us in the future: An
offer for this drive technology should be possible by the second half
of next decade – because hydrogen may be relevant as a key element of
a renewable energy system.

Over the past two years, nearly all our series have been newly
released onto the market or updated as part of our model offensive:
from the BMW 1 Series to the 7 Series, from the X1 to the X7.

The areas we are currently focusing on are: the luxury segment, the
compact class, the X family, plug-in hybrids and our M models.

First, the luxury segment: We have further strengthened our position
with the BMW brand, due to the new 8 Series, 7 Series and all-new X7
models. The 8 Series Gran Coupé has been available since September. It
is the best-selling 8 Series model and the most luxurious four-door
sports vehicle BMW has ever built. This puts us in a strong position
to meet our goal of doubling our sales in the luxury class between
2018 and 2020.

Regarding the compact class: The updated X1 has been on the market
since September, along with the new BMW 1 Series – which introduces
BMW’s new interior and exterior design language to the segment. For
the first time, it is based on the BMW front-wheel-drive architecture.
This allowed us to develop a 1 Series with even better driving
dynamics than its predecessor. We combined the front-wheel-drive
architecture with state-of-the-art chassis technology and
near-actuator wheel slip limitation. This innovative traction control
comes from BMW i. In this way, the new 1 Series sets the benchmark for
agility and precision. Next year, the 2 Series Gran Coupé will
introduce the successful “four‑door coupé” concept to the premium
compact class.

Let’s take a look at our BMW X models: One of the reasons they remain
highly desirable is that they are more efficient than many comparable
models in its class. In the year to date, the X3 and X4, in
particular, posted strong growth. The X7 has also been well received
by customers since its introduction in March. The X3 plug-in hybrid*
will complete our line-up in December. Already next year, we will also
be presenting the battery-electric X3.

By the end of the year, we will have 12 fully electric and plug-in
hybrid models on the roads. Customers desire our plug-in hybrids
because they can use them as their only vehicle. They don’t have to
worry about range and can get to know e-mobility in everyday driving
situations. People are a lot less hesitant about buying a plug-in
hybrid than a fully-electric vehicle. These cars also have excellent
fuel economy: The BMW 3 Series Plug-in-Hybrid* has an average petrol
consumption of 1.6 to 1.8 litres. The BMW Group also conducted a full
lifecycle CO2 certification for the new BMW 330e Sedan* –
from raw material procurement, through the supply chain, production
and use phase, all the way to recycling. The plug-in hybrid has an
advantage of about 60 percent over the petrol version if charged with
“green energy”. Even if it is charged during the use phase with the
average European electricity mix, the advantage is still over 20
percent. The 3 Series Touring* will also be available as a plug-in
hybrid variant next year.

BMW M GmbH is more diversified than ever. With the new X3 M*, X4 M*,
and M8 models, the portfolio has been significantly expanded. All new
models are now also available from market launch as Competition
models. In early October, we presented the new X5 M* and X6 M*. Our M
GmbH is once again headed for another very successful year.

Ladies and Gentlemen,

The car will continue to play an important role in our lives and our
society, because it remains relevant to so many people – especially in
suburban and rural areas. We continue to strongly invest in the
transformation of individual mobility. At the same time, as a
responsible company, we have to ensure the balance is right between
expenses and gains.

The mobility services in our Joint Venture with Daimler, YOUR NOW are
being well-received. More than 83 million customers use the services.
The number of transactions increased to more than 420 million in September.

 

Digitalization adds to the increasing complexity of market and
product demands. And reflects that our industry is becoming more and
more challenging. For many, this challenge represents a problem. We,
on the other hand, view this as a real opportunity.

Anyone who wants to be successful in the long run must master this
growing complexity, and at the same time, be profitable. This is no
easy task, as some new players are already experiencing.

And I believe the true strengths of the BMW Group have often been
under-estimated in recent years. Today, we are already a global
high-tech company.

Thanks to the expertise of tens of thousands of our well-qualified
employees, working together in coherent process chains and with our
suppliers – every vehicle we build contains a piece of highly advanced
technology that benefits our customers. For them, we will continue to
take the car to the next level and make it future fit – because we
have the technological and financial potential to do so.

