BMW to break sales record in 2013
BMW i sub-brand launched and UKL Platform introduced
During the January to September 2013 period, BMW Group sold 1,436,000 vehicles, an increase of 7.5% year-over-year and expects a new record for its year-round sales. BMW aims to achieve a sales volume of two million vehicles by 2016. To accomplish this goal, the automaker will aggressively launch new models .
Production capacities will be expanded in the U.S., China, and the U.K. In the emerging countries, BMW will establish and strengthen local production and sale network. Simultaneously, the production facility for the BMW i sub-brand in Germany will be enhanced.
Regarding the future sales, LMC Automotive forecasts the light vehicle sales of BMW in 2013 to increase by 5.6% to 1.89 million units. Sales are expected to increase to 2.39 million units by 2016, which is a 33.8% increase compared with 2012. The region expected to contribute most to growth is China, where increase in sales volume to 608,253 units is forecast, a significant increase of 81.2% in 2016. The "BMW models [made in China] will retain the current growth momentum in the coming years."
* IAA Frankfurt Auto Show 2013: BMW unveils the i3 EV and i8 PHV, the New X5, and the 4 Series Coupe (Oct. 2013)
* European OEMs: Germans set sights on new sales record (Sep. 2013)
BMW Group's goals and outlook for 2013
|Year-round outlook for 2013 (Announced with the Q2financial results)||* Passenger car sales to mark a single digit growth from the previous year. * Operating profit estimated at the same level as the previous year. * EBIT/revenue ratio in the automobile department targeted at 8 to 10% and return on capital employed (RoCE) expected at 26%.|
|Long-term goals||* 25 models to be launched between 2013 and 2014, 10 of which will be all-new models. In 2020, the lineup will be expanded by three times from the 2005 level. (Announced with the 1Q financial results) * A worldwide sales volume of two million targeted by 2016. (Announced in 2012)|
BMW Group's model plans
The BMW Group will aggressively launch 25 new models: by the end of 2014, 10 of which will be all-new models. The MINI brand lineup will be expanded up to ten models in the medium term. From the BMW i sub-brand, the i3 was released as its first production model. The group is focusing on the premium compact segment as one of the cornerstones of its model plans. The Front-Wheel Drive (FWD) platform called UKL (an acronym for the German words "Unter Klasse (lower class)" ) will be shared by several models such as the new 1 Series and MINI brand to enhance the competitiveness.
|Sep. 2013||New X5||BMW's first Sport Utility Vehicle (SUV) including a Rear-Wheel Drive (RWD) model, in addition to All-Wheel Drive (AWD). The RWD model is equipped with a 3.0-liter twin-turbo six-cylinder engine with an output of 300hp. This model was unveiled at the Frankfurt Motor Show in September 2013.|
|Oct. 2013||4 Series||A successor of the 3 Series Coupe/Convertible newly set under this name. It has a sporty and luxurious appearane with wider body and wheelbase. The Convertible will be launched in the first half of 2014 and the four-door Gran Coupe in autumn 2014.|
|Nov. 2013||i3||A compact, four-seater RWD Electric Vehicle (EV) equipped with an electric motor with an output of 170hp. A range extender model equipped with a 0.65-liter two-cylinder engine will also be available. The cruising range is 130 to 160km (240 to 300km for the range extender). The chassis used on this model combines an aluminum chassis equipped with battery, drive system, and suspension parts, with a chassis made of carbon-fiber reinforced plastic (CFRP).|
|Mar. 2014||2 Series||A sportier version which is redesigned from the 1 Series Convertible/Coupe. The Coupe and the Convertible will be released in March and September 2014.|
|Mid 2014||i8||A Plug-in Hybrid Vehiclle (PHV), the sports coupe equipped with a 1.5-liter three-cylinder gasoline engine called "BMW TwinPower Turbo" (output: 170kW/231hp, torque: 320Nm/236lb-ft), an electric motor (output: 96kW/131hp, torque: 250Nm/184lb-ft), and a lithium ion battery (storage capacity: 5kWh).|
|2014||New M3||The M3 Sedan, a high-performance model of the 3 Series, will be launched in 2014.|
|Early 2014||X4||A new coupe-style SUV model. Its concept model was exhibited at the 2013 Shanghai Motor Show, with a length of 4,648mm, a width of 1,915mm, a height of 1,622mm, and a wheelbase of 2,810mm.|
|2015||Active Tourer||BMW brand's first premium compact car to be launched in early 2015 which shares the new FWD platform with MINI. This is a leisure vehicle designed for people who love the outdoors.|
