Pres 06 guy kilfoil bmw leading e mobility-in_future

LEADING E-MOBILITY INTO A NEW ERA.

Mr. Guy Kilfoil, General Manager: Group Communications & Public Affairs6 November 2012.

THE NEXT STEP OF EVOLUTION IN AUTOMOBILITY.

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GLOBAL TRENDS DRIVING THE FUTURE OF SUSTAINABLE MOBILITY.

Customer ExpectationsChanging values

Politics and RegulationsCO2 - and fleet regulations,

Restrictions on imports

EconomicsShortage of resources, increase in the price of

fossil fuels

CultureSustainable mobility as part of a modern urban

lifestyle; assumption of social responsibility

EnvironmentClimate change and the subsequent effects

UrbanisationBy 2030, over 60 % of world population

will live in cities

DRIVING FACTORS

URBANISATION.

Development of urban population.Mega cities as a worldwide trend.

In 2007 humanity reached a significantdemographic milestone:For the first time in history more people livedin cities than in the countryside.

By 2030, over 60 % of the population will live in cities. The growth rate is particularly rapid in the so-called mega cities, with more than 10 million inhabitants. The mega cities listed by the UN already have a total population of around 280 million inhabitants.

The mega cities are increasingly the growth engines of their respective national economies. One key issue is the burden that growth is placing on urban infrastructure and mobility.

Source: United Nations

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Significant increase in customers awareness as a result of:- the climate change debate.- significant volatility in fuel prices during recent years.- but also: debate about and success of alternative drive trains.

Sustainability is increasingly becoming the focus of attention. But: differing levels of awareness with respect to preferences, motives for action and embedding sustainability is a priority with customers.

CUSTOMER EXPECTATIONS – CUSTOMERS PREFERENCES ARE CHANGING.

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WORLD-WIDE THE BMW GROUP WILL REDUCE CO2 FLEET EMISSIONS BY AT LEAST 25% BETWEEN 2008 AND 2020.

-12%2015

-30%2020

• World-wide harmonization of different bases for CO2 standards is required to strengthen competitiveness.• Regional objectives are not directly comparable due to differences in vehicle portfolio

(market demand) and test-cycles/procedures.

New vehicle fleet 2008

- 38 %2020

-22%2015

-26%2016

2021

approx.-25%2015

-40%2020

Assumptions

2020 / 2025

Illustrations

154g/km

n. a.

14.2km/l (166g/km)*

* Consideration of test-cycle change to JC08

250g/mi (156g/km)

120g/km

95g/km*

5.9l/100km* (140g/km)

4.5l/100km* (107g/km)

16.3km/l (146g/km)

20.3km/l (117g/km) -52%2025

163g/mi (102g/km)*

* Both under discussion* Based on review

* Based on review

COMPARISON OF CO2 FLEET REDUCTIONS IN EUROPE.THE BMW GROUP WILL CONTINUE TO FURTHER SUBSTANTIALLY REDUCE CO2 EMISSIONS.

Fleet

em

issi

on

s EU

(g

CO

2/k

m)

240

220

200

180

160

140ACEA, 1995-2010: approx. - 25 %

120 1995 1996

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

BMW Group, 1995-2010: approx. - 30 %

2010

− The BMW Group has reduced EU CO2 fleet emissions by 30% since 1995.

− The average BMW Group fleet emissions in the EU in 2020 will be at least 50% below the 1995 level.

− The BMW Group actively supports current and future measures within the Kyoto Protocol. BMW will continue to actively contribute to ambitious CO2 reduction irrespective of the global climate discussion.

− Achieving further CO2 reduction requires a stable global framework with guiding principles such as a parameter-based approach, unified measurement cycles and treatment of electric drivetrains.

− Alternative drivetrains and technological convergence may lead to a global convergence of CO2

targets. However, different starting points due to varying market portfolios and environments must be considered.

− 19 of EU 27 member states have implemented a CO2- based taxation scheme. However, no scheme is similar to another.

