BMW Sets a New Sales Target of 1.6 Million Vehicles for 2010
BMW achieved its 1.4 million-vehicle sales targeted for 2008 ahead of schedule due to an active release of new models

  In 2005, BMW global sales totaled the highest of 1.33 million vehicles, exceeding the sales volume of the Mercedes car group (1.22 million) for the first time. The company enjoyed strong sales in the January-June period of 2006, up 8.0% to 698,000 vehicles.

  BMW's sales between January and June 2006 amounted to the 1.4 million level, which it set in 2002 as a target figure for 2008. In May 2006, BMW revealed that it expected to achieve the 1.4- million target in 2007, one year earlier, and that as a new target it planned sales of 1.6 million in 2010. The sales volume of 1.6 million is almost twice as large as the actual sales in 2000.

  BMW had said that it would introduce 20 new model vehicles including derivatives between 2004 and 2008 with the objective of achieving sales of 1.4 million vehicles in 2008. Take a look at sales in 2005 and in the January-June period of 2006, sales of three new models launched in 2004 and the new 3 Series released in March 2005 are the engine of BMW's sales growth.

  Also in 2006, the company plans to release the new X5 and the new Mini as the basic models. The company also plans to introduce several derivatives based on the Z4 and the new 3 Series. In 2007, it expects to make a minor change to the X3 as the basic model and to introduce a large number of derivative models of the 1 Series and 3 Series.

  In the US market, where its sales amounted to more than 300,000 in 2005, BMW plans to introduce a US specification model of the 1 Series by 2007 (The company newly launched the 1 Series in 2004, but has not introduced the product in the US market as it is a hatchback.).

■BMW's sales numbered 1.33 million vehicles in 2005, expecting ordinary profit of 4 billion Euros in 2006

  BMW's sales volume, which went beyond 1 million vehicles in 2002, expanded to 1.21 million in 2004 and further to 1.33 million, up 9.9%, in 2005 (in 2002, BMW set 1.4 million as a target for 2008).

  While its 2005 sales was up 5.2% from 2004 to 46,656 million Euros, BMW's ordinary profit, which was affected by the appreciation of the Euro and material cost, was down 8.3% to 3,287 million Euros, and its net profit declined 0.1% to 2,239 million Euros. BMW said that, under the tough business environment, strong sales minimized the profit decrease.

  In the January-March period of 2006, BMW achieved a growth of more than 10% in terms of production/sales volume, sales, ordinary profit, and net profit. BMW says that 2006 will be the best year for the company and that its ordinary profit will amount to 4 billion Euros, which is twice the actual ordinary profit in 2000.

■Because of the expansion of production in the US and China, BMW's production will number 1.6 million in 2010 (forecast by CSM Worldwide)

  CSM Worldwide also forecasts that BMW's production will amount to 1.6 million in 2010. The forecast production for 2010 numbers 1,608,000, up 286,000 from 2005.

  However, BMW's production in Europe is forecast to be 1.2 million in Europe, up only 64,000 from 2005. BMW's production is expected to increase remarkably in the US and China - production in the US is forecast to double from 125,000 to 250,000. Its production in China, which numbered slightly less than 10,000 in 2005, will amount to 90,000 in 2010 and further to go beyond 100,000 in 2011 (in Oct. 2005, BMW established its subsidiary in Beijing, which supports its sales activity in China).

  Production of Mini, which amounted to more than 200,000 in the UK in 2005, is forecast to make only a slight increase to 237,000 in 2010.

■Expanded sales of three models newly introduced in 2004 and the new 3Series released in 2005 led BMW's sales increase

  In 2005, combined total sales of models newly released in 2004 - X3 SUV (released in January), 6 Series Coupe/Convertible model (released in March, based on 5 Series), and 1 Series 5-door hatchback (released in September, not introduced in the US market) - amounted to 284,000 (153,000 in 2004). The increase of combined sales of the three models surpassed the 119,000 increase of the entire sales volume in 2005. Sales of Mini Cooper exceeded 200,000 in 2005.

  Between January and March 2006, sales of the three models newly launched in 2004 sustained the level of 2005. In addition, sales of the new 3 Series released in March 2005 made a significantly increase (preliminary figures: 155,000 in 2005 and 229,000 in 2006 in the January-June period), leading BMW's sales increase.