|2015||New X1||A new 1 Series-based SUV built on BMW's UKL platform for FWD layout vehicles.|
|2015||New X6||A coupe-style SUV with a slanted rear roof, built on the new X5's platform. The model will be launched in the first half of 2015.|
|2016||New 7 Series sedan||A flagship model made of lightweight materials such as carbon and aluminum. It will be available with a diesel, plug-in hybrid, or four-cylinder gasoline engine. BMW is considering to add an AWD M version for the first time to the 7 Series.|
|2016||Next-generation Z4||A two-seater roadster, reportedly to be co-developed with Toyota.|
|2017||New 1 Series sedan||A new entry-level FWD model at the lowest price range in this brand. The model shares the UKL platform for FWD layout vehicles to be used for this model will be shared with MINI.|
|Oct. 2012||Mini Clubvan||A commercial van based on the MINI Clubman.|
|Mar. 2013||Mini Paceman||A two-door coupe based on the MINI Countryman. Its mass production model was showcased at the Paris Motor Show in September 2012.|
|Q1 2014||New MINI Cooper||The new MINI will be launched in the first quarter (Jan. to Mar.) of 2014 and share the platform with the BMW 1 Series. The Hardtop will be launched in 2014 and the Convertible in 2015.|
|2018||New MINI Countryman||A five-door SUV will be changed to a new platform in 2018|
|Oct. 2013||Wraith||A two-door coupe built on the same platform as the Ghost Sedan. This model is equipped with a 6.6-liter V 12-cylinder twin-turbo engine with a maximum output of 632ps/5600rpm and a maximum torque of 81.6kgm/1500 to 5500rpm. The convertible version will be released in 2015.|
|2016||New Phantom||A Redesign is scheduled in 2016 and the platform will be shared with the BMW 7 Series. The second-generation Phantom will be built from a large amount of carbon and aluminum to improve fuel efficiency. A BMW X drive-equipped AWD model is expected to be added.|
Reinforcing production and development network
China: Construction of engine plant and announcement of a new brand by BMW Brilliance
|Construction of Tiexi engine plant||In August 2013, BMW Brilliance Automotive, a joint venture of BMW and Brilliance China Automotive, began construction of an engine plant in Tiexi, Shenyang. The first phase construction of the new engine plant will be completed in 2016 and production is expected to start in the same year. The company plans to expand the annual production capacity ultimately to 400,000 units and produce BMW's latest four-cylinder turbo engines at this plant.|
|Delay of third phase expansion work of Tiexi vehicle plant||In July 2013, the Chinese Ministry of Environmental Protection announced its return of the environmental assessment report submitted by BMW Brilliance for the third phase expansion work of the Tiexi plant (second plant in Shenyang, Liaoning prov.) The ministry rejected the report because it did not satisfy environmental conditions such as source/amount of wastewater and air pollution prevention. The Tiexi plant has not passed the environmental performance inspection after the completion of the first phase work either. Furthermore, the second phase construction has not been completed. BMW Brilliance plans to increase the annual production capacity of small passenger cars by 100,000 units in the second phase, and bu 200,000 in the third phase (The current capacity is 100,000.). Therefore, after the completion of the third-phase construction, the plant's total annual production capacity will be 400,000 units.|
|Opening of R&D center in 2013||BMW Brilliance announced in July 2013 that it will open a research and development center in the second Tiexi plant within 2013. After the center opens, all operations from product development,testing to production will be performed at the Tiexi plant.|
|Announcement of own brand called "ZINORO"||In April 2013, BMW Brilliance announced its own brand called "ZINORO". The first model is expected to be EVs designed for the Chinese market, which will be produced at the Tiexi plant and launched between January and March 2014.|
Europe and U.S.: enhancement of production network and capabilities
|Germany: BMW i Series production starts||In September 2013, BMW announced its start of mass production of EVs and the i3 at its Leipzig plant in Germany. The company has invested approximately EUR 400 million in this plant. In Europe, delivery of the i3 is scheduled to be started in November. In other markets such as the U.S. and China, its release is scheduled in early 2014.In July 2012, the automaker announced its investment of EUR 125 million in the Dingolfing and Landshut plants for producing drive components.|
