Bayerische Motoren Werke AG (NASDAQ:BAMXF) Q3 2019 Earnings Conference Call - Final Transcript
Nov 06, 2019 • 05:00 am ET
Ladies and gentlemen, we will now begin our question-and-answer session. [Operator Instructions]. One moment please, for the first question. And the first question is from Tim Rokossa, Deutsche Bank. Your line is now open. Please go ahead.
Good afternoon gentlemen, it's Tim Rokossa, Deutsche Bank. I'd like to start with the CO2 point, specifically Point specifically looking into 2020. You always said very clearly that you will meet these targets. You seem to be a lot better on track than for example Daimler. Three points on that; firstly, how much costs should we assume for CO2 compliance next year? Will Generation 5 already help you on the cost side next year? And how many of your cars in Europe need to be EVs next year?
And the second question block, Oliver, maybe to you, you are now CEO for few months. Listening to your speech, it sounds very much to me as if you don't really intend to make any material changes to the strategy and your positioning of the brand and company. Is that a fair interpretation? Or what do you consider to be your key priorities looking ahead? Thank you.
Okay, thank you very much, Tim. I think we start with Oliver.
Yes Tim. Thank you very much for your question. Your question was what are our -- my personal indications on our strategy. I think looking at the business environment, and we are not only starting today to look at the business environment, the car itself and the system integration of the car is a completely underestimated challenge. If you look at our environment, there are many players around, who struggled with that very challenge, to integrate all technological components to meet fuel efficiency requirements, to meet digitalization requirements, and customer expectations overall, and that is our very core concentration, where we would like to concentrate on. And we regard this is a very-very profitable future outlook.
And that is not an easy task to select the more important things of system integration and the not so important things around the vehicle. And I think this is a change to our focus we had before. But its not a complete one 180 degree turnaround, because we have been working on this growth strategy for the past five years already, and you mentioned quite well that we will -- next year and the year after, we will meet our emission targets, and that is a very result of that strategy to integrate all requirements into the product and stay profitable, at the same time. And with that, we are quite confident that we will have quite positive years ahead.
Okay, thank you very much. So second quarter was about CO2 costs for next year. Nicolas?
Tim, maybe to start with very clear general statement, fines are definitely not a strategic option for the BMW Group. And we are in a strong position, in particular also to meet the European 2020 targets, why, because we have we have started ahead