■BMW adds various derivative models to each basic model, launching new Mini at the end of 2006

  In 2005, BMW launched the new 3 Series and made a minor change to 7 Series. In 2006, the company plans to release the new X5 and the new Mini Cooper. It is expected to make a minor change to X3 in 2007, and to fully remodel 7 Series in 2008 and Z4 in 2009. In addition, BMW is reported to newly introduce two crossover models, a minivan based on 7 Series, and a SUV considered to be a rival car to M-Benz R-Class by 2008.

  Moreover, BMW continues to launch various new derivative models. In 2005, as a series of high-performance vehicles, the company launched M5 and M6, both of which use a V10/5000cc engine (based on 5 series and 6 Series, respectively). V8 engine models will be added to 5 Series and 6 Series; a 6-speed AMT is adopted as an option to both of them.

  BMW also plans to introduce derivative models of M Roadstar (based on Z4), Z4 Coupe, Z4 M Coupe, and 3 Series Coupe in 2006.

  The company is expected to introduce numerous derivatives in 2007-2008. Those expected to be introduced in the 1 Series are the 2-door Coupe, 3-door Coupe, Convertible, and Station wagon. Those in the 3 Series are the Convertible, and a high-performance M3. A station wagon, Mini Traveller, is reported to be added to Mini.

  Incidentally, concerning hybrid vehicles, BMW plans to launch a model using a hybrid system that it is currently developing with GM/DaimlerChrysler mainly in the market in the US by 2010. A 7 Series model with a hydrogen engine is reported to be launched by 2008.

■BMW's model plan

Basic model	New-model plan including derivatives
Mini	Plans to release Mini Traveller station wagon by 2009.
1 Series	Plans to release 2-door Coupe in the first half of 2007 and 3-door Coupe in the autumn of 2007. The company is reported to be planning to release a Convertible in the first half of 2008 and a Station wagon in the summer of the same year.
3 Series	The company is reported to be planning to release a new Convertible in the first half of 2007. It plans to introduce the M3, a high-performance model with V8 4000cc engine, in 2008.
7 Series	Plans to add a hydrogen fuel vehicle to the current 7 Series by 2008. The company is reported to be planning to fully remodel the products in 2008.
X3	Plans to make a minor change to the product in 2007.
Z4	Plans to fully remodel the product in 2009.
Rolls-Royce	The company is reported to be planning to release a Convertible.
Space Functional Concept (1)	A crossover vehicle of a minivan style, which is based on the 7 Series. The company will set models based on short wheel or long wheel, with plans to start production in 2008.
Space Functional Concept (2)	The model is reported to be a Coupe/SUV crossover model that is based on the next-generation X5 and to be a rival model to the M-Benz R-Class. Production is planned to begin by 2008.
Hybrid Vehicle	In Sep. 2005, BMW signed a memorandum of understanding with GM and DaimlerChrysler on their equal cooperation in the joint development of a 2-mode hybrid system. The three companies established a joint development center in Troy, Michigan, USA, currently developing the entire module system and respective components.
	In Apr. 2006, the three companies announced the latest version of the 2-mode hybrid system that is combined with a 4-speed transmission. Production of the hybrid system is planned to begin in 2007. BMW vehicles using the hybrid system jointly developed are planned to be introduced mainly in the market in the US by 2010.

Sources:

BMW Annual Report 2005, BMW press releases on 2006.5.3/2005.11.10, GM press release on 2006.4.27, Automotive News Europe 2006.6.12/2006.2.20, Automotive News 2005.8.29, etc.

