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

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

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

 

 

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

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

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

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

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

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

 

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

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

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

 

“Circular design” as basis for circular economy

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

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

 

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

completely
net carbon neutral from 2021

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

Topic

CO2 reduction up to 2030 (from
2019)

Equivalent climate goal

Production and
locations
Scope 1+2

-80% per vehicle

more ambitious than 1.5°C
goal

Supply chain
Scope 3
upstream

at least -20% per
vehicle

1.75°C goal

Use phase
Scope 3
downstream

more than -40%
per vehicle/km

within
target range of 1.5 –
1.75°C goal

Entire lifecycle
Scope 1-3

at least -33% per vehicle

within target range of
1.5 – 1.75°C goal

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

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

 

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

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

 

2030: At least 50 percent of global sales fully electric

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

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

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

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

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

*Consumption/emissions data:

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

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

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

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

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

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

If you have any questions, please contact:

Corporate Communications

Max-Morten Borgmann, Communications Corporate, Finance, Sales

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

Eckhard Wannieck, head of Communications Corporate, Finance, Sales

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

Media website: www.press.bmwgroup.com

Email: presse@bmwgroup.com

 

 

 

The BMW Group

With its four brands BMW, MINI, Rolls-Royce and BMW Motorrad, the BMW
Group is the world’s leading premium manufacturer of automobiles and
motorcycles and also provides premium financial and mobility services.
The BMW Group production network comprises 31 production and assembly
facilities in 15 countries; the company has a global sales network in
more than 140 countries.

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

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

www.bmwgroup.com

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

Twitter: http://twitter.com/BMWGroup

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

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

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

Original Press Release

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

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

Good Morning to all our shareholders!

A very warm welcome from BMW Welt in Munich.

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

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

BMW has a “WE” culture.

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

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

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

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

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



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

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

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

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

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

You already know who we are:

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

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

The BMW Group is always focused on the future.

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

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

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

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

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

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

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

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

Technology is the key to the future here.

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

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

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

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

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

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

For us, AVOIDANCE comes before OFFSETTING.

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

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

You know how ambitious BMW is.

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

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

Our approach is holistic:

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


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

How much energy do we consume?

How many resources?

What do we use them for?

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

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

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

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

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

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

The “NEUE KLASSE” is a radical new approach.

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

BMW completely reinvented itself back in the early 60s.

BMW completely reinvented itself back in the early 60s.

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

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

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

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

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

Electric. Digital. Circular.

That is what characterises the “NEUE KLASSE”.

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

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

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

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

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

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

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

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

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

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

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

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

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

These are now being discussed with the Biden administration.

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

There will be no sudden U-turns from BMW.

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

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

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

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

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

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

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

Sustainability is like a jigsaw puzzle.

Together, the individual pieces create the perfect picture:

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

As you can see:

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

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

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

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

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

Your company is growing and entering a new electric dimension.

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

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

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

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

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

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

Let’s move on to the second topic:

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

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

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

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

But the BMW Group never really stood still.

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

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

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

2020 gave our electrified vehicles a real boost.

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

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

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

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

We will do the same again this year.

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

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

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

Let me give you two examples:

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

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

To summarise the year 2020 for BMW:

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

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

Many trends can be predicted; others cannot.

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

 

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

We already got off to a good start:

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

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

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

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

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

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

Global companies also face an additional challenge.

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

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

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

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

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

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

BMW is global.

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

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

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

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

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

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

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

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

Ladies and Gentlemen,

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

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

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

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

The i4 comes right from the heart of BMW.

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

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

We call this shy tech.

Check it out for yourselves!

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

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

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

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

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

It is our firm belief that digitalisation should serve humankind.

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

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

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

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

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

We developed it ourselves for the new BMW iDrive.

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

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

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

Take a look for yourselves.

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

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

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

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

Imagine each plant having a digital twin.

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

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

Customers love it – and our order books are full.

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

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

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

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

BMW Motorrad also went electric a long time ago. 

Our Definition CE 04 is also perfect for the city.

Its world premiere will be in summer.

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

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

Dear Shareholders,

Electric. Digital. Sustainable. This is your company.

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

We are making big plans:

Because we want to and because we can.

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

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

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

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

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

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

Original Press Release

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

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

Good morning, Ladies and Gentlemen.

The BMW Group is a global company.

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

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

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

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

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

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

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

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

Let’s start with the first point.

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

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

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

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

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

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

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

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

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

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

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

This also illustrates the success of our flexible architecture strategy.

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

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

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

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

Growth remains our industry’s strongest currency.

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

That brings me to my second point:

We are growing sustainably.

Sustainability is the new language that connects the world.

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

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

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

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

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

That is why we joined the Science Based Targets Initiative.

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

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

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

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

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

This requires hard work, investment and an ongoing commitment.

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

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

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

All these examples show that:

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

Our ambition is clear:

The greenest electric car will be a BMW.

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

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

That brings me to my third and final point:

We are shaping the technology for tomorrow’s mobility.

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

We are electrifying all our brands to achieve this.

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

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

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

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

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

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

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

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

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

And we are already planning the next big step.

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

the Neue Klasse – electric, digital and circular.

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

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

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

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

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

Ladies and Gentlemen,

The BMW Group is on course for success.

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

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

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

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

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

Thank you for your attention.

Original Press Release

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

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

Ladies and Gentlemen,

Good morning!

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

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

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

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

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

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

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

Ladies and Gentlemen,

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

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

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

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

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

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

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

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

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

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

Ladies and Gentlemen,

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

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

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

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

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

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

Let’s turn now to the Financial Services Segment.

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

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

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

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

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

Credit losses remain at a low level.

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

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

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

Ladies and Gentlemen,

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Ladies and Gentlemen,

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

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

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

Thank you for your attention.