− Putting a transparent price tag on the CO2

emissions orfuel economy encourages the demand on fuel efficient cars in every car segment.

− CO2- taxes have a built-in positive effect on EVseconomically and in terms of perception.

BMW GROUP SUPPORTS FUEL ECONOMY OR CO2-BASED TAXATION SYSTEMS.

Registration tax upon purchase and registrationAnnual road tax

Registration and annual road taxStand: April 2011

European states take various measures of taxation:

Seite 8

VEHICLE TAXATION SYSTEM IN SOUTH AFRICA BASED ON CO2.

-2000

0

2000

4000

6000

8000

10000

12000

14000

100 110 120 130 140 150 160 170 180 190 200 210 220 230 240 250 260 270 280 290 300CO2 Emission in (g/km)

To

tal

CO

2 T

ax

ati

on

(in

Ra

nd

)

No CO2 taxation up to and including 120

g/km emission

- Threshold for tax exemption: 120 g/km

- Additional CO2 tax, based on linear ratio: “ZAR 75/g CO2 “.

- Taxes to be covered by the manufacturers at the point of import.

- Effective as of 09/2010.

- This is a transparent means of taxation and creates a fair playing field for technologies.

- Clear incentive to further reduce CO2 emissions from a user perspective.

BMW Group’s drive strategy provides a broad technology spectrum for today and the future.

E-vehicle

BMW GROUP’S EFFICIENT DYNAMICS STRATEGY.A WIDE RANGE OF TECHNOLOGIES TO REDUCE CO2

EMISSIONS.

TODAY

- Optimisation of fuel consumption and emissions.

- Lightweight construction.

FUTURE

- Commitment to and validation of technology.

- Optimisation of BMW H2 ICE.

- Improvement of hydrogen storage and efficiency.

TODAY

- Full and mild hybrid vehicles.

- Initial step towards electrification of the drivetrain.

- Plug-in Hybrid drive-trains.

Combustion engine Hybrid technology Hydrogen

NEAR FUTURE

- First limited electric vehicle production in 2008.

- MINI E on the road since 2009.

- BMW ActiveE in 2011.

- Introduction BMW i3 in 2013.

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1 Series 3 Series 5 Series 6 Series 7 Series X1 X3 X5 X6 Z4 MINI

High Precision Injection ● ● ● ●

High Precision Injection with Twin Power Turbo Technology

● ● ● ● ● ● ● ● ● 1.)

VALVETRONIC Technology ● ● ● ● ● ● ● ● ● ● 2.)

Variable Twin TurboDiesel Technology ● ● ● ● ● ● ● ● ●

3rd Generation Piezo Common Rail Diesel Technology

● ● ● ● ● ● ● ● ●

Air Vent Control ● ● ● ● ● ● ●

Brake Energy Regeneration● ● ● ● ● ● ● ● ● ● ●

Auto Start/Stop Function ● ● ● ● ● ●

Intelligent Lightweight Construction ● ● ● ● ● ● ● ● ● ●

Tyres with Reduced Rolling Friction ● ● ● ● ● ● ● ● ● ● ●

Electric Waterpump ● ● ● ● ● ● ● ● ●

Electric Power Steering ● ● ● ● ● ● ●

Optimum Shifting Point Indicator ● ● ● ● ● ● ●

BMW EFFICIENT DYNAMICS OPTIMIZATIONS.STANDARD IN EVERY BMW MODEL AT NO EXTRA COSTS.

1.) Direct Injection with Twin Scroll Turbo 2.) System comparable to VALVETRONICMay 2011

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Source: United Nations, Global Insight, Credit Suisse, BMW calculations.

2050

0

200

400

600

800

1.000

1.200

1.400

1.600

1.800

2.000

2000 2010 2020 2030 2040

Sh

are

in m

illio

n u

nit

s -

worl

d

ICE HEV PHEV BEV

- Internal combustion engines will continue growth until 2020-30.

- The percentage of electrification will steadily increase.

- In 2020, the proportion of new registrations for electrified vehicles is estimated at 5 – 15%.

