Highest standards of flexibility: All drive train variants on one line +++ Successful transformation of BMW Group plants towards e-mobility and digitalisation +++ Half of Dingolfing's production volume will be electrified by mid-decade +++ Nedeljković: “setting ourselves ambitious goals for the most sustainable production”

Dingolfing. Standard production of the fully-electric BMW iX* began today in Dingolfing. The plant in Lower Bavaria now produces vehicles with all drive train variants, i.e. combustion-engine vehicles, plug-in hybrids and fully-electric models, on a single line. Milan Nedeljković, member of the Board of Management of BMW AG, responsible for Production: “The launch of the BMW iX* marks another milestone in our expansion of electrification and demonstrates our production network's successful transformation towards electromobility and digitalisation.”

The BMW iX* is being manufactured at the BMW Group’s largest European production plant on an assembly line with the flexibility to build a mix of BMW 5 Series, 7 Series and 8 Series models. To handle this flexibility and variety of drive trains, vehicle assembly in Dingolfing has been expanded and refurbished. The BMW Group has invested a total of more than 400 million euros in producing the BMW iX* at the Dingolfing vehicle plant. Many of the remodelling and structural measures required for the BMW iX* are already benefiting future generations of the BMW 7 Series and 5 Series that will come off the production line in Dingolfing in the coming years. Fully-electric variants have also been announced for both model ranges.

Half of production volume already electrified by mid-decade

With the BMW iX* and other PHEV models at Plant Dingolfing alone, the BMW Group plans to double the percentage of electrified vehicles produced this year compared to 2020. By the middle of the decade, half the vehicles produced in Dingolfing will be electrified. The new model will play an important part in this. “The BMW iX* will already be one of the highest-volume model at the location by next year,” according to Nedeljković. The BMW iX* will be followed in the autumn by the BMW i4*, which will be built in Munich. At the end of next year, all German plants will be producing at least one fully-electric vehicle.

Broad know-how: Vehicle and e-drive production on site

Production of the BMW iX* in Dingolfing benefits from broad know-how and expertise in the technologies located at the site. Close interaction between these different areas enables a high level of in-house activity and short lines of communication, as well as ensuring optimum production technology overall. The fully-electric heart of the BMW iX* – the highly integrated e-drive and fifth-generation battery, as well as the complete electric axle are produced on site, together with the Dingolfing component plants. Production capacity will be systematically expanded and, from 2022, Dingolfing will be able to produce e-drives for more than half a million electrified vehicles.

BMW iX* as trailblazer

The BMW iX* introduces a multitude of innovations to the product and production processes at the plant – especially in the vehicle’s electrical system architecture, software, digital services, connectivity and automated driving functions. As a result, the vehicle plays an important role as a trailblazer and is making Dingolfing “e-car” and “smart-car ready” as the BMW Group’s primary plant for the luxury class.

The BMW iX* is also an important trailblazer in production, bringing future technologies into the production system – such as digital methods for employee training, automation of logistics processes, virtual commissioning and validation of driver assistance systems.

Christoph Schröder, head of BMW Group Plant Dingolfing: “As the primary plant for the luxury class, our location produces the BMW Group’s technology flagship. It is once again proving itself as a pioneer for the mobility of tomorrow and as the industry leader in key future areas of automotive activity, such as electrification, digitalisation and sustainability. In this way, the BMW iX* is continuing the successful transformation of the BMW Group location in Dingolfing that began long ago.”

Special focus on sustainability

The topic of sustainability is firmly anchored throughout the company. A particular focus is on improving our carbon footprint – especially in production of electric vehicles. Independent auditors have confirmed that the greenhouse gas potential of the BMW iX xDrive40* is around 45 percent lower than that of a comparable Sports Activity Vehicle with an internal combustion engine. “We are already the sustainability benchmark for our industry. But we will continue to invest in resource-saving technologies and set ourselves ambitious goals for the most sustainable production,” underlined head of Production Milan Nedeljković. The BMW Group takes a holistic approach to reducing CO₂ emissions and minimising resource consumption that covers the entire value chain, including production as well as the supply chain and use phase.

