OUR MANAGEMENT APPROACH

The BMW†Group takes a comprehensive approach to product responsibility. For us, it starts with the development of fuel-efficient vehicles that are safe for drivers and other road users. It covers resource-efficient and eco-friendly development and production processes, integrated and high-quality customer care as well as recycling concepts that ensure our cars have minimum impact on the environment even after they reach the end of their life cycle.

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A good example is the BMW i3, which will be produced from 2013. From the outset and along the entire value chain, we developed this electrically powered vehicle in line with measurable sustainability targets – from material and parts purchasing to the sale of the finished vehicle. We are deliberately using it to set a benchmark – both inside and outside the company. We intend to transfer the measures practised in the BMW†i3 step-by-step to all vehicle projects in the BMW†Group.

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PRODUCTS AND PROCESSES

Visionary vehicles

International requirements

Accounting

Consistent reduction in emissions and maximisation of product safety

Our visionary vehicles of the BMW i brand are spearheading our efforts to produce completely emissions-free vehicles in the long term. But they are only one part of our Efficient Dynamics Programme, our concept for ensuring sustainable individual mobility through constant and consistent reduction of emissions. We achieve the best results here by applying innovative efficiency technologies that are standard in our new vehicles.

Our product responsibility is however not limited to produci≠ng eco-friendly vehicles. As a provider of premium products and premium services for individual mobility, we also view the safety of our customers and other road users as a central component of our product responsibility. Through active safety features we try to prevent accidents, and with passive safety systems to mitigate their effects.

Other elements in our approach to product responsibility are resource-efficient production and high recyc≠ling and reuse standards that close the materials cycle as much as possible. We set our sights on intelligent services covering the entire spectrum of future mobility. One example is our DriveNow car-sharing service. Finally, we also strive for a high degree of customer satisfaction, conducting studies, customer interviews and constant analysis of customer feedback to find out how we can improve even further in our customers' eyes.

International requirements

International regulatory requirements for BMW†Group products are becoming increasingly stringent, particularly in the area of vehicle emissions. 94% of the vehicles we sell are subject to corresponding regulations and tax legislation. Planning for sales is at the same time made difficult by rapid changes in legislation. This means that we have to be prepared to cope with new framework conditions even before they are announced by legislators.

For many years now, the BMW†Group has had a Group-wide cross-hierarchy management system in place for this purpose. It ensures that both legal requirements and goals specific to BMW in the field of sustainability and product responsibility are met.

Holistic accounting methods

The BMW†Group assumes responsibility for all of its products and processes. This is reflected in the holistic accounting methods our Sustainability Board approved in 2009 based on our Sustainability Strategy. We assess the environmental, economic and social impact of our products across their entire life cycle. This holistic accounting method complements our long-standing Life Cycle Assessment system (ISO†14040/14044), enabling us to ensure from the architecture phase onwards that our products and processes conform to our sustainability standards. Here again, the BMW i3 is a good example.

BMW's philosophy includes implementing measures for sustainability through Efficient Dynamics not only in niche models, but as a standard component so that all customers can benefit.

An example of this philosophy is the BMW 520d Efficient Dynamics Edition BluePerformance. A recent winner of the ADAC "Yellow Angel" award in the category Car of the Future, this model exemplifies to the highest degree the principle of sustainability: avoiding losses while using energy to the maximum. Supplementing the full package of BMW Efficient Dynamics measures that are applied in every vehicle are aero wheel rims, reduced rolling resistance tyres, a lowered chassis, a modified transmission ratio on the rear axle and optimised gearshift timing, leading to a low fuel consumption in the EU test cycle of 4.5 litres per 100 kilometres and a CO2 value of 119 grams per kilometre. And the BMW BluePerformance system with its additional catalyser also reduces nitrogen oxide. With 184 HP, the BMW 520d EfficientDynamics Edition BluePerformance shows that sustainability and driving pleasure are by no means mutually exclusive.

FUEL CONSUMPTION AND CO2 EMISSIONS, ALTERNATIVE DRIVETRAIN TECHNOLOGIES

We are getting closer and closer to our vision of emissions-free mobility: by using innovative efficiency technologies in all models, increasing fuel economy by gradually electrifying drivetrains and adding electrically powered cars to our model range. By 2020, we want to cut the CO2 emissions of our vehicle fleet in half compared to 1995.

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Legal regulations on emissions are becoming increasingly stringent worldwide, continually posing new challenges to the automotive industry. 94% of the vehicles we sell are subject to corresponding regulations and tax legislation. Long before the official announcement of regulatory changes in the year 2000, the BMW Group had already set the course for reducing fuel consumption and emissions. We integrate our innovative Efficient Dynamics technologies into BMW Group vehicles worldwide and constantly work to make them even better.

Between 1995 and 2012, we reduced the CO2 emissions of our newly sold cars in Europe (EU-27 members) by more than 30%. Average fuel consumption in 2012 was 6.3 litres of petrol per 100 kilometres or 5.0 litres of diesel per 100 kilometres. Average CO2 emissions were 138 grams of CO2 per kilometre.

These are important achievements for the BMW Group, but represent only one step towards our goal. As resources dwindle and climate change continues unabated, we must strive to further reduce carbon emissions, improve energy efficiency and switch to alternative drivetrain technologies. By 2020, we will therefore reduce the CO2 emissions for our vehicle fleet by 50% compared to the base year 1995.

Starting in 2013, electrically powered cars of the BMW i sub-brand will complement our portfolio. We are gradually electrifying drivetrains, including plug-in hybrids, in an effort to lastingly reduce CO2. These will become an increasingly important part of our model range, enabling us to continue to meet the performance standards for CO2 and fuel consumption in the future.

A special CO2 Strategy unit directly affiliated with the Strategy division is responsible for monitoring progress and advancing improvements in this area. Our CO2 strategy encompasses all BMW Group products and production sites worldwide. The development and implementation of fuel-saving, low-carbon technologies is coordinated by the Complete Vehicle Architecture unit in our dedicated main department for Efficient Dynamics.

We are steadily moving closer to achieving our long-term goal of emissions-free mobility. In 2012, 73 models had maximum CO2 emissions of 140 g/km, 34 models a maximum of 120 g/km and four models were already under 100 g/km. Figures 08 and 09 show the development of CO2 emissions in our vehicle fleet.

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THREE STEPS TOWARDS EMISSIONS-FREE MOBILITY – OUR EFFICIENT DYNAMICS PROGRAMME

Our Efficient Dynamics Programme consists of several steps: In an initial step, we set out to integrate innovative, efficiency-enhancing technologies into all BMW†Group models. The second step is to further improve fuel efficiency by gradually electrifying drivetrains and producing comprehensive hybrid solutions such as the BMW ActiveHybrid 3, 5 and 7. From 2013 onwards, we will add electrically powered cars (BMW i3) and plug-in hybrid models (BMW i8) to our portfolio. In the long term, vehicles powered by fuel cells/hydrogen technology could be a further potential solution for local emissions-free driving.