FORECAST FOR VEHICLE POPULATION.ELECTRIFIED VEHICLES WILL ACHIEVE RELEVANT MARKET SHARES.

MINI E BMW ActiveE BMW i3

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THE MINI E AND BMW ACTIVE E SERVE AS KEY LEARNING PROJECT FOR THE BMW i3.

USE OF RENEWABLE ENERGY

MARKET- POTENTIAL

TRANSFERSCENARIOS

USER BEHAVIOUR ACCEPTANCE

DEMANDS OFE-INFRASTRUCTURE

STRENGTHS AND WEAKNESSES

2008 2011 2013

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102EX – THE PHANTOM EXPERIMENTAL ELECTRIC.

New electric drivetrain

Production concept of the future

New vehicle concepts

New materials and recycling

Pioneering design New customersNew processes Employees

Integrated approach of BMW i

SUSTAINABILITY DEFINES THE PRODUCT LIFE CYCLE.

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ELECTRIFIED POWERTRAIN.SCALABLE DRIVETRAIN ARCHITECTURE.

100% combustion engine

Increasing CO2-saving potential

10

0%

batt

ery

100% electric motor

20 – 60 kW1 – 3 kWh

40 – 80 kW5 – 15 kWh

EfficientDynamics

Start Stop,recuperation

10

0%

fuel

BEV

Rangeextender

>60 kW>20 kWh

Mild HEV Full

PHEV

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COMBUSTION ENGINE VERSUS ELECTRIC DRIVE.

HV storage

Drive unit:- E-machine- drive electronics - transmission- shafts- cooling- 12 V battery

BEVICEBEVICE

Weight Space requirementICE BEV

- Flexible positioning of the e-drive unit due to reduced packaging space requirement and low weight.- Weight and packing space requirement of the battery require a special architecture for EVs.

Fuel supply system

Drive unit:- motor - exhaust system- transmission- shafts- cooling- 12 V battery

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LIGHT WEIGHT DESIGN AND THE LIFEDRIVE CONCEPT.

The LifeDrive concept with aluminium chassis and CFRP passenger cell breaks the weight spiral for electric vehicles.

System-related extra weight of the electric drive unit.

Weight

LifeDrive Concept with aluminium and CFRP offsets the extra weight of the electric drive unit.

Comparablevehicle withcombustion

engine.

MCVelectric vehicle

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THE INTEGRATION OF THE ELECTRIC DRIVETRAIN.

Implementation of complete vehiclearchitecture with LifeDrive

- Easy development of derivatives.- Weight reduction through

light-weight materials.- Specific structure to accommodate

for batteries.

Batteries in underbody

- Low point of gravity.- Area for crash protection.- Level ground of vehicle

interior.

Drive: Aluminium spaceframe incl. Batteries

Life: Carbon fiber structure with Exterior Shell

LIFEDRIVE ARCHITECTURE ALLOWS FOR FLEXIBILITY.

Life-Modul with CFRP passenger compartment

Drive Modul Body surfaces

Lithium-Ion BatteryElectric motor with Power Electronics

Life-Modul with CFRP passenger compartment

Drive Modul Body surfaces

Lithium-Ion Battery

Internal combustion engine with transmissionElectric motor with Power Electronics

Fuel tank

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CFRP – A STAND-OUT MATERIAL FOR USE IN CAR BODIES.

- CFRP IS A COMPOSITE MATERIAL OUT OF CARBON FIBRES AND A SYNTHETIC MATRIX.- EXTREMELY DURABLE AND EXTREMELY LIGHT.- AT LEAST 30 % LIGHTER THAN ALUMINIUM AND 50 % LIGHTER THAN STEEL FOR IDENTICAL

COMPONENT USE.- OUTSTANDING SUSPENSION AND HIGH LEVEL OF ENERGY ABSORPTION IN A CRASH.- RESISTANT AGAINST CORROSION, ACIDS AND SOLVENTS.- SHOWS NO FATIGUE OVER A LONG SERVICE LIFE.- ALLOWS CUSTOMISATION OF COMPONENT PROPERTIES THANKS TO THE MATERIAL‘S UNIQUE

ANISOTROPY.

