In the latest TOP30 list of global auto manufacturers that has been widely circulated recently, Tesla surpassed Toyota, the world’s largest established auto company, to top the list. Weilai, Xiaopeng, and Ideal also appear in the list, even ahead of many established international car giants.
But market value is a capital game, and real money revenue, profits, and cash flow are the key to measuring the success of a company.
In 2019, when the market environment is extremely challenging, the BMW Group’s global sales exceeded 2.53 million vehicles, total revenue exceeded 100 billion euros, and pre-tax profit exceeded 7.1 billion euros.
This is not the best year for BMW’s financial data, but the total dividends distributed still reached about 1.65 billion euros.
Compared with the topic of “algorithm”, “iteration” and “OTA” and other new power brands, “sustainable development” is not a hot topic. After all, this is a topic that was discussed in the 1980s. However, for BMW, sustainable development is beyond the technical topics of electrification and intelligence, and is the general outline of the corporate strategy.
On November 11, the BMW Group unveiled its innovative pure electric BMW iX. The chairman of the BMW Group, Oliver Zipse, did not talk too much about this product, but repeatedly mentioned sustainable development in his speech, he said sustainable development is the core of all our words and deeds.
In the “iNEXT Discovery Journey”, Ziptzer said: “Our mission is to create a successful business model while being able to answer all social concerns. We are working hard to make BMW to be a sustainable company. The work involves process design, way of thinking, product design and other aspects.
In such a severe situation in the first half of 2020, the BMW Group’s R&D investment exceeded 2.7 billion euros, basically the same as last year. These investments are mainly invested in core areas related to electrification and digitization.
Jochen Goller, President and CEO of BMW Group Greater China, said: “We are in the midst of a revolution. Electrification and digitization are happening simultaneously and advancing simultaneously. These two aspects will be the focus of our future work. So the entire company needs to do a good job in the transformation of thinking and awareness, while also adjusting the corporate structure. “
In 2019, the BMW Group established the Group’s first subsidiary specializing in digital services, Lingyue Digital Information Technology Co., Ltd.; it also established a high-performance data center and launched a new IT platform to empower BMW’s autonomous driving research and development.
Now, the BMW Group is adopting a faster digital process and a more streamlined structure.
In October 2020, BMW announced the establishment of a new department called “Digital Car”, which integrates all digital-related departments and functions, such as software, hardware, electronics, and driving assistance.
BMW is transforming into a data-driven R&D company. For example, in the development of BMW iX, BMW for the first time cross-border cooperation with a game company to incorporate “game engine” technology into the development process. For example, BMW can upgrade and expand vehicle functions through remote upgrades. This year, the global upgrade has covered more than 750,000 vehicles.
BMW’s digitalization also goes deep into sales and user operations, such as establishing a new “customer data platform”, developing a new digital business platform for dealers, and launching a new My BMW Application.
BMW is steadily advancing the pace of digitization. In its view, digitization will redefine luxury. The digital transformation and innovation of BMW’s entire system are empowering the sustainable development of the group.
Electricity will help the BMW Group achieve sustainable development across the entire value chain.
In 2019, the BMW Group’s carbon dioxide emissions were reduced by 25% compared to the previous year, and two-thirds of which came from new energy vehicles. BMW is accelerating the pace of electrification of all its products. By the end of 2021, the group’s total sales of electrified vehicles are expected to reach 1 million. By the end of 2023, it will provide 25 new energy vehicles worldwide, and it will sell 7 million electric vehicles by 2030.
The sustainability strategy of the BMW Group runs through the entire value chain. For example, for every plug-in hybrid product currently sold, the “carbon footprint” must be certified from the procurement of raw materials, supply chain, production and use, to the final recycling stage.
Currently, BMW produces the lowest water consumption per vehicle in the industry. By the end of 2020, all BMW plants around the world will use electricity generated from renewable energy sources. The BMW Brilliance Shenyang production base has completed the goal in 2019.
BMW has launched the fifth-generation electric drive system, and the production of new electric motors no longer uses rare earth resources. BMW also requires Tier 1 and Tier 2 suppliers that produce fifth-generation high-voltage power batteries. All aluminum comes from renewable materials, and at least 50% nickel and cobalt come from renewable materials. The battery products delivered to BMW must use 100% renewable energy in the production process.
Of course, there is another important aspect of sustainable development-corporate social responsibility. BMW regards it as an important part of its corporate strategy and persists. For example, the “BMW Chinese Cultural Journey” project has been carried out for 13 consecutive years.
The transformation of the automobile industry, on the surface, is the emergence of new technical means, but in essence, it is to achieve sustainable development in which technology and products are in harmony with environmental and social development. The BMW Group is using its daily practice to reshape itself and set an example of sustainable development for the automotive industry.