BMW BLOG

OXFORD, UNITED KINGDOM – November 6, 2009: For the second year in a row the BMW Group has cut its average CO2 emissions per car by more than any other automotive manufacturer. According to an independent report published by the European Federation for Transport and Environment, the average reduction across the industry was 3.3 per cent, while BMW Group achieved 10.2 per cent.

BMW Group’s success in reducing CO2 is thanks to its EfficientDynamics programme which incorporates a wide variety of fuel-saving and emissions-reducing measures across the whole vehicle range as standard. Many of its competitors sell fuel efficiency packages as options.

EfficientDynamics technology includes Auto Start-Stop, Brake Energy Regeneration and Active Aerodynamics, amongst a wide range of other features. This technology gives BMW and MINI owners outstanding fuel economy and low emissions without forsaking driving enjoyment. The result is the reduction of BMW Group’s average vehicle emissions in 2008 to 154g/km, down 10.2 per cent from 172g/km in 2007. With the introduction of further efficient BMWs in 2009 this figure is expected to drop again.

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Despite the continuing adverse economic climate, the BMW Group once again recorded positive earnings for the third quarter 2009. “The measures we have put in place to increase efficiency and reduce costs are taking effect“, stated Norbert Reithofer, Chairman of the Board of Management of BMW AG on Tuesday in Munich. As a result, earnings for the full year 2009 are likely to be positive: “We are aiming to achieve positive group earnings for the current financial year“, continued Reithofer. This prediction is made on the assumption that the global economy and conditions on the car markets do not worsen in the period up to the year-end.

Third-quarter revenues decreased to euro 11,759 million (third quarter 2008: euro 12,588 million). The Group reports a profit before financial result (EBIT) of euro 55 million (third quarter 2008: euro 387 million) and a profit before tax of euro 126 million (third quarter 2008: euro 279 million). Revenues for the nine-month period decreased to euro 36,239 million (first nine months 2008: euro 40,425 million). EBIT amounted to euro 169 million (first nine months 2008: euro 1,639 million) and the profit before tax to euro 79 million (first nine months 2008: euro 1,522 million). The profit after tax was euro 47 million (first nine months 2008: euro 1,292 million). Read the rest of this entry »

First news around a deeper collaboration between BMW PSA Group surfaced back in February when a BMW delegation has met with representatives of the French government to talk about a closer cooperation between the Munich based automaker and PSA.

BMW already cooperates with the French company PSA in developing engines for the MINIs, the 1.4-liter and 1.6-liter engines which are used in the Peugeot 207 and 308 and in the Citroen C4 and C4 Picasso.

Quoting PSA CEO, Phillipe Varin, AutoNews reports PSA Group aims to deepen ties with BMW Group. Varin said he is talking with BMW CEO Norbert Reithofer about cooperation in areas such as purchasing and components including transmissions and climate control systems.

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A very interesting article just popped up on BusinessWeek and judging by the reaction around the web, BMW AG scores some PR points.

“BMW (BMWG.DE) became the first major blue chip German company to link the bonuses of its top managers to those of its assembly line workers, amid growing global criticism of executive compensation. The move sends a strong message to other firms also examining their compensation practices, as the world’s largest banks in particular have come under fire from politicians, shareholders and the public over excessive bonuses during one of the worst economic crises the world has seen.

BMW plans to tie executive bonuses to those of its blue-collar workers, in a bid to create a fairer and sustainable compensation environment within the company. Starting in 2010, the company will use a common formula to ascertain and award bonuses to its upper and lower level employees, based on the company’s performance as measured by profit, sales and other factors. That means that upper level management could potentially lose more money than their lower level counterparts for bad performance, BMW said.

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China is now BMW’s biggest market after Germany, the US and the UK. BMW AG’s sales in China rose 32 percent to 62,394 during January-September, with the BMW brand’s deliveries reaching 59,400. The MINI division reported 2,934 units sold.

BMW is the second-bestselling German luxury car brand in China with Audi being the leader in the Chinese car luxury market. In September, BMW/MINI sold 8,131 units in china, Audi reported 15,000 and Mercedes-Benz around 7,000 units.

Based on the official numbers, China leads the world as the top market for the BMW X6, with about 4,500 units sold this year.

