Press Conference At The Intermot 2004 In Munich - Speech By Dr. Herbert Diess, Presid

[boxercup]

PRESS CONFERENCE AT THE INTERMOT 2004 IN MUNICH - SPEECH BY DR. HERBERT DIESS, PRESIDENT BMW MOTORRAD
09/20/2004

Ladies and Gentlemen,
I, too, am very happy to see so many of you at our Press Conference today at the INTERMOT Show, and I welcome you to BMW Motorrad.

BMW Motorrad is going through a period of transition, making significant upfront investments on the introduction of new models. The year 2004 marks the beginning of our product offensive: The R 1200 GS has made a very successful entry into the market, with deliveries of more than 12,000 units to customers worldwide in the first six months following the introduction of our new model in March. In Germany alone we delivered 4,828 units to customers during this period, an increase over the same period last year and, as a result, the very successful former model, by no less than 36 per cent!

So it is fair to say that the R 1200 GS is outperforming all our expectations. It is a best seller in all relevant markets and we have already been required to increase production in response to demand. Indeed, this outstanding success of the R 1200 GS confirms the approach we have taken in the orientation and focus of our products.

Our second new model, the K 1200 S high-performance athlete, was presented here in Munich in July. This machine offers supreme performance without neglecting virtues such as riding safety, environmental compatibility, and, quite generally, safety on the road. It is an extremely dynamic machine acting as the spearhead in technology in our product portfolio with its wide range of innovations in the engine and running gear. Stable and easy to handle in every situation, full of power, and benefitting from perfect brakes, the K 1200 S as we see it points into the future and clearly reveals the ongoing development of the sports motorcycle.

The K 1200 S will be at the dealership in late September. The first reports on this new machine by the press are very good, customer interest is very great indeed, and our dealers are already receiving numerous advance orders.

So we are well prepared for the future in terms of our models and production, and the investments we have made in the future will pay off from next year, as soon as the new K 1200 S reaches full production and is available in all markets.

We are therefore looking at the year 2005 full of confidence, and we are very positive about the ongoing development of our sales. And this is only the beginning of our product initiative!

Here in Germany the negative trend we have now seen for five years is leaving some traces this year, also in our case. Year-to-date by August, our registrations in Germany were down 6 per cent versus the same period last year. But since June we have seen signs of a turnaround in the German market. And since, by tradition, we are stronger in the second half of the year, we are at least moderately optimistic for the rest of this year.

Reflecting the weakness of major markets, as well as the development of our model cycle, worldwide customer deliveries year-to-date by August were down 4.1 per cent versus the previous year (memo: 64,785 units in 2004 versus 67,428 units in 2003). Sales nevertheless differ significantly from one country to another, customer deliveries in Spain, for example, increasing in the same period by 18.3 per cent and thus showing the strength of this growth market. And in France, where the overall market is slightly declining, we again see a positive development, with customer deliveries up 10 per cent.

Looking worldwide sales throughout the entire year, we are confident that we will succeed in repeating the previous year's overall figure. 2004, therefore, is not more than a break in our growth, naturally influenced by the changeover to new models and customers waiting for other new Boxers still in the pipeline.

Now, Ladies and Gentlemen, let us move on from the present to the future and our ongoing model policy: In our two press launches this year, we have already described our basic strategy, with our future models becoming even more dynamic and sporting, that is with more power and less weight. And this applies to all our new models including the Tourers, the K 1200 S and R 1200 GS showing the path we are taking.

In technological terms we are continuing to increase our leadership: The most advanced engine management with knock control, the highest compression ratio, CAN-bus technology, intelligent lightweight engineering, an optimum mix of materials, as well as innovations and electronics on the suspension and running gear will be introduced step-by-step in our new models. And even where we are already far ahead of the competition in technical terms, for example with Integral ABS, we will not slacken in becoming even better. Application of the brakes on our new models has been optimised to an even higher standard, and this brake system is unparalleled in its effectiveness.

How will we continue from here with our new models?

Renewing our Boxer model series step-by-step, we will focus on our model range. The first point is that there will be no direct successor to the Cruiser in our next model generation. This is due to technical considerations: The new engine you know from the GS is designed consistently for low weight and therefore - quite intentionally - offers only a small margin for an increase in engine displacement. And since the trend in the cruiser segment has now been pointing far beyond 1400 cc for quite some time, a Cruiser in its former, classic style with a smaller engine would no longer fit into our concept for the future. But this does not mean that we are turning away from the cruising philosophy with BMW motorcycles once and for all. On the contrary, it would be quite conceivable for us to re-interpret this theme quite differently some time or another.

This means that the R 1200 C and CL the way we know them today are now entering their last model year. In the 7 years since we launched the Cruiser in 1997 to this day we have delivered more than 40,000 units (memo: 40,218) of the Cruiser to customers. And in this successful process we have won over many new customers. Here at the Intermot Show we have a special, limited edition model of the purist R 1200 C Montauk in attractive twin-tone paintwork, with a special chrome package, and a wide range of standard features. Being built just 350 times, this model is to be admired as of today on our stand and will be entering the market in autumn.

Having built a supply of R 1200 C models for 2005, we have already provided for next year's demand and will use the production capacity thus available in order to meet the great demand for other Boxer models more quickly and efficiently.

This year, Ladies and Gentlemen, you have already experienced two trendsetting debuts from BMW Motorrad in January and July. Today we are adding the third highlight!

The word "concept" is certainly no longer appropriate for the motorcycle we will be showing you in a few minutes as an exclusive, worldwide preview. This is a naked bike based on the technical features of the K 1200 S and has already come a very long way in its process of development. To use the model terminology of BMW Motorrad, the "new K" is a "Roadster", it is a consistently purist motorcycle all round. A thrilling high-performance riding machine with all the positive features, riding safety and technical elements of the K 1200 S.

It is a motorcycle which offers enormous riding pleasure particularly on winding country roads. This is the most powerful of all naked bikes in the market, combining this power with perfect handling. The K 1200 R, to give you the name of this new model, will certainly lead to extremes in people's opinions and response. And this is by all means our intention: This motorcycle is intended to stimulate and reach groups of customers who so far have not considered a BMW. It shows how significantly we are moving ahead and how we define sporting, dynamic performance.

With minor modifications and adjustments, the technical features and components of the machine you are about to see, that is the drivetrain and running gear, were carried over from the K 1200 S. Hence, many of the basic data and specifications are similar. Doing without the fairing, this motorcycle is approximately 10 kilos lighter which, given comparable engine output and torque, means even more dynamic performance versus the K 1200 S particularly at low and medium speeds.

We are showing you this motorcycle in its final design and appearance, even though there might still be a few minor changes here or there. Market launch will be in 2005, but the K 1200 R will definitely not be at the dealership at the beginning of the season. Rather, we expect this new motorcycle to reach the market in the second half of the year, when it will be available to customers.

Since we are currently focusing primarily on the K 1200 S, we will not show this naked roadster to the general public during the Intermot Show. So the only and exclusive presentation is here at this Press Conference.

But now I will not keep you waiting any longer - so after thanking you very much for your attention Ladies and Gentlemen, I am now proud to present our new
K 1200 R!


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[Trevor Rossack]

Thanks for that, Mate!!!


Cheers
TREVOR

[Skippy]

Very interesting read.Thanks for puting it up here Robert.

[jclark]

Good read, thanks!

jeff

[Rattus]

Excellent Stuff. I have a lot of respect for Dr. Herbert Diess.