PLANT NETWORK AND APPLICATION OF REGENERATIVE ENERGY.

The BMW Group and the joint venture set up with the SGL Group are investing a total of €530 million in the project. A total of over 1.000 jobs will be created as a result of this investment.

In the plant Moses Lake 100% hydro energy is applied.Leipzig provides the necessary energy for the CFRP fabrication in the plants Leipzig, Landshut and Wackersdorf by wind power.

Moses Lake, Washington State

Carbon fiber

JV

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JV

Wackersdorf

CFRP alignment + recycling

LeipzigCFRP FabricationMCV Assembly

Landshut

CFRP Fabrication

CFRP: carbon fibre reinforced plastic

100%

CO2e

BMW 118d

GLOBAL WARMING POTENTIAL IN THE PRODUCT LIFE CYCLE SIGNIFICANTLY LOWER.

BMW i3 Concept*

66%

* EU 25 Electricity mix

BMW i3 Concept**

50%

** Electricity from renewable sources Seite 22

BMW i – BORN ELECTRIC.BREAK-EVEN IN PRODUCT LIFE CYCLE ASSESSMENT AT LESS THAN 50,000 KM.

RecyclingUsageProduction

Mileage km

T CO2e

BMW 118d

BMW i3 concept*

BMW i3 concept**

* EU 25 electricity mix

** Electricity from renewable

sources

Well-To-Tank (oil industry, power generation)

The Challenge ahead for industry and government: Shares of the overall impact on the environment between Well-To-Tank (WTT) and Tank-to-Wheel (TTW) differ massively.- Car manufacturers thereby loose control of the impact on the environment.- Customers want assurance that driving electrically is a sustainable choice.

Already addressed by GhG standards EV: 0 g/mi

0 g/mi

Need to address politically

Gasoline

EVs

Tank-To-Wheel (automobile industry)

THE CHALLENGE OF DEFINING RESPONSIBILITY ALONG THE VALUE CHAIN.

- Governments need to ensure the “net benefit” of the overall chain. - Additional demand for EVs need to be generated without fossil fuels.

Definition

RENEWABLE ENERGY AND ELECTRIC VEHICLESGO HAND-IN-HAND.

– MINI E field trial confirms user affinity to employing renewable energy in conjunction with electric vehicles.

– Wholistic approach of BMWi to leverage downstream potential of renewable energy to reduce lifecycle CO2 emissions.

– Offering of a transparent, sustainable and trustworthy green energy option for users of electric vehicles.

– Future users of electric vehicles appreciate the potential of combining renewable energy with electric vehicles.

– Customers must have the option in markets with an offering.

– Renewable energy offerings will differ from market to market:

– Private solar facilities offering direct charging.

– Green energy contracts from renewable energy providers in liberalized markets.

– Renewable energy packages from large utilities.

– RECS certificates in highly regulated markets.

THE BMW i3 AND THE BMW i8.

Vehicle: BMW i3 Purpose DesignLifeDrive Lightweight Concept4 Seater

Drive-train: Electric engine

Battery: Lithium-Ion batteryLiquid cooling

Vehicle: BMW i8 Purpose DesignLifeDrive Lightweight Concept2 + 2 Seater

Drive-train: Small combustion enginePlug-in Hybrid plus electric engine

Battery: Lithium-Ion batteryLiquid cooling

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Dr. Thomas Becker, BMW Group Page 27

INTERMODAL MOBILITY SOLUTIONS – THINKING BEYOND THE CAR.

Combining all modes of transport.Providing customers with maximum flexibility.

DriveNow ParkatmyHouse

Premium car sharing independent of hire points

Local real time information on cities

MyCityWay

Marketplace for parking

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MOBILITY SERVICES – FROM CAR SHARING TO INNOVATIVE APPS.

THANK YOU FOR YOUR ATTENTION.