A place for vision: the BMW Group.

Zipse: “Cautiously optimistic for second half of year” +++ Profit before tax after first half year at ca. € 500 million +++ Revenues and earnings impacted by Q2 market downturns +++ Strict inventories management helps safeguard cash flow +++  CO2 targets now set up for complete vehicle life cycle to 2030 +++ Far-reaching product strategy: significant CO2 reductions with over seven million electrified vehicles

Munich. At the halfway stage, the BMW Group remains on course towards achieving its targets for the full year. After implementing controlled cutbacks at many of its plants in March as a response to the foreseeable drop in global demand, the Group initiated a coordinated restart of its production facilities in the second quarter. Since mid-June, all its manufacturing plants have again been working in regular shifts. Nonetheless, cost efficiency and cash management remain decisive factors for best controlling the consequences of the corona pandemic.

“Our swift responsiveness and consistent management strategy enabled us to limit the impact of the corona pandemic on the BMW Group during the first half of the year,” said Oliver Zipse, Chairman of the Board of Management of BMW AG, in Munich on Wednesday. Despite a significant market decline following the corona pandemic the BMW Group was able to achieve a positive profit before tax of € 498 million in the first half year. “We are now looking ahead to the second six-month period with cautious optimism and continue to target an EBIT margin between 0 and 3% for the Automotive segment in 2020. We are monitoring the situation very closely and managing production capacities in line with market developments and regional fluctuations in customer demand.” 

Board of Management and executive management will be measured against new sustainability targets +++ First-ever CO2 goals for full lifecycle up to 2030 +++ Science-Based Targets form basis for new goals +++ Far-reaching product strategy: Major CO2 reduction with more than seven million electrified vehicles +++ Carbon emissions from production and sites to be lowered by 80% per vehicle +++ BMW Group aims for most sustainable supply chain industry wide +++ Circular economy as vision for resource management +++ Zipse: “Sustainability and premium will be inextricably linked in the future”

Munich. The BMW Group is making sustainability and resource efficiency central to the company’s strategic direction. Chairman of the Board of Management Oliver Zipse announced initial details of this strategic direction in Munich today and presented the targets the company has set itself for the phase up to 2030. The BMW Group is building on a strong foundation: Over the past years and decades, the company has repeatedly set standards in terms of sustainability. The principle of continuous improvement will remain at the heart of the strategy to reduce CO2 emissions and increase resource efficiency.

“I firmly believe the fight against climate change and how we use resources will decide the future of our society – and of the BMW Group. As a premium car company, it is our ambition to lead the way in sustainability. That is why we are taking responsibility here and now and making these issues central to our future strategic direction,” said Oliver Zipse. “This new strategic direction will be anchored in all divisions – from administration and purchasing to development and production, all the way to sales. We are taking sustainability to the next level.”

BMW Group Landshut plant assumes key role for BMW iNEXT – Innovations totalling more than 50 million Euros for future issues +++ Innovative kidney grille – central high-tech component for highly automated driving +++ Opening of new production facility with Bavaria’s economics minister Hubert Aiwanger and board member Dr. Andreas Wendt +++ Wendt: “Automated driving is a great chance for Germany as an industrial location – in-house component production serves more than ever as an innovation hub”

Munich/Landshut. The Lower Bavarian BMW Group Landshut plant again assumes its role as an innovation driver for the automotive future: With a number of important high-tech components, it will give the BMW iNEXT, which starts rolling off the assembly line in Dingolfing from 2021, a face. The BMW iNEXT is the BMW Group’s first all-electric production vehicle prepared for fully automated driving. Today, Dr. Andreas Wendt, Member of the Board of Management of BMW AG responsible for Purchasing and Supplier Network, and Hubert Aiwanger, Deputy Prime Minister of Bavaria and the Bavarian Minister of Economic Affairs, Regional Development and Energy, opened a new production facility at the Landshut location. The innovative kidney grille – the “eye” – for the BMW iNEXT will be produced there.

The technologically complex kidney grille is vital for highly-automated driving: It allows the integration of camera technology, radar functions and further sensors required for highly developed driver assistance systems into the front end of the vehicle. The BMW Group Landshut is investing a total of over 50 million Euros in innovative components for the BMW iNEXT and further future vehicle models.