BMW: new record sales of more than 1.6 million cars predicted for 2011

Introducing direct-injection, turbocharged, fuel efficient engines and BMW i brand cars

2011/11/29

Summary

 BMW predicts a 10% year-to-year increase in global sales in 2011 to a new record high of more than 1.6 million cars, along with a record high EBIT (earnings before interest and taxes). According to BMW, the brisk results owe primarily to the market launch of new models such as the BMW 5 Series, X3 and MINI Countryman that have contributed to refreshing the lineup. In 2012, the company will launch the new models of the 3 Series Sedan, the company's best-selling series.

 To meet environmental challenges, BMW has announced the newly-developed engine series, dubbed EfficientDynamics family of engines, boasting higher fuel efficiency from direct-injection systems and turbochargers. The existing 3-, 4- and 6-cylinder engines will be replaced entirely with the new engines to meet the increasingly strict fuel economy standard while maintaining the driving performances.

 Regarding electric vehicles, BMW has announced a sub-brand, BMW i, for its electric vehicles and hybrid vehicles. The company plans to introduce its first model, the EV i3, in the second half of 2013 and the second model, the PHV i8, after a short interval.

 Production capacity of BMW's U.S. plant was recently increased 50% to 240,000 units to start production of the X3. BMW is building a second plant in China and increasing capacity of the first plant to meet the growing demand in the local market. BMW will eventually increase the combined production capacity in China to 300,000 cars.



Model plans: Launching the new 3 Series Sedan in 2012, the coupe styled SUV X4 in 2013

 BMW Group's global sales in January-September 2011 rose 16.0% from the same period a year earlier to 1,233,000 cars. Its sales for the full year 2011 are expected to reach over 16 million cars with a 10% year-to-year growth. The nonstop launch of new models have refreshed BMW's lineup which, in turn, is pushing sales overall.

 BMW launched the new X3, a midsize crossover SUV, in November 2010, the new 6 Series Convertible in March 2011, and the new 6 Series Coupe and the new 1 Series in the fall. Among the MINI brand models, BM launched its first two-seater, MINI Coupe, in October 2011.

 BMW's plans for 2012 include the launch of the new model of the 3 Series Sedan, BMW' best-selling series, in February 2012 and the MINI branded two-seater open-car, MINI Roadster, sometime in 2012. BMW plans to launch the new SUV model, X4, considered the coupe version of the X3, in 2013.

BMW Group: New model launch (November 2010 - 2013)

Launch Overview
New X3 November
2010
Second-generation midsize crossover SUV. BMW calls it SAV (Sports Activity Vehicle). 85 mm longer, 25 mm wider than the previous model. The European models have 2L in-line 4-cyl. direct-injection turbo diesel engine with 6-speed MT or 3L in-line 6-cyl. direct-injection turbo gasoline engine with 8-speed AT. All models have AWD systems (xDrive). Launched in the U.S. simultaneously.
The old model was manufactured for BMW by Magna Styer of Austria. Production of the new model has been moved to BMW's Spartanburg plant in the United States.
New 6 Series
Convertible
March 2011 Third-generation of the 6 Series Convertible. Released for sale in Europe and Asia in March, in the United States and other areas in May. Two types of direct-injection turbo gasoline engines (3L in-line 6-cyl. and 4.4L V8) with 8-speed AT are available for the European models. Outfitted with the electric soft-top as before.
New 6 Series
Coupe
Fall 2011 Third-generation of the 6 Series Coupe. European models have direct-injection turbo engines (3L in-line 6-cyl or 4.4L V8 gasoline engine, or 3L in-line 6-cyl. diesel engine) with 8-speed AT.
New 1 Series September
2011
Second-generation of the premium compact car. Rear-wheel drive. Larger size than the older model contributes to added comfort. Better fuel economy. Powered by direct-injection turbo engines (1.6L gasoline or 2.0L/1.6L diesel) with 8-speed AT or 6-speed MT.
MINI Coupe October
2011
MINI-first two-seater 3-box car and MINI brand's fifth model. Launched first in Europe and then in the United States in the fall of 2011.
New 3 Series
Sedan
February
2012
Sixth-generation of the 3 Series Sedan. To be launched about the same time in Europe, the U.S., China and other areas. Longer by 93 mm than the older model to provide added space for the rear seat passengers. Powered by direct-injection turbo engines (2L in-line 4-cyl. or 3L in-line 6-cyl. gasoline or 2L in-line 4-cyl. diesel engine) with 6-speed MT (or available 8-speed AT).
MINI Roadster 2012 MINI-first two-seater open-car. The open version of the MINI Coupe and sixth model of the MINI brand. Features manually opening soft-top roof.
X4 2013 The new SUV model. Most likely a coupe style with a low roof line. The X4 will be a coupe version of the X3 as is the X6 of the X5.

