Speech Hendrik von Kuenheim Director BMW Motorcycle AG

[boxercup]

Babel Fish Translation


In Ger-English:

Speech of Hendrik von Kuenheim leader BMW motorcycle BMW motorcycle medium discussion

Munich, 16 April 2008

The future BMW motorcycle - Hendrik von Kuenheim in the medium discussion - it applies the spoken word - Them may be called Ladies and Gentlemen, dear motorcycle friends, also I cordially welcome. It is today the first time that I speak in my new function as a leader of BMW motorcycle to you. Some of you already out mean earlier activities know me - last I led the subsidiary BMW Spain. Since more than 20 years am active I for BMW and could in all the years many experiences in the international automobile and motorcycle selling gain. Since beginning of the yearly I bring now these experiences into the business field BMW motorcycle. Both with the mark BMW and with Husqvarna Motorcycles we work on a whole set of fascinating projects. We are in the middle thus in a large-scale model offensive. This model offensive applies to convert it in the coming years successfully in the markets. Our goal is to be developed the motorcycle business clearly and grown to profitable. Ladies and Gentlemen, two ranges of topics are located therefore today in the center of my speech. On the one hand I would like you over some background to our ambitionierten growth goals to inform and on the other hand may I you a first status to our supersport project give. Let me with some substantial aspects of our growth strategy begin. Also in this year we want to deliver more motorcycles to our customers than in the year before. We want to attach thereby to the success history in the meantime of many years of BMW motorcycle. Before the background of the non-uniform development of the motorcycle markets and remains that is a very fastidious goal. We set thereby further completely strongly on our nuclear models in the Tourer -, for sport route he and within the Enduro range. These models remain indispensable for the future BMW motorcycle program. Completely particularly applies also to our box he models. The double-piston engine belongs to BMW like the white-blue brand name. For this reason this independent engine concept will have a long future with BMW motorcycle. Here you may expect numerous innovations from us in the next years again. Ladies and Gentlemen, not only with our nuclear models we continue our offensive course consistently. BMW motorcycle has a ambitioniertes paragraph goal. In the context of the strategic reorientation of the BMWS Group have we admits given that the paragraph of BMW motorcycle is to grow until 2012 by approximately 50% on 150.000 units. In order to achieve this goal, we align BMW motorcycle still more sportily and more dynamically and go purposefully into market segments, in which BMW motorcycle was so far not represented. With the HP2 models and the f-series we gave already first impulses. More and more we place ourselves to the competition with completely new, innovative and sporty products. Also in international motorcycle racing we will be still more strongly represented in the future. Why do we make that? Within the Enduro range we see still high potential for a further volume growth. With the models in the route he and sport route inheritance realm we push against it at growth borders. Here we exhausted our market potentials to a large extent in the meantime. Now it applies to address new customers who did not find the suitable product so far with BMW yet. That is the reason, why we expand our Produktportfolio since other market segments, which we did not serve so far. Two examples for this are the entrance in the segment of the Sportenduros as well as the entrance of BMW in supersport the segment. Ladies and Gentlemen, in order to come here still more purposefully in front, we go the way over a two-mark strategy. In the last year we acquired therefore Husqvarna Motorcycles. We want to reach the paragraph goal of 150.000 motorcycles together with Husqvarna Motorcycles. Husqvarna Motorcycles ranks one of the fame-richest motorcycle marks world-wide among the oldest still producing motorcycle manufacturers and is. Over 70 world champion titles in the Offroad and superengine sport decorate impressive firm history. With the sport-oriented Husqvarna models we expand now the product offer still faster since new buyer categories in the entire Offroad and Supermoto range, than alone with the mark BMW. Particularly in the USA in addition, in south Europe and Australia the competition-oriented Offroad range is large. Husqvarna Motorcycles is set up there already very good and is thereby the perfect addition for BMW motorcycle. The new mark of the business field motorcycle makes very much joy for us and animates the whole enterprise. Already for the year 2008 we put ourselves