German vehicle giant BMW powers toward sustainable development
“The main task I have is to have a successful business model that can only work if it also answers social questions,” said BMW Chairman Oliver Zipse, outlining the German automaker’s ambition for sustainable development.
Sustainable development includes but is not limited to business success, but also relates to technological innovation, especially in the fields of electrification and intelligent connectivity, and personnel cultivation, according to the automaker.
Taking business success as a premise and foundation for enterprises’ sustainable development, BMW achieved strong results in sales and revenue in 2019, even though the market that year was turbulent. China, as the largest automobile market globally, experienced a year-on-year drop of 8.2 percent in sales volume in 2019.
BMW sold more than 2.53 million vehicles globally in 2019, with a total revenue topping 100 billion euros ($118.75 billion). It was not BMW’s best year for financial figures, but it still generated around 1.65 billion euros in dividends, which allows the automaker to have plenty of cash flow to invest in research and development.
According to the automaker, BMW invested more than 2.7 billion euros in R&D during the first six months of 2020. Looking ahead, BMW plans to invest more than 30 billion euros in R&D by 2025, with major R&D fields including digitalization and electrification.
For BMW, digitalization involves digital production and digital products and the transformation of the whole company’s operation and thinking mindset, according to the automaker.
The automaker is transforming its office procedures and enterprise architecture into more digital and streamlined ones. For instance, BMW launched a new department entitled “digital car” in October, aimed at integrating all its divisions and functions related to digitalization, covering software, hardware,
Clockwise from top: BMW new energy vehicles are an important part of the automaker’s sustainable development strategy. BMW Brilliance has achieved production powered solely by renewable energy. The BMW iX demonstrates the automaker’s advanced electrification and digitalization. The model had its global debut on Nov 11.
electronics and autonomous driving.
BMW’s digitalization has also extended to sales and user administration. By launching a new customer data platform and the My BMW smartphone app, the automaker is to assist its dealers in developing
digital business platforms and allow its customers to enjoy a more digital car experience.
“Digitalization will redefine luxury and is of great significance for BMW,” said Jochen Goller, president and CEO of BMW Region China, adding that joining hands with Chi
nese internet giants, including Alibaba, Baidu and Tencent, BMW has launched a series of localized digital functions and services for Chinese customers.
From the traditional perspec - tive of sustainable development, BMW has made solid
progress year over year.
In 2019, BMW’s carbon dioxide emissions was 25 percent lower than that of the year before, with conventional vehicle measures contributing one-third, and two-thirds coming from NEVs.
By the end of 2023, BMW will offer 25 NEV models worldwide, half of which will be electric vehicles. And it is expected that by 2030, the automaker will sell a total of 7 million NEVs.
As Zipse noted, innovative technology is the key to reducing emissions and achieving the future of high-end and sustainable mobility. BMW has launched the fifth-generation electric drive system, which is applied to the China-made BMW iX3 and the upcoming models the iX4 and the i4.
Meanwhile, BMW requires of its primary and secondary suppliers of fifth-generation high-voltage power batteries that 100 percent of the raw material aluminum and at least 50 percent of nickel and cobalt should be made from recycled materials, and all the battery products delivered to BMW should be produced by using renewable energy.
Every BMW plug-in hybrid on sale has a certified carbon footprint, covering the procedures from raw material procurement, supply chain, production, application and recycling.
By the end of 2020, all BMW plants around the world are expected to be powered by renewable energy. And it has been achieved by BMW Brilliance Automobile, the German automaker’s joint venture in China, in 2019. As a result, the joint venture’s carbon dioxide emissions during production decreased by 65.1 compared with 2018.
Regarding professionals as a cornerstone for sustainable development, BMW also attaches importance to the development of its staff members, especially in terms of information technology.
As of now, BMW is one the largest IT employers in Germany, with around 7,200 employees in the fields of IT and software. The automaker has completed training in data analysis for an additional 5,300 employees.
In China, BMW established Lingyue Digital Information Technology, which has lured a raft of IT professionals.
Besides that, the automaker has set up its largest R&D system in China outside of Germany, involving more than 1,100 R&D professionals.