BMW to reach sales of two million vehicles: four years ahead of plan

Expanded product portfolio and increased production capacity contribute to the revised target

2012/12/26

Summary

BMW Group's global sales volume

BMW Group: percentage of sales volume by key country

 In its mid-term goal announced in March 2012, BMW aims to achieve a worldwide sales volume of two million vehicles by 2016. It has pushed up its plan by four years as the automaker previously planned to reach this target by 2020.

 BMW marked a record high worldwide sales volume for 2011 with 1.67 million units and expects to make a new record for its 2012 year-round sales.

 One of the elements contributing to this sales growth is the expansion of its portfolio: BMW launched new sedan and wagon versions of its best-selling model, the 3 Series, and a first of its four-door coupe model under the BMW brand, the 6 Series Gran Coupe. In 2013, BMW will launch replacements for the 3 Series Coupe/Convertible as the 4 Series Coupe/Convertible, and a seventh model under the MINI brand, the Paceman.

 As one of its strategies for attaining the sales volume of two million vehicles worldwide, the German company will aggressively launch new models into the premium compact segment where growth is expected. Many BMW/MINI brand models will be built on the newly engineered FWD platform to enhance sales competitiveness in this segment. The sales volume of vehicles under the MINI brand also needs to be expanded. To do so, BMW will expand its production facilities by enhancing the production capacity of its U.K. plant and commission the Dutch company NedCar to produce its vehicles.

 By region, the sales in the U.S. and China contrast with the sales in Europe-where an economic downturn due to the regional debt crisis has caused difficulties in sales-and the sales percentages by region during the January to September 2012 period were 18% for China and the U.S. leading Germany by 2% (16%). BMW will strengthen the production capacities of the U.S. and China to further expand its sales. It also has plans to establish a production capability in emerging markets which includes the construction of a new plant in Brazil.

 The automaker aims to cut the group CO2 emissions by half from the amount in 1995 in order to conform to the amount set by the European CO2 emissions control standard (95g/km) by 2020. The BMW Group's current average emission is 145g/km. BMW will launch the first of its electric-powered vehicle sub-brand i, the i3 compact EV (electric vehicle) by the end of 2013, and the i8, a PHV (plug-in hybrid vehicle) sports car in early 2014. The company also signed an agreement with Toyota regarding a partnership for eco-friendly technologies. The automakers will co-develop technologies such as lithium ion batteries, fuel-cell powered vehicles, and electrification.

 The revenue for the January to September 2012 period was up 11.6% from the same period of the previous year to 56.31 billion Euros, marking its highest for that period. EBIT (earnings before interest and taxes) also marked its highest with an increase of 0.8% to 6.4 billion Euros. The net profit was down 2.8% y/y to 3.9 billion Euros. The year-round revenue and profit for 2012 are both expected to exceed the previous year (announced in September 2012).


Related Reports: Equipment on new European models (1): BMW (Oct. 2012), Beijing Motor Show 2012 (4): BMW (Jul. 2012)



Model plans: launching BMW/MINI vehicles based on the new FWD platform in 2014 or later

BMW Group: New model launch (February 2012 to 2014)