Step one

Step two

Step three

Long-term

Efficient technologies for all new vehicles

Whether through efficient engines, optimised aerodynamics, intelligent energy management, lightweight design, forward-looking drive control, the Auto Start Stop function, brake energy regeneration, tyres with reduced rolling resistance or air flap control – the BMW†Group is developing innovative technologies to lower emissions and fuel consumption. This is not an option for niche or special models, but a standard component that has been incorporated into every new vehicle since March 2007.

Our customers benefit from eco-friendly and cost-saving efficiency improvements. But that doesn't mean they have to compromise on performance, comfort or dynamism. This is a clear competitive advantage for the BMW†Group. One example: A number of major corporate customers, including German federal states and the Austrian government, have recently switched to BMW†Group models for their vehicle fleets to save on fuel.

Efficient Dynamics opens up further promising potential in combination with BMW ConnectedDrive – a package of intelligent technologies that interconnect the driver, vehicle occupants, the vehicle itself and the environment.

As well as reducing the carbon emissions of our vehicles, we are working to bring down other emissions. All BMW†Group vehicles available in the European market since 1 September 2010 meet Euro 5 emissions standards. We are also playing a pioneering role in meeting the Euro 6 standards, which call for a significant reduction in NOx levels, in particular for diesel vehicles. Thanks to BMW BluePerformance technology, since 2008 customers have already had a choice of several models with particularly clean diesel engines that comply with Euro 6 standards. At the end of 2012, 18 models already met Euro 6 emissions standards with standard features, and compliance with the standard was available as an option for an additional 17 models. As of March 2013, four additional models fulfil Euro 6 requirements with standard components.

Hybrid solutions

The second stage in our Efficient Dynamics Programme consists of successive electrification of the drivetrain by way of various hybrid solutions that enable us to realise further fuel-saving potential. We already brought out the first series vehicles with electric drivetrains in 2009 with the BMW ActiveHybrid†X6 and the BMW ActiveHybrid 7. Since autumn 2012, the BMW†Group has also offered the models BMW ActiveHybrid 3, BMW ActiveHybrid 5 and BMW ActiveHybrid 7. They use up to 20% less fuel than their combustion-powered equivalents.

According to estimates made by the European Automobile Manufacturers' Association (ACEA), between 3% and 8% of all new vehicles registered will be either fully or partially electrically powered by the year 2020. To make sure that we play an active role in this growing market, we will pioneer radical new solutions in this field as we have elsewhere, re-affirming our technological leadership.

Alternative drivetrain concepts

Since 2007, our Project i has been developing completely new concepts for individual mobility as well as vehicle architecture and production that integrate sustainable solutions in an even more innovative fashion along the entire value chain. The models produced under the BMW i sub-brand don't simply have a different engine; they were conceived from the start as electric cars (vehicles with electric drivetrains). This includes intelligent lightweight design – using carbon fibre reinforced plastic and numerous new materials in order to produce vehicles of minimum weight – and especially resource-efficient production. This results in visionary vehicles that combine consistent sustainability with a maximum range, a spacious interior, smooth handling and the highest degree of safety.

The fully electrically powered BMW i3 will come onto the market in late 2013. Its development began with recording the car's global warming potential (CO2e) as a concrete, measurable target across its life cycle. This component of the environmental footprint now takes its place alongside the long-established parameters of vehicle weight, vehicle costs, CO2 emissions (g CO2/km) and fuel consumption (l/100km). Over its entire life cycle, including vehicle use, a BMW i3 based on the European Electricity Mix (EU-25) is expected to display at least one-third less global warming potential than an extremely efficient combustion-powered car in the same segment. Running on electricity produced from regenerative energies, the global warming potential can even be reduced by 50%.

The BMW i8, a plug-in hybrid whose battery can also be charged via the electricity grid, will come to market in early 2014, shortly after the BMW i3. It combines the driving performance of a sports car with the fuel efficiency of a compact. Its range when running on electricity will be approximately 30 kilometres and its CO2 emissions under 50 grams per kilometre.

Also scheduled for 2014 is the market launch of an electric scooter. The fully electrically powered scooter will have 48†HP and a range of 100 km.

Already, BMW†Group vehicles have impressively demonstrated their credentials as electrically powered automobiles for day-to-day driving. Since 2008, we have been putting day-to-day electromobility to the test with MINI E in field tests. And some of the functions of the future i Series have also been tested since 2011 with the BMW ActiveE, an electric test vehicle built on the basis of the BMW 1 Series.

Along with electric drivetrains, the BMW†Group is also doing research into hydrogen and fuel cells as alternative solutions for local emissions-free driving with a greater range. We have been cooperating with the Toyota Motor Corporation (TMC) in this field since 2012. The aim is to jointly develop a basic fuel-cell-powered vehicle system that also includes a hydrogen tank, engine and battery. The development project is scheduled to be completed by 2020. Both companies are also cooperating on the development of technologies for produ≠cing lightweight bodies. We have received several awards for our technological solutions for sustainable mobility.

•÷koglobe 2012: for the DriveNow premium car-sharing concept of the BMW Group in the category Mobilitštsmodelle (Mobility models)
•Corporate Entrepreneur Award 2012: DriveNow
•Green Cars Award 2012: in the categories "Large family car", "Off-road car" und "Luxury car"
•ADAC Eco Test 2012: 5 stars for the BMW 320d EfficientDynamics Edition

Charging electric vehicles with electricity from renewable sources
During the reporting period, we advanced the development of electric vehicles and thus took a vital step in the direction of emissions-free mobility. But an electric car can only reach its full potential when it runs on electricity that is as carbon-neutral as possible. We therefore entered into a strategic cooperation with Naturstrom AG in 2012 for the supply of electricity from renewable sources. BMW i customers will therefore have the option in future of purchasing a suitable green electricity package for charging their electric car as part of the package.

EXAMPLES

  • REAL-TIME TRAFFIC INFORMATION

    Traffic on the main roads is shown in real time on the BMW navigation systems. This enables the driver to avoid congested areas and save on fuel.

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  • ECO PRO MODE

    All BMW models now come standard with a button for activating the ECO PRO Mode. As well as having the choice between "sporty" or "comfortable" driving modes, BMW drivers can opt for a particularly fuel-efficient drive. Depending on individual driving style, the ECO PRO Mode allows fuel savings of up to 20%. In combination with the Proactive Driving Assistant and Active Coasting, a further 5% can be saved. As this mode is not activated in the usual test cycles, the full fuel savings are realised only in real day-to-day driving.