The BMW Group has already succeeded in lowering resource consumption per vehicle produced by more than half between 2006 and 2020. CO₂ emissions have been reduced even more significantly – by as much as 78 percent. The aim is to reduce CO₂ emissions per vehicle produced by another 80 percent by 2030. “To achieve this, we have made some changes at Plant Dingolfing and implemented a series of new measures,” says plant director Christoph Schröder. For example, the BMW iX* is produced exclusively using regional and directly sourced green power from two hydroelectric power plants located on the Isar and Lech rivers. The entire plant, like all BMW Group locations, will also be net carbon neutral from this year, through the use of corresponding offsets and certificates.

Other aspects of sustainability range from energy-efficient installations to packaging planning, through transport logistics and recycling, up to and including topics such as biodiversity and water management. Plant Dingolfing is therefore able to achieve a recycling rate of more than 90 percent and an even higher recoverability rate of over 99 percent. The plant’s own wells meet over 40 percent of its water needs, thereby helping conserve the region’s drinking water reserves. The BMW Group has already reduced its water consumption by more than 30 percent overall since 2006.

BMW iX* as catalyst for change: Active shift in competence.

The BMW iX* creates a need for additional training beyond the extensive experience and expertise that is already available. It is accelerating the shift in competence already taking place within the production network and helping prepare the workforce for the demands of a new era. In this way, employee development across the entire company is being geared towards digitalisation and e-mobility. As part of the biggest training offensive in the company’s history, 75,000 staff are being trained in future areas of activity.

In Dingolfing alone, more than 4,000 employees have moved to jobs with strong future prospects since 2012. A current example of this is the creation and expansion of the Competence Centre for E-Drive Production at the location, which doubled its staff numbers last year from 600 to 1,200. This number is likely to increase to over 1,900 by the end of the year.

Munich. The BMW Group is stepping up its activities in the field of sustainability, becoming the first automotive manufacturer worldwide to equip its cars with tyres using certified sustainable natural rubber and rayon, a wood-based material used to strengthen the tyres. The company will source 22-inch tyres in the first instance exclusively from Pirelli and, from August of this year, will use them in the BMW X5 xDrive45e Plug-in-Hybrid. Certification of the rubber plantations and the complex supply chain for natural rubber and rayon takes place in accordance with the strict standards of the independent Forest Stewardship Council (FSC).

“As a premium manufacturer, we aspire to lead the way in sustainability and take responsibility,” said Dr Andreas Wendt, member of the Board of Management of BMW AG responsible for Purchasing and Supplier Network. “We have been committed to improving cultivation of natural rubber and increasing transparency in the supplier network since 2015. The use of tyres made of certified natural rubber is a pioneering achievement for our industry. In this way, we are helping preserve biodiversity and forests to counteract climate change.”

Natural rubber is the basic material for many products we use in our daily lives, such as boots and mattresses. About six million small farmers worldwide are responsible for over 80% of the world’s natural rubber cultivation. In the so-called rubber belt across the tropical regions, they run farms of between one and two hectares in size under a wide variety of different conditions. Agreeing uniform social and environmental growing conditions with these millions of small individual farms is therefore a major challenge.

By far the largest share of natural rubber grown worldwide goes into tyre production. Natural rubber’s high elasticity and sturdiness currently make it irreplaceable for tyre production.

Small label, big impact

As an independent organisation, FSC has developed an internationally recognised and demanding certification standard in recent years that is used worldwide for environmentally appropriate, socially beneficial and economically viable management of the forests. The organisation, whose well-known logo is already established in the wood and paper industry, also applies this standard to products made of natural rubber.

The new 22-inch P ZERO ∗ tyre has now become the world's first tyre to receive the coveted FSC label. To earn this certification, Pirelli adapted its US plant in Rome, Georgia, to produce tyres using FSC-certified natural rubber and rayon. From there, the tyres are delivered to BMW Group Plant Spartanburg, around 370 km away, and mounted on the BMW X5 Plug-in Hybrid. The star ∗ in the name indicates that the new tyre meets the BMW Group’s strict performance requirements, including particularly low rolling resistance and noise level.