New 3 Series Sedan Feb. 2012  The sixth generation of the 3 Series Sedan. The model is 93mm longer than its previous model with a sportier feature. Available with a direct injection turbocharged engine (either 2-liter inline-four/3-liter inline-six gasoline powered or 2-liter inline-four diesel powered) with a 6-speed MT (8-speed AT option available).
ActiveHybrid 5 Mar. 2012  A hybrid model of the 5 Series. This is the third HV (hybrid vehicle) BMW has released after the launches of the 7 Series and the X6. The vehicle is equipped with a 3-liter inline-six turbocharged engine (225kW/306ps), an electric motor (40kW/55ps), a lithium ion battery, and an 8-speed AT. The total output is 250kW/306ps. Its maximum speed in EV mode is 60km/h. The fuel economy is 6.4-liter/100km under the European test cycle.
MINI Roadster Mar. 2012  A two-seater convertible. This is the convertible version of the MINI Coupe, the sixth model to be released under the MINI brand.
6 Series
Gran Coupe
Jun. 2012  A variant of the 6 Series following the releases of the Coupe and the Convertible. This is the first four-door coupe to be launched under the BMW brand. The wheelbase has been stretched by 115mm from the two-door coupe, improving comfort for backseat passengers. This model is the harmonious combination of elegance and sportiness.
ActiveHybrid 3 Sep. 2012  A hybrid model of the 3 Series. The vehicle is equipped with a 3-liter inline-six turbocharged engine (225kW/340ps), an electric motor (40kW/55ps), a lithium ion battery, and an 8-speed AT. The total output is 250kW/340ps. The maximum speed in EV mode is 75km/h up to 4km. The fuel economy is 5.9-liter/100km under the European test cycle.
New 3 Series
Touring
Sep. 2012  A new wagon model of the 3 Series. The model will be launched in the U.S. under the name 3 Series Sports Wagon in the spring of 2013. The length of the body has been stretched by 97mm from its previous model with a 35-liter larger cargo space of 495 liters. Available with a direct injection turbocharged engine (either a 2-liter inline-four gasoline powered or 2-liter inline-four/3-liter inline-six diesel powered) with a 6-speed MT/8-speed AT.
MINI Clubvan Fall 2012  A commercial van built on the platform used on the MINI Clubman wagon. The first commercial vehicle to be released under the MINI brand after its acquisition by BMW.
MINI Paceman Mar. 2013  The seventh model to be launched under the MINI brand. A two-door coupe based on MINI's crossover Countryman. Its mass production model was showcased at the Paris Motor Show in September 2012.
4 Series Coupe/
Convertible
Summer
2013
or later
 A 3 Series Coupe/Convertible replacement. While the name 3 Series remained for the sedan and station wagon versions, sportier and higher-priced Coupe, Convertible, and X4 will be launched under the 4 Series. This resembles the relationship between the 5 and 6 Series.
3 Series
Gran Turismo or GT
2013  A five-door hatchback version of the 3 Series. It resembles the 5 Series Gran Turismo's style.
New X5 2013  It will become one size bigger with the facelift, but there will be no third row installed as with the previous models.
i3 End of 2013  The first model of BMW's sub-brand i; it is a four-seater compact EV.
i8 Early 2014  The second model of BMW's sub-brand i. It is a PHV sports car.
X4 2014  A new SUV model. It will come in a coupe style with a lower roofline like the X6.

 

Up to 12 models to be equipped with newly engineered FWD platform
FWD platform  BMW will introduce its newly engineered front-wheel drive (FWD) platform to 12 BMW/MINI models at the most (according to the news report in October 2012). The new MINI Cooper and a first forward-wheel drive vehicle under the BMW to be launched in 2014, as well as the new BMW 1 Series planned for release in 2018 are expected to be built on this platform.
 The German automaker will introduce the FWD platform to models in the premium compact segment, foreseeing it as an area of rapid growth (over 5% per year). The competitors of these models will be the Mercedes-Benz A-/B-Class and the Audi A3.
Concept Active
Tourer
 The first concept model to be built on the new FWD platform. It was showcased at the 2012 Paris Motor Show held last September. The introduction of this platform and a compact transverse engine allowed this model to have a larger interior space. In the PHV concept car configuration, the new 1.5-liter direct injection three-cylinder turbocharged engine in the front drives the front wheels and the electric motor in the rear. The vehicle is equipped with a lithium ion battery which can be charged using a household 220V outlet.

 

 



Sales volume by region shows increase for North America and Asia; Europe maintains last year's performance

 The January to September period for 2012 by region showed an increase of 0.8% y/y to 640K units for Europe with regions outside of South Europe covering for its loss. The sales volume in Germany was almost the same as 2011 when it was doing extremely well (a 1.2% decrease to 207K units). The sales volume in the U.K. was good as well with a 3.4% increase to 133K units. The sales continued to grow mainly in the U.S. for the North American region with an increase of 7.4% to 264K units. The steady growth of the locally produced models in China, the X1 and the long wheelbase version of the 3 Series, contributed to the good performance in Asia, achieving a 27.1% increase to 359K units.