|U.K.: enhancement of production capacities for MINI brand vehicles||In July 2012, BMW announced that it will invest a total of GBP 250 million in its U.K. plants producing MINI brand vehicles by 2015. Capacities will be enhanced at the three plants: Oxford vehicle plant, Hams Hall engine plant, and Swindon body panel plant.|
|U.S.: expansion of annual production capacity at Spartanburg plant to 350,000 units||In January 2012, BMW announced its additional investment of USD 900 million by 2014 in its Spartanburg plant in the U.S. to increase its annual production capacity from the current 300,000 to 350,000 units. This will increase production of the BMW X Series and prepare for the launch of the new X4 model in 2014, which will be produced at this plant.|
Other reinforcement of local production and sales network
|India: expansion of locally assembled/ produced models||In September 2013, BMW India launched the 1 Series, available as a gasoline or diesel engine model. The 1 Series is assembled and produced at the Chengalpattu plant, near Chennai, India. BMW is increasing the investment in the Chengalpattu plant from the initial investment of INR 1.8 billion,to a total of INR 3.9 billion by the end of the year. The annual capacity is planned to be expanded from the current 11,000 units to 14,000 units.In April 2013, local production of the MINI Countryman started for the first time in a non-European country and assembly of the 7 Series 730 LD began at the plant. In February 2013, CKD production was started at the Chengalpattu plant and the new X1 was launched.|
|Thailand: MINI's local production||In October 2013, the first MINI Countryman produced in Thailand was delivered. Assembly and production of this model had started in Thailand in July. Knockdown kits are imported from the Graz plant in Austria.|
|Malaysia: launch of new models and enhancement of production network||In September 2013, BMW Malaysia launched the new 1 Series. In total, five models were introduced (125i Sport, 125i M Sport, 116i, 118i Sport, 118i Urban). Three out of the five models (116i, 118i Sport, 118i Urban) are assembled and produced at the Kulim plant in Malaysia. The company has been aggressively launching new models. The 2.0-liter diesel engine equipped versions have been added to the SUV X1 and X3 lineup. The assembly of the MINI Countryman started in June 2013, and the MINI Cooper S Paceman was released in May. All of these models are produced at the Kulim plant. In 2013, the company expects a sales volume increase of 10% year-over-year (y/y) from the sales of these newly launched models|
|Vietnam: opening of sales and service center in Hanoi||In July 2013, BMW opened a new center in Hanoi, BMW Long Bien. This sales and service center was established with an investment over VND 100 billion. The center has an exhibition space for 12 new models and a repair shop. It will procure dedicated spare parts and communicate with the technical department in Germany.|
|Rolls-Royce: business expansion in Asian||Rolls-Royce aims to expand its sales by targeting wealthy individuals in Asia: * The Phantom, Ghost, and Wraith were launched in the Philippines in October 2013 through partnership with a local importer in Manila. * The Wraith was released in India in August 2013. * The Wraith was launched in Thailand in July 2013. * Launch of the Wraith was announced in Malaysia in June 2013. * It was reported in June 2013 that Rolls-Royce will open its local center in Vietnam by 2014.|
|South Africa: termination of investment plan||In October 2013, it was reported that BMW will terminate its investment plan for its production plant in South Africa. At its Rosslyn plant producing the 3 Series, a strike continued for four weeks in August, resulting in a daily production loss of 345 units of the series.|
|Brazil: construction of first vehicle plant in South America||In October 2012, BMW announced that it will construct its first vehicle assembly plant in South America. The plant will be located in Joinville, Santa Catarina, Brazil. The annual production capacity will be around 30,000 units. BMW aims to start operations at this plant in 2014 and plans to invest more than EUR 200 million for the construction.|
Initiatives on environment, telematics, and autonomous driving
BMW Group will expand the BMW i sub-brand, conduct electric vehicle testing, and enhance related infrastructures while co-developing a fuel cell system in partnership with Toyota to make it available by 2020. BMW also plans to improve its "Connected Drive" communication system and develop safety mechanisms such as autonomous driving systems.