Original Press Release

First quarter: Transformation accelerated – core business significantly strengthened

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

BMW Group on growth course in first quarter

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

Sales of electrified vehicles more than doubled in the first
quarter

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

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

Significant growth in Group revenues and earnings

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

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

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

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

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

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

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

Dynamic sales growth for all Group brands

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

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

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

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

Deliveries up in all major regions of the world

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

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

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

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

 

Automotive segment records high revenue growth

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

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

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

 

Financial Services: solid increase in new business with retail customers

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

Significant improvement in Financial Services segment earnings

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

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

Remainder of year expected to remain volatile

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

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

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

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

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

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

The BMW Group – an overview

1st quarter



2021

1st quarter



2020

Change in %

Deliveries to customers

       

Automobiles
1

units

636,606

477,111

33.4

thereof: 
BMW1

units

560,543

411,809

36.1

 MINI1

units

74,683

64,449

15.9

 Rolls-Royce1

units

1,380

853

61.8

Motorcycles

units

42,592

34,774

22.5

 

 

 

Employees
                                         (as
of 31.12.2020)

120,726

 

-4.2
2

 

Automotive segment
EBIT margin

%

9.8

1.3

8.5 % points

Motorcycles
segment EBIT margin

%

17.9

12.9

5 % points

Pre-tax return on sales
3

%

14.0

3.4

10.6 % points

 

 

 

 

Revenues

€ million

26,778

23,252

15.2

thereof:
Automotive

€ million

22,762

17,989

26.5

Motorcycles

€ million

753

557

35.2

Financial
Services

€ million

7,906

7,598

4.1

Other
Entities

€ million

1

1

Eliminations

€ million

-4,644

-2,893

60.5

 

 

 

 

Profit before financial result
(EBIT)

€ million

3,025

1,375

120.0

thereof:
Automotive

€ million

2,236

229

Motorcycles

€ million

135

72

87.5

Financial
Services

€ million

767

542

41.5

Other
Entities

€ million

-6

12

Eliminations

€ million

-107

520

 

 

 

 

Profit before tax (EBT)

€ million

3,757

798

thereof:
Automotive

€ million

2,776

80

Motorcycles

€ million

135

72

87.5

Financial
Services

€ million

787

484

62.6

Other
Entities

€ million

141

-344

Eliminations

€ million

-82

506

 

 

 

 

Group income taxes

€ million

-924

-224

Group net profit

€ million

2,833

574

Earnings per share
(common/preferred share)

 €

4.26/4.26

0.84/0.84

-/-

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

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

3 Group profit before tax as a percentage of Group revenues

*Consumption/emissions data:

 

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

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

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

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

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

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

 
 

 

 

GLOSSARY – explanatory comments on key performance indicators

 

Deliveries


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

EBIT

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

EBIT margin

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

EBT

EBIT plus financial result.

If you have any queries, please contact:

Corporate Communications

Max-Morten Borgmann, Communications Corporate, Finance, Sales

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

Dr Britta Ullrich, Communications Corporate, Finance, Sales

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

Eckhard Wannieck, Head of Communications Corporate, Finance, Sales

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

Internet: www.press.bmwgroup.com

E-mail: presse@bmwgroup.com

 

The BMW Group

With its four brands BMW, MINI, Rolls-Royce and BMW Motorrad, the BMW
Group is the world’s leading premium manufacturer of automobiles and
motorcycles and also provides premium financial and mobility services.
The BMW Group production network comprises 31 production and assembly
facilities in 15 countries; the company has a global sales network
with representatives in more than 140 countries.

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

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

www.bmwgroup.com

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

Twitter: http://twitter.com/BMWGroup

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

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

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

Original Press Release

BMW M Motorsport News, 4th May 2021.

BMW:BMW M Motorsport News, 4th May 2021.

BMW M Motorsport teams are once again in action all over the world in
2021. They are challenging for race wins and titles with the BMW M6
GT3, the BMW M4 GT4, the BMW M2 CS Racing, and other BMW M Motorsport
race cars. Our BMW M Motorsport News allows us to give you an overview
of the race action in various championships around the world and any
success enjoyed by the BMW M Motorsport teams. Throughout the year, we
also highlight certain topics in specific press releases.

NLS: The Nordschleife season is up and running.

After the opening round of this season’s Nürburgring Endurance
Series (NLS) was cancelled due to snow, rounds two and three were held
on the Nürburgring-Nordschleife (GER) in mid-April and on the first
weekend in May. In April’s race, the BMW Junior Team was the
best-placed BMW team in the #44 BMW M6 GT3. Neil Verhagen (USA), Max
Hesse (GER) and Dan Harper (GBR) finished eighth overall alongside
Augusto Farfus (BRA).
 
Next up was NLS 3 on the first
weekend in May. After four hours of racing, the #99 ROWE Racing BMW M6
GT3, with Nick Catsburg (NED), John Edwards (USA) and Nick Yelloly
(GBR), came home in fifth place. The same car also set the fastest lap
of the race. Just behind them, in sixth place, were Connor De
Phillippi (USA), Martin Tomczyk and Marco Wittmann (both GER) in the
#98 BMW M6 GT3 of ROWE Racing. The fastest time in qualifying, and
with it pole position, went to the #20 Schubert Motorsport BMW M6 GT3.
In the race itself, the Schubert team and its drivers Jens Klingmann
(GER), Jesse Krohn (FIN), Alexander Sims (GBR) and Stef Dusseldorp
(NED) finished eleventh.
 
The BMW Junior Team failed to
finish, but gained more valuable experience looking ahead to the
24-hour race. “Our pace was good, and we made great progress again. We
are confident and well-positioned,” said Hesse.
 