ambitionierte growth goals. We plan a volume growth of approximately 30 per cent in relation to the previous year and are at present full on course. Over this stage goal to reach we introduced and converted already numerous measures since the assumption. Production runs after plan and with the reorganisation of the spare part business is now also the earlier problems solved in the spare part supply. At the same time we started programs, in order to improve the product quality further. Much fun makes Husqvarna for us also in the engine haven. The past seasonal trend is very pleasing. We engage ourselves both in the Enduro and Motocross sport and in the Supermoto range. The first season results in the individual disciplines lie already now over expectations. In the connection the statement makes particularly confident for us that the assumption increased the interest of customer in Husqvarna, in particular with the amateur engine haven, by BMW substantial. Ladies and Gentlemen, not only with Husqvarna we give to gas also the model offensive of BMW motorcycle continue on high level. In 2008 we offer clearly revised R 1200 gs and gs Adventure to our customers. On 8 March the sales of the exclusive BMWS HP2 sport began and in the second half-year the Sportenduro BMW G 450 X the model program in a segment completely new for BMW will supplement. On 8 March also the new two-cylinder models BMW F celebrated 800 gs and BMWS F 650 gs their Verkaufsdebut. The first feedbacks from the markets tune us very optimistically. The world-wide demand exceeds our production capacities even at present. In particular in the southEuropean markets such as Spain, Italy or Greece the demand lies over our expectations. Particularly the F 800 gs very strongly by customers one buys, who drove so far a foreign make. So much to the 2008er models, which already admits to you are. Beyond that we will regard still further surprises, about which we would not like ready to talk today yet as the large motorcycle fairs Intermot in Cologne and EICMA in Milan. They see, we are well set up. BMW motorcycle - like all European motorcycle manufacturers - stands nevertheless at present before special challenges. We experience nearly daily, how our basic conditions worsen: the raw material and energy price rise and the foreign exchange risks increase. How strongly the currency topic affects our competitive position, I would like to describe briefly: The dollar and the Japanese Yen lost in the last 7 years to the 80% of their value opposite the euro. That means for us: Our main competitors profit with each point with the dollar and Yen become weaker. They can accordingly more favorably offer their products on the world markets and gain nevertheless high profits. Whereupon we must find answers, because we do not know the cost disadvantages 1:1 to our customers passed on. In order to remain further competitive, we increase therefore the far efficiency in the development, production and in the selling. Beyond that we intensify the international purchase activities and create a very attractive, innovative Produktportfolio. Ladies and Gentlemen, thus I come now to the point of program, for which you wait surely strained. How I mentioned a while ago, we go consciously new ways, in order to achieve our planned volume growth. Therefore we decided among other things to place us to the competition in the segment of the supersportsmen both on the road and on the racing course. Is conscious to us thereby which large challenge we anpacken thereby. Above all the Japanese have an experience projection/lead of approximately 20 years in the class. But the thought to it spurs us. From the beginning we want to be with our supersportsman on eye level with the established competition. The development crew is accordingly motivated. I can say to you today - the status reached so far is very promising. We are sure that we will offer a likewise convincing series motorcycle with a convincing package in the Superbike world championship to start to be able and also. Our supersport motorcycle an absolutely competitive offer will be both technological and concerning the price. Loves motorcycle friends, which are our motivations into this segment to advance exactly? First of all: With the fascination of this motorcycle, with genes from racing, we extend the mark picture of BMW motorcycle by a further sporty and emotional component, in order to inspire new customers for the mark. The Superbike WM enjoys of internationally growing popularity with motorradfahrern, since they can observe their motorcycles in the direct comparison to the competition on the racing course in contrast to the MotoGP. And approximately around the globe! The Superbike world championship is delivered in this year on 4 continents (Asia, Australia, Europe and North America) and in 13 countries.