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BMW AG Wolfgang Mattes BMW Diesel. DEER 2006 Page 1 12th DEER Conference, August 20-24, 2006, Detroit

BMW Diesel – dynamic, efficient and clean Wolfgang Mattes BMW AG Wolfgang Mattes BMW Diesel. DEER 2006 Page 2 Contents

• BMW Diesel history

portfolio and market success

• What do Diesel customers like ?

• Challenges in the US-market

• Emission concept for TIER2 BIN5

• Conclusions BMW AG Wolfgang Mattes BMW Diesel. DEER 2006 Page 3 Dramatic evolution.

Torque: + 160 % Power: + 135 %

100 % Consumption: -20 %

Emissions: -99 % BMW AG Wolfgang Mattes BMW Diesel. DEER 2006 Page 4 Two decades of diesel competence.

1983 1987 1998 2004 - First inline 6 - First Digital - Introduction of DI - Variable BMW diesel Diesel-Electronic technology by BMW Twin Turbo (DDE) - BMW 320d wins - Particulate - 524td, fastest the 24 Hours of filter 2nd diesel Nürburgring generation of its time 1990 - First BMW diesel with Oxidation-CAT 1999 -First V8 diesel with direct injection within the premium car segment BMW 524td 2001 - DI with 2nd generation , 1600 bar BMW AG Wolfgang Mattes BMW Diesel. DEER 2006 Page 5 Production Volumes. 500

450 3rd Generation until end 2005 400 2.324.000

350

300

250

200 Engines 1000/a ∑ 2nd Generation 150 635.000

∑1st Generation 100 262.000

50

0 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 Production year BMW AG Wolfgang Mattes BMW Diesel. DEER 2006 Page 6 Diesel Models in Europe.

4- 1er 3er 5er 7er X3 X5

318d 118d One D 320d X3 2.0d 120d 520d 320cd 6-Cylinder 525d 330d 530d 330cd 730d X3 3.0d X5 3.0d 530xd 330xd 535d 8-Cylinder

745d BMW AG Wolfgang Mattes BMW Diesel. DEER 2006 Page 7 Development of 6-Cylinder Diesel-Engines.

200 kW 560 Nm

160 kW 500 Nm * 135 kW 410 Nm

105 kW 2004 260 Nm 85 kW

Power [kW] 210 Nm 2002

1998

1991 * since 03/2005 170 kW / 520 Nm 1983 200 300 400 500 600 [Nm] BMW AG Wolfgang Mattes BMW Diesel. DEER 2006 Page 8 Engine Line up.

8 - Cylinder 4.4 l 250

6 - Cylinder 215 2.5 l / 3.0 l / 3.0 l VVT

175 4 - Cylinder 2.0 l

Power [kW] 150

125

100 1.5 2 2.5 3 3.5 4 4.5 [ l ] BMW AG Wolfgang Mattes BMW Diesel. DEER 2006 Page 9 BMW Diesel–Mix in Western Europe.

1er 3er 5er

58% 56% 73%

7er X3 X5

70% 88% 89%

Diesel

per August 2005 (2004 54%) BMW AG Wolfgang Mattes BMW Diesel. DEER 2006 Page 10 Australia – development of X5 Diesel-share.

80 75 Overall Diesel Share PC+ LDV 2004 10% 70 2005 11% 1708 units 65

60 1830 units 55 50 45 1387 units Diesel share [%] 40 35 30 2004 2005 2006 forecast BMW AG Wolfgang Mattes BMW Diesel. DEER 2006 Page 11 Success factors for Diesel engines.

• Fun to drive, outstanding torque characteristic ¾ relaxed cruising ¾ torque on demand ¾ good NVH due to low engine speed • Low fuel consumption ¾ 20-30 % below comparable Petrol ¾ cost saving, sometimes supported by low fuel costs ¾ high cruising range

Æ BMW focus: Sports Diesel High power output and sporty drivability combined with low FC under all driving conditions BMW AG Wolfgang Mattes BMW Diesel. DEER 2006 Page 12 Efficient Dynamics.

Dynamics

Weightreduction Fuel-Consumption and Emissions BMW AG Wolfgang Mattes BMW Diesel. DEER 2006 Page 13 Clean Diesel – Introduction of Particulate Filter.

2004 2005 2006 2007

118d 09/05 120d 06/05

318d 09/05 320d 01/05 330d 09/05

525d, 530d 03/04 535d 09/04 520d 09/05

730d, 745d 03/05

X3 2.0d, X3 3.0d 09/05

X5 3.0d 10/05 BMW AG Wolfgang Mattes BMW Diesel. DEER 2006 Page 14 Leading edge engine technology. BMW AG Wolfgang Mattes BMW Diesel. DEER 2006 Page 15 Variable Twin Turbo technology – a new milestone in diesel history. BMW AG Wolfgang Mattes BMW Diesel. DEER 2006 Page 16 Variable Twin Turbo technology - even more powerful.

