BMW turns corner on 100th birthday
BMW is celebrating its past by unveiling a new plan for the future. The German car manufacturer marks its 100th birthday this year, having built a reputation for delivering powerful luxury cars.
However, it is going in a new direction now with an evolution from mechanical engineering to software and technology.
Chief executive Harald Krueger said, ‘We are leading BMW Group into a new era. To this end we leverage innovative technologies, comprehensive connectivity and zero-emission mobility.
‘All of these need to be industrialized, bearing in mind our business responsibilities, and in a sustainable manner, which in itself is another great challenge. The value creation is shifting from the actual hardware toward software and services.’
The company believes that by pushing digital connectivity and autonomous cars, as well as developing new businesses such as motorcycles and financial services, it can register a pre-tax margin of at least 10% from 2017 to 2020.
BMW has also said it will put more energy into developing high-definition digital maps, sensor technology, cloud technology and artificial intelligence, while also enhancing its services portfolio with wall mounted electric car charging boxes and software programs to help drivers find a parking space.
At the same, time, BMW will streamline its portfolio of cars to focus on the most profitable models, with a new, simpler production method expected to achieve savings of more than 100 million euros over the coming years.