BMW teams
also enjoyed success in the different classes. In the SP10 class for
GT4 cars, Hofor Racing by Bonk Motorsport secured second place. The
#191 BMW M4 GT4 was driven by Michael Fischer (AUT), Gabriele Piana
(ITA) and Michael Schrey (GER) pilotiert). In addition, the BMW teams
picked up five class wins in both NLS races. The victorious teams
included Hofor Racing by Bonk Motorsport, Adrenalin Motorsport Team
Alzner Automotive, FK Performance Motorsport, and Schnitzelalm Racing
GmbH.
 
On the Thursday before NLS 3, the new flagship in
the portfolio of cars BMW M Motorsport took it to the track on the
Nordschleife for the first time: the BMW M4 GT3 successfully completed
a test on this unique, over 20 kilometre long circuit.

BMW M2 CS Racing Cup NLS: Strong field on the Nordschleife.

The first two races of this season’s BMW M2 CS Racing Cup NLS
were also held on the Nürburgring-Nordschleife (GER) within the
Nürburgring Endurance Series (NLS). The cup competition featured a
strong field consisting of twelve cars in race one and eleven in race
two. Victory in the opening round in April went to the FK Performance
Motorsport team. The #875 BMW M2 CS Racing was driven by Marc Ehret,
Moritz Oberheim and Nico Otto (all GER). The second spot on the podium
went to Yannick Fübrich (GER), David Griessner (AUT) and Francesco
Merlini (ITA) in the #870 BMW M2 CS Racing run by Adrenalin Motorsport
Team Alzner Automotive. Thomas Leyherr and Lars Peucker (both GER)
completed the podium in the number 899 car of LifeCarRacing / KRAC im
ADAC e.V. In the second race, held on the first weekend in May, it was
Fübrich, Griessner and Merlini who took the victory for Adrenalin
Motorsport Team Alzner Automotive. The #875 trio from FK Performance
Motorsport finished runner-up this time. The third and final place on
the podium went to Florian Weber, Davide Dehren (both GER) and Will
Tregurtha (GBR) in the #888 Walkenhorst Motorsport BMW M2 CS Racing.

BMW M2 CS Racing Cup Italy: First races of the season in Monza.

The BMW M2 CS Racing Cup Italy held its first races of the 2021
season in Monza, Italy on the first weekend of May. Race one on
Saturday saw heavy rain. The first win of the year was secured by
Filippo Maria Zanin (ITA) in the #19 BMW M2 CS Racing of Pro
Motorsport BMW Milano. Second place went to Vitantonio Liuzzi (ITA) in
the #8 car of BMW Italia. Alessandro Brigatti (ITA / #77) from team
A-Sport & Progetto E20 Cacioli Gr completed the podium in third
position. Race two was held in dry conditions. This time, the winner
was Gustavo Sandrucci (ITA / #16 Progetto E20). Luigi Ferrara (ITA /
#3 V-Action by Nanni Nember) finished second and Leonardo Moncini (ITA
/ #10 V-Action by Effe Group) crossed the line in third position.

Fanatec GT World Challenge Europe: Season-opener in Monza.

The Fanatec GT World Challenge Europe powered by AWS kicked off
the 2021 season in Monza (ITA) in mid-April. Among those in action:
three BMW M6 GT3. Walkenhorst Motorsport lines up with two cars in the
endurance races this season. However, the team from Melle (GER) was
unfortunate in the rainy opening race, with several punctures
resulting in them dropping back through the field. Sheldon van der
Linde (RSA), Marco Wittmann (GER) and David Pittard (GBR) eventually
finished 26th in the #34 BMW M6 GT3. Their team-mates Martin Tomczyk,
Timo Glock (both GER) and Thomas Neubauer (FRA) came home in 32nd
place in the number 35 car. The Boutsen Ginion team were
promisingly-placed for much of the race with the #10 BMW M6 GT3, but
also suffered a puncture with 50 minutes remaining, which forced the
trio of Karim Ojjeh (KSA), Jens Liebhauser and Jens Klingmann (both
GER) to retire. At this point, they were running second in the Pro-Am
class and on course for a podium finish.

Fanatec GT World Challenge America: Podium for Turner Motorsport.

The Fanatec GT World Challenge America powered by AWS held its
second event of the season on the first weekend in May at the “Circuit
Of The Americas” in Austin (USA). Saturday’s race was dominated by
heavy rain, which made for extremely difficult conditions. However,
this did not prevent the Turner Motorsport team from securing a spot
on the podium. Michael Dinan and Robby Foley (both USA) finished third
in the #96 BMW M6 GT3. The same duo then came home fifth in the second
race on Sunday.

Italian GT Championship: BMW Team Italia takes victory at season-opener.

The Italian GT Championship kicked off the 2021 season on the
first weekend in May in Monza (ITA). Among those in action again: BMW
Team Italia. It proved to be a successful start to the season for the
#215 BMW M4 GT4. Nicola Neri and Giuseppe Fascicolo (both ITA) ended
the Saturday race in third place in the GT4 AM class. The Italian pair
then claimed their first win of the season in the Sunday race. The
team’s #7 BMW M6 GT3, driven by Stefano Comandini (ITA) and Marius Zug
(GER), finished ninth in the first of the two races, before failing to
finish race two.

GT4 European Series: Podium for the BMW M4 GT4.

There was also a podium result for the BMW M4 GT4 at the opening
round of the 2021 season in the GT4 European Series, which was held in
Monza (ITA) in mid-April. In the second of the two races, Cem
Bölükbasi and Berkay Besler (both TUR) finished second in the Pro-Am
category in the #12 BMW M4 GT4 run by the Borusan Otomotiv Motorsport team.