BMW Group's sales volume by region

(1,000 units)
2006 2007 2008 2009 2010 2011 Jan.-Sep.
2011
Jan.-Sep.
2012
Europe total 814.4 898.3 864.6 761.9 791.3 858.4 635.4 640.2
Germany 285.3 280.9 280.9 267.5 267.2 285.3 209.8 207.2
UK 154.1 173.8 151.5 137.1 154.8 167.5 128.4 132.7
Other European countries 375.0 443.6 432.2 357.3 369.3 405.7 297.2 300.3
North America 337.4 364.0 331.8 271.0 298.3 341.3 245.9 264.2
US 313.9 336.2 303.6 242.1 266.6 306.3 220.0 235.5
Asia 142.2 159.5 165.7 183.1 286.3 375.5 282.5 359.1
China 44.8 61.2 75.5 99.0 183.3 233.6 178.2 237.7
Other regions 80.0 78.9 73.8 70.3 85.3 93.7 68.8 72.0
Total 1,374.0 1,500.7 1,435.9 1,286.3 1,461.2 1,669.0 1,232.6 1,335.5

Source: BMW Annual Report 2011, BMW Quarterly Report 3Q 2012

 



Production facilities: to expand capacity for MINI brand vehicles; to construct new plant in Brazil

BMW Group's major vehicle plants

Production models and movements Production volume (1,000 units)
2009 2010 2011
Germany Dingolfing Manufactures the 7 Series, 6 Series, 5 Series, M5, and M6 models as well as the bodies for Rolls-Royce vehicles. It also acts as the global parts supply hub. The production of the ActiveHybrid 5 began in January 2012. It is preparing for the production of engines and drive parts for BMW's sub-brand i. 194.7 287.4 343.2
Regensburg Produces the 1 Series, 3 Series (Sedan, Coupe, and Convertible), M3, Z4, and four-wheel drive models. Delivers chassis for the 1 Series and 3 Series as well. BMW spent 300 million Euros for renewing this facility and started production of the new 3 Series from October 2011. 250.5 244.0 260.0
Munich The 3 Series Sedan and Touring as well as 4, 6, 8, and 12-cylinder engines are built at this plant. The production of the new 3 Series began in October 2011. The manufacturing of the new 4-cylinder gasoline powered engine also started that same year with an investment of 205 million Euros. The plant started production of the ActiveHybrid 3 in the fall of 2012. 203.9 205.7 172.9
Leipzig Builds the 1 Series (three-door, convertible, coupe, and M coupe versions) and the X1. 1,100 units of ActiveEs for test drives were also built here. Four hundred million Euros will be spent by 2013 on its expansion to manufacture vehicles under the BMW i brand. 143.5 186.8 199.2
UK Oxford Manufactures vehicles under the MINI brand (excluding the MINI Countryman). Production of the Coupe began in 2011 and the Roadster in 2012. 213.7 216.3 191.5
Goodwood Produces the Rolls-Royce Phantom and the Ghost. To comply with the growing demand for Rolls-Royce vehicles, BMW is planning to expand the property of the plant. 0.9 3.2 3.7
US Spartanburg Produces the X3, X5, and X6 models. Its annual production capacity increased to 300K units when it shifted to a six-day operation in August 2011. 123.0 159.3 276.1
South Africa Rosslyn Manufactures the new 3 Series Sedan and parts used on the 3 Series. 85% of the vehicles produced at this plant are exported to countries such as the U.S., Japan, and Australia. 46.2 49.0 53.2
China Shenyang 1 A joint venture with Brilliance China Automotive Holdings Ltd. The first plant in Dadong produces the long wheelbase version of the 5 Series. The plant's annual production capacity is 100K units. 36.0 55.6 98.2
Shenyang 2 Its operation started in May 2012. Produces the X1 and the new 3 Series Sedan (standard and the long wheelbase version). The initial annual production capacity is 100K units. - - -
Austria Contract production Produces the MINI Countryman and Paceman under contract. 46.0 54.9 102.7
Other six countries CKD production BMW uses CKD assembly to manufacture vehicles in Thailand, Malaysia, Russia, Egypt, Indonesia, and India. Production capacities in India and Russia were enhanced. - 19.1 37.5
Total 1,258.4 1,481.3 1,738.2