■BMW's new model vehicles launched in 2005-2006

Debut		Newly released models including derivatives
2005	March	Released new 3 Series.
		Released Rolls-Royce Phantom long-wheel base model.
	May	Newly released high-performance models, M5/M6, which use V10 5000cc engine and 7-speed AMT (based on 5 Series/6 Series, respectively).
		Made a minor change to 7 Series. The rear design was changed. The menu button was added to iDrive, which adjusts a navigation system and an air-conditioner, to simplify the operation.
	September	Released 3 Series Touring and 1 Series 130i.
	in the second half	Released 1 Series and 3 Series M Sports Package.
		Added 318d/330d, diesel models, and 318i, a gasoline mode, to 3 series sedan.
		Added 540i with V8 4000cc engine and 550i with V8 4800cc engine to 5 Series. The company also sets 6-speed AMT as an option.
		Added 650i with V8 4800cc engine to 6 Series. The company also sets 6-speed AMT as an option.
		Added a stretched version 730Ld to 7 Series.
2006	May	Released M Roadstar, a high-performance model based on Z4. The model uses a 3.2L in-line 6-cylinder engine with a maximum output of 252kW and a 6-speed MT (Z4, a base-model, uses a 3.0L engine with a maximum output of 170kW).
	June	Released Z4 Coupe and Z4 M Coupe.
	Summer	Added 320Ci M Sport Edition/320Cd M Sport Edition to 3 Series convertible.
	September	Released the new 3 Series Coupe.
	in the second half	Released the new X5. The company is expected to newly set a 3-row seat specification.
		Regarding the jointly-developed engine, main components are manufactured at PSA Douvrin plant. The Hams Hall plant, which currently produces engines for Mini, assembles the new engine.

Sources:

BMW Annual Report 2005, BMW press release on 2006.5.3, BMW Manufacturing Co., press release 2006.1.9, Automotive News Europe 2006.2.20, etc.

■BMW's sales amounted to 300,000 vehicles in the US market, where it will introduce a US specification model of 1 Series by 2007

  Regarding sales by region, in 2005, BMW's sales volume numbered 803,000 in Europe, 329,000 in North America, 126,000 in Asia, and 70,000 in other regions.

  When compared to sales in 2000, sales in Europe, North America, and Asia plus other regions climbed 286,000, 129,000, and 91,000, respectively. In Europe, sales increased more in regions other than Germany and the UK, in both of which countries it has its production bases.

  In 2005, BMW's sales totaled 125,747 (up 18.2% from 2004) in Asia, where it aims to sell 150,000 in the targeted total sales of 1.4 million for 2008. Among the 2005 sales, those in Japan totaled 58,811 (up 13.5%) and those in China were 33,060 (up 35.9%).

■BMW's sales volume and sales by region

		2000	2001	2002	2003	2004	2005	Jan-Jun. 2005	Jan.-Jun. 2006
Sales volume (1,000 units)	Europe	517.4	562.7	640.7	654.9	728.6	802.9	390.2	408.7
	Germany	240.6	245.8	258.2	255.8	283.6	295.9
	UK	68.3	90.9	120.9	134.5	145.3	156.2
	Others in Europe	208.5	226.0	261.6	264.6	299.7	350.8
	North America	200.4	225.8	273.2	294.9	315.9	329.0	162.6	177.0
	Asia	104.4	68.8	89.3	103.5	106.4	125.7	50.1	60.8
	Other regions		48.2	54.2	51.6	57.9	70.4	43.6	51.9
	Total	822.2	905.5	1,057.4	1,104.9	1,208.8	1,328.0	646.5	698.5
Sales (1 million euro)	Europe	21,486.0	22,015.0	23,572.0	23,979.0	27,784.0	28,267.0
	Germany	9,126.0	10,238.0	10,404.0	10,590.0	11,961.0	11,001.0
	UK	4,807.0	4,398.0	4,687.0	4,661.0	5,249.0	5,125.0
	Others in Europe	7,553.0	7,379.0	8,481.0	8,728.0	10,574.0	12,141.0
	North America	10,835.0	11,672.0	13,085.0	11,252.0	10,205.0	10,957.0
	Asia/Pacific	3,750.0	3,586.0	4,594.0	5,130.0	4,915.0	5,538.0
	Other regions	1,155.0	1,190.0	1,160.0	1,164.0	1,431.0	1,894.0
	Total (BMW)	37,226.0	38,463.0	42,411.0	41,525.0	44,335.0	46,656.0

Sources: BMW Annual Report 2005, BMW press release on 2006.7.7
(Note)	Sales target for 2008: 1.4 million. Sales target in North America: 400,000 BMW brand vehicles alone; sales target in Asia 150,000.