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  • ACTIVE COASTING

    Active Coasting is an innovative function for automatic vehicles that the BMW Group brought onto the market in 2012, available exclusively in combination with the ECO PRO Mode for the models BMW ActiveHybrid, BMW 7 Series LCI and BMW 3 Series Touring. Further models will follow. The principle involved is extremely simple: by releasing pressure on the accelerator, the driver automatically disconnects the engine from the gearbox. Active Coasting is particularly effective for drivers who have a predictive driving style of the kind enabled by the Proactive Driving Assistant.

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  • PROACTIVE DRIVING ASSISTANT

    The Proactive Driving Assistant uses data from the navigation system to tell the driver about speed limits, tight bends and roundabouts or turns ahead. By signalling them in the instrument panel and the Head-Up Display, it allows the driver to switch to Active Coasting at just the right moment, enabling maximum possible fuel economy. BMW introduced the Proactive Driving Assistant in 2012 for the BMW ActiveHybrid as well as the BMW 7 Series and BMW 3 Series Touring. Proactive Energy Management will gradually be introduced in other models starting in 2013. The car will then be able to change to the right gear in advance of the corresponding driving situation not only in ECO PRO Mode but also in the "sporty" and "comfort" modes.

    Proactive Energy Management also offers great potential for hybrid and electric vehicles. When a hybrid automobile approaches a longer downhill stretch of road, for example, the on-board computer is informed accordingly and decouples the generator in advance so that the battery is ready to be charged via engine braking as the car rolls down the hill. This enables the vehicle to use its charging potential to the full.

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  • MINI E FIELD TESTS

    More than 1,000 customers across Europe, Asia and the USA have clocked over 16 million kilometres driving more than 600 MINI E vehicles. Nearly 430,000 comments taken from user interviews have provided us with valuable insights that will be brought to bear on the development of future BMW Group electric vehicles. 90% of field test participants did not feel restricted by the charging times or range of the electric car. The study found that a range of around 160 kilometres and more space inside the vehicle would be enough to cover the needs of most urban drivers using a vehicle like the MINI E.

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  • BMW ActiveE

    Some of the requirements identified by the MINI E field trials have now been met with the BMW ActiveE. With four seats, a full-sized luggage compartment and an extended display and control system, it offers a range of around 160 kilometres. In 2011 and 2012, we loaned around 1,000 test vehicles to customers in order to further consolidate our knowledge of the day-to-day benefits of electromobility. 70 ActiveE cars are included in the DriveNow fleet in San Francisco, enabling drivers to experience electromobility by way of car sharing.

    The BMW ActiveE already incorporates our proprietary electric drive train, the components of which will also be used in the BMW i3. The ECO PRO Mode is also available in the BMW ActiveE, along with intelligent preconditioning that enables the driver to cool or heat the energy storage and/or passenger compartment to optimal operating temperature before taking a drive.

    Our tests revealed a high level of customer satisfaction. Users can cover around 90% of their daily driving with the ActiveE, and 47% can even imagine having the ActiveE as their only household car.

    In 2013, German DriveNow users will also have a chance to experience the ActiveE. It will also be available for short-term hire from BMW Rent.

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PRODUCT SAFETY

As a provider of premium products and premium services for individual mobility, we regard the safety of our customers and other road users as fundamental to our sense of product responsibility. We are constantly improving our active and passive safety measures to save lives or mitigate the consequences of accidents.

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For more than 30 years, we have been doing systematic research into the causes of accidents and developing technologies and strategies to improve the safety of all road users. We take an integrated approach to this task, which means we analyse the entire process chain, from accident prevention to post-crash applications. Based on these analyses, we try to prevent accidents from happening in the first place through active safety measures, and to mitigate their consequences through passive safety features.

BMW†Group products are developed and manufactured in strict adherence to quality management systems. The BMW†Group monitors its products on the market and examines all feedback on the topic of safety. If necessary, the responsible authorities are informed and all measures that serve customer safety are initiated. The BMW†Group has established the relevant committees, processes and organisations for this purpose. A wide variety of events communicate our safety concepts on a regular basis to fire departments, rescue forces and salvage operations.

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EXAMPLES

  • PROPRIETARY DRIVER ASSISTANCE SYSTEMS

    One example is our proprietary driver assistance systems, which are now being increasingly integrated into our model ranges. They help make driving safer by identifying critical traffic situations in order to warn the driver and make sure they are handled safely. Assistance technologies also provide support for the growing number of older road users. Driving will become even safer and more comfortable in the future thanks to increased automation. In long and monotonous driving situations, for example in traffic congestion, the vehicle helps to keep the car laterally positioned in the lane, easing the strain on the driver. In the medium term, these new driving features will even be able to assist the driver at higher speeds. Technologies are also being developed that go beyond today's state-of-the-art for detecting the surrounding driving situation.

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  • ADVANCED EMERGENCY CALL

    Another example is the optional Advanced Emergency Call system that forms part of our ConnectedDrive package. Directly after a collision occurs, this feature delivers not only exact position data, but also information with which the vehicle can be identified. This saves valuable time that can in extreme cases even make the difference between life and death. The Advanced Emergency Call is a forward-looking safety feature with functionality that already exceeds the EU regulations under discussion today.

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PASSIVE SAFETY SYSTEMS

Energy-absorbing crumple zones, safe passenger cells, restraint systems, airbags and a host of other passive safety features protect the lives and health of drivers on a day-to-day basis. Launched by the BMW†Group in 1997 as the first of its kind in series production, the side head airbag has dramatic≠ally reduced the number and severity of head injuries in side impact collisions.

In order to afford drivers and passengers the greatest-possible protection in the event of a collision, various safety elements work hand in hand. A networked system of highly sensitive sensors enables airbags to deploy in the appropriate situation and at precisely the right moment. Pyrotechnically activated seatbelt pretensioners and seatbelt force limiters further minimise risk of injury.

The passive safety system is intelligent: if the sensors register a collision, the hazard lights are automatically activated, the battery decoupled from the engine/generator and the cabin lights turned on. In combination with the Professional, Bluetooth and BMW Assist navigation systems, an accident also triggers an automatic emergency call, transmitting data on the position of the vehicle.

Our passive safety systems have among other things helped the current BMW 3 Series and BMW 5 Series Sedans to achieve top ratings in worldwide consumer protection tests, thus setting a benchmark in their categories.

ACTIVE SAFETY SYSTEMS

Active safety is primarily about control. Perfect chassis coordination, optimal traction and effective brakes contribute to preventing accidents, as do chassis control systems such as Dynamic Stability Control (DSC) and Electronic Damper Control (EDC). Added to these are the driver assistance systems with which we continue to make progress.