 

Enhancement of production capacity for MINI brand vehicles
Production capacity
expansion
at the U.K. plant
 In June 2011, BMW announced that it will spend 500 million Euros by 2014 on its U.K. plant which builds vehicles under the MINI brand. Facilities, including the engine plant, at the MINI manufacturing plant will be renewed.
 BMW additionally announced in July 2012 that it will spend a total of 250 million pounds on this plant by 2015. Production capacities at the Oxford vehicle plant, the Hams Hall engine plant, and the Swindon body panel plant will be enhanced, and the company will expand its MINI lineup from the current seven models up to ten models in the medium term. The three plants will create jobs for 5,500 people.
Production under
contract at NedCar
 BMW will contract with VDL NedCar in the Netherlands to produce the MINI brand vehicles after it terminates production of Mitsubishi vehicles at the end of 2012. The companies have signed an agreement in October 2012 and NedCar will start the production of the MINI brand vehicles at the Born plant in the Netherlands from mid-2014. Modifications to the production lines will begin at the beginning of 2013.

 

Construction of plant with annual production capacity of 30K units in Brazil
 In October 2012, BMW announced that it will build its first South American vehicle plant in Brazil. It will spend over 200 million Euros into this project. The plant will be built in Joinville, Santa Catarina located in Southern Brazil. The construction will begin as soon as it receives permission from the Brazilian government, aiming to start operations in 2014. The annual production capacity is 30K units hiring more than 1,000 employees.

 

 



To expand U.S. annual production capacity to 350K units; second vehicle plant and engine plant to be built in China

Expansion of production capacity at Spartanburg plant in U.S.

Expansion of
annual production
to 350K units
 BMW will spend an additional 900 million dollars by 2014 on its Spartanburg plant in South Carolina to increase its annual production capacity from the current 300K to 350K units (announced in January 2012). The expansion will create jobs for 300 people by the end of 2012 (currently 7,000). This will increase production of the BMW X Series which has growing demand globally, and prepare for the launch of the new X4 model.
Sales trends of the
produced models
 The production volume for 2011 at this plant was up 73% y/y to 276K units. Approximately 190K units, which are more than 70% of the vehicles produced here, were shipped to 130 markets around the world. The 2011 worldwide sales volume of the X3, BMW's major model, was up 156% to 118K units, and the volume continued to increase by 29% to 108K units for the January to September 2012 period.

 

BMW Brilliance constructs second vehicle plant and engine plant in China

Second vehicle plant  In May 2012, BMW Brilliance Automotive, a joint venture with Brilliance China Automotive, began production at the second vehicle plant. The newly constructed second plant in Tiexi, Shenyang City has an annual production capacity of 100K units and will be expanded to 200K units by the end of 2013. The total annual production capacity for both the first (in Dadong) and the second plant will become 300K units, but BMW plans to further expand the capacity to 400K units in the future. The investment into China jointly made with Brilliance China Automotive since 2009 is expected to reach 1.5 billion Euros.
Production begins
at first engine plant
 BMW Brilliance also started production at its engine plant in May 2012. This is the first engine plant BMW built outside of Europe. This plant will produce 200K 2-liter 4-cylinder engines annually. The new plant will enhance the engine production capacity to cope with the expansions of the two vehicle plants.
Construction of
second engine plant
 In August 2012, BMW Brilliance announced its plan to build a second engine plant. It will be constructed in Shenyang where the existing plant is located. The operations are expected to begin in 2015. With an annual production capacity of 200K units, it will double the total annual production capacity to 400K units together with the first plant.
Sales outlook
for 2012
 In 2011, BMW sold 234K units of vehicles in China, an increase of 37.7% from the previous year. During the January to November 2012 period, the sales of locally produced SUV X1 and the long wheelbase version of the 3 Series Sedans went well resulting in a 37.6% increase to 296K units. The year-round sales volume for 2012 is expected to increase by two digits, marking its record high.