  In 2005, BMW's sales in the 18 Western European countries were up 9.6% from 2004 to 770,000 (surveyed by ACEA). Its marketshare amounted to 5.2% (3.4% in 2000). Sales made a significant increase in Italy, Spain, and France.

■BMW's sales of passenger cars and marketshare in 18 Western European countries

		2000	2001	2002	2003	2004	2005	Jan.-Apr. 2005	Jan.-Apr. 2006
New vehicle sales (unit)	BMW	499,278	517,797	513,151	510,859	574,067	632,388	210,312	222,204
	Mini		24,762	105,713	116,147	123,551	128,515	44,060	37,661
	Rolls-Royce				79	152	150	51	43
	Total	499,278	542,559	618,864	627,085	697,770	761,053	254,423	259,908
Marketshare	BMW	3.4%	3.5%	3.6%	3.6%	4.0%	4.4%	4.1%	4.3%
	Mini		0.2%	0.7%	0.8%	0.9%	0.9%	0.9%	0.7%
	Rolls-Royce				0.0%	0.0%	0.0%	0.0%	0.0%
	Total	3.4%	3.7%	4.3%	4.4%	4.8%	5.2%	5.0%	5.0%

(Note)

Complied from new vehicle registration surveyed by ACEA. The 18 Western European countries consist of 15 EU member countries by Apr. 2004, and Iceland, Norway, and Switzerland.

  In 2005, BMW sold 307,000 vehicles in the US market (Ward's survey. This is the first time its sales has exceeded 300,000. 266,000 by BMW brand alone.). In the European market, the company plans to introduce a non-hatchback US specification model of 1 Series, which it newly launched in September 2004, by 2007.

■BMW's Leipzig plant in Germany started full-scale operations. The company expands its plants in South Africa and the US and will also build a plant in India

  In 2005, BMW manufactured 1,323,000 vehicles (1.25 million vehicles in 2004). In March 2005, a new Leipzig plant in Germany, which produces 3 Series, started operations (the plant has an annual production capacity of 156,000, planning to produce 120,000 in 2006). The average operation rate of BMW's existing plants is 97% in April 2006, nearly in full operation.

  Under the enhancement of its production capacity currently under way, the company will boost the annual production capacity of its Oxford plant in the UK, which manufactures Mini, from 200,000 to 240,000 before it starts production of a new model vehicle, which is scheduled to be released at the end of 2006. The Rosslyn plant in South Africa, which produces 3 Series, completed the expansion work to prepare for the addition of a production model. The expansion work is also under way at the Spartanburg plant in the US, which started production of M Roadstar in January 2006 in addition to X5 and Z4. Moreover, BMW is currently constructing its plant in India, which is planned to start manufacturing the 3 Series and 5 Series in 2007.

  In addition, the company introduced Mobile cells to its Munich, Regensburg, and Leipzig plants in Germany and the Rosslyn plant in South Africa to respond to a sudden increase in production.

■BMW introduced Mobile cells to its three plants in Germany and its plant in South Africa in order to respond to a sudden increase in production

BMW is the first auto manufacturer that introduced Mobile cells to its production site. The company introduced a combined total of several hundred Mobile cells to its Munich, Regensburg, and Leipzig plants in Germany and the Rosslyn plant in South Africa. A Mobile cell is 2.9 meters wide and 5.8 meters long. Equipment includes robots, gripper tools, control cabinets, and safety devices installed in each cell.

Mobile cells can be operated as necessary to respond to a sudden increase in production and the like. In addition, when it is necessary to outsource assembly of vehicle bodies due to the space limitation of the plant, Mobile cells can be transported to the plant that takes charge of the assembly and can be built there.