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As sales are starting to pick up, BMW announced last week the addition of 700 contract workers at its U.S. plant near Spartanburg. BMW is adding two more 10-hour production shifts to prepare for the new X3 and a slight increase in X5 and X6 production.

The jobs, which are being filled by BMW’s contract agencies MAU Inc. and Tier One Solutions and it shows the first sign of a turnaround since the economic crisis hit most of the auto makers. The first new 10-hour shift began Friday while the second 10-hour Friday shift will commence next month. The staffing agencies initially contacted people who had previously worked at BMW to see if they could return to the plant for the 10-hour shifts. The positions are in production and logistics.

“We’ve seen a little pickup recently in ordering across our entire system,” BMW spokesman Bobby Hitt said. “We don’t know why, but we’re taking this as a good sign. And we’re responding to it.”

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World’s first emission-free foundry.

From 2010, BMW’s Landshut plant will boast the world’s first foundry with emission-free sand core production. The light-alloy foundry at the BMW plant is introducing a new sand core production method for gravity die-casting, whereby conventional organic binders will be replaced by highly eco-friendly inorganic binders, which generate virtually no pollutant emissions. The introduction of this innovative production method will allow the light-alloy foundry to reduce its emissions of combustion residues by 98 per cent. The plant will completely decommission its current waste air treatment systems by 2010.

The Landshut light-alloy foundry’s approximately 1,300 employees currently produce around 1.8 million aluminium and magnesium castings a year, with a total weight of 45,000 tonnes. The product range includes engine components such as cylinder heads and crankcases, structural components and chassis parts such as suspension strut supports, tailgate frames, corner castings and casting nodes for the front and rear axle.

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Germany, California, Germany, and back to California again: Laurenz Schaffer, Director of the Munich Studio of BMW Group DesignworksUSA since the year 2000, will be taking over the position of the President of BMW’s Subsidiary in Newbury Park (Los Angeles) in California on 1 December 2009.

“With his many years of experience in numerous areas of design, Laurenz Schaffer has made a significant contribution in recent years to strengthening DesignworksUSA as an international driving force in BMW Group Design and in making the Studio an appealing partner also for external customers. The success of our concept of inter-acting, interdisciplinary transfer of know-how to the mutual benefit of both the BMW Group and external clients of Designworks is largely attributable to Laurenz Schaffer,” states Adrian van Hooydonk, Director BMW Group Design. “Working for our brands BMW and MINI and for companies such as Siemens, HEAD, Sony or Starbucks, he and his team in Munich have consistently paved the way for innovative products and strategies.”

Schaffer, born in 1967, first worked as a product designer with renowned design studios in Stuttgart, Munich, and San Francisco, before joining the Munich Studio of BMW Group DesignworksUSA in 1998. In the year 2000 he took over management of the Munich Studio. Read the rest of this entry »

Harman International Industries, Incorporated announced today that it has been selected by BMW AG to provide the next generation high-end “Professional” infotainment system for all new vehicle platforms.

The new Harman system is multimedia driven and will offer a sophisticated set of features including 3-D navigation, brilliant graphics, Internet access, and wired or wireless connectivity for all passengers. A hard disc drive will provide rich navigation data and will accommodate the user’s personal entertainment files for increased flexibility and comfort.

The new system will utilize Harman’s energy-saving GreenEdge™ technology to deliver exceptional performance without compromise while reducing weight and power consumption.

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The BMW Group reported an increase in global sales in September. The company sold a total of 122,354 (prev. yr. 121,492) BMW, MINI and Rolls-Royce brand automobiles in the month under review – an increase of 0.7%.  As a result the company was able to continue expanding its market position in the premium segment and capture additional market share.

Ian Robertson, member of the Board of Management of BMW AG, responsible for Sales and Marketing: “For the first time this year we were able to increase our sales volume slightly in September. Provided there are no economic setbacks, we should continue to make gains throughout the remaining months of the year: Not least thanks to the new BMW models X1 and 5 Series Gran Turismo, which will join our model range in late October and are already being extremely well received.”  Robertson added: “There is a good chance that we will end this year with a moderate decrease in sales of only 10 to 15 percent from 2008 levels, despite difficult economic conditions overall.”

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