Giovanni Tronchetti Provera, Pirelli’s Senior Vice President for Sustainability and Future Mobility, said: “Before even reaching the road, sustainable mobility begins with raw materials. With the world’s first FSC-certified tyre, Pirelli once again demonstrates its commitment to pursuing increasingly challenging goals in terms of sustainability, a testament to the constant work on innovative materials and increasingly cutting-edge production processes. We continue to invest in sustainable growth for our planet, aware that this is also essential for the future of our businesses.”

Jeremy Harrison, Chief Markets Officer, FSC International, added: “The new FSC-certified Pirelli Tyre is a significant milestone in the drive to deliver economic, social, and environmental benefits across the natural rubber value chain. This is a major step forward in the journey towards a more sustainable natural rubber value chain, thereby helping to mitigate deforestation and support the fight against climate change.”

Long-standing commitment to greater transparency and sustainability in the natural rubber supplier network

The use of the first tyres containing certified sustainable natural rubber and rayon at the BMW Group is the result of the company’s extensive commitment in this area. In 2019, the BMW Group joined forces with well-known tyre manufacturers, NGOs, rubber producers and consumers to create the Global Platform for Sustainable Natural Rubber (GPSNR). Small farmers are also represented in this initiative. The GPSNR is committed to improving social and environmental conditions for cultivation of natural rubber and pushing for more sustainability. It also implements measures to stop deforestation and make supply chains more transparent. The GPSNR currently has almost 100 members, who are responsible for about 50 percent of the global natural rubber market.

Through its activities in the GPSNR and close cooperation with its suppliers, the BMW Group is constantly working to further improve sustainability in the natural rubber supply chain. The BMW Group is stepping up these activities and plans to steadily expand its sourcing of tyres made from sustainably grown natural rubber.

The BMW Group has been working with the FSC organisation for many years (Licence code FSC-N002012). The company decided to use FSC-certified wood in the BMW i3, which was first launched onto the market in 2013. The BMW iX for release later this year will also feature FSC-certified wood. In 2017, the BMW Group and FSC advocated for further development of FSC standards for cultivation of natural rubber in Thailand.

Sustainability an integral part of all purchasing activities

Independently of these measures, the BMW Group has contractually obligated all its direct suppliers to respect human rights, comply with expanded environmental and social standards and to introduce management systems to promote occupational safety and protect the environment since 2014. This also includes protecting forests and biodiversity. These requirements must also be contractually passed on to subcontractors. BMW Group Purchasing does not rely on contractual obligations alone for this but is also implementing a large number of additional measures in a transparent process. A risk filter is used to evaluate potential supplier locations worldwide even before the call for bids. The next step is to require possible suppliers to outline their sustainability activities in a detailed questionnaire. External partners also work with internal appraisers to review selected locations. Throughout the contract period, external partners work with internal appraisers to verify compliance with sustainability requirements through questionnaires and audits. In this way, BMW Group Purchasing is able to monitor thousands of locations every year.

Sustainable mobility with the BMW X5 xDrive45e

The BMW Group has completed full lifecycle CO₂ certification for the BMW X5 xDrive45e – from raw material procurement, through the supply chain, production and use phase, all the way to recycling. If charged during the use phase with the average European electricity mix, this gives it an advantage of around 40 percent over the BMW X5 xDrive40i. If charged with green power, the advantage is around 70 percent. The electric range amounts to 77-88 kilometres (WLTP).

Munich. The BMW Group is working in close collaboration with power grid operator TenneT to devise groundbreaking solutions that will turn electric mobility into one of the mainstays of the energy revolution. An intelligent charge control system developed for BMW Charging can help to adapt electric vehicle charging in a way that keeps the power grid stable and makes optimum use of energy from renewable sources. Following successful deployment in the USA, the technology’s practicability has now also been demonstrated in Germany as part of a subsequent pilot project. Providing the platform for this new solution is the connectivity technology already included as standard in the all-electric BMW i3.