We also have the necessary integration expertise. It is in our very
DNA to manage complexity – and combine efficiency with flexibility. We
will continue to harness the far-reaching technological change to
enhance our business model. For us, the way forward is to drive
progress ourselves.

That will remain our focus, also in the future, and our customers
will benefit from this strategic approach. We see this as our role for
the future of individual mobility in our society, and we are taking on
this responsibility.

Thank you!

Original Press Release

Kick-off for Season 6: BMW i Andretti Motorsport present the BMW iFE.20 and its two drivers.

BMW:Kick-off for Season 6: BMW i Andretti Motorsport present the BMW iFE.20 and its two drivers.

Munich. Season 6 of the ABB FIA Formula E Championship got
underway for BMW i Andretti Motorsport on Monday with the digital
season kick-off. The new BMW iFE.20 was presented to the public for
the first time on Facebook and YouTube. At its heart is the
further-developed drivetrain, the BMW Racing eDrive02, which
incorporates the innovation and technological expertise of BMW i
Motorsport and BMW i.

The two BMW works drivers drivers Maximilian Günther (GER) and
Alexander Sims (GBR) will be taking part in official Formula E
testing E at Valencia (ESP) starting Tuesday.

 

In a 15-minute video, the BMW iFE.20 enhanced in line with Formula E
regulations, was unveiled with its new livery, and viewers also got to
know the two drivers Günther and Sims better. While Sims is contesting
his second season for the team, Günther will make his race debut in
BMW i Andretti Motorsport colours at the season opener in Diriyah
(KSA) in November.

See here for the BMW i Andretti Motorsport ‘Season Kick-Off’ video:
https://youtu.be/1sRcjAc1l68

 

What BMW Group Motorsport Director Jens Marquardt had to say:

 

…about preparations for Season 6:

“The intense preparation for our second Formula E season with the BMW
i Andretti Motorsport team is still in full swing, both on the
racetrack and in the simulator. It is going well, but isn’t finished
yet. In the coming days we will continue our task at the official test
drives at Valencia. We have analysed the findings from our first
season and focussed our preparation on optimising our performance
overall in all areas. However, we will only truly know where we stand
at the season opener.”

 

 …about the objective for Season 6:

“In our maiden season, with a win, two pole positions and several
podiums, we showed that we are able to bring home top results in
Formula E. However, we know that the performance level is extremely
high and is likely to rise. But in this competitive environment our
aspiration must be to continue improving in our second season and be
able to be among the front-runners battling for the top positions.
Irrespective of the results, we want to show just how dynamic and
emotive electric racing can be, through good and exciting races. And
away from the racetrack we will be present with BMW i. We will
continue to use Formula E as a platform to present innovations in
electric mobility, autonomous driving and other BMW Group cutting-edge
fields to the general public.”

 

…about the technology transfer between racing and production:

“Despite all the sporting ambition and aspirations on the racetrack,
the technology transfer between racing and series production remains a
central pillar of our involvement in Formula E. Our objective for the
works entry for Season 5 was to establish an efficient technology
cycle between BMW i Motorsport and BMW i and we were very successful.
BMW i engineers are already benefitting enormously from the
technological insights we are getting from the extreme use case of
Formula E as they develop future production model engines. We will
continue this close collaboration next season, for the benefit of both parties.”

What BMW i Andretti Motorsport Team Principal Roger Griffiths
has to say:

“The whole BMW i Andretti Motorsport team is excited to get Season 6
underway. Large parts of the team have remained the same, and this
continuity has allowed us to build on our experiences from last
season. We are excited to welcome to the team our new driver
Maximilian Günther; his performances to date have been convincing and
we are looking forward to working with him in the coming months. It is
also great to have Alexander Sims stay in our team. He finished his
rookie season on a high with strong results in New York. We want to
build on that with him. The target for Season 6 is quite simple; we
want to be better than last season and take the next step.”

