BMW 2015 Annual Report Download - page 42

42
18 COMBINED MANAGEMENT REPORT
18 General Information on the BMW Group
23 Report on Economic Position
23 General and Sector-specific
Environment
27 Overall Assessment by Management
27 Financial and Non-financial
Performance Indicators
29 Review of Operations
29 Automotive Segment
35 Motorcycles Segment
36 Financial Services Segment
38 Research and Development
41 Purchasing
42 Sales and Marketing
44 Workforce
45 Sustainability
49 Results of Operations, Financial
Position and Net Assets
59 Comments on Financial Statements
of BMW AG
62 Events after the End of the
Reporting Period
63 Report on Outlook, Risks and
Opportunities
81 Internal Control System and Risk
Management System Relevant for the
Financial Reporting Process
83
Disclosures Relevant for Takeovers
and Explanatory Comments
87 BMW Stock and Capital Markets
The Group’s worldwide distribution network cur-
rently
consists of around 3,310 BMW, 1,550 MINI and
140 Rolls-Royce dealerships. In China alone, around
60 BMW dealerships were opened in 2015. Products
and services are sold in Germany through BMW Group
branches and by independent authorised dealers. Sales
outside Germany are handled primarily by subsidiary
companies and, in a number of markets, by independent
import companies. The dealership and agency network
for BMW i currently covers some 950 locations.
Connected mobility and digital services expanded
In 2015, the BMW Group stepped up its activities in the
world of connected mobility. With Connected Drive,
the BMW Group occupies a leading position as provider
of online-based services in vehicles and the connectivity
of driver, vehicle and environment. Connected Drive is
meanwhile available in 45 markets. Comprehensive
connectivity via the on-board SIM card features in more
than 95 % of all new BMW cars. Besides its well-known
functions, such as the intelligent emergency call, the
Concierge Call or the real-time traffic information fea-
ture, Connected Drive also includes new highlights
such as a Wi-Fi hotspot in the new BMW 7 Series. It is
also possible to integrate apps from external providers.
All Connected Drive functions can be ordered either
conveniently from home or directly in the vehicle itself
via the Connected Drive Store, which is meanwhile
available in 18 markets.
The “Digital Services and Business Models” unit has
been set up to make better use of the opportunities of-
fered by digitalisation and to highlight the significance
of connected mobility beyond the vehicle. The objective
of this new customer-oriented function is to create a
comprehensive range of integrated digital services for
state-of-the-art mobility and to manage the expansion
of those services going forward.
BMW i now well-established
Under the brand name BMW i, the BMW Group offers
solutions for urban mobility that include not only the
vehicles themselves, but also services such as car sharing,
parking and battery charging. Two years on from its
sales launch, the BMW i 3 has meanwhile established
itself among the front runners in its segment and is
now one of the three best-selling electric vehicles in the
world. BMW i vehicles are currently on sale in 50 coun-
tries. Over 80 % of BMW i buyers are first-time customers
for the BMW Group.
The BMW i8 stands for a responsible attitude that
com-
bines sustainability and an exclusive lifestyle. With
this in mind, the BMW i Pure Impulse Experience
programme has been created under the name “Next
SALES AND MARKETING
Premium”. The programme gives participants an exclu-
sive insight into innovative and future-oriented trends
from the worlds of design, innovation, culture, cuisine
and travel.
The global dealership and agency network for BMW i
currently covers some 950 locations. A total of 438 se-
lected BMW i partners are currently offering this brand
on the direct sales markets of Europe and Japan. The
i models are also being offered in ten direct sales markets
via new sales channels, one of which is the “Customer
Interaction Center”. Furthermore, the “Mobile Sales
Advisor” sales channel has meanwhile become an inte-
gral component of the BMW i sales model in seven mar-
kets. The BMW i online sales platform gives customers
in the Netherlands, Belgium and Luxembourg the oppor-
tunity
to order a BMW i 3 via the Internet.
With BMW i 360° ELECTRIC, the BMW Group pro-
vides a comprehensive product and service portfolio
for
charging both battery-driven vehicles and plug-in
hybrids worldwide. The BMW i wall boxes and an in-
stallation service are available for simple, quick, emis-
sions-free home charging. As an on-the-road solution,
BMW i is offering the ChargeNow mobility service with
the most wide-ranging network of public charging
stations globally. With over 38,000 charging points in
25 countries, ChargeNow is the largest service provider
of its kind in the world.
Premium services for individual mobility
Since 2011, the BMW Group and Sixt SE have operated
the car-sharing service DriveNow in the form of a joint
venture. The integration of electric vehicles in these
operations is seen as an increasingly important aspect
of the business. For this reason, over 800 BMW i3 vehi-
cles were
added to various DriveNow fleets during the
period
under report. Electric vehicles accounted for
approximately 20 % of the DriveNow fleet at 31 De-
cember 2015 and DriveNow was being used by some
580,000 customers worldwide. With AlphaCity, com-
panies can offer their staff an alternative car-sharing op-
tion for both business and private use.
ChargeNow makes public charging simple and transpar-
ent and is therefore an important feature of sustainable
electric mobility. With a single customer card, BMW i
customers have access to a worldwide charging network.
The stations are displayed via the Connected Drive ser-
vices in the navigation unit, via the ChargeNow app or
on the ChargeNow website. ParkNow is a service that
facilitates parking, both on the street and in multi-storey
car parks. Spaces in car parks can be found, booked and
paid for, either online or via an app.