Automatic warning systems are already available as options for the BMW 1 Series and the BMW X3, and automatic braking systems for the BMW 3 Series, BMW 5 Series, BMW 6 Series and BMW 7 Series. They make an important contribution to preventing accidents or mitigating their effects. In the BMW 7 Series, for example, Driving Assistant Plus uses a combination of camera and radar technology to achieve particularly good results.

As an individual system, the approach control warning signals to the driver when the distance to the vehicle ahead or to any obstacles is insufficient – and if desired initiates a braking procedure. In combination with BMW Night Vision, the vehicle can detect persons on the road and illuminate them with a Dynamic Light Spot. If the risk of collision increases, the approach control warning feature of the Driving Assistant, if activated, brakes automatically.

We are also doing research into car-to-car communication, which promises considerable potential for added traffic safety.

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In future, car-to-car communications, a number of sensors and assistance systems will be able to use mobile WLAN networks to transmit data to surrounding vehicles. So a car up ahead can warn motorists following it in good time of congestion, severe storms or sudden icy patches on the roads.

Forward-looking traffic information of this kind will contribute to safer driving and can also be used as a basis for adaptive cruise control, consequently enabling a better overall flow of traffic while also saving on fuel. It is exactly this technological potential that we are currently exploring in conjunction with other companies in a joint project entitled Safe Intelligent Mobility – Test Area Germany, the results of which will be assessed in 2013. Interim results indicate that significant progress on traffic safety and efficiency can be achieved.

The European Car2Car Communication Consortium, of which the BMW Group is a member, signed a Memorandum of Understanding in 2012 that provides for the introduction of systems for car-to-car communications from about 2015. Data protection plays a central role here and was already taken into consideration in the interpretation and standardisation of the protocol. Thanks to a so-called pseudonym signature, the data transmitted cannot be traced back to vehicles or persons.

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PRODUCT LABELLING

DRIVING SAFETY TRAINING

The BMW Group is obliged to inform customers about risks, hazards and the proper use of its products and services.

The BMW Group issues reports in accordance with the relevant statutory regulations. In the European Union, for example, it reports on the fuel economy of its vehicles based on the NEDC (New European Driving Cycle). Fuel consumption and CO2 emissions for each vehicle model are also reported on the websites of the individual brands.

Information on vehicle safety and protecting customer health can be found in the respective manuals or in notes inside the vehicle (e.g. rescue card) as well as on our manufacturer websites. Additional background information on service, accessories, parts and BMW ConnectedDrive is available online.

Technical assessment during the release process ensures that product and service information for customers (manuals in particular) meets all requirements.

The BMW Group also contributes to protecting road users through driver safety training.

Safety, vehicle control in critical traffic situations and the typical BMW or MINI driving experience are the focus of these offerings. Today, we offer some 50 different training courses in 24 countries worldwide on BMW, MINI and BMW motorcycles – from driver safety training, to winter and off-road training, to training on race courses and adventure trips to Namibia. We thus offer training for every need. Last year, more than 17,000 participants in driving safety courses learned how to identify critical driving situations and respond properly, and how to avoid such situations in the first place if possible.

The BMW Group also provides police units with approximately 80 vehicles each year for their own driver training. This promotes safety in police operations. Additional vehicles are delivered to fire departments and the Fire Fighters' Association so that they can learn rescue techniques using modern cars.

OUTSTANDING VEHICLE SAFETY

SAFE MATERIALS

For each phase of the vehicle life cycle (from development, to use, to disposal) the specialist departments of the BMW†Group ensure compliance with the worldwide legal requirements for product safety and human health. In the early development phase, an interdisciplinary working group on Materials evaluates the potential materials to be used in a product to determine their risk potential. The working group can then intervene in the selection and development process as needed. This means that new legal requirements such as the EU chemicals regulation REACH can be integrated at an early stage into product development.

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The relevant departments collaborate closely to test current and future products according to the exacting standards of the BMW Group. As well as series parts, all auxiliary production substances and process materials such as paint and adhesives also undergo rigorous qualification processes. These processes form an essential basis for the consistent implementation of environmental laws and substance bans. The material composition of components is documented in material data sheets.

The International Material Data Sheet (IMDS) system is the central data structure used by the global automotive industry. In the IMDS system, material data sheets (MDS) are transmitted along the value chain from raw material suppliers to the automotive manufacturer (OEM) and checked and released by each recipient. The BMW Group then enters the approved IMDS data sheets into its own MDS system. In this system, data sheets for in-house parts are also created. This BMW Group material data sheet system assists the company, e.g. in the fulfilment of legal requirements such as the bans on certain materials outlined in the EU End of Life Vehicle Directive.

Furthermore, as part of the production process, all chemical substances that are used by the BMW Group are documented, for example in ZEUS (central recording system for environmentally relevant substances). The system documents all hazardous properties of chemical products as well as where they are used and provides tips on handling, first aid, storage and transport. ZEUS also controls and documents the approvals of chemical products for use in a particular workplace according to the BMW Group guideline "Approval of Chemical Products". This approval is a prerequisite for their use. The on going development of legislation on product safety is subject to a monitoring process that serves to integrate changing requirements early on in each phase of the product life cycle. Moreover, we also aim to achieve the best results with respect to consumer protection requirements, which often entail significantly higher demands than the legal requirements.

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EMISSIONS INSIDE THE VEHICLE

Emissions inside BMW automobiles have been significantly reduced since the 1990s. This was accomplished through a concept drafted by independent experts setting target levels for interior emissions and its implementation in new mater≠ial concepts. By continuously adapting these requirements for interior-relevant components and materials, we also take into account changes in hazardous material requirements worldwide. By complying with our internal guidelines, our vehicles have lower levels of interior emissions than those legally defined anywhere in the world.

In 2012, we also carried forward our strategy of integrating safety features previously available only in vehicles in the higher segments into our compact cars as well. Additional safety is provided in the BMW 3 Series, for example, by a Lane Change and Departure Warning system with approach control warning via camera monitoring as well as by the Advanced Emergency Call function. The BMW 1 Series is also equipped with the Advanced Emergency Call function.

RESOURCE EFFICIENCY AND RECYCLING MANAGEMENT

Intelligent design and the use of secondary raw materials enable us to reduce our consumption of valuable resources. By optimising our recycling structures, we are already preparing for increasing volumes of electric vehicles in the future.

In the initial development and architecture phase, we already design our vehicles and processes with a view to minimising the use of valuable resources. By processing manufacturing waste, we gain secondary raw materials while protecting the environment. We can draw on established systems for the recyc≠ling of end-of-life vehicles, components and materials.