Source: BMW Press Release 2010.7.15/2010.11.18/2011.7.1, Automotive News 2011.10.3

 



Clean cars: introducing high efficient internal combustion engines and electric vehicles

Internal combustion engines of improved efficiency: Newly-developed EfficientDynamics family of engines being introduced

 EfficientDynamics is the name of BMW's program to meet the increasingly more strict emissions standards in Europe and the United States, by reducing CO2 emissions without cutting power from the engines at the same time. One of the main approaches is to enhance the efficiency of internal combustion engines. The company announced, on the BMW Innovation Day in April 2011, the EfficientDynamics family concept of engines highlighting improved efficiency. BMW plans to apply a common structural principle to all new 3-, 4- and 6-cylinder engines so that far more common parts are used in those modular engines. Their combustion efficiency will be increased to improve output and torque compared to the conventional engines while improving fuel economy.

 To meet the U.S. government's decision to raise fuel economy standards, BMW re-introduced its 4-cylinder engines in the U.S. market for the first time in 12 years. In addition, BMW plans to develop front-wheel drive small cars based on the same platform used on MINI cars, and launch them in the U.S. market as well.

BMW EfficientDynamics family of engines

Modular
structure
A 1-cylinder 500 cc engine will form the basic unit and new in-line 3-, 4- and 6-cylinder gasoline/diesel engines will be developed and produced by combining several units. The engines will share up to 60% of parts, which will contribute to cost reduction and flexible production engineering. The modular approach allows development of engines varying in output levels. The 3- and 4-cylinder engines may be of vertical or horizontal layout. Since the production quantity of common parts will increase substantially, BMW estimates that the break-even point will be lowered to only one fourth of the quantity required in convention production.
Technologies All engines will be high-efficiency in-line engines in a technological package called "BMW TwinPower Turbo" (variable intake and exhaust system, optimal fuel combustion, and high-efficiency turbocharging technology).
Production BMW will invest 300 million Euros by 2012 in the Munich plant in Germany and the Styer plant in Austria to produce the new family of engines (of which 160 million Euros will go to the Munich plant).
(Example) 2L 4-cylinder gasoline engine on BMW X1 xDrive28i
Technologies * High-precision direct-injection system: Directly injects pressurized fuel into the combustion chamber.
* VANOS (variable camshaft control): Optimally adjusts the intake and exhaust valve timings.
* VALVETRONIC: Continuously and precisely varies the intake valve lift.
* Twin scroll turbocharger: Efficiently converts exhaust gas into energy.
Dynamic/
environmental
performances
* Maximum output 180 kW/5,000-6,000rpm (55 kW higher than conventional 4-cyl. engines)
* Maximum torque 350 Nm/1,250-4,800rpm (higher than naturally-aspirated 6-cyl. engines)
* Fuel economy (EU cycle) 7.9L/100 km (1.5L less than previous models)
(Example) 3L 6-cylinder diesel engine on BMW 5 Series 530d xDrive
Technologies * Common-rail fuel injection system
* Turbochargers with variable intake geometry
Dynamic/
environmental
performances
* Maximum output 190 kW/4,000rpm (10 kW higher than conventional engines)
* Maximum torque 560 Nm/1,500-3,000rpm (20Nm higher )
* Fuel economy (EU cycle) 5.7L/100 km

Source: BMW Group Innovation Day 2011

Re-introducing 4-cylinder engines in the United States

 In response to the U.S. government's policy to raise fuel economy standards, BMW re-launched its 4-cylinder engines in the United States for the first time in 12 years. BMW used the newly-developed direct-injection 4-cylinder TwinPower Turbo engine in the Z4 (open car) and the 5 Series (midsize sedan) starting in October 2011, and will also use in other models in the future. The newly-developed 4-cylinder engines nearly equal the conventional 6-cylinder engines in performances.

Source: Automotive News Europe 2011.8.30
(Note) The U.S. fuel economy standard (CAFE) will raise the average fuel economy of light vehicles sold in the United States from 27.6 mpg for MY2011 to 34.1 mpg for MY2016 and to 49.6 mpg for MY2025. BMW's average fuel economy for MY2011 (provisional result in April) is 29.9 mpg for passenger cars and 25.5 mpg for light trucks.