630 225

560 200

490 175

420 150

350 125

280 100 Power [kW] Power Torque [Nm] 210 75 Variable Twin Turbo 3,0 l : 560 Nm at 2000 min-1 140 200 kW at 4400 min-1 50

70 Base engine 3,0 l (MJ 05) : 25 500 Nm at 2000 min-1 160 kW at 4000 min-1 0 0 0 1000 2000 3000 4000 5000 Engine speed [min-1] BMW AG Wolfgang Mattes BMW Diesel. DEER 2006 Page 17 Variable Twin Turbo technology combines V8-dynamics with R6 fuel consumption.

10,8

10,4

10,0

9,6 Alternative 8-cylinder concept 9,2

8,8

8,4

8,0 Fuel consumption [l/100 km] 535dA 530dA MJ 05 7,6

7,4 6,0 6,4 6,8 7,2 7,6 8,0 Acceleration 0-60 mph [sec] BMW AG Wolfgang Mattes BMW Diesel. DEER 2006 Page 18 Technology proofed in Rally Sport.

Engine : BMW inline 6 cylinder diesel with Variable Twin Turbo Power : about 270 HP Torque : over 600 Nm

Æ Winner of the Diesel category in the 2003 and 2004 Paris-. Æ First Diesel to win a special stage BMW AG Wolfgang Mattes BMW Diesel. DEER 2006 Page 19 The package for EU4 emission regulations.

Engine internal measures

Emission aftertreatment including particle filter BMW AG Wolfgang Mattes BMW Diesel. DEER 2006 Page 20 The package for EU 4 emission regulations.

Intake manifold with controlled flap

Coated filter (CSF) EU 4

Lambda probe

Optimized Electrically EU4 catalyst controlled TC EGR-cooler BMW AG Wolfgang Mattes BMW Diesel. DEER 2006 Page 21 Chamber Configuration.

6-Cylinder 8-Cylinder central injector position 4 symetrical variable air control BMW AG Wolfgang Mattes BMW Diesel. DEER 2006 Page 22 BMW Diesel Particulate Filter.

Particles are filtered and burnt off in the ceramic filter with its catalytic coating.

no power loss no significant increase in FC reduced HC/CO-emissions no maintenance necessary reduced system effort BMW AGMarket Study Diesel Image and UK 2005 Wolfgang Mattes BMW Diesel. DEER 2006 Page 23 What do Diesel customers like . General Attitude towards Driving & Cars

Petrol drivers (n=598) Petrol drivers (n=676) When I buy a new car, the fuel consumption Diesel drivers (n=420) Diesel drivers (n=329) is very important for me, even if it means spending 74 66 more money for this lower fuel consumption 85 83 I couldn‘t imagine life without a car 75 83 82 89 A car has to be at the cutting 60 62 edge of technology 72 57 A car‘s eco-friendliness is 65 29 of the greatest impotence for me 66 32 For me a car is simply a functional object 64 64 66 64 For me a car is of particular interest if it is a 56 36 very innovative and advanced model 40 60 38 Cars are a major problem for the environment 46 When I buy a car, the price is the 60 65 absolutely decisive criterion 64 51 76 I can get really enthusiastic about cars 54 73 Data in %

Diesel Systems Source : BOSCH Internal | DS/MKT3 5920753e | 1/10/2006 | © Bosch GmbH reserves all rights even in the event of industrial property rights. We reserve all rights of disposal such as copying and passing on to third parties. BMW AGMarket Study Diesel Image Germany and UK 2005 Wolfgang Mattes BMW Diesel. DEER 2006 Page 24 What do Diesel customers like . Timing of Engine Choice

Petrol drivers Diesel drivers Petrol drivers Diesel drivers (n=598) (n=420) (n=676) (n=329)

Decided right at the beginning 37 55 37 52

Before going to the dealership 14 16 18 22 I listen to the dealer‘s advice and then decide between 21 13 16 8 petrol and diesel

After going to the dealership 17 8 11 11

Don‘t know / No answer 11 8 12 4

Data in %

Diesel Systems Source : BOSCH Internal | DS/MKT3 5920753e | 1/10/2006 | © GmbH reserves all rights even in the event of industrial property rights. We reserve all rights of disposal such as copying and passing on to third parties. BMW AGMarket Study Diesel Image Germany and UK 2005 Wolfgang Mattes BMW Diesel. DEER 2006 Page 25 What do Diesel customers like . Spontaneous Associations with Diesel

Petrol drivers Diesel drivers Petrol drivers Diesel drivers (n=598) (n=420) (n=676) (n=329)

Positive aspects 46 67 36 72

Negative aspects 40 22 36 11

Makes/models 10 9 18 13

Others 3 4 16 11

No specific image 8 3 3 3

No answer 7 6 16 9

Data in %

Diesel Systems Source : BOSCH Internal | DS/MKT3 5920753e | 1/10/2006 | © Robert Bosch GmbH reserves all rights even in the event of industrial property rights. We reserve all rights of disposal such as copying and passing on to third parties. BMW AGMarket Study Diesel Image Germany and UK 2005 Wolfgang Mattes BMW Diesel. DEER 2006 Page 26 What do Diesel customers like . Spontaneous Associations with Diesel

