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BMW Group reaffirms outlook for 2020 as they remain committed on course towards achieving their plans for the full year.

07 Aug 2020 | International News : Germany

At the halfway stage, the BMW Group remains on course towards achieving its targets for the full year in 2020. 

After implementing controlled cutbacks at many of its plants in March as a response to the foreseeable drop in global demand, the Group initiated a coordinated restart of its production facilities in the second quarter.

The management of production capacities is being monitored closely in line with market developments and fluctuations in customer demand
Since mid-June, all its manufacturing plants have again been in operation. Nonetheless, cost efficiency and cash management remain decisive factors for best controlling the consequences of the COVID-19 pandemic.

"Our swift responsiveness and consistent management strategy enabled us to limit the impact of the corona pandemic on the BMW Group during the first half of the year. We are now looking ahead to the second six-month period with cautious optimism," said Oliver Zipse, Chairman of the Board of Management of BMW AG.

Despite a significant market decline following the COVID-19 pandemic the BMW Group was able to achieve a positive profit before tax of $810 million in the first half year.

The BMW Group remains committed to its plans despite the highly challenging market environment. It will continue to invest in future-oriented technology fields and develop its expertise accordingly. As previously announced, the Group intends to invest more than $49 billion in research and development up to 2025 with the aim of extending its leading edge in terms of innovation. In order to accomplish the targets referred to above, the BMW Group continues to make the necessary upfront investment in future-oriented technologies.

By 2023, the BMW Group intends to have 25 electrified models on the road
"In light of the current situation, we are either postponing or closely scrutinising our projects. As announced, we have also systematically reduced inventory levels during the second quarter with the aim of safeguarding free cash flow," stated Nicolas Peter, Member of the Board of Management of BMW AG, Finance.

The Group's second strategic focus is on sustainability. During the COVID-19 pandemic, the Board of Management has set some ambitious long-term targets.

For the first time across the entire life cycle of its products - from the supply chain to production and through to a vehicle's end-of-life phase, the BMW Group has set itself clear targets for reducing its CO2 emissions up to the year 2030. The key lever for achieving this target is a far-reaching product strategy that massively promotes the use of e-mobility.

In ten years, the goal is to have a total of over seven million electrified BMW Group vehicles on the roads - some two thirds of which will be all-electric models. The BMW Group is already a leading maker of electrified vehicles. By the end of 2021, it will be offering five all-electric, series-produced automobiles in the form of the BMW i3, the MINI Cooper SE, the BMW iX3, the BMW iNEXT and the BMW i4.

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