 

Designing office and telematics R&D site in China established

Designing office  In April 2012, BMW opened a Shanghai branch office of its group designing office, DesignworksUSA, in Shanghai. The office will deal with a wide variety of general industrial product designs including vehicles. Resources will be hired locally in addition to staff dispatched from offices in Los Angeles, Munich, and Singapore.
Telematics R&D site  BMW opened a research site for its telematics service, the ConnectedDrive, together with the designing office. This is the third research site established for this service following the Munich and the Mountain View, California site. The automaker will engineer new onboard infotainment technologies for the Chinese market which is becoming increasingly important for BMW.

 

 



BMW partners with Toyota on diesel engines and eco-friendly technologies

 As part of its strategies for green vehicles, BMW has introduced a low fuel consumption, low gas emission engine called the EfficientDynamics to its vehicles and is engineering electric powered vehicles launched under the sub-brand i. Moreover, it will partner with Toyota to co-develop next generation eco-friendly vehicles and technologies. The partnership with Toyota will save BMW the cost and time spent on development.

Cooperation with Toyota on diesel engines and eco-friendly technologies

Supplying of
diesel engines
 In December 2011, BMW announced that it will provide diesel engines for Toyota's European market models from 2014. The engines provided are 1.6/2-liter classes conforming to gas emission standard Euro 6 which will go into effect in Europe from 2014. Toyota will incorporate the engines to U.K. manufactured Auris and Turkey manufactured Corolla.
Co-development of
lithium ion batteries
 In December 2011, BMW signed an agreement with Toyota regarding a mid-term partnership for the next generation eco-friendly vehicles and technologies. In March 2012, both parties formally entered into a contract for the co-development of the next generation lithium ion battery used on EVs, HVs, and PHVs. The two automakers will disperse research for three core battery components, positive electrode, negative electrode, and electrolyte, among them to save the development period. They are also considering embarking on a theme where they can collaborate on environmental technologies.
Other eco-friendly
technologies
 Additionally, both companies signed an agreement for a long-term strategic partnership on fuel-cell vehicles, sports cars, electrification technologies, and lightweight technologies in June 2012. As for fuel-cell vehicles, Toyota will first provide BMW with a technology currently in development to be marketed by FY2015. Then, the two companies will collaborate to develop a new next generation system by FY2020. Technologies for the remaining three areas will be considered in detail later.

 

BMW and PSA discontinue co-development of hybrid technology

 In September 2012, PSA announced that it will terminate the co-development of hybrid technologies with BMW due to the establishment of capital and a technological partnership with GM. PSA and BMW have already established an equally-owned joint venture, BMW Peugeot Citroen Electrification (BPCE), in October 2011, and were already in process of engineering with the development, procurement, and manufacturing of electric powertrains and components. In July 2012, BMW announced that it will continue with the development at BPCE even after the termination of the joint venture with PSA.

Resource: 2012.9.24 Automotive News

 



Year-round sales volume for 2012 to exceed BMW's record high of 1.67 million units

 The worldwide sales of the January to November 2012 period for the BMW Group increased by 10.1% from the previous year to 1,664K units, the same level as the 2011 full year sales, despite the unstable market economy from debt crisis. It is certain that the year-round sales volume for 2012 will achieve a record high.

 Brand-wise, BMW increased by 10.9% to 1,252K units and MINI by 6.7% to 273K units, both marking record highs. The sales volume for Rolls-Royce decreased by 0.7% y/y to 3,041 units.

 Looking at the sales volume for January to September period for 2012 by model, the BMW 1 Series increased by 30.5%, the X3 by 28.7%, and the 6 Series, which launched a four-door coupe in June, increased by threefold. The new 3 Series Sedan, other X Series, the MINI Countryman also had a good year.

