Statement by Alain Laforest at the Luxury, Performace and Passion Auto Show in Montreal

Statement by Alain Laforest,
BMW Group Canada, Regional Manager - Eastern Region
On the Occasion of the Montreal Luxury, Performance and Passion Auto Show
January 16, 2002

The Spoken Word Applies

Good morning and welcome.

BMW Group Canada experienced an incredible year in 2001. For the eleventh year
in a row, the Company succeeded in breaking all sales records, recording sales
of automobiles rising by 15% to 12,702 units. Likewise, BMW motorcycle sales in
Canada also rose by 24% in 2001 with sales of 920 units.

The company's phenomenal performance in 2001 has firmly established BMW Group
Canada as the volume leader in the luxury/performance segment in an otherwise
and flat difficult market.

Recently ranked #1 for customer service in a Canadian customer satisfaction
index, BMW Group Canada and its retailers are currently undergoing a 100
million dollar expansion plan to double service capacity and improve retail
centres in all major markets across the country. Not only will these
improvements accommodate the increasing sales volume, they will also ensure a
high standard of continuity and service across all BMW facilities.

Amid the opening of several new BMW retail centres, the year 2001 also saw the
opening of the country's largest pre-owned BMW showroom, located next to the
Whitby corporate office. BMW's Certified Series is yet another commitment to
BMW enthusiasts to provide an exceptional ownership experience that extends far
beyond the showroom floor. Performance is not only measured in terms of
horsepower.

BMW built its repution as an industry leader in providing sporty performance in
a four door sedan, and has epitomised that reputation in the 3 Series. The 3
Series model range continues to be a strong component to the company's
outstanding sales in 2001, and with a host of new innovations, the 3 Series
will continue its unique success story in the year 2002.

With a new model facelift for its sedans and touring models, BMW continues its
strategy in 2001 of giving each body variant a more distinct appearance. All
new versions of the BMW 3 Series will also feature a new sporty remake of the
suspension and the steering mechanism, thereby retaining the classic 3 Series
qualities of agility and sportiness, and laying the foundation for the 3 Series
to reach unprecedented heights in the year 2002.

BMW's M3 was in very high demand in 2001, and continues to be recognised for
its outstanding performance and handling. Recently granted the prestigious
Autombile Journalists' Association of Canada "Best New Luxury/Prestige Vehicle"
for the year 2002" the M3 has certainly made its mark in the Canadian
marketplace.

Both the M3 Coupe and Cabriolet deliver an unparralled driving experience that
echoes the BMW Group's remarkable performance in both the Formula 1 and Le Mans
2001 series.

For the year 2002, the M3 will be enhanced by even more features borrowed from
our motorsport technology. BMW is very pleased to be the first carmaker to
offer a sequential gearbox in a production car. In close collaboration with the
companies of Getrag and Sachs, BMW M has transfered its motor sport experience
into applications for every-day road use, and developed a new high-performance
driveline concept which, in its second generation, will be arriving on the
market in 2002 as a "sequential M gearbox" (SMG II) in the M3.

The second-generation SMG, which was significantly upgraded from the first
variant introduced in 1996, and is technically identical with the regular
manual gearbox of the M3 with six forward speeds, is not only operated by means
of a selector lever, as in the past, but also offers the driver two rocker
switches on the steering wheel. The driver thus has the choice of how he wants
to shift gears. It is, above all, shifting by means of the rocker switches that
contributes to increased active safety, as the driver can keep his hands on the
steering wheel at all times, fortifying BMW's commitment to the creating the
safest cars available on the market.

And safety is an important aspect for BMW enthusiasts who are not only looking
for incredible performance and unparallel luxury, but also the security of
uncompromised safety. In part due to its achievement as the "Safest Vehicle
Ever Tested" by the Insurance Institute of Highway Safety, sales of the X5
Sports Activity Vehicle were tremendous in 2001. In 2002, the BMW Group is
building upon that success with the introduction of the X5 4.6iS. The new X5
4.6iS model, with a 4.6-liter version of the V-8 engine that is exclusive to
the X5 Series, moves BMW's Sports Activity Vehicle a decisive step up the
performance scale. Delivering 340 hp and 350 ft/lb of torque, this muscular new
engine will launch the all-wheel-drive X5 from rest to 100 km/h in
approximately 6.7 seconds, translating the new power into pure driving pleasure.

BMW's most significant premiere in 2002, however, is the introduction of the
all new 7 Series sedan. BMW has taken a quantum leap in the design and
technology of this new car, which has resulted in the most advanced vehicle on
the road. The new 7 Series has taken the industry by storm, and many see it as
the future of both design and performance.

In the past many BMW models have evolved into the next generation. With the all
new 7 Series, however, BMW has created a revolution in the way that people
drive. From the design of the exterior of the car, to the unique iDrive
concept, this 7 Series has been redesigned from the ground up. Whatever your
first impression is of the car from the outside, I encourage you to focus on it
on the road and notice its presence. It has presence - more presence than any
other car.

Aside from the iDrive system, the most outstanding technological highlight
offered by the new 7 Series is the new generation 8-cylinder power unit mated
to the world's first six-speed automatic transmission in a product vehicle.
The new engine also has two more world firsts: infinite varying valve lift
(VALVETRONIC) and infinite varying intake manifold length.

So what does this new engine technology mean? It means that fuel consumption
is down by an estimated 14% while maximum output is increased by approximately
14% to 325 bhp. An absolutely incredible achievement. The new 4.4 liter V8 is
rated at 333 horsepower and Acceleration from 0-100 km/h takes just 6.3 seconds.

The all new 7 Series also sets a new benchmark in Passive Safety. For the
first time ever, BMW is offering its acclaimed head protection system for its
rear passengers and knee protection airbags for front passengers, bringing the
number of total possible airbags to 12.

BMW is also presenting a new service concept particularly comfortable and
economical for the customer. The main feature is the permanent supervision of
selected parts and components subject to wear and tear through the combined use
of sensors and sophisticated algorithms. The big advantage for the customer is
that the car now tells him/her precisely when it requires service and what kind
of service is necessary. More than any other concept, such condition-based
service therefore considers the current status of the car as a function of
driving conditions and the driver's style of motoring.

Priced at $95,700, the 745i has set the benchmark for technology, luxury and
performance for the Canadian market. With the entry of the new 745i into the
Canadian market in January, followed by the 745Li in the spring and the 760Li
in late 2002, BMW Canada aims to be the leader in volume, market share and
price in both the Canadian and worldwide prestige sedan segment.

Ladies and gentleman, the all new 7 Series.

BMW is anticipating an exciting year ahead as we continue to build upon our
unwavering commitment to performance, luxury, safety, and personal mobility.

Ladies and gentlemen, thank you for your continuing support and kind attention.
Please enjoy the rest of the autoshow.

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