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The BMW†Group meets the legally required recyc≠ling rate of at least 85%. Since 2008, the required recyc≠ling rates for 2015 – namely 85% reuse and recyc≠ling of materials and 95% overall recovery – have been an integral part of type approval. Thus, all vehicles brought to market since 2008 already meet the requirements set for 2015.

Initially implemented on the German and European markets, the BMW†Group's recyc≠ling systems are gradually being rolled out internationally across some 60 different countries and are undergoing continuous optimisation. European dealers are contractually obligated to meet BMW retail standards for old-parts recyc≠ling. These standards, along with our global network for returning used components, for example old catalytic converters and in the future thermoelectric generators, are helping us to protect resources and make more efficient use of raw materials. By expanding and optimising our recyc≠ling structures, we are already today taking into consideration the increasing proportion of electric vehicles that will take to the roads tomorrow.

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NEW DRIVETRAIN CONCEPTS, NEW CHALLENGES

The successive introduction of new forms of drivetrain and the modified vehicle concepts that result are presenting new challenges in the use of resources. One example is the increased use of components made of innovative, lightweight carbon fibre reinforced plastic (CFRP), which will be used for the passenger compartments of the BMW i3 and BMW i8. When talking about carbon fibres, we have to distinguish between pure carbon fibres and fibres with a resin matrix. All fibres without a resin component can be reused directly as a raw material. Plastic-reinforced parts are first separated from the resin using an established method and then processed further.

In 2012, we entered into a joint venture with the aircraft manufacturer Boeing, which works with carbon fibre composite materials in its aircraft. The aim is to take advantage of our shared know-how to further explore the best recyc≠ling options for carbon fibres.

DESIGN FOR RECYCLING

For us, dealing intelligently with raw materials and resources begins long before the time comes to dispose of them. Even in the early stages of vehicle development, the decisions our designers and engineers make, including the selection of materials and components, will determine the reusability of our vehicles decades into the future. In line with our principle of Design for Recycling, we create our vehicles in such a way that their components can largely be reused or recycled efficiently once the vehicle reaches the end of its life cycle. We are working continuously to come up with new solutions for vehicle recycling to be made accesible to external recycling businesses at the same time at our BMW Group Recycling and Dismanting Centre (RDZ) near Munich and presumably from 2016 in Shenyang (in Conjunction with our joint venture partner BMW Brilliance Automotive).

The RDZ is currently trialling recycling concepts for the new vehicle components found in hybrid and electric models. Batteries from vehicles of this kind can either be passed on to existing networks of recycling businesses or they can be used to produce photovoltaic systems.

Recovery and recycling

Closed material cycles

Renewable raw materials

End-of-life vehicle recovery and recycling

In the early 1990s – long before the legal regulations were established – the BMW Group began to build an extensive network in the European Union for the recovery and recycling of end-of-life vehicles (ELV). Each ELV returned to the BMW Group in this network is recycled at no charge to the last owner. In Europe, the BMW Group has contracts with 1,700 vehicle recyclers.

Closed material cycles for polymers

Secondary raw materials are finding more and more applications in our vehicles. Up to 15% of the thermoplastic materials in our automobiles are already made from secondary materials or recyclates approved by the BMW Group for the respective component. One example is the substrate used for the centre console and the door balustrade. The use of recyclates in our vehicles enables us to offset the rising prices of raw materials (for example plastic components made from mineral oil, for instance) while contributing to resource efficiency and saving energy.

Use of renewable raw materials

Wherever it makes technical, business and environmental sense and is socially acceptable, we replace artificial materials with natural, renewable materials. In addition to leather for the interior, the focus here is on alternative materials with natural fibres as a substitute for classic plastics. Examples are wool upholstery, cotton in sound insulation panels, flax and sisal fibres in substrates for door panels and parcel shelves, or wood fibres in seat back panels.

THE FUTURE OF MOBILITY, MOBILITY SERVICES, TRAFFIC MANAGEMENT

We want to shape tomorrow's mobility. To do this, we are working to develop not only forward-looking vehicles under the BMW i brand, but also sustainable and intelligent mobility services such as our car-sharing service DriveNow.

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The BMW†Group today faces the challenge of how to anticipate changing mobility needs early on and meet them successfully. What is the future of individual mobility in cities with increasingly dense populations? What concepts are needed in order to make mobility climate-friendly and easy on resources?

Our traffic researchers and engineers are hard at work on new solutions. An example of our holistic approach is our 360į Electric product and service package. It includes not only the electric vehicle, but also recharging at home and at local charging stations as well as mobility assurance through our Assistance Services. 360į Electric also offers flexible mobility by providing access to conventional BMW vehicles for long-distance trips and by integrating further mobility concepts such as DriveNow. It thus provides for easy and convenient electromobility in virtually any situation. In the context of BMW i, ConnectedDrive likewise stands for the networking of various forms of mobility such as driving your own vehicle, accessing various mobility services and using local public transport.

The BMW†Group aims to make the entire value chain of future mobility as sustainable as possible. Environmental sustainability is a focus here, along with social impact and economic viability.

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PREMIUM CAR SHARING

In 2011, the BMW†Group and Sixt AG launched the car-sharing service DriveNow. It is the first car-sharing concept to build exclusively on efficient premium automobiles and comprehensive service. Cars can be picked up and left wherever the customer wishes within certain city limits. So far, the offer is available in Munich, Berlin, Dusseldorf, Cologne and San Francisco. As of March 2013, there were 90,000†registered members.

We are increasingly combining our car-sharing offers with our electric drivetrain solutions. Since June 2013, 70 electrically powered BMW ActiveE cars have been available to members in San Francisco. In the second quarter of 2013, a total of 60†BMW ActiveE cars will join the DriveNow fleets in Munich and Berlin. With a powerful electric engine, an aerodynamic body and modern lithium-ion battery technology, the BMW ActiveE stands for visionary, zero-emissions mobility.

INTELLIGENT MOBILITY SERVICES

ParkNow

ParkatmyHouse

ChargePoint

MyCityWay

Embark

BMW i Ventures

Drivers in the greater San Francisco area can use our ParkNow service to locate free parking spaces in multi-storey car parks, saving not only time but also fuel and doing both their finances and the environment a favour. The service also provides useful tips such as where to find a car wash or the availability of bicycles for hire in the respective ParkNow locations.

ParkatmyHouse.com (PAMH) is an innovative online marketplace designed to link free parking spaces with drivers in search of parking. The marketplace was developed in cooperation with BMW i and is a strategic investment by our venture capital company BMW i Ventures. After getting off the ground in London, the service has now spread throughout the UK and has more than 150,000 registered drivers as well as parking spaces at over 20,000 locations. An international roll-out in collaboration with BMW i is currently under way.

