Bayerische Motoren Werke Aktiengesellschaft (BMW) Earnings Call Transcript & Summary

Hi, everyone. Welcome to Munich. We are right now here at the BMW Group design studio where some of the best automobile innovations were born. And I'm so excited to be here because BMW has some great news for you, including the launch of the new BMW Concept i4. And I'm lucky to be here to meet the, yes, creative masterminds who designed the concept. So let's see how it starts. Anne, hi.

Hi.

Nice to see you.

Yes, nice to meet you.

You were in charge of the exterior design, right?

Yes.

Can you tell us a little bit more? What do you keep in mind when designing electric cars?

We keep in mind our strong heritage. Also, we are focusing on our icons, but we are always bringing them into the future and develop them further. For this car, it was also important to have aerodynamic features. You can see here, in this area, we have this big diffuser, which makes the car very sporty and also very wide.

Great, yes.

And it's lightened up with a blue color, the blue color from the i brand, which you can also find on the side elements and in the front.

Thank you very much. That's great. And talking about colors and materials, let's feel some. So [ Svenja ], can you tell me what do you have here?

Sure. This is the collection of materials we used for the car. So for example, we wanted to create a super modern but warm exterior light color. So we developed this frozen light copper.

Very nice.

And the design of the interior is very minimalistic, so we wanted to use some light materials. This, for example, is the microfiber we used for the seat with this graphical pattern, and we combined it with some natural leather with this olive tint.

Thank you, Svenja.

You're welcome.

And talking about interior, let's have a quick sneak peek from Chris. Hi, Chris.

Hi.

Can you tell me a little bit about it?

Yes, of course. So at BMW, our motto is sheer driving pleasure. And we really put the focus on the driving experience. So for this interior, we really wanted to get rid of all the distractions and really keep it very minimum to the core. And we wanted to also bring in this luxury aspect as you can see in these very nice, warm golden accents. And this is all the areas where you would interact with. And we were also able to reduce all the switches and buttons from the dashboard, and we were able to do this with our new brand-new curved display.

Great. Thanks very much.

Thank you.

That interface sounds interesting. Olivier, I think you know a little bit about it?

Yes, a little bit.

Can you tell me something?

Sure, yes. Yes, we present with the BMW i4 concept for the first time the integration of a curved display with a completely new user interface design based on different experience mode. For example, the core experience mode is for me, the best balance to -- between elegance and sportiness. But it's also a great harmony between the digital content and the wall interior of the car.

Very nice.

The user interface goes beyond the limit of the screen. So light and sound are also part of the global user experience we propose inside the car.

Okay, Olivier. And what does it look like when all of this comes to life? Let's see. [Presentation]

[Foreign Language] Good morning and welcome to the BMW Group. This is the time of the year we usually meet in Geneva. And it is unfortunate that this year, we're unable to do so. However, safety is always our highest priority, and we fully understand and respect the decision taken by the Federal Council of Switzerland. We would like to express our utmost empathy to all those directly and indirectly affected across the world. And in these truly challenging times, we all hope that the virus will soon be contained and we can all return to our everyday lives. Even though we couldn't meet in Geneva, we felt that it was important to give everyone an update on what's new at the BMW Group and also to pay tribute to the many people who have worked tirelessly and our new products and their presentation. And that is why we are here, at the very heart of BMW Group Design for the world premiere of a very special concept car. At the BMW Group, we believe in the power of choice and electro-mobility is an important part of that. And that is why we are launching many new electrified vehicles over the next 2 years. The brand-new MINI electric is already in high demand with more than 120,000 registered interests and close to 7,000 order intakes. This proves it is the perfect car for urban areas. This year, we'll be also launching the all-electric BMW iX3, our first pure electric sports activity vehicle and the trailblazer for our all-new fifth-generation BMW eDrive technology. We will also be launching further plug-in hybrids during the course of 2020. For example, the new BMW X1 plug-in hybrid and the BMW X2 and the electrified BMW 3 Series Touring will be attractive additions to our wide range. Already today, we have over 0.5 million BMW Group electrified vehicles on the road, and we intend to double this number by the end of next year. And more fully electric vehicles will be coming next year, the BMW iNEXT and the BMW i4. Today, we want to give you a glimpse of the BMW i4. [Presentation]

Ladies and gentlemen, the Concept i4. This 4-door BMW Gran Coupé is fully electric and just as fascinating, as fast as it looks. It is also suited to long distances with an electric range of up to 600 kilometers according to WLTP. Powered by our fifth-generation BMW eDrive technology, it has a very slim battery with optimum energy density. And moreover, the development and production of the eDrive is done in-house as well as battery cell research. The eDrive offers a thrilling peak performance of up to 530 horsepower. And we will not use any rare earth in the electric motor as well. All of this shows that we are fully committed to climate protection. And I can assure you and our customers, we will fulfill the tough European CO2 regulations for 2020 and also 2021. This year alone, we will reduce our European fleet target by around 20%. And I can promise you, our customers will never have to compromise between driving pleasure and sustainable mobility. Every BMW will drive like a true BMW. The BMW i4 will be definitely be proof of that. We will build this great car right here in Munich and I can tell you this, the design you see here is quite close to the actual Series car coming next year. And now Adrian Van Hooydonk, our famous Head of BMW Group Design, will give you all the details. Thank you.

Thank you, Oliver. Hello, everyone. Hello, everyone, here in Munich and watching around the world. With BMW i, we have pioneered a new type of mobility and created a new and cleaner form language fitting to zero-emission mobility. Now with Concept i4, that zero-emission mobility hits the core of the BMW brand. The i4 design is strong, sexy and modern. The vertical grill and very slim headlamps give the car a strong and confident look. The silhouette is extremely elegant and dynamic. It is hard to believe that there is actually a battery underneath the floor. The body side is clean and crisp, only one defining line and well-integrated door handles. The design of the wheels is lightweight and aerodynamic to improve the car's efficiency. And in the rear, we have very slim taillamps and a diffuser that improves aerodynamics and could become a new and iconic element across our vehicle range. Now in the interior, we have some really big news. We have reinterpreted the BMW typical cockpit layout in a very clean and modern way. You now find a curved touchscreen enveloping the driver. Combined with our head-up display technology and our natural interaction user interface, it brings BMW driver orientation into the digital age. As you know, BMW is all about a highly emotional driving experience. And an important part of that is sound, giving the driver direct feedback to his or her inputs. BMW design is cooperating with Hans Zimmer to create some truly iconic and modern soundtracks for our vehicles. Hans Zimmer is well known for his film music and is a multiple Grammy and Academy Award winner. He is a great source of inspiration for us at this crucial moment in time in which mobility is redefined. So now let's watch a short movie and hear what the future sounds like. [Presentation]

So with all of this, the Concept i4 is giving you a very good idea of what you can expect from us in the near future, and that, Oliver, is what we really wanted to show the audience today.

Thank you, Adrian. It looks great, and I'm really looking forward to the BMW i4 Series vehicle. Thank you, everyone, for joining us this morning, and we hope to see you again very soon. Thank you and goodbye.