|Expansion of EV charging infrastructure||In July 2013, BMW announced its investment in Chargemaster Plc, an EV charging infrastructure provider in the U.K. Chargemaster will expand the "ChargeNow" charging infrastructure for the BMW i Series, as well as charging facilities for the "DriveNow" car sharing service for the series. Both companies have also agreed to carry out joint initiatives to promote EVs and various EV-related services.|
|BMW started demonstration tests of "Active E" in Beijing||In June 2013, BMW started demonstration tests of the Active E, an EV based on the 1 Series Coupe, in Beijing. The Active E has been leased to 20 participating citizens for a period of one year. BMW plans to release the BMW i3 in China in the first half of 2014 and these tests have been implemented as a study of future business model in the Chinese market.|
|Partnership with Toyota||In January 2013, BMW and Toyota announced their cooperation in technological development. With the target year set at 2020, BMW will cooperate with Toyota to jointly develop overall FCV systems. These initiatives include development of FC stack systems, hydrogen tanks, motors, and batteries. The companies will also cooperate in establishing the hydrogen fuel infrastructure, and formulating related standards. addition, a joint study is under way for developing the lithium air battery, which features much higher energy density and fuel efficiency properties than the current lithium ion battery.|
Telematics and autonomous driving
|BMW to make comprehensive improvement of communication system||In June 2013, BMW announced that it will improve its "Connected Drive" on-board communication system and enable constant Internet access. The company will increase the number of countries where the Connected Drive system is available from the current 11 to 24 within 2013. BMW aims to make the service available for approximately 5 million BMW vehicles by 2017. The Connected Drive system offers various functions and applications such as online entertainment, the "Easier voice" speech recognition, and the "Intelligent Emergency Call System" (IECS).|
|Continental and BMW to co-develop autonomous driving system||In January 2013, BMW agreed with Continental for a joint project until the end of 2014 to realize autonomous driving on highways in Europe. Two companies will develop test vehicles equipped with autonomous driving systems in three phases to achieve partially autonomous driving by 2016, highly autonomous driving by 2020, and fully autonomous driving by 2025.|
North America and Asia contribute to sales volume increase
The BMW Group's sales for the January to September 2013 period increased by 7.5% to 1.44 million units y/y. Sales volume increased since European sales were brisk on a similar level as the previous year despite the unstable market, and the growth in North America and Asia contributed.BMW expects to reach a new record for its 2013 full-year sales volume. Brand-wise, BMW increased by 9.0% y/y to 1.21 million units and MINI by 0.5% to 224,000 units. Conversely,the sales volume for Rolls-Royce decreased by 1.1% to 2,300 units. Looking at the sales volume for the January to June 2013 period by model, the 3 Series increased by 22.5%y/y to 238,000 units, the X1 increased by 22.8% to 79,000 units. Meanwhile, the 1 Series decreased by 3.6%, the 7 Series by 11.2%, and MINI by 2.0%.
BMW Group'ssales volume
|2007||2008||2009||2010||2011||2012||YoY 2011- 2012||Jan.-Sep.|
Source：BMW Annual Reports, BMW Press Release 2013 10.09 Note: Numbers in brackets "( )" represent negative value.
BMW Group's Sales volume by model
|Source：BMW Annual Reports, BMW Quarterly Report Q2 2013|
|Note 1.||The M-series, such as the M5 and M6, with higher performances are included in its base models.|
|2.||Numbers in brackets "( )" represent negative value.|
Sales volume by region shows increase for China, U.S., and U.K.
