BMW AG BOARD OF MANAGEMENT: "RECYCLING AT ANY COST IS A DEAD-END STREET''

Current scenario not suitable for all-around environmental protection

Berlin - November 12, 2003 ... During the panel discussion held yesterday by
the German newspaper DIE ZEIT with German Environmental Minister Jürgen
Trittin, BMW AG Board Member, Production, Dr. Norbert Reithofer, called for new
recycling standards for the automotive industry. The European End-of-Life
Vehicle Directive requires a utilization rate of 85 percent by weight for
end-of-life vehicles as of 2006. Then, starting in 2015, this quota is to be
raised to 95 percent.

The problem is that while heavy materials such as iron or steel may be recycled
to fulfil this new directive, they make the car heavier and thus increase both
energy consumption and CO2 emissions. By comparison, lightweight materials and
regenerated raw materials reduce energy consumption and CO2 emissions
significantly during both production and throughout the life of a vehicle and
therefore improve the vehicle's all-around ecological balance as a whole, but
have a negative effect on the recycling balance.

A manufacturer that is committed to lightweight technologies, such as BMW
Group, automatically suffers from a lower recycling rate in this case and
inevitably marks a clear contradiction to the targets of the EU End-of-Life
Vehicle Directive. "It is high time for politicians to consider the issue of
environmental protection from an all-around perspective and not to create
conflicts of interest by imposing isolated standards and limits slowing down
progress in lightweight automotive production. Recycling at any cost is a
dead-end street. Focusing on intelligent lightweight technologies, we wish to
improve the overall ecological balance of a car throughout production and the
vehicle's lifecycle all the way to recycling", said Dr Reithofer.

Intelligent Lightweight Technologies Instead of Rigid Recycling Quotas

In technical terms a BMW is almost completely recyclable even today, so that
recycling quotas of 85 and, at a later date, 95 percent, are no challenge. But
the imposition of such rigid standards does not make sense in ecological or
economic terms. Instead, the BMW Group focuses on an intelligent mix of
materials, using the proper material for each purpose to fulfill specific
technical, ecological and economic demands with maximum efficiency. In the eyes
of the automotive industry, political targets are not properly coordinated with
the latest technological achievements in lightweight engineering and there is
no sensible prioritization. "Lawmakers must pave the way for the best
ecological solution in each case - regardless of whether this is recycling or
combustion for the purpose of generating energy", stated Dr Reithofer.

An ecological balance recently achieved by BMW can be seen on the hood and
front panels, which are made of aluminium on the new 5 Series. These
lightweight components alone save approximately 10.6 gallons of gasoline
throughout the life of the car. The reduction in weight that aluminium provides
that can be up to 50 percent per component or, in absolute figures, by 26- 44
pounds per car. It also cuts back the recycling quota by approximately 1
percent.

Studies show that recycling is not the best approach in ecological terms
particularly in the case of plastic components and regenerating raw materials:
Ecologically sensible technologies such as the use of end-of-life plastic
composites with a high calorific value for generating energy should not suffer
from a rigid recycling quota.

"Design for Environment": BMW Group Recycling and Dismantling Center

The BMW Group has a broad range of experience in recycling. The BMW Group's
Recycling and Dismantling Center (RDC) took up its activities back in 1990,
long before politicians established any statutory rules or regulations in this
area. At the RDC, specialists focus on the development of new cars from an
ecological perspective from the very beginning. This objective is part of a
future-oriented concept of "Design for Environment". In this process, recycling
and ecological balance experts work hand in hand with development engineers at
BMW's Research and Innovation Center. As a result, high-quality recycled
materials are already used today in the production of new cars. And in pursuing
this approach, the BMW Group has already established a network of recycling
partners for more than 10 years. This ensures an environmentally-compatible
utilization of end-of-life vehicles.

Exchange of Experience Among Politicians and Industry is The Right Answer

The BMW Group is convinced that the close cooperation of politicians and
industry is the best way to meet the objective of enhancing the environmental
compatibility of the motor vehicle. This means the establishment of individual
margins of freedom and deregulation and the close coordination of isolated
standards and limits, with an all-around view of environmental effects.

BMW Group In America
BMW of North America has been present in the United States since 1975. Since
then, the BMW Group in the United States has grown to include marketing, sales
and financial service organizations for the BMW and MINI brands and Rolls-Royce
Motor Cars; DesignworksUSA, an industrial design firm in California; a
technology office in Silicon Valley and various other operations throughout the
country. BMW Manufacturing Corp. in South Carolina is part of BMW Group's
global manufacturing network and is the exclusive manufacturing plant for all
Z4 roadster and X5 Sports Activity Vehicles. The BMW Group sales organization
is represented in the U.S. through networks of 340 BMW car, 327 BMW Sports
Activity Vehicle, 148 BMW Motorcycle retailers, and 73 MINI dealers. BMW (US)
Holding Corp., the BMW Group's sales headquarters for North, Central and South
America, is located in Woodcliff Lake, New Jersey.

Information about BMW Group products is available to consumers via the Internet
at:
www.bmwusa.com
www.bmwmotorradusa.com
www.miniusa.com
www.rolls-roycemotorcars.com

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Journalist note: Information about the BMW Group and its products is available
to journalists on-line at the BMW Group PressClub at the following address:
www.press.bmwgroup.com.

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