- The key roles of “new class”, over-the-air upgrades and the circular economy
- “An ever-emission value chain that opens into a circular economy”
- BMW Group in the first half of the year highly profitable
- Semiconductor deficiency and higher burdens from commodity prices in the second half of the year
The automaker BMW has a dynamic business development for the second quarter to show dynamic business development. For sales, result and surplus, the Munich has achieved new best values. The strong demand and good price transfers have continued, so BMW in a recent communication. Compared to the pandemy negative quarter of the previous year, the company has significantly increased its business numbers. But also compared to the 2019 financial year, the BMW Group achieved solid growth in sales and earnings.
“In the first half of the customer, the high demand of customers has positively influenced our business development and led to significant growth. However, in the face of various risks such as raw material prices and semiconductor care, the second half of the year for the BMW Group is likely to become more volatile, “said the CEO of BMW AG, Oliver Zipse, in the publication of the current half-year report:” Despite short-term challenges, we always reserve the long-term orientation of the company In view: Our high innovative power and sustainable profitability are the basis for successfully designing the transformation of our industry. We are based on technological solutions for a digitally networked and sustainable mobility.”
The BMW Group therefore drives its comprehensive focus on a sustainable, low-emission mobility. Their entrepreneurial strategy is committed to the Paris Climate Protection Agreement and goals on the rapid start-up of e-mobility. After the successful market launch of the BMW IX3, the fully electrical BMW I4 and IX follow the first powerful variants of the new E-Motoren portfolio. The fully electric vehicles of the BMW Group are according to the manufacturer for 100 percent electrical driving and high customer friendliness. Thus, the BMW IX3 loads a range of 100 km (WLTP) after only 10 minutes of charging time at an HPC column. The new fully electric models have triggered a lot of positive response to the latest vehicle tests.
Further models should appear promptly: the electrification should include nearly the entire width of the product portfolio over the next two years. By 2025, the company intends to increase sales of fully electric vehicles by an average of more than 50 percent per year. It will deliver about two million fully electric vehicles to customers by the middle of the decade.
The key roles of “new class”, over-the-air upgrades and the circular economy
A key role in the direction of an emission-low-sustainable mobility come to the new class. The central aspects of this new, uncompromising vehicle architecture oriented on electric drives should shape all future models of the BMW Group from the middle of the decade. A completely redefined IT and software architecture, a newly developed and high-performance electric drive and battery generation as well as a new level of sustainability over the entire lifecycle should draw the new class.
The BMW Group builds the connectivity of your vehicles for years and provide your customers running their customers with up-to-date software and function extensions – with so-called Remote Software Upgrades, which are currently running in more than two million vehicles, over-the-air ‘. With its new BMW Operating System 8, for the first time in the BMW IX, the premium manufacturer will bring its highly powerful system for data processing into the vehicle, which for the first time also allow the temporally flexible booking of “Functions on Demand”.
The construction of a sustainable circular economy progresses: Together with suppliers, the BMW Group develops new production technologies as well as adequate, sustainable substitutes and far-reaching recycling concepts. This relates to limited available raw materials such as the lithium required for the e-batteries, but also plastics or those introduced on some sites, varietal separation of aluminum, a substantial raw material for vehicle production.
The BMW Group has moved sustainability and resource conservation to the center of its corporate orientation and made a course with the new orientation, which corresponds to a much more ambitious path than the two-degree target for limiting global warming. Over the entire lifecycle of the vehicles and all three categories considered (Scopes 1-3 ‘), the BMW Group has set measurable and verifiable goals, which have now been validated by the Science Based Targets Initiative. By 2030, the company wants to lower the entire CO2 footprint worldwide through at least one third compared to 2019. These are over 200 million tonnes of CO2, which are avoided by technological measures.
“Our progress on the way to climate neutrality we document detectable and for every transparent. Our clearly defined goals bring us to a path that is much more demanding than the two-degree goal, without reservations and exceptions, in line with the Paris Climate Agreement. Our target image leads over an ever-increasing value chain that opens into a circular economy.”- Oliver Zipse, CEO BMW AG
With this procedure, the BMW Group prepares for the European Green Deal. The recently requested by the EU Commission – by 55 percent compared to 2021 – the 2030 reduction targets for CO2 fleet emissions for automobiles can only be achieved with the manufacturer with appropriate framework conditions and a common effort of business and politics. However, the expansion of the charging infrastructure provided for by the member states is not ambitious enough and need significantly more speed to succeed.