 

What the BMW i Andretti Motorsport drivers have to say:

 

Maximilian Günther: “Coming from Bavaria, it goes
without saying that it is a dream to be able to drive for a
prestigious manufacturer such as BMW and the BMW i Andretti Motorsport
team. I have felt at home here right from the start. I spent the first
few weeks getting to know my new colleagues and have been warmly
welcomed by everyone. I feel that we work really well together and are
working intensively to prepare for the start of the season. My goal is
to get the most out of our package as quickly as possible and to bring
home top results.”

Alexander Sims: “I’m delighted to have the
opportunity to contest another season of a future-oriented race series
like Formula E. Many thanks to BMW i Andretti Motorsport for placing
their trust in me once again. I’m also looking forward to working with
Max. He had a fantastic rookie season, and will no doubt enhance our team.”

The technology behind the BMW iFE.20:

Like its predecessor, the BMW iFE.20 also has a uniform chassis as
stipulated by Formula E regulations. BMW expertise remains primarily
in the core of the car, the enhanced drivetrain. The characteristic of
the BMW Racing eDrive02 was revised based on the detailed information
on the individual racetracks that the team gathered in their maiden
season, and modified to suit the specific challenges of Formula E
races. The changes affect the E-motor and the inverter. The main goal
of the modifications is to improve the efficiency of the drivetrain.
The same glycol as is used in production vehicles is now also used for
its water circulation system. The BMW i Motorsport engineers also
optimised the software that calculates energy management strategies,
and the simulator in Munich. The rear-end structure was also reworked,
to provide more flexibility for the set-up.

When working on the BMW Racing eDrive02, the BMW Motorsport engineers
cooperated intensely and closely with their colleagues in BMW i
production development. The BMW iFE.20 serves as a tech lab for road
car production. The knowledge gained by BMW i Motorsport engineers in
the tough competitive environment of Formula E flowes straight back
into the development of future E-drives for BMW production vehicles.
Motor racing makes it possible to test new materials, technologies and
methods in extreme conditions and without having to take into
consideration restrictive factors.

 

The design of the BMW iFE.20:

From the exterior, the slightly modified design of the BMW iFE.20 is
evident. It maintains some of the elements of its predecessor,
including the blue and white corners which intersect in the style of
the BMW logo. The view from above has also been accentuated which,
considering the usually elevated seating position of spectators at
Formula E races, plays a particularly important role. On top of this
is the asymmetric layout, which provides maximum visibility at race
speed. The striking changes also include the non-reflective, matt
black cockpit element, which has been extended to the whole driver
environment. It puts even more focus on the driver and highlights his
pivotal role in Formula E. The BMW logo pattern emphasised in its
predecessor has been given a slightly more abstract interpretation for
the BMW iFE.20. In return, there is greater accentuation of the
progression of colour from blue to violet, the natural colours of
electricity. Also, the BMW i Motorsport ‘Spirit Marks’ established
during the course of last season are now also reflected in the design
of the cars. To make it easier to distinguish the two BMW iFE.20,
Sims’ #27 car is slightly more violet, while Günther’s #28 BMW iFE.20
is slightly bluer.

Partners of BMW i Motorsport:

An important part of BMW i Andretti Motorsport is the partners
supporting the project. The Primary Partner of BMW i Motorsport is
Magna. The global automotive supplier for future technologies has a
long-lasting partnership with BMW. Magna uses the Formula E platform
as a catalyst for researching innovative solutions for the mobility
landscape. Julius Baer, a founding member of Formula E, has been part
of the BMW i Motorsport family from the very beginning. The Swiss
private banking group is Founding Main Partner. Main Partner of the
team is Einhell, manufacturer of innovative and sustainable power
tools and garden appliances. Harman Kardon, the long-time BMW partner
for premium audio solutions, will continue the relationship with BMW i
Motorsport as Official Partner. PUMA is the Official Supplier.

The TikTok BMW Motorsport #icelebrate Challenge:

BMW Motorsport is using BMW i Andretti Motorsport’s ‘Season Kick-off’
to launch its first hashtag challenge on the innovative social media
platform TikTok. Starting now, the young target audience can take part
in the BMW Motorsport #icelebrate challenge. To get involved, they
have to post a video of them showing how they celebrate great
experiences – like the start of a new Formula E season for BMW
Motorsport. The well-known TikTok creators Falco Punch, Sky & Tami
and PATROX were involved in the production of the launch videos and
created their own clips with the BMW iFE.20 in the unique setting.

