Bayerische Motoren Werke AG (NASDAQ:BAMXF) Q3 2019 Earnings Conference Call - Final Transcript

Nov 06, 2019 • 05:00 am ET

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Bayerische Motoren Werke AG (NASDAQ:BAMXF) Q3 2019 Earnings Conference Call - Final Transcript

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Executive
Oliver Zipse

the long-term. That remains our underlying goal. It is also what the capital markets expect, and we are working systematically on this.

In light of the positive development in the third quarter, we are able to confirm our guidance for the financial year 2019. Ladies and gentlemen, the biggest model offensive in BMW Group's history continues, as well as attractive models, that also includes different drive technologies and the latest standards in connectivity. We see this as an effective contribution towards limiting climate change and reducing emissions.

If we turn to our customers, they look first and foremost, for the vehicle segment that best suits their lifestyle and mobility needs. And only then, they think about the best drivetrain that would suit their needs; fully electric, or a plug-in hybrid, or an efficient combustion engine. Above all, our customers always expect a true BMW regardless of the drivetrain.

We're able to offer customers the model they want. For example, the BMW 5 Series Sedan or the X3, with different drive technologies different drive technologies. That is what we call the Power of Choice. For this very purpose, we are designing the next generation of our vehicle platforms from 2021 on, to be flexible for rear and front-wheel drive. We can manufacture various drives on one architecture and integrate them into our plant structures. But we are also able of integrating vehicles customised for e-mobility, such as the iNEXT at plant Dingolfing, starting from 2021.

For the customer, there is no noticeable difference regarding the vehicle architecture on which the car has been built. We expect e-mobility to make significant advances from 2021 on, once the European Union's new CO2 standards take effect. We remain strongly committed to meet regulatory requirements in the European Union and worldwide, and we have always complied with with legislation and have been well-prepared in advance to implement any necessary changes. For example, with WLTP and RDE-I. This now also applies to RDE-II and for example, the NCAP Crash Test.

RDE-II means further tightening of the standards for nitrogen oxide emissions. This will apply to new vehicle types from 2020, and all new vehicles registration from 2021. The European NCAP Crash Test requires all vehicle classes to have a whole series of expanded assistance systems from 2022 on. These requirements will increase further in 2024.

Our new fully electric vehicles will be ready for launch right on time for the EU's new CO2 standards. BMW iX3 from 2020; the BMW i4 from 2021; and our new technology flagship the iNEXT, also from 2021. The biggest market for the iX3 will be China. That is why, we will produce it there and export it to the rest of the world.

As you can see, we are certainly benefiting from our experience with electromobility. Our BMW i3 has been available since 2013. It is not just an e-mobility pioneer, still today it remains a true game changer, and continues to be a benchmark for a sustainable approach. Our