Dr Helmut Panke Speech at the Paris Motorshow 2002

Ladies and Gentlemen,
May I bid you a cordial welcome to the BMW Group on the occasion of the Paris
Motor Show. Before dealing with the latest developments at BMW which we are
presenting to you in Paris this year, let us first take a look at the current
business situation at the BMW Group.
Although the available figures are still only estimates, we can indeed confirm
that at the end of the third quarter there has been growth in all segments and
in all regions. Both, the BMW and the MINI brand are growing, we are growing in
Europe, in the USA and in Asia.
It is estimated that during the first nine months of 2002 over 800,000
automobiles - that is around 700,000 BMWs and over 100,000 MINIs - are expected
to have been sold, an increase in sales of about 19 per cent. In the motorcycle
segment worldwide sales are expected to have risen to 83,000 units, an increase
of around seven per cent as compared to last year. We will inform you of the
exact sales figures shortly.
As a result of this encouraging sales situation we are now able to confirm our
previous forecasts for the whole year. This means that 2002 will be another
good year for the BMW Group.
Should the economic climate remain as it is, we will sell more than one million
vehicles of the BMW and MINI brands. This means that turnover and earnings will
exceed the record high achieved in 2001.
Due to the enormous success in over 50 markets worldwide now we anticipate that
we will increase the sales volume of 120,000 for the MINI brand during the
current year by approximately a further ten per cent.
As a result of this high demand we have expanded the previous shift-work system
at our MINI plant in Oxford.
What are the reasons for our continuing success, bearing in mind the economic
situation on the world markets, which is not so easy at the moment.
The BMW Group has applied a clear and - as the results show - right corporate
strategy by concentrating on the premium segments of the market. Therefore we
shall continue to do what has made us successful in the past and today and,
moreover, to be resolute in using new opportunities to carry on building on
this success.
Growth and expansion are the aim of the BMW Group. We define the difference
between growth and expansion as follows: To us growth means using our existing
product portfolio to increase our success on all markets in which we
participate.
Expansion is something which extends beyond this growth. To us expansion means
breaking into new segments with new products or using our product portfolio to
go into markets where we have not been present yet.
On the product side our strategy of growth and expansion signalizes that we
will continue to be consistent in exploiting growth potential in our
traditional segments. As we all know - the BMW 3, 5 and 7 Series are in a
strong position.
Based on this core we aim to extend our product portfolio into new market
segments. This is expansion exceeding the limits of growth. Examples of this
are the new version of the BMW 6 Series which revives the brand tradition with
the introduction of large coupés and convertibles, the BMW 1 Series and the BMW
X3.
Furthermore, we are expanding in the small car segment with the globally
successful introduction of the MINI product range to which we are adding new
models such as a MINI featuring a diesel engine, for example, and from 2003 we
are expanding in the luxury car segment, with the take-over of the Rolls Royce
brand and with a completely new saloon.
With this product initiative we maintain exclusivity whilst focussing on
further specific market segments. This means that the BMW Group will offer one
hundred per cent solutions for the premium segment of the world market, and not
just a little of everything. This is not our idea of the word premium. Above
all, our product initiative deepens the "footprint" of the BMW brand. We will
only break into new segments if we remain true to the BMW image, meaning that
this segment must have a demand for a vehicle which possesses typical BMW
characteristics.
The BMW brand stands for a promise of fascinating, individual automobiles and
we shall continue to keep our promise in this respect. A part of this promise
is never to build a boring BMW.
As far as the market is concerned, part of our strategy of growth and expansion
is ongoing growth on established markets. Thus we continue to focus on the
three main markets - Western Europe, the USA and Japan, which remain just as
important to us as they have always been.
In addition to growth our market initiative is aimed at expanding to those new
markets and regions which offer clearly visible growth potential for our
premium business activities.
For this reason we shall make use of opportunities offered in the Asian-Pacific
markets. Just last year we launched subsidiaries in Indonesia and in the
Philippines and are currently further expanding our production plant in
Thailand. Moreover, we have entered negotiations in China for a manufacturing
licence. While doing this we remain true to our concept of "production follows
the market". It is our aim to be just as successful in China as we have been on
other markets - for example in the USA.
Ladies and Gentlemen,
and now I would like to present to you the latest example of our product
initiative: as well as the new diesel models 730d and 740d added to our 7
Series model range, above all our new BMW Z4 is having its world premiere here
in Paris.
This new Roadster from BMW adheres to a long company tradition which began way
back in 1936 with the launching of the BMW 328, and continued with the BMW 507,
leading us right up to the BMW Z1 and BMW Z3. The roadster segment is the one
in which BMW brand characteristics become most evident.
Rarely has any other vehicle type influenced the BMW profile so decisively and
as often as the Roadster has. Now the BMW Z4 is BMW's new embodiment of the
open two-seater, representing at the same time the sporting side of our new
design language.
The Z4 has all the attributes that visibly render it a genuine Roadster. Its
shape - a long bonnet, a tailor-made cockpit, and a short tail - and, of
course, a soft top typical of a Roadster, making it indeed a very special car
of its class.
Powered by our straight 6-cylinder engine it also offers extremely precise and
safe handling, providing sheer driving pleasure.
Although this is sufficient to place the Z4 into the premium roadster segment,
the car's superior characteristics and product quality are evident in numerous
other details. For example the fastest fully automatic roof of its class, the
electric power-assisted steering perfectly adapted to the vehicle's sporty
character, or the use of high-quality materials in the interior.
The BMW Z4 is produced in our Spartanburg plant for delivery to worldwide
markets. It is being launched in America this autumn, followed by the European
markets in the spring of 2003.
We are convinced that with this new Roadster we have again succeeded perfectly
in conveying those typical BMW brand qualities, much to the satisfaction of our
customers. We firmly believe that the Z4 will set new standards in its segment.
Ladies and Gentlemen, may I present the new Z4.