Development of front-wheel drive compact cars

 BMW is developing front-wheel drive compact cars based on the Untere Fahrzeugklasse (UKL, meaning "small cars" in German) architecture. BMW is said to have plans to introduce six to nine new models under the BMW and MINI brands combined. The models under the BMW brand include compact mini-vans and sporty compact wagons. The first BMW cars built to the newly-developed architecture are likely to reach the U.S. market in 2014 at the earliest.

Source: Automotive News 2011.5.16/2011.10.3

 

Electric vehicles: Launching ActiveHybrid 5 and 3 in 2012, EV i3 and PHV i8 in 2013

 BMW is launching the 5 Series and 3 Series ActiveHybrid cars in 2012. In addition, the cars carrying the BMW i brand that was announced in February 2011 as a sub-brand for its EV and HV families, are to debut in 2013. The first to debut will be the i3 EV, followed by the i8 plug-in hybrid model.

 In relation to the hybrid technologies, BMW joined hand with PSA and the two companies established a company that will develop and produce battery packs and electric motors. In October 2011, the new company began operating in a research and development site located in Germany.

BMW: Electric vehicle launch plan

Launch Overview
BMW
ActiveHybrid 5
Spring 2012 Uses lithium-ion battery. The 3L in-line 6-cyl. direct-injection twin scroll turbo gasoline engine and a 55 hp electric motor produce a combined output of 335 hp and allow up to 37 mph in EV mode.
BMW
ActiveHybrid 3
Fall 2012 Shares the hybrid system with the ActiveHybrid 5. The world first (according to BMW) full hybrid car among the compact sports sedans in the premium segment.
BMW i3 2013 The first BMW i brand car and a four seater rear-wheel drive model that will become BMW's first volume production electric vehicle. Called Megacity Vehicle in the developmental phase. To be launched in major cities in the world. The concept model disclosed in July 2011 had lithium-ion battery under the floor and a 125 kW motor in the rear section. Has the cruising range of 130 to 160 km and accelerates from 0-100 km/h in less than 8 seconds.
BMW has been conducting demonstration tests with 600 units of MINI E test vehicles since 2009 and 1,000 units of ActiveE cars (based on 1 Series) since 2011. BMW is testing drive components and energy storage systems to develop i3 volume production model.
BMW i8 2013-14 The second BMW i brand model and a 2+2 seat sports car plug-in-hybrid. Based on the concept car dubbed Vision EfficientDynamics. Front wheels are driven by the motor and the rear wheels by the gasoline engine. Lithium-ion battery is mounted in the central tunnel.
The electric drive system used in the i3 has been modified for PHV use in combination with the 3-cyl. gasoline engine with 164 kW output. The car delivers a combined maximum output of 260 kW and runs on electricity alone for up to 35 km. Accelerates from 0-100 km/h in less than 5 seconds and has 2.7L/100 km fuel economy (EU cycle).

Source: BMW Press Release 2011.7.29, Statement by Dr. Reithofer 2011.11.3

 

BMW and PSA: Joint venture company starts hybrid system technology development

 BMW Peugeot Citroen Electrification, a joint venture company for developing hybrid system and electric drive technologies established jointly by BMW and PSA on equal basis with the total investment of 100 million Euros, started operating in October 2011. The new company will develop and produce battery packs, electric motors, generators, power electronics, energy management software, etc. Its central function of research and development is located in Munich, Germany, and will hire up to 400 employees by the end of 2011. Actual production will take place in the city of Mulhouse, France, starting in 2015. Products will be sold to outside customers as well.

Source: BMW Press Release 2011.2.28, PSA Press Release 2011.10.25

 



Production facilities: Increasing U.S. plant's annual capacity 50% to 240,000 cars, building a second plant in China

 BMW Group is upgrading and expanding production facilities globally to stand ready for introducing new models and meet the growing demand. The Group is investing a total of 1 billion Euros in facility renewal at three plants (Munich and Regensburg in Germany, Rosslyn in South Africa) to produce the new 3 Series cars. The Group is also investing 400 million Euros in expansion work of the Leipzig plant in Germany to produce BMW i brand cars.

 The Group's annual capacity in the United States was increased 50% to 240,000 vehicles to prepare for the production of the X3 cars. The BMW Group is investing 1 billion Euros in China, double the originally planned amount, to build a new plant and increase annual capacity of the first plant in China. As a result, the Group's annual capacity in China is expected to rise from 100,000 cars in 2011 to up to 300,000 cars.