The BMW Group is aiming to offer its customers ways of charging their electrified vehicles as easily and cheaply as possible while minimising the associated emissions. The digital integration of electric vehicles into the power grid will make it possible to adjust vehicle charging with customers’ mobility requirements, grid stability and the availability of renewable energy all factored in. Intelligent charge control can therefore play a role in preventing power grid congestion and give priority to green electricity at the same time. As and when the customer’s mobility schedule allows, charging of suitably equipped electric vehicles can be briefly decreased – in the event of an electricity supply shortfall, for example – in order to reduce the load on the grid. Charging of the high-voltage battery will resume as soon as the supply bottleneck has been alleviated, ideally at a time when sufficient reserves of wind or solar energy have accumulated.

Intelligent charge control responds to signals from the grid operator.

The system of charge control developed for BMW Charging acts as a link between car and power grid. It registers the grid requirements signalled by the operator, making it possible to control the charging of plugged-in electric vehicles for optimum results – whether the vehicle is hooked up to the electricity grid at a public charging station, via a BMW Wallbox or using a domestic power socket. The signals are processed by the digital charge control technology and the vehicle’s connected electronics.

In the latest pilot project, the team succeeded in recording and processing signals from grid operator and project partner TenneT that indicated an imminent grid overload. This allowed charging to be temporarily decreased in selected BMW i3 cars in response. Electricity from renewable sources could then be integrated into the grid to optimum effect and there was no need to use backup power plants running on fossil fuels. The results from the pilot project represent further progress towards digital integration of electric vehicles into the power grid and pave the way for implementing this solution on a larger scale.

Electric mobility: turning a problem for the energy revolution into a solution.

As the number of electric vehicles on our roads continues to grow, so does the amount of electric power needed to fuel individual mobility. Considered in terms of total requirements, however, electric mobility is a relatively small factor. Independent studies predict that in Germany, for example, a fleet of two million electric vehicles would only increase electricity demand by around one per cent.

At the same time, intelligent charge control means electric mobility can help grid operators handle new challenges arising from the increasing input of renewable energy. These centre on precisely balancing supply and demand – i.e. power generation and consumption – both geographically and in terms of quantity. Wind electricity generated in the north of Germany, for instance, must be able to reach consumers in the south. This is made more difficult when the grid is already working at maximum capacity. Without intelligent charging, this can lead to congestion that has to be cleared rapidly. So, if a particular region is at risk of an electricity shortage, the usual response is to increase output from coal- or gas-fired power plants that can be brought on line at short notice.

Intelligent charging can help to keep the price of electricity stable.

Known as “redispatching”, these interventions in the power generation network generate costs in the region of €500 millions a year in Germany alone – and these must be met by the power grid operators. Intelligently controlled charging holds potential to cut these costs, as briefly decreasing vehicle charging eliminates the grid congestion, allowing wind power to flow smoothly and dispensing with the need to use fossil energy in power plants.

As integrating electric vehicles into the power grid and implementing intelligent charge control reduces redispatching costs, it can also help to limit expansion of the cross-regional network of power lines – and thereby restrict electricity price rises.

Contributions made to stabilisation of the power grid also provide the basis for energy-linked business models, as owners of electrified vehicles can actually earn money through intelligently controlled charging. This represents a milestone on the road to realising the BMW Group’s vision of offering electric vehicle drivers electricity for charging their cars that is both free and generated with zero emissions.

An all-encompassing electric mobility offering.

The BMW Group has been running a precursor to the pilot project in Germany for several years already. The ongoing BMW i Charge Forward initiative in California has seen intelligent charging control – according to the needs of both customers and the power grid – undergoing practical trials under everyday conditions with a fleet of over 300 electric vehicles. The local grid operator has backed the scheme with financial rewards. And as the drivers of the electric vehicles participating in the scheme ultimately pocket the bonuses, this is a win-win situation for all involved.

San Luis Potosi/Munich. High-level representatives of the Mexican government and the BMW Group officially opened the company’s new automotive plant in San Luis Potosi in Mexico today.