Source: Automotive News Europe 2006.4.3

■BMW's major plants for finished vehicles

	Name of plant	Production items and recent trends	Production volume (1,000 units)
			2003	2004	2005
Germany	Dingolfing	Produces 7 Series, 6 Series, 5 Series, M5, and M6. Also produces the body of Rolls-Royce. A global parts supply base.	280.5	304.3	279.3
	Regensburg	Produces 1 Series and 3 Series.	237.7	262.5	301.2
	Munich	Produces compact models of 3 Series. Produces 4 types of gasoline engines (4/6/8/12-cylinder) and an 8-cylinder diesel-powered engine.	191.8	172.2	200.2
	Leipzig	Started operations in Mar. 2005. Produces new 3 Series. The initial production capacity is 156,000 a year, which can be boosted to 300,000. Plans to manufacture 120,000 units in 2006.	-	-	58.7
UK	Oxford	Produces Mini. Achieved annual production of 200,000 in 2005. By enhancing its annual production capacity to 240,000, it plans to start production of the next-generation Mini in the latter half of 2006. Plans to begin producing Mini Traveller Station wagon by 2009.	174.4	189.5	200.1
	GoodWood	Produces Rolls-Royce Phantom.	0.5	0.9	0.7
US	Spartanburg	Produces X5 and Z4. At the end of 2005, production lines for the X5 and Z4 were integrated into one line. In Jan. 2006, production of M Roadstar started. Production of the next-generation X5 will begin at the end of 2006. Production of Space functional Concept, which is based on the next-generation X5, is expected to start by 2008. A vehicle body assembly plant is currently being constructed to prepare for production of a new model.	166.7	143.3	125.1
South Africa	Rosslyn	Produces the 3 Series and parts to be used in 3 Series. The company invested 164 million Euros in the upgrading of an existing production line, as well as in the new assembly plant to preparing for the addition of production models including new 3 Series.	51.2	44.4	43.7
China	Shenyang	Produces 3 Series and 5 Series.	7.5	20.5	8.1
Austria		Outsources production of X3 to Magna Steyr.	8.8	112.8	106.2
(Thailand) Rayong		Stared producing X3 in Dec. 2005 in addition to 3, 5, 7 Series, at BMW Manufacturing (Thailand) Co., Ltd., its wholly-owned company.
India		Planning to build a production base in Chennai, planning to start producing the 3 Series and 5 Series in 2007. The total investment is worth 20 million Euros. The initial production volume is planned to be 1,700 a year.
Worldwide			1,119.1	1,250.4	1,323.3

Source: BMW Annual report 2005, etc.

■BMW's production volume by country/model

(units)

		2000	2001	2002	2003	2004	2005
Germany	1 Series				42	64,327	157,224
	3 Series	476,543	500,378	524,170	460,087	378,687	407,900
	5 Series	192,034	197,004	165,675	197,228	251,449	207,408
	6 Series			15	4,296	23,785	21,873
	7 Series	39,019	33,965	60,460	55,314	41,196	52,987
	Z8	1,928	2,302	926	478
	Total	709,524	733,649	751,246	717,445	759,444	847,392
UK	Mini		41,480	159,845	174,191	189,136	200,163
Austria	X3				8,770	112,840	106,165
US	X5	45,007	85,155	100,140	109,501	108,780	104,986
	Z3	38,665	34,169	11,634
	Z4			11,554	56,589	35,136	19,830
	Total	83,672	119,324	123,328	166,090	143,916	124,816
South Africa	3 Series	41,323	49,006	55,555	51,202	43,700	44,400
China	3,5 Series				7,500	20,500	8,000
Indonesia	3,5 Series	2,351	2,674	1,966	2,003	1,111	1,010
Malaysia	3,5 Series	2,057	2,026	1,964	1,843	1,195	1,423
Mexico	3,5 Series			1,046	308
Thailand	3,5,7 Series	1,722	2,036	3,224	2,325	3,112	2,524
Worldwide		834,519	946,730	1,090,258	1,118,940	1,250,345	1,323,119
(Reference) Production outside of Germany		124,995	213,081	339,012	401,495	490,901	475,727

(Note) 1.	Global production is complied from BMW Annual Report. Production by country is based on the material of VDA (German Automobile Industry Association) (Figures for the US are complied from Automotive Yearbook and Ward's Automotive Reports Jan.16, 2006). Since we use different sources, the combined total of production by country does not add up to global production.
2.	In addition, BMW has CKD assembly bases in Egypt, Indonesia, Russia, and Malaysia.
3.	Production out of Germany (Reference) is calculated by subtracting production in Germany from Global production.

Copyright(C) 2006 MarkLines Co., Ltd. All rights reserved.