BMW Group's main assembly plants

Production models and recent moves Production volume (1,000 units)
2008 2009 2010
Germany Dingolfing Producing 7 Series, 6 Series, 5 Series, M5, and M6. Also producing Rolls-Royce bodies. A global parts supply center. A new plant building for axles and drive units was completed and started operating in the summer of 2011. 241.3 194.7 287.4
Regensburg Producing 1 Series, 3 Series (Sedan, Coupe, and Convertible), M3, Z4, and all-wheel drive cars. Also supplies chassis components for 1 Series and 3 Series. Investing 300 million Euros to expand the assembly plant by the end of 2011 and also renew equipment in the parts plant. 274.0 250.5 244.0
Munich Producing 3 Series Sedan and Touring. Also producing 6/8/10/12-cyl. engines, high-performance engines for M3/M5/M6, stamping parts, and body parts. Invested 500 million Euros to renew equipment to produce the new 3 Series cars debuting in February 2012. 202.9 203.9 205.7
Leipzig Producing 1 Series (3-door model, Convertible, Coupe) and X1. Investing 400 million Euros to expand the plant by 2013 for producing BMW i cars. 150.0 143.5 186.8
UK Oxford Producing MINI brand cars (other than MINI Countryman). Plan was announced in June 2011 to invest 500 million Euros in the next three years to launch the next-generation MINI cars. 235.0 213.7 216.3
GoodWood Producing Rolls-Royce Phantom and Ghost. 1.4 0.9 3.2
US Spartanburg Producing X5, X6, Active Hybrid X6, X5 M, and X6 M. Invested 750 million Euros to increase capacity from 160,000 to 240,000 vehicles to start production of X3 in September 2010. 170.7 123.0 159.3
South Africa Rosslyn Producing the new 3 Series Sedan and parts for the 3 Series cars. Invested 200 million Euros in October 2009 for facility renewal to start production of the new 3 Series. Exported 3/4 of its assembled cars to foreign markets in 2010. 48.0 46.2 49.0
China Shenyang A joint venture company formed with Brilliance China Automotive Holdings Ltd. Producing 3 Series and 5 Series cars. Producing long-bodied 5 Series Sedan for local Chinese market since the fall of 2010. 33.7 36.0 55.6
Doubled investments to 1 billion Euros (borne equally by the two companies) in June 2011 in its Chinese production capacity from the amount originally planned in 2009. Will double annual capacity at the existing first plant to 100,000 vehicles and set capacity of the second plant under construction to 200,000 vehicles. The second plant is to produce X1 and 3 Series cars starting in 2012. As a result, Group's total capacity in China will increase to up to 300,000 vehicles.
Austria Consignment
production
BMW X3 was produced for BMW by Magna Styer until August 2010 (production of the new X3 has been moved to the U.S.). Styer is producing MINI Countryman for BMW since September 2010. 82.9 46.0 54.9
Other six
countries
CKD production Engaged in CKD production in Thailand, Malaysia, Russia, Egypt, Indonesia and India. 19.1
Total 1,439.9 1,258.4 1,481.3

Source: BMW Annual Report 2010, BMW Group Website, Nikkan Jidosha Newspaper 2010.10.16, Nikkei Sangyo Newspaper 2011.6.10/2011.6.15

 



Vehicle sales: Vehicle sales in full 2011 expected to mark a record high of 1.6 million cars

 BMW Group's global vehicle sales in January to September 2011 rose 16.0% from the same period a year earlier to 1,233,000 vehicles. BMW brand cars rose 14.5%, MINI brand cars by 24.1%, and Rolls-Royce brand cars by 41.3%. The brisk sales resulted from the market launch of new models that refreshed the lineup. Among the BMW cars, the new BMW 5 Series and X5 continue to lead BMW Group's global sales.

 In terms of market areas, sales in Europe rose 10% due to steady growth in Germany and the U.K. while sales in North America rose 13.9% thanks to the increase in the U.S. Sales in Asia rose 36.8% resulting from a sharp market growth in China. As a result, the Group experienced increase in sales in all areas.

 With regard to business results for the full year 2011, BMW admits a sign of growth edging down in overseas markets but BMW Group will continue new model launches through the second half which will boost their global vehicle sales to a record high of more than 1.6 million cars (up 10% from the previous year as of the end of the third quarter, instead of 1.5 million cars as originally predicted for the full year).