GT/GT4/TC America: One-two-three for the BMW M2 CS Racing in Texas.

In the USA, the second event of the season in GT America, GT4
America and TC America was held on the first weekend in May. The venue
was the “Circuit Of The Americas“ in Austin, in the US state of Texas.
In the two races held in each of the series, BMW teams again enjoyed
numerous successes. In GT America, Sean Quinlan (USA) celebrated the
GT4 class win in race two at the wheel of the #119 BMW M4 GT4 of
Stephen Cameron Racing. In GT4 America, Quinlan ended race two in an
outstanding third place overall (second place in the Pro-Am class)
together with Gregory Liefooghe (USA). Jon Miller and Chandler Hull
(both USA) claimed a class victory in the Silver category in the #94
BimmerWorld Racing BMW M4 GT4 in GT4 America. The Classic BMW team
finished on the podium in the Silver class in both races with the #11
BMW M4 GT4: the duo of Steve McAleer (GBR) and Toby Grahovec (USA)
came home third and second in their class.

In TC America, the BMW M2 CS Racing was unbeatable in Sunday’s
race. The BMW teams celebrated an impressive one-two-three. Jacob Ruud
(USA) of the Classic BMW team made it onto the top step of the podium
with the #81 BMW M2 CS Racing. ST Racing driver Samantha Tan (CAN) was
runner-up in the number 428 car, while Steve Streimer (USA / #30 Hard
Motorsport) completed the success in third place. The BMW teams had
already enjoyed a top-three lock-out in the TCX class in Saturday’s
race, with Ruud and Tan in first and second place, followed by John
Hennessey (USA / #50 Classic BMW) in third.

Original Press Release

BMW Group Strengthens Leadership Position in Battery Technology with Investment in Solid-State Innovator Solid Power

BMW:BMW Group Strengthens Leadership Position in Battery Technology with Investment in Solid-State Innovator Solid Power

 ### Start of joint Press Release from all partners involved ###

Louisville, Colorado, USA. Solid Power, an
industry-leading producer of all solid-state batteries for electric
vehicles, today announced a $130 million Series B investment round led
by the BMW Group, Ford Motor Company and Volta Energy Technologies.
Ford and the BMW Group have also expanded existing joint development
agreements with Solid Power to secure all solid-state batteries for
future electric vehicles.

The investment positions Solid Power to produce full-scale automotive
batteries, increase associated material output and expand in-house
production capabilities for future vehicle integration. The BMW Group
and Ford aim to utilize Solid Power’s low-cost, high-energy all
solid-state battery technology in forthcoming electric vehicles.

“BMW and Ford now share leading positions in the race for solid-state
battery-powered electric vehicles,” said Doug Campbell, CEO and
co-founder of Solid Power. “Solid Power now plans to begin producing
automotive-scale batteries on the company’s pilot production line in
early 2022 as a result of our partners’ continued commitment to Solid
Power’s commercialization efforts.”

Solid Power has demonstrated its ability to produce and scale
next-generation all solid-state batteries that are designed to power
longer range, lower cost and safer electric vehicles using existing
lithium-ion battery manufacturing infrastructure.

Solid Power’s leadership in all solid-state battery development and
manufacturing has been confirmed with the delivery of hundreds of
production line-produced battery cells that were validated by Ford and
BMW Group late last year, formalizing Solid Power’s commercialization
plans with its two long-standing automotive partners. 

“Solid-state battery technology is important to the future of
electric vehicles, and that’s why we’re investing directly,” said Ted
Miller, Ford’s manager of Electrification Subsystems and Power Supply
Research. “By simplifying the design of solid-state versus lithium-ion
batteries, we’ll be able to increase vehicle range, improve interior
space and cargo volume, deliver lower costs and better value for
customers and more efficiently integrate this kind of solid-state
battery cell technology into existing lithium-ion cell production processes.”

“Being a leader in advanced battery technology is of the utmost
importance for the BMW Group. The development of all solid-state
batteries is one of the most promising and important steps towards
more efficient, sustainable, and safer electric vehicles. We now have
taken our next step on this path with Solid Power,” said Frank Weber,
Member of the Board of Management BMW AG, Development. “Together we
have developed a 20 Ah all solid-state cell that is absolutely
outstanding in this field. Over the past 10 years BMW has continuously
increased the battery cell competence– important partners like Solid
Power share our vision of a zero-emission mobility.”

Solid Power is currently producing 20 ampere hour (Ah) multi-layer
all solid-state batteries on the company’s continuous roll-to-roll
production line, which exclusively utilizes industry standard
lithium-ion production processes and equipment.

Both Ford and the BMW Group will receive full-scale 100 Ah cells for
automotive qualification testing and vehicle integration beginning in
2022. Solid Power’s all solid-state platform technology allows for the
production of unique cell designs expected to meet performance
requirements for each automotive partner. Solid Power’s truly
all-solid cell designs achieve higher energy densities, are safer and
are expected to cost less than today’s best-performing lithium-ion
battery cells.

“Volta invested early in Solid Power when our team of energy and
commercialization experts found they had not only promising
technology, but also a fundamental focus on manufacturability. After
all, a breakthrough battery will not find a place in the market if it
can’t be produced at scale with acceptable costs,” said Dr. Jeff
Chamberlain, CEO of Volta Energy Technologies, a venture capital firm
spun out of the U.S. Department of Energy’s Argonne National
Laboratory focused on investing in breakthrough energy storage and
battery innovations. “The fact that Solid Power is already producing
multi-layer all solid-state batteries using industry-standard
automated commercial manufacturing equipment is why Volta is excited
to ramp up its earlier investment. The company’s partnership with BMW
and Ford will further accelerate the full commercialization of Solid
Power’s batteries and position both car companies to be among the
first to have EVs on the road powered by safer, affordable,
high-energy solid-state batteries.”