Oliver Zipse, member of the Board of Management of BMW AG responsible for Production, stated during the ceremony: “The new plant in San Luis Potosi is an important pillar of the BMW Group’s global production strategy. We aim to achieve a balance in our production and sales in the different world regions. We want to strengthen our footprint in important and growing markets. Plant San Luis Potosi will significantly boost our regional production flexibility in the Americas. From here, we are delivering our locally produced BMW 3 Series Sedan to customers worldwide.”

The company has invested more than one billion US dollars in the new production location. The plant, which already employs 2,500 people, will have a capacity of up to 175,000 units per year once the ramp-up phase is fully completed.

San Luis Potosi will build the BMW brand’s most successful model series: the BMW 3 Series Sedan. In the company’s more than 100-year history, this iconic car has come to represent the heart of the brand, setting the standard for dynamic performance, efficiency and design.

The ceremony in San Luis Potosi was attended by guests including Dr. Alfonso Romo Garza, Head of the Office of the Presidency of the Mexican Republic; Dr Juan Manuel Carreras López, governor of the state of San Luis Potosi; Oliver Zipse, member of the Board of Management of BMW AG responsible for Production; Milagros Caiña-Andree, member of the Board of Management of BMW AG responsible for Human Resources and Labour Relations, and Dr Andreas Wendt, member of the Board of Management of BMW AG responsible for Purchasing and Supplier Network.

Head of Human Resources Milagros Caiña-Andree highlighted the BMW Group’s strong commitment to vocational education: “Our highly-trained employees form a strong foundation for our new BMW Group Plant San Luis Potosi and help us meet high quality standards for our premium products. Our dual vocational training programme is already in its fourth generation.”

At an innovative new training centre on the plant grounds, all new staff and apprentices are trained in the BMW Group’s latest production processes and technologies, based on the dual vocational training model. The centre is not just focused on expanding employees’ and apprentices’ technical skills, but also boosting motivation, enthusiasm and team spirit.

The plant is working with four technical institutes in this area and has already trained 250 apprentices in technical occupations.

Dr Andreas Wendt, member of the Board of Management of BMW AG responsible for Purchasing and Supplier Network: “We have a strong supplier base we can build on in Mexico, having sourced high-quality, technologically sophisticated and innovative products from here for more than ten years. Every BMW Group vehicle today already contains at least one part from one of our 220 Mexican suppliers. Our new plant will benefit from short supply routes and the high level of flexibility this gives our supply chain.”

The BMW Group has operated its own local purchasing office in Mexico since 2008. In 2017, the office relocated from Mexico City to San Luis Potosi, where it now employs 105 people. The BMW Group’s purchasing volume in Mexico reached USD 2.5 billion last year.

Focus on flexibility, digitalisation and sustainability

Hermann Bohrer, director of the Mexican plant: “The plant was designed from the start to allow us to respond quickly and flexibly to future model variants and production volumes. We use innovative Industry 4.0 technologies, including new automation solutions and modern assistance systems. Sustainability was also a major focus from the beginning – and we are setting new standards in this area.”

Latest Industry 4.0 technologies

The BMW Group used digital 3D plans during construction of the plant, both for the building itself and for the installation of equipment. During every phase of construction, architects entered specific information, such as location, dimensions and completion date into digital models. Digital 3D-scanning technology was also used during construction for the first time. Combining these two technologies allowed for real-time analysis of construction progress and cost-efficient modifications, providing the BMW Group with continuous planning reliability.

The new BMW Group plant is a pioneer in the field of intelligent maintenance. Smart Maintenance Assistant Software is being used for the first time, enabling proactive maintenance throughout the plant to be planned ahead of time, thereby increasing equipment availability. Service activities are based on current, intelligently organised system data instead of predefined maintenance intervals. Using smart devices such as tablets and smartphones, staff receive all relevant information regarding equipment status.

Various Industry 4.0 technologies are used, for example, in assembly, where screens have largely replaced paper throughout the assembly process. Two screens per takt provide staff with all the information they need – information which, in the past, was only available on paper. This digital job card is being used for the first time at the BMW Group plant in Mexico.

