Speech Ian Robertson and Dr. Klaus Draeger, BMW Group Press Conference at the NAIAS 2010 in Detroit.

Ian Robertson, Member of the Board of Management of BMW AG, Sales and Marketing

Good morning Ladies and Gentlemen,

Here is the newest addition to our roadster line-up, the BMW Z4 sDrive35is.

This roadster is definitely one of the BMW brand’s sportiest models and enjoys the top spot in its segment. The Z4 is fascinating enough in itself. But this model has been designed to boost engine output even further – to 250 kilowatts or 335 horsepower, to be exact. I speak from personal experience when I say that these numbers ensure much higher engine power – something you feel in all kinds of driving situations. And it will be available for US customers as of spring this year.

I was also impressed by this Z4’s relatively low consumption: 26.1 miles per gallon and CO2 emissions of 210 grams per kilometer on the EU test cycle. These are excellent figures – and means this car is still in the same ballpark as the “regular” Z4, despite its improved driving dynamics. Which once again shows that: Efficient Dynamics is the ideal way to combine the ultimate driving machine with a sense of responsibility.

Ladies and Gentlemen,

It has become a tradition for us here in Detroit to give you an overview of our sales figures from the previous year. We intend to continue this tradition:

Last year the BMW Group sold 1,286,310 BMW, MINI and Rolls-Royce brand automobiles worldwide, 10.4 percent fewer than in 2008.
Taking a look at the individual brands: BMW delivered 1,068,770 vehicles; MINI held its own in a challenging year with sales of more than 216,491 cars as did Rolls-Royce, which delivered just over one thousand automobiles in 2009.

Faced with the overall economic crisis, we are quite satisfied with these figures. We had to absorb somewhat larger decreases in volumes in the first half of 2009 – as all other manufacturers did. However, in the second half we reversed that trend.

Since September last year, the BMW Group’s global automobile sales have been back above 2008 levels – and they continue to climb.

The month of December saw encouraging growth of just over ten percent for the BMW Group, with sales of over 123,751 vehicles. Altogether, we experienced a more moderate decline in sales in 2009, than what we initially anticipated.

All in all, the BMW Group performed better than the overall plus segment last year.

And we maintained our position as the world's leading provider of premium vehicles. 

Here in the US we sold a total of 241,727 BMW, MINI and Rolls-Royce brand vehicles last year. That is a decrease of around 20 percent from 2008 – better than the premium segment. December gave us cause for optimism here in the US: Last month our sales were up 9.2 percent over the same month the previous year.

Looking ahead:

On a global level, we are cautiously optimistic as we move into 2010. We expect to still feel the effects of the financial crisis but we are confident that we will return to a growth path this year. We are aiming for single-digit growth in 2010.

Looking at the US, it is hard to make predictions about this market for this year.
We anticipate some positive momentum from the middle of the year onwards – and for the full year 2010 we expect to achieve higher sales here than in 2009.

What makes us so confident – both here in the US and globally?

First, a company that builds cars like these – such Ultimate Driving Machines – is bound to be the strongest contender in a tough competitive environment.

And we have much more in store for our customers around the world:

• The BMW 5 Series Gran Turismo recently came onto the market. And today we’re introducing the 535i, another model in this range.
• A month ago we launched the new BMW ActiveHybrid X6.
• The BMW ActiveHybrid 7 will be at US dealerships towards the end of the second quarter.
• We also have an all-wheel-drive version of the BMW 7 Series.
• And we are pleased to return the 7 Series with an inline-6 engine to North America this year. It’s here today.
• Last but not least, we have high expectations for the new BMW 5 Series sedan, which has received an extremely positive media response.

By the end of 2012, we will have renewed around 60 percent of our products.
This will bring our portfolio right up-to-date and make it even more attractive to customers.

Second, we have confidence in the strength of our global network, including this market. We have been investing one billion US dollars in the growth and expansion of our business here. We announced last fall that we will invest a further 1.5 billion US dollars in our plants in Germany up to the end of 2010 and around 840 million US dollars in China for the expansion of our Shenyang production facilities.

The US remains one of our most important markets – it accounts for over 20 percent of the company’s sales. The BMW Group provides – directly and indirectly – about 50,000 jobs across America. With 70 percent of our US product going abroad, we are largest exporter in the NAFTA region.

Our BMW and MINI dealers have continued to invest in their business. Last year they invested 427 million in new facilities and over the last ten years a total of around 3.2 billion dollars. They were profitable throughout the recession. Our dealers, by virtue of their solid financial condition, continue to be valuable contributors to local communities across America. This underscores our commitment to this market and strengthens our brands even more.

A third reason for our confidence: The BMW Group is a pioneer in the field of sustainability. The Dow Jones Sustainability Index confirmed for the fifth consecutive year, we are the world’s most sustainable automotive company!

We have already delivered more than 1.6 million vehicles with Efficient Dynamics technology to customers around the world. We have reduced our fleet’s CO2 emissions more than any other car company in Europe or the US. We are doing our part to support the US in achieving a sustainable future.