BMW Group's unit sales

(units)
2005 2006 2007 2008 2009 2010 Jan.-Sep.
2010
Jan.-Sep.
2011
BMW 1,126,768 1,185,088 1,276,793 1,202,239 1,068,770 1,224,280 892,737 1,021,927
MINI 200,428 188,077 222,875 232,425 216,538 234,175 167,751 208,216
Rolls-Royce 796 805 1,010 1,212 1,002 2,711 1,728 2,441
Vehicle total 1,327,992 1,373,970 1,500,678 1,435,876 1,286,310 1,461,166 1,062,216 1,232,584
Motorcycle 97,474 100,064 102,467 101,685 87,306 98,047 88,768 92,972

Source: BMW Annual Report 2010, BMW Quarterly Report 3Q 2011

 

BMW Group's unit sales by model
(units)
2005 2006 2007 2008 2009 2010 Jan.-Sep.
2010
Jan.-Sep.
2011
1 Series 149,493 151,918 165,803 225,095 216,944 196,004 151,681 129,041
3 Series 434,342 508,479 555,219 474,208 397,103 399,009 295,608 288,077
5 Series 228,389 232,193 230,845 202,287 175,983 238,454 155,648 250,566
6 Series 23,340 21,947 19,626 16,299 8,648 5,848 5,149 5,314
7 Series 50,062 50,227 44,421 38,835 52,680 65,814 47,349 48,842
X1 8,499 99,990 72,294 94,294
X3 110,719 114,000 111,879 84,440 55,634 46,004 35,252 83,754
X5 101,537 75,321 120,617 116,489 88,851 102,178 74,655 75,055
X6 26,580 41,667 46,404 34,464 31,357
Z4 28,808 30,981 28,383 18,006 22,761 24,575 20,637 15,627
BMW total 1,126,768 1,185,088 1,276,793 1,202,239 1,068,770 1,224,280 892,737 1,021,927
MINI 200,428 188,077 222,875 232,425 216,538 234,175 167,751 208,216
Rolls-Royce 796 805 1,010 1,212 1,002 2,711 1,728 2,441
Total 1,327,992 1,373,970 1,500,678 1,435,876 1,286,310 1,461,166 1,062,216 1,232,584

Source: BMW Annual Reports 2010, BMW Quarterly Report 3Q 2011
(Note) The high performance M Series vehicles such as the M5 and M6 are included in their base models, respectively.

 

BMW Group's unit sales by region
(1,000 units)
2005 2006 2007 2008 2009 2010 Jan.-Sep.
2010
Jan.-Sep.
2011
Germany 295.9 285.3 280.9 280.9 267.5 267.2 191.6 209.8
UK 156.2 154.1 173.8 151.5 137.1 154.8 386.0 425.6
Other European
countries
350.8 375.0 443.6 432.2 357.3 369.3
Europe total 802.9 814.4 898.3 864.6 761.9 791.3 577.6 635.4
North America 329.0 337.4 364.0 331.8 271.0 298.3 215.9 245.9
Asia 125.7 142.2 159.5 165.7 183.1 286.3 206.5 282.5
Other regions 70.4 80.0 78.9 73.8 70.3 85.3 62.2 68.8
Total 1,328.0 1,374.0 1,500.7 1,435.9 1,286.3 1,461.2 1,062.2 1,232.6

Source: BMW Annual Report 2010, BMW Quarterly Report 3Q 2011

 



Business results: An EBIT margin in the Automotive Segment of 12.8% in January-September 2011

 BMW Group's revenues in January-September 2011 increased 15.4% to 50.472 billion Euros due to increase in vehicle sales. EBIT (earnings before interest and taxes) and net profit both nearly doubled and the EBIT margin in the Automotive Segment rose to 12.8% (compared to 7.2% for the same period a year earlier).

 The EBIT for the full year 2011 is expected to mark a new record. The EBIT margin in the Automotive Segment is expected to top 10% and the return on capital employed to be more than 26%.

 BMW says they will continue to keep the profitability level (EBIT margin of 8~10% in the Automotive Segment, more than 26% return on capital employed) targeted for 2012, the mid-point in its Strategy Number ONE business strategy extending through 2020.

BMW Group's business results

(in millions of Euro)
2005 2006 2007 2008 2009 2010 Jan.-Sep.
2010
Jan.-Sep.
2011
Revenues
EBIT
Profit before tax
Net profit
46,656
3,793
3,287
2,239
48,999
4,050
4,124
2,874
56,018
4,212
3,873
3,134
53,197
921
351
330
50,681
289
413
210
60,477
5,094
4,836
3,234
43,731
3,358
3,166
2,032
50,472
6,474
6,160
4,103
Capital expenditure
Depreciation
R & D cost
3,993
3,025
2,464
4,313
3,272
2,544
4,267
3,683
2,920
4,204
3,670
2,825
3,471
3,600
2,448
3,263
3,682
2,773


1,914


2,300
No. of employees 105,798 106,575 107,539 100,041 96,230 95,453 96,402 100,389
Source: BMW Annual Report 2010, BMW Quarterly Report 3Q 2011
(Note) 1. EBIT stands for Earnings Before Interest and Taxes.
2. R & D cost shows the expenditure which is not capitalized.

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