The BMW Motorsport #icelebrate Challenge on TikTok: https://b.mw/icelebrate.

Original Press Release

And yet another anniversary for MINI: The brand’s ten millionth vehicle rolled off the production line in Oxford.

BMW:And yet another anniversary for MINI: The brand’s ten millionth vehicle rolled off the production line in Oxford.

Another celebration took place at the traditional MINI plant with a
rich heritage punctually heralding the 60th anniversary of the British
premium brand – the anniversary vehicle is a model of the MINI 60
Years Edition.

Munich/Oxford. MINI Fans all over the world have a
variety of opportunities to look back on the 60 years of history
enjoyed by the British brand over these weeks and months. Now there is
another reason to celebrate. The ten millionth vehicle of the heritage
brand was produced at the British MINI Plant Oxford where the classic
Mini was manufactured from 1959 onwards. The anniversary vehicle
rolling off the production line was a model of the MINI 60 Years
Edition – and it then came face to face with the brand’s first small
car ever manufactured. The classic Mini from 1959 and the Edition
model from the year 2019 then joined forces with 60 other vehicles of
the brand – each of them from one of the production years. They are
all taking part in a road trip travelling to Bristol in convoy, where
thousands of fans are celebrating the world’s biggest birthday party
for the British original at the International Mini Meeting being held
on Sunday 11 August.

The production anniversary to celebrate 60 years of the brand’s
existence bears witness to the uninterrupted popularity of MINI in the
21st century. In 1959, the genius who designed the classic Mini, Alec
Issigonis, laid down a definitive milestone in automobile history. The
vehicle concept with the engine mounted transversely at the front of
the car along with the gearbox configured beneath the engine, and the
wheels positioned at the corners of the car together with a tailgate
body provided maximum interior space on a minimum footprint. The
design also ensured amazingly agile driving characteristics and it
became the blueprint for modern small and compact cars. Around 5.3
million units of the classic Mini were sold worldwide up until the
year 2000.

Just one year later, the global success story of the brand was
continued. Since the relaunch of this marque, MINI is the original in
the premium segment of small cars. The reinterpretation of the
inimitable design, the unsurpassed driving fun that is unique in the
competitive environment and the individual style of the brand are not
simply generating enthusiasm in the class of small cars. These
characteristic qualities are empowering MINI to continuously acquire
new target groups in the premium compact segment. And the next stage
is about to be launched. In November 2019, production of the
all-electric powered MINI Cooper SE (fuel consumption combined:
0.0 l/100 km; electricity consumption combined: 16.8 –
14.8 kWh/100 km; CO2 emissions combined: 0 g/km) will
commence – also in Oxford. In future, this will also make
electromobility a typical MINI experience full of driving fun and individuality.

Alone in the previous year, almost 400 000 MINIs were sold in 110
countries. This means that the sales figures for the modern MINI are
following hot on the heels of its historic predecessor. The models
MINI 3-door, MINI 5-door and MINI Clubman are currently being produced
at the MINI Plant Oxford. Up to 1 000 vehicles are manufactured there
every day. The MINI Convertible and the MINI Countryman roll off the
assembly line at the Dutch production partner VDL NedCar.

“Seeing the ten millionth vehicle of our brand come off the
production line here in Oxford was a moment of pride for all the
employees. Some of them have family members who were already producing
the classic Mini at this site,” explained Peter Weber, Head of the
MINI Plant Oxford. “This is a wonderful chapter in the history of MINI
and proof of the passion that our customers have for this very special
British motor car.”