Customers here realize the improvements and benefits of diesel technology. In December, one out of every three BMW X5 vehicles sold in the US was a diesel. That would have been unthinkable just a few years ago. Diesel is an important component of our Efficient Dynamics strategy. And we are currently evaluating the introduction of more diesel models to this market.

Sustainability is not only about products – it is also about clean production. Our plant in Spartanburg obtains about 60 percent of the energy from a nearby landfill – by converting methane gas into power.

This provides the perfect backdrop to our role in the Olympic and Paralympic Games in London in 2012. Both of these events have been designed with sustainability in mind. That is why it is so fitting that the BMW Group, the world’s most sustainable car company, is the official automotive partner of these Games.

Ladies and Gentlemen,

More than two years before the Games in London, What can we still accomplish with Efficient Dynamics? And most importantly: What can we show you here today? For that, allow me to hand over to my colleague Klaus Draeger!

Dr. Klaus Draeger, Member of the Board of Management of BMW AG, Research and Development

Ladies and Gentlemen,

Ian Robertson touched on some of our achievements with Efficient Dynamics.

Just three years ago we first presented our BMW EfficientDynamics strategy.
Back then we talked about the three pillars of Efficient Dynamics:

The first was: to optimise combustion engines; to construct lightweight parts; and improve aerodynamics.

Second: to develop hybrid and electric engines.

And then, third: to create emission-free vehicles.

What have we achieved so far?

Our diesel vehicles with BluePerformance offer BMW owners the chance to enjoy both—efficiency and driving pleasure. The diesel engine’s high level of efficiency is particularly attractive to customers who drive long distances.

This is one of the strengths of clean diesel – low fuel consumption, an extensive range and fewer emissions. With the harmonisation of taxes with gasoline, diesel will become even more attractive. We will be stepping up our efforts to help this happen—along with other companies. 

We are now deep in the second pillar of BMW EfficientDynamics: hybrid and electric vehicles.
US customers are today driving our new BMW ActiveHybrid X6. It consumes around 20 percent less fuel than a similar vehicle with combustion engine. And soon there will be the BMW ActiveHybrid 7.

We are making excellent progress with electric vehicles.
We currently have the largest global pilot project involving over 600 MINI E. Customers in the US, the UK and Germany are now driving these cars. The insights from this project are giving us a competitive edge in the field of electric mobility. We are learning every day before others have even started.

So what’s the next step for us? To develop an entirely new type of vehicle. One specifically designed to meet the needs of urban mobility with electric drive.  We need to think and act outside the box. That is precisely the reason why we created the “project i” unit.

Project i is responsible for all aspects of future mobility and future customer needs. This unit will develop solutions for sustainable mobility for urban environments. The MINI E is the first chapter of project i. This vehicle provides valuable feedback for future projects: such as our new mobility concept for cities. We call it the Megacity Vehicle or MCV.  We launch it in the first half of this decade.

Now let me show you our newest addition:

Ladies and Gentlemen,

Allow me to present the BMW Concept Active E.

This is e-mobility BMW style: where sheer driving pleasure and sustainable mobility are fully compatible. This concept car is a fully electric vehicle based on the BMW 1 Series Coupe.

This concept will become our second trial fleet of electric vehicles. It will be available in 2011. Once again, driving these  electric vehicles will give us more real-world customer insight. We will also test the pre-series version of the MCV’s electric powertrain in this vehicle. This concept is the perfect successor to the MINI E. And it leads us down the road to series production of the Megacity Vehicle.

This concept has the following BMW features:

• rear-wheel drive and
• a powerful motor for dynamic performance
  
  

Our customers are sure to love it. The components have been cleverly arranged so that the coupe is still a true four-seater. And it offers around 200 litres of luggage space.

This concept is powered by a completely new electric synchronous motor that has been specifically developed for this vehicle. With 170 horsepower it develops a maximum torque of 250 Newton meters. In everyday driving it achieves a range of about a hundred miles.

The power is stored in newly-developed lithium-ion batteries.

Another feature is its liquid cooling to keep temperatures stable. It guarantees the driver optimum output at all times and extends battery life.

This concept also has new BMW ConnectedDrive services developed exclusively for electric vehicles. They allow the driver to check battery status from a cell phone; locate public charging stations; or even activate the car’s heating or air conditioning.

Ladies and Gentlemen,

The developments within our Efficient Dynamics strategy are making an important contribution to individual mobility and sustainability. As good corporate citizens, we want to ensure that future generations learn about sustainable mobility at an early age. This is why the BMW Group has been involved for many years in various activities worldwide, bringing young people into contact with future technologies – and creating new opportunities for them to learn.

No matter where the BMW Group is around the world, we want to do our part. That, of course, includes here in Detroit. Today Ian Robertson and I would like to announce a partnership with the organization Ecotek, with the support of our dealers here.

Ecotek supports and encourages students who are interested in using science and technology to solve global issues: For example, by creating science labs – which we help to set up.

Ian Robertson, Member of the Board of Management of BMW AG, Sales and Marketing

In all of our locations worldwide, we take our role of being a responsible corporate citizen seriously and this includes being involved in local activities. That´s why I am proud that together with our local dealers we are supporting the youth – the future of this country – here in Detroit - the heart of the US automobile industry.

Thank you for joining us today.