The sales volume for 2012 by region showed an increase of 0.8% y/y to 865,000 units for Europe, with Germany and the U.K. covering for the sluggish sales in the South European market. In North America, the sales increased by 24.6% y/y to 425,000 units and by 31.4% to 493,000 units in Asia. In particular, the sales in China increased significantly by 40.1% y/y to 327,000 units thanks to large sales of locally produced models.
The sales for the January to June 2013 period by region showed a decrease of 6.1% y/y to 133,000 units for Germany but an increase of 11.2% to 94,000 units for the U.K., European total resulting in almost the same level as the same period of the prior year. The sales continued to grow in the U.S. and China, by 8.9% to 173,000 units and by 14.9% to 183,000 units, respectively.
BMW Group's sales volume by region
|of which Germany||280.9||280.9||267.5||267.2||285.3||287.4||0.7%||142.2||133.5||(6.1%)|
|of which UK||173.8||151.5||137.1||154.8||167.5||174.5||4.2%||84.9||94.4||11.2%|
|Other European Countries||443.6||432.2||357.3||369.3||405.7||403.5||(0.5%)||210.3||208.8||(0.7%)|
|of Which US||336.2||303.6||242.1||266.6||306.3||348.5||13.8%||159.0||173.2||8.9%|
|of which China||61.2||75.5||99||183.3||233.6||327.3||40.1%||159.4||183.2||14.9%|
Source: BMW Annual Reports, BMW Quarterly Report Q2 2013 Numbers in brackets "( )" represent negative value.
Profit before tax for 2013 estimated at same level as previous year
The BMW Group's revenue for the January to June 2013 period was down by 1.1% y/y to EUR 37.1 billion. The company cited tough competition and increased lease-sales as factors of lower unit sales prices, leading to reduced revenue. EBIT was down by 6.7% to EUR 4.11 billion due to sluggish automobile market in Europe and investment in new technologies. The profit before tax was down by 0.5% to EUR 4.04 billion, almost the same level as the same period of the previous year, and the net profit was up by 2.9% to EUR 2.7 billion. The company expects the year-round profit before tax for 2013 to result in a similar level as the previous year,backed by aggressive investment in new models and technologies.
BMW Group's business results
|(in millions of Euro)|
|Profit before tax||3,873||351||413||4,853||7,383||7,819||5.9%||4,056||4,035||(0.5%)|
|Number of Employees||107,539||100,041||96,230||95,453||100,306||105,876||5.6%||102,007||106,870||4.8%|
Source：BMW Annual Reports, BMW Quarterly Report Q2 2013 Note: Numbers in brackets "( )" represent negative value.
Production Forecast by LMC Automotive: BMW Group production to reach 2.39 million units by 2016
|(LMC Automotive、September 2013)|
According to LMC Automotive's forecast in September 2013, BMW's light vehicle production in 2013 will increase by 5.6% to 2.01 million units in comparison with 2012. The group continues to increase its production and will reach 2.39 million units by 2016, which is a 25.5% growth from 2012.
Germany is expected to remain as the group's largest production country, increasing by 6.6% to 1.11 million units compared to 2012. Conversely, the production of the MINI brand in the UK is expected to decrease, affecting the total volume to decline by 10.7% to around 180,000 units by 2016. Model cycle effects are important in this case.
In the regions outside of Europe, China is expected to grow strongly by 2016. The production multiplies 2.6 times to around 389,000 units compared to 2012. US output is forecast to increase by 13.0% to around 341,000 units by 2016.
LMC Automotive comments: "Europe [will remain as] a key production region for the Group. However, expansion in Asia, the US and South America will see Europe's share of global production fall from 70% today below 65% by the end of the forecast period."
BMW Group production forecast by country and by make (LMC Automotive)
|Source: LMC Automotive "Global Automotive Production Forecast (September, 2013)"|
|(Note) 1.||Data indicates figures of only small-size vehicles, including passenger cars and light commercial vehicles with a gross vehicle weight of under 6 tons.|
|2.||All rights reserved. Reproduction of any data will require permission of LMC Automotive.|
|3.||For more detailed information or inquiries of forecast data, please contact LMC Automotive.|
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