                   ### end of joint Press Release from all partners
involved ###

For the BMW Group, it is clear that high-performance and sustainable
energy storage systems are the key success factor for the individual
mobility of the future. The development of highly innovative and
sustainable battery cells is therefore one key element of the next
phase of transformation of the BMW Group.

The BMW Group is accelerating its development for the battery
technology of the future: This goal is also reflected in the Neue
Klasse, which the BMW Group first presented at its annual conference
in March. This new generation of vehicles, which will be launched by
the middle of this decade, will be uncompromisingly electric, digital,
circular – and clearly focused on all-electric drivetrains.

With the Neue Klasse, the BMW Group aims at the level of
state-of-the-art internal combustion engines in terms of range and
manufacturing costs. Therefore, electric mobility “engineered by
BMW” is intended to appeal to and convince new groups of buyers
worldwide. For this sixth generation of BMW e‑drive technology,
featuring the next level of Lithium-Ion batteries, the company
evaluates correspondingly different cell formats, cell chemistry and
also cell modules in the current development phase. A key goal is to
create truly green, low-carbon and recyclable batteries.

Solid-state battery for serial use – demonstrator vehicle well
before 2025

However, the BMW Group with its extensive in-house expertise in the
complete value chain of electric drive for years, is already planning
further into the future beyond this next generation:

By the end of the decade, the energy density of battery cells is
expected to increase by at least a mid-double-digit percentage range –
from an already high level today.

The battery cell of the future will be powerful, safe,
cost-effective, and recyclable – from material selection to
recyclability after the use in the vehicle. For the end of the decade
the BMW Group has announced an automotive-compatible all solid-state
battery for series production. A first demonstrator vehicle featuring
this technology will be on the road well before 2025.

Electric offensive in full swing

Thanks to intelligent vehicle architectures and a highly flexible
production network, the BMW Group will have around a dozen
all-electric models on the road as early as 2023.

In addition to the BMW i3*, MINI Cooper SE* and BMW iX3*, which are
already on the market, two key innovation drivers, the BMW i4* and the
BMW iX* will be put on the road this year– the BMW i4 even three
months earlier than originally planned.

In the coming years, all-electric versions of the high-volume BMW 5
Series and the BMW X1 will follow. In addition, there will be an
all-electric BMW 7 Series as well as the successor to the MINI
Countryman and other models. As early as 2023, the BMW Group will have
at least one all-electric model on the road in around 90 percent of
its current market segments.

By 2025, the BMW Group will increase sales of all-electric models by
an average of significantly more than 50 percent per year – more than
ten times more than in 2020. In total, the company will have delivered
around two million all-electric vehicles to customers by the end of 2025.

Based on current market expectations, the BMW Group is planning that
by 2030 at least 50 percent of its global sales will consist of
all-electric vehicles. In total, the company will bring about ten
million all-electric vehicles onto the road over the approximately
next ten years. This also means that the BMW Group is strategically on
target of achieving the EU’s ambitious CO2 reduction targets in 2025
and 2030.

The investment in Solid Power again demonstrates the BMW Group´s
capability to identify the leading tech start-ups and to join forces
on the way to achieve pathbreaking next generation technology. Various
BMW Technology scouting offices around the world, outstanding startup
accelerators, the BMW Startup Garage and BMW i Ventures, are always on
the lookout for leading edge or disruptive tech in an increasingly
competitive ecosystem.
As a result, BMW sets the standard for
successful start-up collaboration, venture funding and corporate investment.

 

In the event of enquiries please contact:

Corporate Communications

Bernhard Ederer, BMW Group Innovation Communications
Tel.: +49
(0) 176 601 28556, e-mail: bernhard.ederer@bmwgroup.com

Max-Morten Borgmann, BMW Group Corporate
Communications
Tel: +49 89 382-24118, e-mail: max-morten.borgmann@bmwgroup.com

Benjamin Titz, Head of BMW Group Design, Innovation &
Motorsport Communications
Tel.: +49 (0)179 – 743 80 88, e-mail: benjamin.titz@bmw.de

Media website: www.press.bmwgroup.com

Email: presse@bmwgroup.com

 

 

 

The BMW Group

With its four brands BMW, MINI, Rolls-Royce and BMW Motorrad, the BMW
Group is the world’s leading premium manufacturer of automobiles and
motorcycles and also provides premium financial and mobility services.
The BMW Group production network comprises 31 production and assembly
facilities in 15 countries; the company has a global sales network in
more than 140 countries.

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

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

www.bmwgroup.com

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

Twitter: http://twitter.com/BMWGroup

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

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

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

Original Press Release

Innovation driver for hydrogen technology and tomorrow’s sustainable CO2-free mobility

BMW:Innovation driver for hydrogen technology and tomorrow’s sustainable CO2-free mobility

+++ Bavarian Economic Affairs Minister Hubert Aiwanger and BMW
Group Board of Management Member Dr Andreas Wendt impressed by
Landshut Lightweight Construction and Technology Centre’s expertise
in manufacturing components for hydrogen propulsion

+++ Innovative capabilities and industrialisation expertise
showcased in small series of BMW i Hydrogen NEXT from 2022

Landshut. Development of CO2-free drive
technologies is a top priority for the BMW Group. Hydrogen vehicles
can also play an important role in the growth of e-mobility and will
become an additional option in the long term. Just like electric
vehicles, hydrogen vehicles come with an electric drive train.
However, they do not obtain the energy they need from high-voltage
batteries, but produce it directly on board the vehicle from hydrogen.
In this way, the use of innovative hydrogen technology can help
further decarbonisation.