BMW i Ventures is also a partner in the US company Coulomb Technologies. With ChargePoint, the company operates the world's largest online network for guiding drivers of electric vehicles to nearby charging stations. In over 14 countries, ChargePoint is drafting business plans for Cloud-based billing and customer service solutions for electric car drivers. This gives businesses the flexibility they need to optimise the operation and processes at their charging stations for electric vehicles.

MyCityWay is a free app for smartphones. It supplies traffic information in real time and identifies shops, restaurants and ATM cash machines in the user's direct vicinity in 70 cities worldwide. MyCityWay is an example of how we are offering premium services under the BMW i sub-brand that simplify customers' lives and give them access to real day-to-day benefits – regardless of whether or not a car is involved.

BMW i Ventures is a partner in the mobility app Embark, which is designed to facilitate the use of urban public transport systems. Among other things, the app includes train and bus schedules and sends the user push messages in case of delays.

BMW i Ventures makes high-potential investments in mobility services. We look for long-term strategic partnerships in the areas of e-mobility, navigation, parking, car sharing and intermodality. BMW i Ventures belongs to the sub-brand BMW i and stands for visionary vehicles and mobility services, inspiring design as well as new concept of what premium means, which is more strongly based on sustainability.

OUR MOBILITY RESEARCH

Our efforts in the field of mobility research already took a step forward in 1995 with the founding of the Inzell Initiative. Within this platform, the city of Munich and the BMW†Group are working in close cooperation with other stakeholders to search for new and intelligent solutions for improving the traffic situation in the greater Munich area. Innovative new mobility concepts and traffic systems are playing an import≠ant role in paving the way to the future.

BMW GROUP RESEARCH PROJECTS

  • INTERMODAL ROUTE PLANNER

    One successful result of the cooperation is the Intermodal Route Planner pilot project. The goal here is to develop an integrated mobility service enabling simple, convenient door-to-door trip planning using multiple modes of transport. To accomplish this, a working group made up of representatives of the Munich public transport companies and the public sector developed a vehicle demonstrator to prove the technical feasibility of an intermodal route planner integrated into a navigation system. This has laid the cornerstone for a future-oriented mobility information system that meets the increased flexibility requirements in large cities. Research is currently under way on how the service can be tested in Munich on a wider scale. The goal is to integrate not only cars and public transport in the routing, but also pedestrian routes, bicycles and car-sharing services.

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  • VISION MOBILITńT 2050: REGION M‹NCHEN

    In the project Vision Mobilitšt 2050: Region MŁnchen (Vision Mobility 2050: Munich Region), the participants in the Inzell Initiative have undertaken the development of a roadmap for transport in the greater Munich area that can act as a set of guidelines for future urban and traffic planning.

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  • WIMOBIL

    In 2012, we also launched the research project WiMobil. Here, the BMW†Group is investigating the impact of e-car-sharing systems on mobility and the environment in urban areas. Funded by the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU), the project is scheduled to run for three years. Project partners are the BMW†Group and DB Rent GmbH with its Flinkster car-sharing system. Also participating are the cities of Berlin and Munich as well as the Universitšt der Bundeswehr in Munich and the Institute of Transport Research at the Deutsches Zentrum fŁr Luft- und Raumfahrt e.V. Starting in the second quarter of 2013, user surveys, mobility tracking and backend data recording conducted as part of the research project should be able to provide insights on how e-car-sharing is used and by what target groups, which regions demonstrate a demand for this service, what the environmental impact of the systems and charging infrastructure might be, and which development scenarios result for e-car-sharing systems.

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  • MINI E POWERED BY VATTENFALL

    As part of the MINI E Berlin Powered by Vattenfall project, the BMW Group was able to gain new insights between 2009 and 2012 with an intermodal mobility assistant that is undergoing testing as an iPhone application. The app is currently being further enhanced as part of the Inzell Initiative. Its purpose is to provide people with intermodal route information via a range of different media, both for planning their journeys in advance and for finding answers to questions while they are on the move. Work is under way to enable the seamless transitions needed between PCs, mobile device-based Web services and in-car navigation systems in order for the system to work.

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  • LONG-DISTANCE COMMUTERS LEIPZIG

    In the first quarter of 2013, together with the TU Chemnitz and the Leipzig public utilities, the BMW Group is launching a user study of long-distance commuters in the greater Leipzig area to determine the benefits of the BMW ActiveE. The project is funded by the German government. It will examine the question of the viability of an electrically powered vehicle in ranges of 40 to 100 kilometres per day. In a total of five phases until 2014, 15 private users in each phase will use a BMW ActiveE over a period of twelve weeks.

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  • CONTROLLED CHARGING V2.0

    The Controlled Charging V2.0 project is a further enhancement of the charging concept developed within the framework of the project MINI E Berlin Powered by Vattenfall for the purpose of a function demonstration. The goal is to improve the charging of electric vehicles using wind energy, considering the limited temporal and local availability of this renewable energy source. Charging should be confined here as much as possible to the timeframe during which wind power availability is high while the grid load is low.

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  • VISIO.M

    In the group project Visio.M, scientists at the Technical University of Munich have been working since April 2012 with experienced automobile engineers on concepts for electric cars that are not only efficient and safe, but also inexpensive to manufacture. BMW AG is leader of the consortium. Supported by the Federal Ministry of Education and Research, the project has a total volume of €10.8 million.

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  • INSTITUT F‹R MOBILITńTSFORSCHUNG (INSTITUTE FOR MOBILITY RESEARCH)

    Since 1998, the Institute for Mobility Research (ifmo), a research organisation that is part of the BMW Group, has been studying the mobility challenges various means of transport will be facing in the future. The BMW Group is currently deputy chair of the institute's Board of Trustees. Other members of the board are high-ranking representatives from the German railway company Deutsche Bahn AG, Deutsche Lufthansa AG, MAN AG, SIEMENS and the World Bank, as well as scientists from various disciplines. Two new members joined the Board of Trustees in 2012: Siemens AG and the World Bank Group. These new members demonstrate the increasing internationalisation of ifmo research. The institute's research results are incorporated into the strategy process of the BMW Group.

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  • RESEARCH FOCUS ON MOBILITY CULTURES IN THE WORLD'S MEGACITIES

    In the project Mobilitštskulturen in Megacities weltweit (Mobility Cultures in the World's Megacities), ifmo researchers are analysing the future challenges individual mobility will face in megacities like London, Beijing and São Paulo. The results are summarised in the Springer publication "Megacity Mobility Culture", published in January 2013.