In the run-up to the production anniversary, MINI put posts on social
media asking the brand’s British community to share their personal
stories from 60 years of MINI with other fans. The huge response made
it possible to bring together characteristic vehicles from each
production year between 1959 and 2019 as the showpiece for the
anniversary celebration at the MINI Plant Oxford. The highlight of
this exceptional coalescence was the joint outing to the International
Mini Meeting in Bristol. The first classic Mini ever built drove at
the head of the convoy. It bears the registration 621 AOK well known
among MINI fans and the car was followed in chronological order by
protagonists from 60 years with the ten millionth vehicle of the brand
bringing up in the rear of the impressive anniversary procession.

The values of fuel consumption, CO2 emissions and electricity
consumption shown were determined according to the test procedure
defined in the European Directive VO (EU) 2007/715 in the version
applicable at the time of type approval. The figures refer to a
vehicle with basic configuration in Germany and the range shown
takes account of optional equipment and the different size of wheels
and tyres available on the selected model. These factors can change
during the configuration.

The values of some vehicles are measured according to the new
WLTP (Worldwide Harmonised Light-Duty Vehicles Test Procedure) and
converted to NEDC (New European Driving Cycle) for comparison
purposes. The taxes or other duties for these vehicles may be based
on fuel consumption and CO2 emissions data which differ from that
shown here.

Further information on official fuel consumption and official
specific CO2 emissions of new passenger cars is given in the
‘Handbook of fuel consumption, the CO2 emissions and power
consumption of new passenger cars’, which can be obtained free of
charge at all sales outlets and from Deutsche Automobil Treuhand
GmbH (DAT), Hellmuth-Hirth-Str. 1, 73760 Ostfildern-Scharnhausen,
and at https://www.dat.de/co2/.

In case of queries, please contact:

Press and PR

Matthias Bode, Spokesperson MINI

Phone:
+49-89-382-61742
, Fax:
+49-89-382-28567

E-Mail: matthias.bode@mini.com

Andreas Lampka, Head of Communications MINI

Phone: +49- 89-382-23662, Fax:
+49 89-382-28567

E-Mail: andreas.lampka@mini.com

 

 

 

 

 

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 2018, the BMW Group sold over 2,490,000 passenger vehicles and
more than 165,000 motorcycles worldwide. The profit before tax in
the financial year 2018 was € 9,815 billion on revenues amounting to
€ 97,480 billion. As of 31 December 2018, the BMW Group had a
workforce of 134,682 employees.

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

www.bmwgroup.com

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

Twitter: http://twitter.com/BMWGroup

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

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

LinkedIn: https://www.linkedin.com/company/bmwgroup

MINI Cooper SE: combined fuel consumption: 0.0 l/100 km; combined
power consumption: 16.8 – 14.8 kWh/100 km; combined CO2
emissions: 0 g/km. 

Original Press Release

BMW Summer School 2019 shines the spotlight on “Artificial Intelligence and Urban Living”.

BMW:BMW Summer School 2019 shines the spotlight on “Artificial Intelligence and Urban Living”.

Munich. As an initiative from the BMW Group Research
division, the BMW Summer School provides junior scientists from all
over the world with a regular opportunity to discuss their research
with top-class experts from both theoretical and practical
backgrounds. This year’s get-together took place in Lenggries-Fall,
Bavaria on 15 – 20 July 2019 under the auspices of the French consul
general, and was staged in collaboration with EURECOM,
the Technical University of Munich
(TUM)
and BayFrance with the
support of the Franco-German
University
, the Digitalist
Group
and the German-French Academy for the Industry of the
Future. The platform the BMW Summer School provides for dialogue with
established professionals from academia and industry combines with the
participants’ multidisciplinary backgrounds to give the event its
distinct identity. This year, young researchers from the fields of
computer science, mechanical engineering, electrical engineering,
civil engineering, psychology, law and industrial design got together.
“We see the BMW Summer School as a benchmark for cooperation between
industry and universities“, said Hannemor Keidel, TUM representative
for scientific relations with France.

Artificial intelligence is transforming mobility and urban living.

“Advances in the field of artificial intelligence have a major role
to play in shaping the future of mobility,” commented Michael
Würtenberger, Head of the Excellence Cluster for AI at the BMW Group.
“The BMW Group identified AI as a vital research area at an early
stage and set up the requisite development expertise.” The influence
of AI extends far beyond mobility into day-to-day life, future
production methods and business processes; AI therefore affects
society as a whole. The interdisciplinary nature of the BMW Summer
School 2019 made it the ideal forum for highlighting to participants
the social relevance of their research topics.

