Speech by Dr. Norbert Reithofer - BMW Group Press Conference Auto Shanghai 2007

Ladies and Gentlemen -

Welcome to our press conference here at the Auto Shanghai 2007!

We would like to talk to you about the following topics today:

• The status of the BMW Group in general,
• the role of the Chinese market for our company,
• the importance of "BMW EfficientDynamics" for the BMW Group
• and of course the new products we are presenting here at Shanghai.

Let me start with our current retail figures. We already announced our targets
for 2007 at the beginning of the year:

We plan to deliver more than 1.4 million vehicles for all our brands this year:
BMW, MINI and Rolls-Royce. Some of you might remember that this was our goal
for 2008. We are able now to reach this goal one year ahead of schedule!

And we are still right on track: In the first quarter of the year, we delivered
more than 333,000 BMW, MINI and Rolls-Royce vehicles to our customers. This
means that retail volume was slightly higher in the first quarter of 2007 than
2006.

This development completely meets our expectations. This year's retail curve
will develop differently from last year's. Retail will develop more moderately
over the first few months.

This is due to our model cycles and, most of all, to our launch schedule. For
the second quarter, we already expect much more dynamic growth rates - as the
new models will stimulate business.

The Chinese market also plays an important role for us. This market is clearly
headed towards becoming one of the world's most important automotive markets.

We continue to believe in this country's huge potential. It is our goal to
increase retail volume in Asia to 150,000 vehicles by next year. And our
successful operations in China will have a major share in reaching this target:

• In March, we sold a total of over 3,600 vehicles of the BMW, MINI and
Rolls-Royce brands in Chinese Mainland. This is a rise of 31 per cent compared
to March 2006.

• In the first quarter 2007, our retail volume in Chinese Mainland amounted to
more than 10,100 vehicles - 34.2 per cent more than the first quarter of last
year.

With these first-quarter results, we are continuing our ongoing success in this
market. Over the last five years, the BMW brand alone has risen by more than
750 percent in Chinese Mainland. No other major premium brand has achieved such
dynamic growth rates in this market.

The BMW brand's market share of the premium segments in Chinese Mainland
currently stands at about 20 percent. In 2006, many important models were
segment leaders, such as the BMW 7 Series or our Sports Activity Vehicles BMW
X3 and BMW X5.

The long version of our BMW 5 Series, exclusively developed for this market,
has got off to a very good start. This model exactly meets our customers'
demands. And I am sure that we will manage to remain in a leading position in
the premium segments of this important market over the long term.

After all, we have all the necessary requirements:

• desirable products like those you can see here at our stand,

• but also the necessary local commitment. With our joint-venture BMW
Brilliance Automotive Ltd., we are well established in China. We are
successful. And we are furthermore convinced that this is the right way to
remain successful in this important market.

Ladies and Gentlemen -

Our motto here at the stand is "BMW. Sheer driving pleasure". In essence, this
tells you what the BMW brand is all about: We want our vehicles and motorcycles
to give our customers' the ultimate driving pleasure - and I think you agree
with me that this is exactly what we do best at BMW.

There is another issue that is getting more and more attention in the media -
not only in Europe and the USA, but also in China. The topic is climate change.
This is a challenge for the automotive industry and for each company in our
line of business. We need to design increasingly efficient and more
environmentally-friendly vehicles.

Our answer to this challenge is "BMW EfficientDynamics":

• We want to maintain and refine the "dynamics" of BMW vehicles and at the same
time also

• raise the "efficiency" of our cars. Fuel consumption is to be reduced
further. Let me give you an example: Since 1990, we have already lowered fleet
consumption of our vehicles in Germany by almost 30 per cent. This is real
progress!

And with "BMW Efficient Dynamics", we have a comprehensive concept:

• To continuously optimize our powertrains.

• To develop intelligent solutions for the vehicle's entire energy management.

• To construct light-weight materials.

• To improve the aerodynamics of our vehicles.

• Keyword hybrid: In the medium term, this will, of course, also be an element
of "BMW EfficientDynamics". We have just entered into a new cooperation with
DaimlerChrysler. Together we are going to develop hybrid components in Germany.

• In the long term, we consider hydrogen the solution for individual mobility.
We have already achieved a lot in this area.

Ladies and Gentlemen -

We are proud to present an exclusive concept car today that has never been
showcased before. This is a first for us in China. So it is a true world
premiere!

As a manufacturer of dynamic vehicles we are now presenting the concept study
of a four-door Gran Turismo. With this concept study, we would like to show
that there are still a lot of options for the BMW brand. This shows the next
step of the evolutionary development of our design language.

So please welcome the BMW Concept CS!

On behalf of the BMW Group, I would like to thank you for your attention and
would now invite you to come on stage and have a closer look at our new
products.

Thank you very much.