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  • SCENARIOS FOR THE FUTURE OF MOBILITY

    The tradition established by ifmo in 2001 of drafting future scenarios for the transportation of people and goods in Germany by various means was taken to the international level in 2012. In late 2013, the first ifmo scenarios for future mobility in the USA will be published, and in late 2012 a study for China was launched.

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  • GLOBAL MOBILITY MONITOR NETWORK

    Major trends in the development of mobility are being regularly monitored by an international network of universities and research institutes worldwide and their significance for future mobility offerings evaluated. Regionally, a special emphasis is placed on the BRIC markets.

    Data analyses from the BMW Group's MINI E field test have also delivered realistic insights into mobility in the megacity of New York. Information relating to residual ranges, individual speeds and the positions of eight electrically powered MINI E automobiles has been examined in detail and made available to the city of New York. This information will support better traffic management in the metropolis on the Hudson River.

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  • URBAN DRIVING EXPERIENCE IDEA COMPETITION

    To complement our own development and research activities, we launched the idea competition Urban Driving Experience Challenge in 2012 in cooperation with Local Motors. The Local Motors community, made up of more than 30,000 designers, engineers, manufacturers and enthusiasts, was asked to develop features and functions for premium vehicles with a focus on environmental protection. Nearly 3,500 different designs were submitted.

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CUSTOMER SATISFACTION

The BMW†Group's Strategy Number ONE puts customers at the focus of all we do. Their satisfaction is a key prerequisite for the quality of our products and services.

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We constantly explore by means of studies, customer interviews and analysis of customer feedback how our products and services are perceived and what customers think we could do even better. Our strategic goal is to be top in the relevant market segment in terms of customer satisfaction, based on our vehicle concepts and reliability as well as the sales and support experience we offer. We track our success in this area through benchmark studies.

Achieving a high degree of customer satisfaction is largely the responsibility of our international subsidiaries, together with decision-makers at corporate headquarters. Since 2010, the largest markets (such as the USA, China and Germany) have reported every six months to a specially assembled committee, including the involvement of the Board of Management, which deals exclusively with customer satisfaction. They report on factors such as the key indicators from our ongoing customer satisfaction surveys, as well as the progress of central projects to improve customer satisfaction.

After we launched the Group-wide initiative Customer First in 2011 in order to enhance our focus on the customer, since 2012 we have been concentrating on sustainable implementation and measures for monitoring success in four different areas: management and development, knowledge and customer contact, customer needs, and teams and processes. Our aim is to develop a customer-oriented culture in order to increase long-term customer satisfaction.

Although we have sold significantly more model variants and more vehicles overall in the past few years than we did previously, quality improvements have enabled us to maintain the number of recalls at a constant level. In 2012, the BMW†Group took its usual voluntary prompt and consistent action in case of defects. Wherever it was required or useful to the customer, vehicles were recalled and defects eliminated well before any symptoms became obvious to their owners.

We already take into account the needs and desires of our customers in the development of our vehicles. One result of this effort is the BMW Concept Active Tourer, which we introduced in 2012. It is geared toward customers who value not only design and sportiness, but also functionality and variability.

In recent years, we have been recognised in multiple independent studies for our high level of customer satisfaction. At the same time, we strive through customer surveys and evalu≠ations of customer feedback to achieve a deeper understanding of customer needs while contributing to their satisfaction through a series of measures such as retail sales training and driver training courses.

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AWARD-WINNING SATISFACTION

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CUSTOMER FOCUS PROGRAMME
In 2010, we already set about achieving transparency over customer feedback by enabling customers to see how other clients had rated our BMW and MINI dealerships. This approach was applied in all European markets in 2011. Since then, it has been extended to other markets as well.

The basis is formed by the constant use of customer satisfaction surveys. These are conducted by phone, in writing and online. The results are evaluated using a 5-star rating system (5 stars = excellent, 1 star = disappointed) and are published on the respective dealer's website along with brief customer comments. This gives other customers an instant impression of how our service is rated at the respective dealership. The feedback refers to both the sales and the service areas.

This transparency reflects the customer orientation strategy of the BMW Group and gives us and our dealers added motivation for improving customer focus even further in the future. It leads to individualised solutions for the customers surveyed, as well as to general improvements that benefit all customers.

RETAIL PERFORMANCE MANAGEMENT
In the context of our Retail Performance Management programme (RPM), over 1,500 dealers in 25 countries have received or are receiving personal coaching, or will begin a coaching programme in 2013. The RPM has demonstrated measurable success: dealerships that received coaching performed 10.6% better than others in terms of new car sales.

IMPROVED PARTS MANAGEMENT
As part of Strategy Number ONE, our global aftersales services have seen significant improvements in terms of shortening customers' waiting times for spare parts. In order to supply our service garages with the spare parts they need as quickly as possible, we are currently expanding our network of Dealer Metro Distribution Centres (DMDCs) from 43 in 2011 to around 50 by the end of 2013. These deliver parts to local dealers up to four times a day, for the shortest-possible waiting time.

BMW Driving Experience
To make sure our customers can experience the benefits of our cars to the full, we offer them various driver training opportunities. Participants in the BMW and MINI Driving Experience can, for example, build greater self-confidence in handling the vehicle. The safety training ranges from various exercises for emergency and target braking to dynamic lane changes and a fuel-saving and environmentally conscious driving style (e.g. economy training, which teaches fuel-efficient driving, basic elements of which are incorporated into all training sessions).

APPROACH TO ADVERTISING
Advertising by the BMW Group complies with all relevant legislation and does not discriminate. The BMW Group operates worldwide according to existing voluntary codes of conduct and rules on self-monitoring (for example, those of the Code of Conduct on Advertising of the European Automobile Manufacturers Association, ACEA, in Germany according to the specifications of the ZAW Zentralverband der deutschen Werbewirtschaft e.V., or in France the BVP Bureau de verification de la publicitť).

The BMW Group develops central advertising campaigns for its brands. The campaigns are adapted by the respective country markets to the local/national circumstances and requirements, which in turn correspond to the country-specific guidelines. By way of internal committees and its own standards, the BMW Group ensures that advertising complies with appropriate principles and ethical guidelines. The BMW Group constantly reviews its standards and rules of conduct with regard to advertising.

The BMW Group does not sell any products whose sale is prohibited in specific markets. It provides its customers with all the information necessary for a prudent and deliberate decision. Essential information is neither concealed nor presented in a misleading manner. Our principles also include incorporating sustainability as a theme in advertising. This is done both by means of stand-alone campaigns (e.g. campaigns advertising the highly efficient Efficient Dynamics models or the CO2 Finder on our website) as well as through continuous vehicle-integrated communication.

Complementary to sustainability in advertising, the BMW Group's "What's Next" campaign also aims to provide information for customers and the general public on the company's sustainability activities.