Robots and employees work directly alongside one another in engine pre-assembly, cooperating in a way which plays to the strengths of each. Robots have the power to turn the heavy convertor, while the employees have the manual dexterity to make the final adjustments to fit them together precisely.

New sustainability benchmarks

From the first full year of production, the facility in San Luis Potosi will be the BMW Group’s most resource-efficient plant.

Careful use of water resources is a primary sustainability objective. The site, with the production network’s lowest water consumption per vehicle produced, will be the BMW Group’s first paint shop to generate no process wastewater at all. The water needed for the painting process is reconditioned and reused.

The use of renewable energy sources ensures that the plant will be supplied with 100% CO2-free electricity in future. A solar energy plant on-site, covering an area of more than 70,000 m², will produce part of the energy.

Production for the global market

The new plant in Mexico expands the BMW Group production network to a total of 31 locations. In line with the BMW Group’s Strategy NUMBER ONE > NEXT, this ensures the company has a flexible and efficient international production network, with a good balance of value creation between Europe, Asia and the Americas.

The new location in Mexico is another building block in this growth strategy. The country is a member of the NAFTA free-trade area with Canada and the United States. It also has a large number of free-trade agreements, including with the European Union and MERCOSUR, which make it easier to export cars and import supplied parts.

The NAFTA region in particular, with its consistently high sales volumes, is a key market for the BMW Group. Twenty five years ago, the BMW Group opened its plant in Spartanburg, USA, and has since invested nearly nine billion US dollars in the site. The company will invest a further 600 million US dollars there by 2021 to gear it up for future generations of the BMW X models. The number of jobs will increase in parallel to around 11,000. In total, the company supports almost 70,000 direct and indirect jobs in the US.

The BMW Group in Mexico

The BMW Group sales company in Mexico is celebrating its 25^th anniversary this year. The local sales company is not only responsible for the Mexican market, but also manages the company’s business strategy for the whole Latin America region, covering a total of 28 countries. Delivering continuous growth, Mexico is the most important market in this region.

In 2018, the BMW Group sold a total of 25,090 vehicles (18,501 BMW, 6,589 MINI) in Mexico – an increase of more than 13% over the previous year.

Please note: The opening of the new BMW Group plant in San Luis Potosí will be broadcast live at this link: https://bit.ly/2K5RAG5.

Berlin. The BMW Group won two awards at yesterday’s SAM Group Sustainability Awards ceremony. The company earned SAM Gold Class Status and was also named Sector Leader, the best result among all vehicle makers. SAM Group presented the SAM Sustainability Awards for the first time in Germany.

SAM Group, headquartered in Zurich, is a sustainability rating agency founded in 1995. SAM Group’s Corporate Sustainability Assessments analyses over 2,000 listed companies every year.

At the awards ceremony in the Museum für Telekommunikation in Berlin, Michael Baldinger, CEO of SAM Group, paid tribute to the achievements of the BMW Group: “The BMW Group is a leader in terms of innovation management and has demonstrated a clear commitment to reducing negative environmental impact along the entire value chain.”

Harald Krüger, member of the Board of Management of BMW AG, was there to accept the awards: “For the BMW Group, long-term thinking and taking responsible action along the entire value chain are the basis for economic success. We are delighted to receive this recognition from SAM Group. It honours the efforts made every day by our 100,000 employees worldwide.”

For the BMW Group, sustainability is an integral part of corporate strategy. As a first for the automotive industry, the BMW Group appointed an environmental protection officer in 1973. Since then, the company has systematically developed and consistently implemented its sustainability strategy.

The BMW Group’s commitment to sustainability received several prestigious awards last year as well. For example, the company was named most sustainable auto company in the DowJones Sustainability Index for the seventh consecutive year. For the past 10 years in a row, the BMW Group has also been listed in the FTSE4Good index, one of the most important indices for companies focusing on sustainable management. 2011 also marks the year when the BMW Group came in first among all vehicle makers in the CDP Global 500 Ranking.

For further information on how sustainable management is implemented at the BMW Group, go to www.bmwgroup.com/responsibility