When a century-old luxury car brand is talking about metacosmity, what exactly is it talking about?
This is an era of drastic changes in the transformation of the automobile industry, an era of black swans and gray rhinos, geopolitical tearing, the disintegration and restructuring of the supply chain system, and new concepts and new vocabularies such as computing power, autonomous driving, 5G, and metaverse. All of them have made the century-old automobile industry enter a new crossroads overnight.
So, are the advantages of traditional giants gone? Has the competitiveness of the old and new forces undergone a fundamental reversal?
Recently, a century-old giant in Germany gave a full-fledged transformation report card.
In the turbulent year of lack of core and little electricity in 2021, it bucked the trend and delivered 2.52 million vehicles worldwide, an increase of 8.4% year-on-year. Automotive revenue climbed sharply to EUR 95,476 million, up 18.1% year-on-year. EBIT margin reached 10.3%. The automotive business's contribution to free cash flow reached EUR 6,354 million at the end of the year, an increase of 87.2% year-on-year. Group pre-tax revenue increased by 207.5% year-on-year to EUR 16,060 million and net profit of EUR 12,463 million, up 223.1% year-on-year.
In the Chinese market, a total of 846,200 new cars were delivered throughout the year, an increase of 8.9% year-on-year, accounting for 30% of the total global sales, ranking first in China's luxury car market.
I believe that everyone already knows the answer, and this proper transformation champion is the BMW Group.
It is worth noting that this gold-rich transformation report card was handed over by Chiptzer, the youngest young marshal in the history of the BMW Group. In the great ferry port of historical transformation, the young helmsman led the huge ship of the BMW Group to ride the wind and waves, overcoming thorns and thorns.
At the moment when the new and old forces in the automobile industry are fiercely fighting, the BMW of the old driver does not show the slightest fatigue, but is full of horsepower, full of firepower, and successively attacks the city.
Why can BMW win the "first battle" of transformation? How can BMW's transformation road win future battles?
China must do more
After the global earnings sharing meeting, Chiptzer specially opened a "small stove" for the Chinese market, specifically connecting a number of Chinese media, including star car APP reporters, and at this small-scale communication meeting that lasted more than an hour, Chiptzer had questions and answers, and "answered questions" one by one to solve many hot topics of reporters.
"We firmly believe that in the future, China will have a lot to do in terms of digitalization, electrification and sustainability! Work for China, for China, and for the prosperity of the world. This is not an either-or relationship, as a global enterprise, China must play a greater role! ”
Straight to the point, Chiptse used two "big deeds" to express the importance of the Chinese market to BMW's global business. Undoubtedly, those who win China win the world. This "Jinke Law", which has been verified by BMW many times in the automotive industry competition, makes Chiptze familiar with the heart, and is also the key "key to victory" for BMW's future transformation.
When it comes to China, Ziptse is like opening a conversation box. Without China's huge potential energy, BMW will find it difficult to win the "opening red" of transformation.
"There is no doubt about the performance contribution of the Chinese market! Mr. Keller always told us to be faster, and he was right. China is pushing us, and that's really important. At the same time, we are also very proud of the performance of the Chinese team. Chiptse said emphatically.
"BMW is a company that thinks a lot about the long term. I have personally been here for 30 years. We always think long-term. BMW is a global company with a huge footprint covering 27 European countries, as well as in the United States, with a Spartanburg plant. But we can say that the largest and fastest growing market is China. China is a key fulcrum of the long-term strategy. ”
And how to consolidate this strategic support point in the future, Ziptzer also gave BMW's roadmap. Whether it is investment, joint venture stock ratio adjustment, production capacity construction, product launch and many aspects, BMW must be laid out one by one.
Under The leadership of Gaole, BMW Brilliance's production base has received a total investment of more than 83 billion yuan since 2010. We are delighted that our collaboration with our partners will continue into 2040. The extended joint venture agreement lays the foundation for our further common growth and gradual development in the future. This is not just a digital concept, the prosperity of Liaoning Province is also important to us, and this sustainable success will run through our long-term vision with BMW Brilliance. The existing plant in Shenyang's Dadong District is currently undergoing a full expansion, and a new plant in Tiexi District is under construction, and both are scheduled to open this year. In addition, China has been providing a strong driver for BMW's digital innovation. BMW's autonomous driving also has a lot of room for development here, which is a huge boost for BMW's business in China. ”
Full horsepower and speeding up electrification
According to the data, bmw group sales of new energy vehicles reached 328,300 units, an increase of 70.4% over the same period last year, accounting for 13% of total sales. Among them, the sales of pure electric vehicles exceeded 100,000 units, a year-on-year surge of 133.2%, and the sales of plug-in hybrid models reached 224,500 units, an increase of 51.5% over the same period last year.
At the moment when Tesla is fully defending against the competitive landscape of the global automotive industry, BMW has defended its own transformation position. How to achieve anti-defense into attack in the future? Speeding up, expanding the lineup of electric products, and accelerating the landing is Chiptse's strategy.
According to the plan, the mass production and trial production of pure electric vehicle models will reach 15 in 2022; the "new generation" model based on the new structure will start trial production in 2024 and be unveiled in 2025; and by the end of 2025, the BMW Group plans to deliver 2 million pure electric vehicles worldwide.