During the reporting period, the BMW Group did not violate any regulations pertaining to advertising.

COMPREHENSIVE DATA PROTECTION
The BMW Group meets all data protection requirements when handling personal data from its customers, prospects, employees and business partners. Led by the corporate data protection unit, the data protection officers at the various BMW Group companies support the specialist departments in this area. Personal data is only collected, processed or used if this is legally permissible, or with the consent of the interested party.

If customers or prospects lodge any complaints regarding data protection, for example with respect to advertising campaigns, such complaints are promptly addressed and the data for the respective customer or prospect is immediately and permanently removed from the address list if requested.

The BMW Group is committed to the principles of data processing transparency and data minimisation. In the field of vehicle communication (Connected Drive) as well, data security and prevention of misuse are a key concern.

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CUSTOMER SURVEYS

Every year, we survey around 1.5 million customers in 75†markets to find out about their wishes and experiences. This feedback is then incorporated into the development and optimisation of our products and services. Feedback on the new BMW 1 Series, BMW 3 Series, BMW X1 and BMW†7 Series models was extremely positive and showed clearly that optimisations compared with previous models on the basis of customer surveys are successful.

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Our customer surveys show that our customers' needs are very different from country to country, so we must take these national and cultural differences into account. We constantly survey our customers. In 2012, we implemented stricter stand≠ardisation requirements for the customer satisfaction surveys carried out in our subsidiaries in order to ensure the completeness and comparability of the results. The results for each country are evaluated at country level every month so that we can rapidly identify trends and the subsidiaries and central specialist departments can derive any measures necessary. In parallel, the country-specific data is also evaluated in the subsidiaries to enable rapid reaction to any issues affecting customer satisfaction. Customers have the opportunity to directly submit comments or voice concerns during the survey. Our dealers therefore also use the system of continuous customer satisfaction surveys in their day-to-day operations to respond to these specific customer concerns. The surveys comply with local data protection legislation to guarantee the privacy of individual customers.

Since 2011, 53 dealers have been trained in applying the Customer Satisfaction Index (CSI). They reached a 1.6% higher CSI value than the comparison group. In 2012 and 2013, a total of 500 CSI dealer coaching sessions will be carried out or are in the planning phase.

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SUSTAINABILITY IN SALES AND SERVICES

We want BMW†Group customers to be able to directly experience our philosophy of sustainability. Selected sales facilities have been constructed as green buildings with low energy consumption, high energy efficiency as well as natural light and air conditioning, thus bringing our sustainable approach to life. We have also ensured that green building requirements are being met for new builds by integrating them into the Europe-wide Retail Standards of our retail partners. In addition, sustainability has become an integral part of sales training courses.

FORECAST

  • OUR MANAGEMENT APPROACH

    In the coming years, we will continue to focus on reducing CO2 emissions and expanding innovative mobility services. We have set ourselves some ambitious goals: for example, we want to reduce CO2 emissions in the European new vehicle fleet by at least 50% by 2020 (base year: 1995). We also want to take the lead with our hol≠istic approach to premium electromobility and to deploy integrated mobility services in order to lastingly change mobility behaviour in selected metropolitan regions.

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  • FUEL CONSUMPTION AND CO2 EMISSIONS, ALTERNATIVE DRIVETRAIN TECHNOLOGIES

    In the future, there will be different drivetrains for different mobility needs – revolutionary alternative drivetrain technologies and evolutionary conventional drivetrains, as well as hybrid forms. We are therefore deliberately focusing our efforts on building a broad technology base so that in the future we can offer tailored solutions worldwide for wide-ranging individual mobility needs.

    The BMW†Group is also doing research into improved concepts with cost-saving potential, e.g. innovative tank and fuelling technologies in combination with new cooling concepts for fuel cells. Analogous to the BMW i brand, fuel-cell-powered vehicles will require a specific vehicle architecture when they go into series production – one that makes the most of the technology's potential while ensuring optimal customer benefits.

    We are working to expand the number of our vehicles that meet the Euro 6 standard. Intelligent energy management and forward-looking drivetrain management are two additional development focuses.

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  • PRODUCT SAFETY

    In the coming years, we want to further strengthen both active and passive safety features. We will focus here on the consistent roll-out of warning and emergency braking systems in all vehicle segments.

    Furthermore, with our vision of highly automated driving, we are already building the technological and methodological expertise that will allow us one day to offer a number of cutting-edge driver assistance systems, bringing us one step closer to accident-free mobility.

    A research prototype (equipped with technology that is close to reaching series maturity) is already able to drive on the motorway with a high degree of automation. Our research vehicle slows down, speeds up and passes independently – always taking into account the respective traffic situation and observing all traffic laws. Such vehicles have already covered some 10,000 test kilometres. We are working closely with the relevant authorities to design the legal framework for the highly automated driving features of the future.

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  • RESOURCE EFFICIENCY AND RECYCLING MANAGEMENT

    In the coming years, we want to further improve our resource efficiency and increasingly close our material cycles. An example: Due to a new air purification system used in the painting plants, pulverised limestone results as a by-product. Currently, various methods are being researched worldwide for reusing this pulverised limestone in cement factories or coal-fired power plants.

    We are also looking into innovative solutions for the reuse of old batteries from electric cars. The aim is to extend the life cycle of lithium-ion batteries designed specifically for use in the BMW†i3 as far as possible. To this end, we are developing various concepts for potential reuse. Used batteries can, for example, serve as stationary power storage, thus optimising the use of renewable energy sources as well as providing a reliable power supply to buildings.

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  • THE FUTURE OF MOBILITY, MOBILITY SERVICES, TRAFFIC MANAGEMENT

    In the coming years, we intend to further expand our car-sharing service both nationally and internationally, increasingly integrating electric cars. At the same time, we will study the impact of car-sharing and e-car-sharing systems on mobility and the environment in urban areas.

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  • CUSTOMER SATISFACTION

    In the coming years, we want to further increase customer satisfaction and expand opportunities for direct contact with customers. To this end, we launched the Future Retail sales programme in 2012, which is to be extended in the future. In essence, this means that we will try even harder to see things from the customer's point of view and to increase points of contact with customers and potential customers.

    This also includes expanding our test drive offerings and intensifying follow-up after delivery of a vehicle. To date, customer follow-up has extended up to seven days after delivery. Improvement measures that have already been initiated focus on lastingly measuring the impact of the purchase.

    One action that has already been launched, and which we want to build on further in 2013, is Let's help. Our employees are often addressed by customers or prospects from their circle of acquaint≠ances who want to offer suggestions or express their own wishes. The Let's help button on the intranet now enables employees to pass on these concerns quickly and easily to Customer Service.

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