The Lightweight Construction and Technology Centre (LuTZ) in Landshut
plays a key part in this by producing essential components for the
hydrogen-electric drive train that will be installed in the BMW i
Hydrogen NEXT from 2022 and supplying them for installation of the
fuel cell system in Munich. Bavarian Minister of Economic Affairs
Hubert Aiwanger and BMW Group Board of Management Member Dr Andreas
Wendt were able to see the company’s strong innovation capabilities
and industrialisation expertise in the field of hydrogen for
themselves at today’s “Hydrogen Technology Day”.

“I am convinced hydrogen technology will gain traction – and I am
committed to making Bavaria a high-tech location for hydrogen
technology. This is a constructive way of responding to the climate
debate,” stated Hubert Aiwanger, Deputy Minister-President of Bavaria
and the state’s Minister for Economic Affairs, Regional Development
and Energy, on a visit to the component plant in Landshut in Lower
Bavaria. “The focus now is on building a hydrogen infrastructure at
national and international level, from production to application.”

“Here at our Lightweight Construction and Technology Centre, we are
creating important innovations for the mobility of the future,” said
Dr Andreas Wendt, member of the Board of Management of BMW AG
responsible for Purchasing and Supplier Network. “We are developing
highly complex components tailored to the demands of our cars. In this
way, the location is making a vital contribution to the company’s
transformation towards e-mobility. More than ever, our in-house
component production in Landshut serves as an innovation driver.”

Small series of second-generation BMW i Hydrogen NEXT from
late 2022

Hydrogen vehicles generate the electrical energy needed from hydrogen
directly in the vehicle and offer a number of advantages. They are
best suited for customers who frequently drive long distances, require
a great deal of flexibility or do not have regular access to electric
charging infrastructure. Refuelling takes just a few minutes, as it
does with conventional fuels. Vehicles that run on hydrogen produced
using renewable energy can make an important contribution to meeting
climate goals.

The BMW Group will pilot a small series of the BMW i Hydrogen NEXT
from 2022, based on the current BMW X5 and equipped with a hydrogen
fuel cell e-drive that only emits water vapour. The BMW Group is
building on its experience with fifth-generation e-drives to develop
this vehicle.

However, the conditions needed to be able to offer BMW Group
customers a hydrogen vehicle are not yet in place. Further commitment
is necessary – particularly with regard to the hydrogen filling
infrastructure and requirements throughout the entire energy system,
where green hydrogen must be available in sufficient quantities and
produced at competitive prices for individual mobility.

In Germany, the European Union and other major regions of the world,
lawmakers have recognised the significance of green hydrogen for the
energy system of the future. The European Union has mad hydrogen
technology a focal point with the “Green Deal”. The BMW Group welcomes
these activities. Major Asian markets, such as Japan, Korea and China,
have expressed a strong interest in establishing infrastructure for
hydrogen vehicles. The conditions for hydrogen fuel cell vehicles will
develop differently around the world.

Highly innovative components from Landshut for fuel cell
system

Preparations are already underway in Landshut for the fuel cell
system that will be used in the BMW i Hydrogen NEXT from 2022. The
production location in Lower Bavaria will manufacture highly
innovative components for the small series: the so-called stack
housing made of light metal, which holds the fuel cells, and the media
end plate made of plastic and light metal castings, which creates an
air and watertight seal around the stack housing. “Media” refers here
to the hydrogen, oxygen and coolant that are channelled into the
housing through the media end plate to initiate the chemical reaction
in the fuel cells. These complex components are specifically designed
to withstand prolonged contact with hydrogen.

“Having the Lightweight Construction and Technology Centre here
at the site gives us a real advantage over our competitors. We have
innovative capabilities and industrialisation expertise; we are able
to develop strategically crucial innovations ourselves and, at the
same time, we can reliably assess external partners and suppliers,”
said Dr Wolfgang Blümlhuber, head of Technology Driving Dynamics,
Light Metal Casting in the Purchasing and Supplier Network. “In a
technological transformation, success doesn’t happen by itself.
Courage, pioneering spirit and a long-term shift in competence have
been part of the secret of our success in the past – and our highly
qualified employees and their willingness to change play a key role,”
according to Willibald Löw, Chairman of the Works Council of BMW Group
Plant Landshut.

Fuel cell system in the BMW i Hydrogen NEXT

Within the drive train, the fuel cell system of the BMW i Hydrogen
NEXT is continuously fed with hydrogen from CFRP tanks and generates
up to 125 kW of electrical power for the electric motor mounted on the
rear axle. The underlying mechanism for this is a chemical reaction
between hydrogen and oxygen, with water the only reaction product. Two
700-bar tanks, which together hold six kilograms of hydrogen,
guarantee extensive range in all weather conditions and can be
refilled in just three to four minutes.

The electric motor in the BMW i Hydrogen NEXT is the same
highly-integrated fifth-generation e-drive used for the first time in
the BMW iX3. The high-voltage battery that sits above the e-drive
serves as a performance buffer and provides additional dynamics for
acceleration. The drive train system delivers a total output of 275 kW
(374 hp).

Over 40 years of experience with hydrogen technology

The BMW Group has over 40 years of experience with hydrogen
technology and more than 20 years in the field of hydrogen fuel cell
technology. Both the technology and the BMW i Hydrogen NEXT are being
developed in Munich. Hydrogen is also not new to the Landshut
location: Back in 2000, Plant Landshut fitted the technology flagship
of the day, the BMW Hydrogen 7, with a hydrogen combustion engine and
cast components shaped using sand cores. “Plant Landshut represents
the power of innovation from Lower Bavaria,” underlined Dr Stefan
Kasperowski, head of BMW Group Plant Landshut. “With the current
innovations for alternative CO2-free drive technologies,
the BMW Group is once again making a clear commitment to the
location.” As the BMW Group’s largest component plant worldwide, the
Landshut location has six different technologies at its command and
concentrates cross-technology pre-development expertise at the
Lightweight Construction and Technology Centre.