"In the next few years, we will see electric vehicle sales growth much higher than in the past. By 2025, the sales volume of pure electric models in the Chinese market will account for more than 25%, and in the world, we originally planned to make pure electric vehicles account for more than 50% of total sales in 2030, and we are striving to achieve this goal ahead of schedule! Chiptzer is leading a BMW on a rapid march at "lightning speed."
From 2022 onwards, BMW's electric offensive in China will reach a new height. Chiptzer specifically mentioned the ix and i7, two flagship electric vehicles.
"These are two products that we are proud of. They're all in the right market segments, they're leaders in digital, and they're all electric vehicles. At present, bmw iX is very popular in the market and the supply is in short supply. The large luxury car segment where the BMW i7 is located must have four separate seats, and people will feel that comfort is more important than driving performance. In this segment, the BMW i7 is the only true luxury sedan, offering four separate seats, a variety of drive forms to choose from, a luxurious feel in the rear seat, and entertainment configurations that have no competitors. ”
The new generation of models that are being developed is undoubtedly the "decisive rally" of BMW's future electric offensive.
The "next generation" model with the new structure and equipped with the sixth-generation eDrive electric drive system will roll off the production line in 2024. By 2030, the BMW Group plans to deliver a total of 10 million pure electric vehicles to customers. At that time, the other three brands of the BMW Group will also be fully electrified: the Rolls-Royce brand will complete the electrification of all products; the BMW Motorrad urban mobility series will be fully electrified; and the MINI brand will also move towards full electrification from the early 1930s.
"The future is made"
For a long time, many people have a misunderstanding, that is, the traditional giants of the car circle are "insulated" for new concepts, and they are like "sleeping" elephants in the storm of new trends, always half a beat slower than the new forces.
But BMW is clearly not the one pretending to be asleep.
At this media communication meeting, The deepest impression that Ziptse left on me was that BMW in transition was "thirsty for innovation" and was very willing to implement new trends and new technologies for the first time.
The metacosm is a very obvious example.
While a considerable number of people are still discussing the metacosm, BMW has quietly become the "first" metacosmonic enterprise in the car circle.
So, what exactly is in BMW's metaverse?
THE BMW iFACTORY IS CHIPZER AND BMW'S "RESPONSE" TO THE METACOECTIVE.
What is the essence of transformation? Is it an electric car or a hydrogen fuel cell vehicle? No.
The essence of transformation is actually a change in the relations of production. The iFACTORY is BMW's reconstruction of future manufacturing and production relations.
According to BMW's plan, BMW iFACTORY will provide a global solution to the transformation of production networks in the electric era, as a way to redefine the future of automotive production and represent BMW's production strategy vision: lean, green and digital.
Lean is efficiency, precision and a high degree of flexibility, as well as the ability to integrate different drive technologies and vehicle architectures into production. Green refers to production through state-of-the-art technology, minimal resource consumption, and circular economy. The Group's goal is to reduce its carbon footprint from bicycles by 80% in production by 2030 compared to 2019.
Digitalization, arguably the "soul" of BMW iFACTORY, represents the BMW Group's use of data science and artificial intelligence in production and the integration of the real and virtual worlds in planning and development. This digital approach allows bmw group employees around the world to virtualize connectivity, and they can develop and plan in real time on the same platform.
"All BMW Group plants will eventually become BMW iFACTORY, which represents BMW's strategic vision for production: "Lean, green, digital". The biggest part of the advance is digitalization, which stands for the use of data science and artificial intelligence in production, as was the case with the first BMW iFACTORY in Hungary. At the same time, we are applying "lean, green, digital" to rebuild some existing factories, including those in China, using digitalization to improve quality, technology and team efficiency to an unprecedented level. ”
Chiptzer, who is a manufacturing expert in his own right, is full of expectations for iFACTORY, which will obviously become a "strategic place" for BMW to build core competitiveness.
Why does BMW graft the metacosm into manufacturing? This is inseparable from BMW's genes.
BMW is a giant that is good at manufacturing, and manufacturing is the cornerstone of BMW. As Chiptzer puts it, "Manufacturing has always been the cornerstone of corporate strategy, not just in the present, but always." Flexibility, efficiency and quality are the three elements of production. I am sure that to this day, the BMW Group remains the industry benchmark for the combination of the three. ”
As a giant with its own distinct values, BMW will not give up its inherent advantages in pursuit of a new concept of the metacosm.
The metacosm is the entrance to the future, but for BMW, it is not a vacuous word, let alone a castle in the sky.
The metacosm is meant to empower production, not to destroy manufacturing.
This is the determination and wisdom of Chiptse in an era of rapid change, a veteran who has fought for the company for 30 years.
The times have changed drastically, but for a giant like BMW that has experienced a century-old cycle, it is well aware that in the uncertain moment, it is more necessary to focus on grasping certainty and doing something.
"Our BMW iFACTORY is not a future tense. Applying digital twin technology, we replicate the physical production link into the metaverse, corresponding to the virtual and real, and show both the real and the digital scene. The same applies to our daily work. In the future, we will also apply virtualization and services in the car. What remains unchanged is that BMW will always offer its customers excellent luxury products and pure driving pleasure. ”
The future is not spoken, the future is hidden in the metaverse, the future is manufactured!
This is the biggest revelation that BMW brings to us when talking about the metacosm.