BMW Summer School: the sharing of scientific knowledge between
the worlds of theory and practice across three main areas.

To facilitate an intense exchange between the junior researchers and
the experts from science and industry, the programme for the BMW
Summer School 2019 was organised into three main areas.

Highlights from the keynote track, for example,
included a talk by Carlo Ratti, who heads the Senseable City Lab at the
Massachusetts Institute of Technology (MIT). Ratti: “Large cities
worldwide are facing enormous challenges. Big Data and AI can give us
better knowledge of the urban environment, and thus their potential
beneficial applications are countless.  This requires a new generation
of researchers to think and collaborate across disciplines and it is
great to see this kind of thinking fostered by the BMW Summer School”.
There were also breakout sessions that gave the participants the
chance to discuss specialised topics in small groups with academics
and industry representatives. The issues up for debate included the
use of AI for mobility services, design thinking methodology, quantum
computer technology and ethical considerations relating to the
interaction between human and artificial intelligence. “The successful
development of smart cities relies on the harmonization between
people, mobility solutions and infrastructure and their mutual
cooperation. We are expecting artificial intelligence and 5G to be
catalysts for smart cities”, said Weiyun Jiao from the Chinese
National Center for Intelligent Transport Systems in one of the sessions.

The poster track centred on the fields of research
pursued by the up-and-coming scientists. The participants presented
the ideas behind their current research and its objective to the
multidisciplinary audience in a competition format. This year’s awards
for the best research posters and most engaging presentations went to
Matthias Zöhrer (Graz
University of Technology
), Dantong Ge (Beijing Institute of
Technology
) and Felix Batsch (Coventry University).

The third key element was the lean startup machine.
The participants were split into mixed groups, asked to develop
innovative product and service ideas based on their research topics
under the guidance of agile design coaches and eventually present them
to the audience in a short pitch. This competition gave the young
researchers a realistic impression of what putting technological
innovations into practice entails, be it in the form of a business
idea or company startup. This year’s winning team of the startup pitch
award created the concept for „APPetite“ – an AI empowered meal
planner that helps its users to reduce the ecological impact of food waste.

In addition to the three main elements of the BMW Summer School 2019
programme, the PhD students also seized the opportunity to share ideas
informally among themselves and with the assembled science and
business experts. This allowed them to gain some inspirational
insights into the research work carried out in various disciplines and
its practical application in the industrial sector. A pair of evening
events involving Prof. Jörg Ott and Prof. Constantinos Antoniou from
TUM and Dr. Markus Grüneisl, Head of Production Systems,
Digitalisation and Operative Excellence at the BMW Group, helped
maximise this exchange of knowledge.

Experts at the BMW Summer School 2019.

Industry and business:
Pang Heng Soon, SGInnovate,
Singapore
Markus Grueneisl, BMW Group
Toni Cheng,
Alibaba
Ulrich Fastenrath, BMW Group
Jane Vita, Digitalist
Group
Oliver Oberst, IBM
Jakub Marecek, IBM
Tom
Hubregtsen, BMW Group
Irina Benkert, BMW Group
Kyle
Hounslow, Digitalist Group

Research:
Prof. Carlo Ratti, MIT
Weiyun Jiao, ITSC,
Ministry of Transport, People’s Republic of China
Prof. Arnaud de
la Fortelle, Mine ParisTech
Prof. Jean-François Bruneau,
IVADO
Prof. Jörg Ott, TUM
Prof. Constantinos Antoniou,
TUM
Susanne Müller, Munich School of Philosophy

Research committee at the BMW Summer School 2019.

Committee chairpersons:
Prof. Ulrich Finger, Director of
EURECOM
Prof. Andreas Herkersdorf, Head of the Chair for
Integrated Systems, TUM
Michael Würtenberger, Head of Research
E/E Architecture and Technologies, BMW Group

Original Press Release