The BMW Group makes the efforts for a better charging infrastructure on the one hand – on its own locations and in cooperations with partners. So far, the company has been on this way for the installation of more than 15.000 charging points used worldwide. Included in it are more than 4350 charging points on its own sites that use exclusively green stream.
“An ever-emission value chain that opens into a circular economy”
“The three major world regions, many other countries and even cities – all want to be CO2-neutral. This is also our mission and responsibility with the BMW Group, “said BMW boss Zipse in his speech on the occasion of the presentation of the half-year figures. “The currency”, which counts in the automotive industry today, be: “Which CO2 impression leaves a vehicle over the life cycle?”And right here wants to start BMW,” as a whole, “as ZIPSE explains:” From the raw materials and materials used through the industrial manufacturing process, the active use of a vehicle up to the recycling of the raw materials.”
Therefore, BMW is now focusing on all three scopes in which CO2 arises: supply chain, production, use phase. The target picture leads “over an ever-increasing value chain that opens into a circular economy.”BMW wants to present his circular approach to the IAA Mobility at the beginning of September in Munich.
In addition to the electric drive, the hydrogen technology will become more important in perspective, zipse continues. “And that not only, as often colported, in commercial vehicles. We also deliver here: Our small series of the BMW I Hydrogen Next comes next year.”On a concrete date of burning from the combustion technology, Zipse did not want to set itself in contrast to other German automakers. But “to bring it clear and accurately to the point,” Zipse clearly said: “Where the use of battery-electric drives is meaningful and possible, just because the framework conditions are correct, there are 100 percent to BEVs.”
A penetration of the markets with e-mobility is “no longer a topic of the pages of the vehicle offer”, but rather depends on how fast the loading infrastructure is expanded. Again, BMW is already involved in more than 15 worldwide.000 installed charging points as well as in the context of the Ionity European High Power Charging network, for which ZIPS announced for autumn “further progress”.
BMW Group in the first half of the year highly profitable
In the first half of 2021, the BMW Group continued its success course. Worldwide, the sales figures significantly increased, despite persistent challenges through global pandem restrictions and limited availability of semiconductor components that led to adjustments in the production program. A total of 1,4 million vehicles of the brands BMW, Mini and Rolls-Royce went to customer hand in the first six months. This represents an increase of almost 40 percent compared to the previous year (2020: 962.575 automobiles / + 39.1%) and represents a new best value for a first half of the year. All major sales regions contributed to global sales growth. A similar sales development showed the second quarter. In the period from April to June, the number of deliveries was 702.441 vehicles by 44.7 percent over the previous year (2020: 485.464).
A significant growth driver also developed the persistently high demand for electrified vehicles of the BMW Group. From January to June 2021, the company handed over a total of 153.243 purely electrically powered vehicles and plug-in hybrids at customers (2020: 61.652). This represents an increase of 148.6 percent compared to the same period of the previous year. With growth of 167 percent, the dynamics in the deliveries of electrified vehicles in the second quarter was even greater.
Semiconductor deficiency and higher burdens from commodity prices in the second half of the year
For the year 2021, the BMW Group expects a total positive business development. “The forecast assumes that neither the Corona pandemic nor the semiconductor supply situation is significantly intensified and the price development remains stable to international commodity markets,” says Financial Officer Dr. Nicolas Peter. Thanks to the high deployment of employees in purchasing, production and sales, BMW has largely compensated for the challenges of semiconductor care in the first six months. With increasing duration of delivery bottlenecks, however, the situation becomes tense. “We also expect production restrictions and associated effects on vehicle production in the second half of the year,” Peter.
In view of the generally positive growth forecasts for the global economy, the company adapts its annual outlook for the financial services and motorcycles segments. In the automobiles segment, the number of deliveries of vehicles of the BMW, Mini and Rolls-Royce vehicles is likely to be solid above the previous year’s level. The EBIT margin in the automobiles segment should be from 7 to 9 percent at the top of the corridor adapted in May due to the EU cartel procedure (forecast before: 6 to 8%) and the ROCE in the automotive business significantly increase.
The BMW Group also retains its prognosis in the non-financial key figures: Accordingly, the proportion of women in leadership functions should increase slightly. At the same time, it should be assumed that the CO2 emissions in the EU new car fleet again a significant reduction is achieved. The CO2 emissions per produced vehicle will decline the planning moderately. The annual goals should be achieved with a slightly declining number of employees.
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