In addition, the BMW Group is already using hydrogen fuel cell
technology wherever it makes sense to do so: The fleet of several
hundred fork-lift trucks with fuel cell drive trains currently
deployed in logistics at the car plants in Spartanburg and Leipzig
will be further expanded in stages.


If you have any questions, please contact:

Communications BMW Group Plant Landshut
Saskia
Eßbauer, BMW Group Corporate and Governmental Affairs, Communications
Landshut
Telephone: +49 151 6040 3232, Email: Saskia.Essbauer@bmw.de

BMW Group Corporate Communications
Sandra
Schillmöller, Corporate Communications, Communications Purchasing and
Supplier Network,
Telephone: +49 151 601 12225, Email: Sandra.Schillmöller@bmw.de

BMW Group Innovation Communications
Carolin
Seidel, BMW Group Innovation Communications, press spokesperson,
Research, New Technologies, Innovation, Telephone: +49 151 601 90340,
Email: Carolin.Seidel@bmw.de


Media website: www.press.bmwgroup.com
Email: presse@bmw.de

BMW Group Plant Landshut
At BMW Group Plant
Landshut, around 3,600 employees produce light metal cast engine,
suspension and body structure components, plastic components for the
vehicle exterior, carbon body components, cockpit and equipment
options, electric drive systems, special engines and drive shafts.
Plant Landshut is the BMW Group’s largest component plant and supplies
components to all BMW Group vehicle and engine plants worldwide – and
therefore for virtually every BMW, MINI and Rolls-Royce vehicle, as
well as for BMW Motorrad. BMW Group Plant Landshut stands for
component production characterised by digitalisation and geared
towards sustainability, and is committed to responsible use of
resources.
With forward-looking technologies, BMW Group Plant
Landshut assumes the role of innovation driver in the technological
transformation of the automotive sector and its supplier industry. At
the Lightweight Construction and Technology Centre (LuTZ) adjacent to
the plant, specialists from a wide range of disciplines are brought
into development processes for new vehicles in the early stages and
help actively drive sustainable development of future vehicle models.
BMW Group Plant Landshut is a socially responsible, innovative and
attractive employer for the region of Landshut and Lower Bavaria.
www.bmw-werk-landshut.de

BMW Group
With its four brands BMW, MINI,
Rolls-Royce and BMW Motorrad, the BMW Group is the world’s leading
premium manufacturer of automobiles and motorcycles and also provides
premium financial and mobility services. The BMW Group production
network comprises 31 production and assembly facilities in 15
countries; the company has a global sales network in more than 140
countries.
In 2020, the BMW Group sold over 2.3 million passenger
vehicles and more than 169,000 motorcycles worldwide. The profit
before tax in the financial year 2020 was € 5.222 billion on revenues
amounting to € 98.990 billion. As of 31 December 2020, the BMW Group
had a workforce of 120,726 employees.
The success of the BMW
Group has always been based on long-term thinking and responsible
action. The company set its course for the future early on and is
making sustainability and resource efficiency the focus of the
company’s strategic direction – from the supply chain, through
production, to the end of the use phase, for all its products. 


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

Original Press Release

BMW 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 Purchasing steps up sustainability activities and paves the way for future e-mobility growth

BMW:BMW Group Purchasing steps up sustainability activities and paves the way for future e-mobility growth

Munich. The BMW Group is increasingly gearing up its
purchasing for future growth in e-mobility and setting new standards
for sustainability. The expansion of e-mobility makes value creation
in the supplier network more important than ever, both with respect to
CO2 emissions and sourcing of so-called critical raw materials, like
those needed for producing battery cells.

“We believe sustainability is an integral part of all purchasing
activities. So, as we accommodate the planned growth in electrified
vehicles in the supplier network, we are at the same time integrating
our sustainability requirements into all contract awards. In this way,
we are taking sustainable development to the next level. Particularly
as a premium manufacturer, we aspire to lead the way in sustainability
and take responsibility,” said Dr Andreas Wendt, member of the Board
of Management of BMW AG responsible for Purchasing and Supplier Network.

The BMW Group aims to have more than seven million electrified
vehicles on the roads by 2030 – two thirds of them fully-electric. At
this scale, BMW Group Purchasing is ensuring not only that the supply
chain can handle higher volumes, but also implement requirements for
sustainable development. In this way, BMW Group Purchasing is making a
vital contribution to the company’s transformation towards e-mobility.

 

High flexibility accommodates growing demand for e-mobility

Growing demand for electrified vehicles will also increase the need
for the components and parts that go into producing these vehicles.
With regard to battery cells, in particular, BMW Group Purchasing is
implementing various measures to accommodate this growth. The BMW
Group sources the current fifth-generation battery cells from four
suppliers – making it less dependent on individual suppliers.

“Volume flexibility is a basic premise and decisive criterion in the
selection of our battery cell suppliers. For our fifth-generation
battery cells, we have agreed 20% flexibility in the quantities to be
purchased: in both directions – up and down,” added Wendt.

Since the battery cell accounts for much of the cost of the drive
train in electrified vehicles, this is a key lever for long-term cost
reduction. The main focus is on cell raw materials and battery cell
production. The BMW Group is therefore consolidating its extensive
know-how in these areas at its own Battery Cell Competence Centre.

Focus on sustainability makes an impact on the BMW iX

The BMW Group is steadily expanding its sustainability activities in
parallel with the strong growth in e-mobility. Purchasing focuses on
three main areas: 1. compliance with environmental and social
standards and respect for human rights; 2. protecting natural
resources; and 3. reducing CO2 emissions in the supply chain.

