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Good day, everyone.
Before I discuss current developments, I want to address the recent change in the Board of Management of BMW AG.
As you all know, Jochen Goller was appointed to the Board of Management, effective November 1st. Jochen Goller has had various roles in China and the UK and has successfully managed our activities in China since 2018 as head of the MINI brand.
Meanwhile, Sean Green, previously Senior Vice President of Sales and Marketing at our BBA joint venture, will now be responsible for our business in China.
Jochen Goller takes over for Pieter Nota, who led our Customer, Brands and Sales Board division since 2018.
Under Pieter Nota’s leadership, the BMW Group significantly increased its global market share. During this time, the BMW brand also regained its position at the top of the premium segment and expanded it further.
I would like to express my sincere thanks to Pieter Nota and wish Jochen Goller the best as he begins his new role.
I recently returned from a trip to Asia, where I visited Beijing and attended the Japan Mobility Show in Tokyo. This trip reaffirmed that there is no one-size-fits-all solution for today’s and tomorrow’s mobility. Our world is diverse, and we need different technological solutions to meet customer needs and comply with various regulatory requirements worldwide.
In China, electric vehicles dominate, although plug-in hybrids and hydrogen fuel cell vehicles also play a role in decarbonizing mobility. For example, a significant number of taxis in Beijing already run on hydrogen.
In the third quarter of this year, we experienced business growth worldwide, thanks to our wide range of premium vehicles across all drive technologies.
In China, pure electric vehicles performed exceptionally well, with sales more than tripling in the first nine months compared to the same period last year.
In Japan, the demand for all-electric cars is still relatively low, with more focus on plug-in hybrids and combustion engine cars. However, Japanese manufacturers, especially, are stepping up their efforts in the electric vehicle market, as seen at the Japan Mobility Show with their concept cars and fully-electric options.
Japan has recognized the importance of hydrogen early on, and our BMW iX5 Hydrogen pilot vehicle has been well received there.
As a global premium manufacturer, the BMW Group remains committed to technology-driven decarbonization of mobility. Our strong sales and financial figures are evidence of this, and we will continue on this path in the future. We recently presented the all-electric iX2 as the latest example of our commitment, alongside the BMW X2.
The iX2 is a digital champion, featuring the new BMW Operating System 9, which provides a comprehensive range of digital features and functions, including gaming and streaming capabilities. These features, such as optimized touch controls and integrated voice control, provide our customers with a unique digital experience in their cars.
In early next year, we will continue our rollout of new all-electric products with the world premiere of the new BMW 5 Series Touring. This model will offer the same drivetrain options as the sedan, including the all-electric i5 Touring, giving us a distinct advantage in a popular segment, especially in Europe.
Our goal remains to have more than half of our global sales from all-electric cars well before 2030.
To achieve this, we are further expanding our leading role in battery cell technology. Our competence center in Parsdorf near Munich is laying the technological foundations for efficient and resource-saving battery cell production, and we are sharing this knowledge with our suppliers to set benchmarks in production, quality, performance, cost, and ecological impact.
Recently, we inaugurated the competence center in Parsdorf, where sample production of the sixth-generation round cells has begun. These cells have up to 20% higher energy density and up to 60% reduced CO2 footprint in cell production. This translates to benefits for our customers, such as up to 30% faster charging speed and up to 30% higher range according to WLTP.
Following our “local-for-local” principle, we are also ensuring that high-voltage battery assembly takes place near our vehicle plants to secure our production and reduce the carbon footprint. Production facilities for the sixth generation of BMW high-voltage batteries are being built in Debrecen, Hungary; Woodruff, South Carolina, in the US; San Luis Potosí, Mexico; and Shenyang, China. We are also planning a high-voltage battery assembly site in Irlbach-Straßkirchen to supply our vehicle production in Bavaria, which received majority support in a recent referendum to continue the planning process.
In terms of future products, we provided a preview of the NEUE KLASSE at the IAA MOBILITY in September. The BMW VISION Neue Klasse represents a new approach to individual mobility that is more human, intelligent, and responsible. For example, the materials used in the NEUE KLASSE will help reduce its carbon footprint, and it features the Panoramic Vision Display, providing a unique experience for all passengers.
The NEUE KLASSE is not just another BMW car; it is a new generation of products. Within 24 months, we will release six models, from SAVs to sedans, all powered by electric drivetrains.
MINI is also undergoing a complete electrification transformation, with plans to be fully electric by 2030. At the IAA MOBILITY, we showcased two key members of the new MINI family: the MINI Cooper 3-Door and the MINI Countryman. The next fully-electric MINI, the MINI Aceman, is set to make its world premiere in April 2024 in the premium-compact car segment. The new MINI family is produced by our Chinese joint-venture partner, Spotlight, as well as in our plants in Leipzig and Oxford.
Rolls-Royce, our second British brand, is also transitioning to exclusive electric models by the early 2030s. Preparations for the sales launch of the first electric Rolls-Royce are underway, with the Spectre scheduled for release by the end of the year. Torsten Müller-Ötvös, who has led Rolls-Royce since 2010, will retire, and Chris Brownridge will take over as the new leader.
In the realm of BMW Motorrad, we recently celebrated the brand’s centenary with German Chancellor Olaf Scholz. Under Markus Schramm’s leadership, BMW Motorrad expanded its product range, entered new markets, and achieved record-breaking years. Markus Flasch has taken over as the new leader, bringing his experience from BMW M GmbH and the mid-size and luxury class and Rolls-Royce product line.
While we continue to expand and refine our product range, digitalizing the customer interface is a top priority. Our new direct sales model for MINI will soon launch in Europe, following a successful rollout in China. This model offers full price transparency and seamless integration of online and offline consulting options for customers. It also provides an attractive business model for our retailers, and our European retailers have already signed contracts. This direct sales model gives the BMW Group direct access to customers, allowing us to curate an entirely new customer experience, exemplified by our “Proactive Care” service, which uses data analytics and AI to detect potential vehicle problems proactively.
In conclusion, the BMW Group’s strategic approach is continuing to yield success in 2023. Our diversified position, with a broad product portfolio and global production sites, is reinforced by recent recognition from TIME magazine and Statista, where we ranked in the top ten of the world’s top 750 companies and were the highest-rated automotive manufacturer worldwide. Internally, our Employee Survey reaffirmed the positive mood within the company, with our employees expressing pride in working for the BMW Group and supporting our goals.
Thank you.