It is becoming apparent to the BMW Group that delivery volumes in key markets are not going to return to normal in the space of just a few weeks.
BMW Management Board Chairman Oliver Zipse says “Quite clearly, the situation remains serious and market forecasts are subject to constraints under these circumstances. We are gradually ramping up our production again according to demand in each market. However, we are monitoring developments extremely closely to be able to respond with maximum flexibility, By 2025, the Group intends to invest over €30bn in R&D”.
The BMW Group remain convinced of the importance of focussing on the innovations required to meet those needs as crucial to its enduring success: “We remain focused on investing to enhance our future success. We will also continue to train young people,” said Zipse with emphasis. “In no way does the pandemic call our business model into question. Driven by technology and innovation, our business model will remain future-proof after the current crisis has ended.” With these aims in mind, the BMW Group continue to invest in broadening its expertise in key future-oriented fields of technology.
Potential for greater synergy and efficiency in indirect purchasing as well as in terms of material and production costs is also being leveraged throughout the Group. By the end of 2022, the Group intends to save more than €12bn through efficiency-boosting measures.
In the first quarter of 2020,
– Group revenues increased slightly to €23bn with automotive segment revenues at -6.4%, delivering a total of 477,000 BMW, MINI and Rolls-Royce brand vehicles to customers worldwide (‑20%).
– the BMW Group incurred substantial upfront expenditure on the road to providing tomorrow’s mobility. At €1,380 million, R&D expenses for the three-month period remained high (2019: €1,396m; -1.1%).