BMW Group's sales volume

(units)
2007 2008 2009 2010 2011 Jan.-Nov.
2011
Jan.-Nov.
2012
2016
(Plan)
BMW 1,276,793 1,202,239 1,068,770 1,224,280 1,380,384 1,252,202 1,388,274
MINI 222,875 232,425 216,538 234,175 285,060 255,593 272,773
Rolls-Royce 1,010 1,212 1,002 2,711 3,538 3,062 3,041
Vehicle total 1,500,678 1,435,876 1,286,310 1,461,166 1,668,982 1,510,857 1,664,088 2,000,000
Motorcycle 102,467 115,196 100,358 110,113 113,572 108,010 109,773

Source: BMW Annual Report 2011, BMW Press Release 2012.12.10

 

BMW Group's sales volume by model
(units)
2006 2007 2008 2009 2010 2011 Jan.-Sep.
2011
Jan.-Sep.
2012
1 Series 151,918 165,803 225,095 216,944 196,004 176,418 129,041 168,426
3 Series 508,479 555,219 474,208 397,103 399,009 384,464 288,077 286,622
5 Series 232,193 230,845 202,287 175,983 238,454 332,501 250,566 263,738
6 Series 21,947 19,626 16,299 8,648 5,848 9,396 5,314 16,607
7 Series 50,227 44,421 38,835 52,680 65,814 68,774 48,842 43,794
X1 8,499 99,990 126,429 94,294 102,519
X3 114,000 111,879 84,440 55,634 46,004 117,944 83,754 107,833
X5 75,321 120,617 116,489 88,851 102,178 104,827 75,055 76,725
X6 26,580 41,667 46,404 40,822 31,357 31,497
Z4 30,981 28,383 18,006 22,761 24,575 18,809 15,627 12,201
BMW total 1,185,088 1,276,793 1,202,239 1,068,770 1,224,280 1,380,384 1,021,927 1,109,962
MINI 188,077 222,875 232,425 216,538 234,175 285,060 208,216 223,214
Rolls-Royce 805 1,010 1,212 1,002 2,711 3,538 2,441 2,326
Total 1,373,970 1,500,678 1,435,876 1,286,310 1,461,166 1,668,982 1,232,584 1,335,502
Source: BMW Annual Reports 2011, BMW Quarterly Report 3Q 2012
Note 1. The M-series, such as the M5 and M6, with higher performances are included in its base models.
2. BMW announces its sales volumes by model quarterly.

 

 



Performances for 2012 year-round revenue and profit estimated to exceed 2011

 The BMW Group's revenue for the January to September 2012 period was up 11.6% from the same period of the previous year to 56.31 billion Euros, marking its highest for that period. EBIT also marked a record high with an increase of 0.8% to 6.4 billion Euros despite additional investments for production facilities and development of new technologies, increased competition, and higher labor cost. The net profit was down 2.8% y/y to 3.9 billion Euros.

 The year-round revenue and profit for 2012 are expected to exceed the previous year. Moreover, the outlook in the announcement of Q2 financial statement for performances of its automobile department (the EBIT rate for revenue between 8-10% and ROCE exceeding 26%) remained unchanged.

BMW Group's business results

(in millions of Euro)
2007 2008 2009 2010 2011 Jan.-Sep.
2011
Jan.-Sep.
2012
Revenues 56,018 53,197 50,681 60,477 68,821 50,472 56,312
EBIT 4,212 921 289 5,111 8,018 6,358 6,406
Profit before tax 3,873 351 413 4,853 7,383 6,044 6,040
Net profit 3,134 330 210 3,243 4,907 4,028 3,915
Capital expenditure 4,267 4,204 3,471 3,263 3,692
Depreciation 3,683 3,670 3,600 3,682 3,646
R & D cost 2,920 2,825 2,448 2,773 3,373 2,300 2,831
No. of employees 107,539 100,041 96,230 95,453 100,306 100,389 104,668

Source: BMW Annual Report 2011, BMW Quarterly Report Q3 2012
(Note) EBIT stands for Earnings Before Interest and Taxes.

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