These measures are already delivering results in the BMW iX (combined
power consumption: < 21 kWh/100km in the WLTP test cycle*; CO2 emissions combined: 0 g/km): Relying on renewable green power to produce battery cells and increased use of secondary material reduces CO2 emissions in the BMW iX supply chain by 17%, compared to the same vehicle produced without these measures.

At the same time, the BMW Group is also limiting its use of critical
raw materials and has reduced the amount of cobalt in the cathode
material for the current fifth-generation battery cells to less than
10% and increased the amount of secondary nickel to up to 50%. The
e-drive no longer requires the use of rare earths.

Compliance with environmental and social standards controlled
through transparent processes before, during and after the contract
is awarded 

The BMW Group is a trailblazer for corporate due diligence in the
supplier network. As early as 2008, the company began addressing this
issue and subsequently insisted on comprehensive environmental and
social standards when commissioning deliverables for the BMW i3. Since
2014, all BMW Group direct suppliers have been contractually obliged
to respect human rights, comply with expanded environmental and social
standards and to introduce management systems to promote occupational
safety and protect the environment. These requirements must also be
contractually passed on to subcontractors.

“We don’t just hand off responsibility to the supplier network; we
take responsibility jointly with our direct suppliers. We benefit from
our years of experience and are creating processes to achieve better
transparency and traceability,” explained Wendt.

BMW Group Purchasing does not rely on contractual obligations alone
for this, but is also implementing a large number of additional
measures as part of a transparent process. A risk filter is used to
evaluate potential supplier locations worldwide even before the call
for bids. The next step is to require possible suppliers to outline
their sustainability activities in a detailed questionnaire. External
partners also work with internal appraisers to review selected locations.

Compliance with the defined sustainability requirements is a
prerequisite for awarding a contract. Throughout the contract period,
external partners work with internal appraisers to verify compliance
with sustainability requirements through questionnaires and audits.

If discrepancies arise during any of these steps, the BMW Group
agrees on corresponding measures with the suppliers. In this way, BMW
Group Purchasing is monitoring thousands of locations every year.

The company has also established a procedure that can be used to
report non-compliance with social and environmental standards anonymously.

Special focus on critical raw materials

Eliminating infringements of human rights and environmental standards
presents a particular challenge in the case of critical raw materials
– for example, for lithium and cobalt, both of which are key
components for production of battery cells. For both raw materials,
BMW Group Purchasing has therefore implemented additional measures to
ensure cobalt extraction and processing takes place in compliance with
sustainability standards and to avoid problems with working
conditions, e.g. child labour. The company is therefore sourcing
cobalt and lithium directly from the mines and making it available to
battery cell suppliers.

“As well as guaranteeing predictable pricing, this enables us to
anchor our sustainability standards in contracts and ensure cobalt and
lithium are mined and processed in an environmentally and socially
sustainable manner. We saw this for ourselves when we inspected mines
in Australia and Morocco,” explained Wendt.

Another major challenge is ensuring respect for human rights and
compliance with environmental, health and safety standards for
extraction of raw materials when the process is not industrialised,
but takes place under the most basic artisanal conditions. For this
reason, as part of its corporate due diligence, the BMW Group is
actively taking responsibility and participating in local projects,
based on the principle of “empowerment before withdrawal”. In 2018,
the BMW Group joined forces with other partners to create the
cross-sector “Cobalt for Development” initiative in Congo. The aim of
the project, which is implemented by the German Agency for
International Cooperation (GIZ) is to develop and professionalise
artisanal mining in the region, so that it meets the BMW Group’s high
sustainability requirements and could again become an option for
sourcing cobalt in the long term.

Additional sustainability measures for other critical raw
materials

The BMW Group has implemented additional measures to tighten
compliance with environmental and social standards for the additional
critical raw materials. Here, BMW Group Purchasing goes beyond
contractually agreed sustainability standards and is getting more
involved in the supply chain through corresponding agreements made
directly at particularly critical points in the supply chain.

Mines and smelters are a focal point: Here, direct contact can be
increased through collaborations. It is also important that mines and
smelters are certified according to strict, internationally recognised
standards. To this end, BMW Group Purchasing is actively involved in
international standardisation initiatives focused on raw material
extraction, such as the IRMA standard, which is the most accepted,
most ambitious and most comprehensive of all mining standards.

However, expansion of other local projects like “Cobalt for
Development” is also conceivable, as well as extending direct
purchasing of critical raw materials.

Responsible management of natural resources

In addition to compliance with environmental and social standards and
respect for human rights, responsible management of nature’s finite
resources also plays a central role.

To safeguard reserves of critical raw materials, the BMW Group has
set itself the goal of significantly increasing the percentage of
recycled raw materials it uses, so-called secondary material, by 2030
and using raw materials multiple times in a circular economy. The
growth in e-mobility makes the idea of the circular economy
increasingly important, because of the many critical raw materials
needed for battery cells. Secondary material reduces CO2 emissions
substantially compared to primary materials: by about factor four to
six for aluminium.

Reduction of CO2 emissions in supply chain delivering results

The BMW Group aims to reduce supply chain CO2 emissions per vehicle
by 20% from 2019 levels by 2030. Without corrective measures, CO2
emissions per vehicle in the BMW Group supply chain would increase by
more than a third by 2030 – mainly due to highly energy-intensive
production of battery cells and increased use of aluminium. The
company intends to reverse this trend. One of the ways it is doing so
is by making carbon footprint a decision criterion in its contract
award processes. In particular, the use of green electricity for the
production of the battery cells in the BMW iX has led to a significant
reduction in CO2 emissions in the supply chain.

Original Press Release