Petrol drivers Diesel drivers Petrol drivers Diesel drivers (n=598) (n=329) Positive aspects (n=420) (n=676)

Consumption level 24 42 15 42 Performance (hp, acceleration, torque) 18 36 8 22

Eco-friendly technology 6 10 3 7 Strongly improved diesel technology 7 6 6 13

Smooth engine 4 9 5 12 For longer distances / high mileage 3 3 3 1

Diesel engine 1 3 2 3 lasts longer Reliability 1 3 3 18 Data in %

Diesel Systems Source : BOSCH Internal | DS/MKT3 5920753e | 1/10/2006 | © Robert Bosch GmbH reserves all rights even in the event of industrial property rights. We reserve all rights of disposal such as copying and passing on to third parties. BMW AGMarket Study "Diesel Image in Germany/UK 2005" Wolfgang Mattes BMW Diesel. DEER 2006 Page 27 What do Diesel customers like . Willingness to change – Germany 2002/2004/2005

100 9 7 17 24 36 40 24 27 29

35 (=wechselbereit 41 ) 41 37 45 34 Shallow (= schwankend)

33 Average (= verbunden) 18 20 26 20 21 8 5 Entrenched 0 3 (= verwurzelt) Benzin2002Benzin 2004Benzin 2005 Diesel2002 2002 Diesel 2004 2004 Diesel 2005 2005 2002 2004 2005 petrol drivers diesel drivers

Source : BOSCH

Internal | DS/MKT3 5920827e | 03/01/2006 | © Robert Bosch GmbH reserves all rights even in the event of industrial property rights. We reserve all rights of disposal such as copying and passing on to third parties. BMW AG Wolfgang Mattes BMW Diesel. DEER 2006 Page 28 Challengesin theUS market.

• Stringent emission legislation (orientation on engine)

• High requirements to OBD

• Various fuel quality with large dispersions

• Intensified climatic edge conditions

Æ Robust, sustainable solutions are required

Æ New technologies are needed BMW AG Wolfgang Mattes BMW Diesel. DEER 2006 Page 29 NOx challenge BIN 5.

N0x g/mi X5 3.0d with EU4 technology incl. DPF 0,98 Tier 1 LDT3 0,6 Tier 2 Bin 10 (till MJ 08) - 94%

0,14 0,10 0,05 0,10 0,32 PM 0,080,075 0,23 NMHC g/mi g/mi

Tier 2 Bin 8 (MJ 09) 3,4 Tier 2 Bin 5 (MJ 09)

6,4 CO g/mi BMW AG Wolfgang Mattes BMW Diesel. DEER 2006 Page 30 TIER2 BIN 5 concept.

• Modified combustion

• Advanced EGR- system

• Adapted system

• Electrical control devices

• Additional sensors

• OBD functions

• Diesel Particulate Filter (DPF)

• SCR-System (Selective Catalytic Reduction) BMW AG Wolfgang Mattes BMW Diesel. DEER 2006 Page 31 Fuel Consumption – Diesel efficiency.

LDT PC

> +25% > +30% FE [mpg]

BMW Fleet X5 Diesel BMW Fleet 3-series Diesel X-Vehicles P/C MY 06 MY 06 BMW AG Wolfgang Mattes BMW Diesel. DEER 2006 Page 32 DPF + SCR-system layout.

Closed Mixer with hydrolysis coupled DPF function

UREA Mixing injection section SCR-catalyst

Additional requirements: - heated with fluid-level indicator (OBD) - heated Urea pipes from tank to dosing unit BMW AG Wolfgang Mattes BMW Diesel. DEER 2006 Page 33 SCR system – chemical reactions

NO + NO2 + 2 NH3 Æ 2 N2 + 3 H2O

4 NO + O2 + 4 NH3 Æ 4 N2 + 6 H2O NO + ½ O Æ NO 2 2 6 NO2 + 8 NH3 Æ 7 N2 + 12 H2O

(NH2)2CO Æ NH3 + HNCO

HNCO + H2O Æ NH3 + CO2 BMW AG Wolfgang Mattes BMW Diesel. DEER 2006 Page 34 Characteristics of SCR system.

Advantages

- High NOx-efficiency up to high engine loads - Long term emission stability -No increase in fuel consumption

Challenging requirements - UREA infrastructure Æ common efforts necessary necessary -OBD

SCR systems are available for in Europe and Japan

Æ BMW judgement: long term solution for diesel engines BMW AG Wolfgang Mattes BMW Diesel. DEER 2006 Page 35 Conclusion.

• Portion of BMW Diesel passenger cars in Europe has significantly increased within the last decade

• BMW Diesel philosophy is “efficient dynamics”

• BMW at leading edge of diesel technology

• BMW target for US is to fulfil 50 state legislations

• Technology concept for BIN 5 defined, but still challenging

• Compromisses to Diesel necessary (i.e. phase-in`s)

Æ BMW Diesels: dynamic, efficient and clean BMW AG Wolfgang Mattes BMW Diesel. DEER 2006 Page 36 Ready for the future.

Thank you very much for your attention!