Dear colleagues, welcome back to our second part of our conference. We're going to continue in German now after the short break. We're looking forward to your questions. First of all, there are some technical instructions before we're going to get started with the first question. So now let's hear the technical instructions. Ladies and gentlemen, we're going to start with a Q&A session now. If you want to ask a question, please raise your hand. And if you have signed in, please press star and nine. And then one after another, you will have the opportunity to ask your question. As soon as you have given us your name, or as soon as you hear your name, you can ask your question. To withdraw your question, please lower your hand. And when you're using your telephone, press star six and nine. Now we're going to have the first question. The first question is by Mr. Henning Jauernig from the Manager Magazin. Please switch on your mic. Good morning. I have two questions. They're both addressed to Mr. Mertl. You said earlier that you're supporting the Chinese dealers in two ways. However, I have not understood clearly to what extent of your support you're talking about. Can you please elaborate on that so that I understand it better this time? And then secondly, you said that you have made good progress in exchanging the brake components. And I would like to know in how many cars the brakes will have to be exchanged and in exchange of hardware, so to speak. So what percentage of all cars which are going to be delivered? So in what percentage of cars do the brakes need to be exchanged? Thank you, Mr. Hansen. I understood both questions. Walter, it is your turn. Good morning, Mr. Hansen. About the question about China. So far in the Q1, there was no support for the dealers. After long discussions in the Q3, we agreed on supportive measures, and these supportive measures consist of two parts. In one way, we want to increase the profitability of the dealers by giving them a discount, and then we also want to support their liquidity, that also decreased our free cash flow in Q3. And then we also paid out some bonus payments, but that was a one-off, and we also support them with our financial services as far as their liquidity goes. And about the brake situation, in the worst case, we would be talking about 1.2 million vehicles, as we have mentioned in September. 1.5 million cars have been affected. 1.2 million had already been delivered. And so in some markets, we need to replace the brakes for all of the cars out there and in other areas of the world, according to what our software says. And that's why we have made some money available for that. Mr. Henning Hansen, thank you. Next question, please. The next question is by Markus Fasse from Handelsblatt. Please switch on your mic. Good morning, gentlemen. I've got two questions about China and the USA. First of all, about China once again. You said you saw a decrease in demand of 30%. You're not the only ones, but 30% is a lot. Can you elaborate where you have been affected, in which segments, and what your countermeasures are? And then I have seen that also there was a write-off connected with BBA. Can you also explain more on that, why there were some changes here? Then I also have a question about the U.S. elections. We don't know what the effects will be exactly, but they will be significant. Can you tell us why this market is so important for BMW? What do you expect in the years to come, independent of who's going to be the president, as far as drivetrains go, growth goes, and potential investment of BMW goes on what all of that depends? Also what your experience has been with Republican adMinistrations? Thank you, Mr. Fasse. We have received your questions. Let's get started with the United States in general. A first general statement about the election. As you said, Mr. Fasse, there's no clear final result yet. We will have to wait and see. In the past, we did not comment on the election results. It is not our task to do this time either. The BMW Group has been, for almost 50 years, a responsible company in the United States. During all that time, with all the governments, whether they were Democratic or Republican, we have always been cooperating very well. This is my statement so far about the election. Then about the sales in China, I will pass on to Mr. Mertl and to Mr. Zipse later. Walter Mertl. Good morning, Mr. Fasse. About the sales in China in Q3, there were some impacts in Q3. We had a decrease of 4.5% in the first six months. Of the 30%, it's mostly due to IBS. We don't know whether the car, which we were not able to sell, could have been sold. We cannot identify that. Half of it is due to IBS. And about the write-offs of BBA, when we bought the additional shares of 25%, we had purchase price allocations. That's a regular write-off since the year 2022, EUR 1.3 to 1.4 billion per year. And then since we have this purchase price allocation in RMB, so all of this is as planned, the regular write-off until the year 2028. So there will be a write-off of EUR 300 to 400 million in every quarter as of now. And then we have the last question about the United States in general, why this market is so important for us. And I would like to ask Mr. Zipse to answer that. Mr. Fasse, good morning. Well, the U.S. market traditionally is of very great importance. And it hasn't changed. If you look at the products which are being manufactured in the U.S., how well they fit the market, whether the X5, X6, X7, but also the X3, where we just started production, and our customers very much like these cars in the United States, but also in the rest of the world, and when we look at the month of October, and you will see that we have said the Q4 will not look as bad for us, and let me just mention some figures from October. In the U.S., we have almost sold 37,000 vehicles. These are over 7,000 vehicles more than last year, so things are going very well over there, and that makes us also confident that some other burden here or there with the brakes, that we will be able to overcome this problem relatively quickly. So the United States, just like Europe and China, they all remain very important for us. And at BMW, we have developed the capability to offer or to play a role in the market in all these three big world markets. And nothing is changing when there's a new government. Because when there are changes in geopolitics, then it is important that you are locally present. And we are there. Thank you, Mr. Fasse. And let's hear the next question. The next question is by Christina Amann by Thomson Reuters. Good morning. I hope I switched on my mic. Yes, we can hear you. Great. I've got a question about the prices in China. When we look at their sales decrease, Mr. Mertl, you said the largest part was due to the IBS situation. But it's still a significant decrease. Can you tell us something about the pricing in China and give us an outlook when will things recover? And then also maybe if you could tell us also something about your expectations for next year, what the forecast will be for BMW for next year. And then also when it comes to political changes in the US, when electric cars are not as sought after anymore, and when you have your largest investment project in that area. Well, Ms. Amann, thank you so much. Mr. Mertl is going to start. Good morning, Ms. Amann. In China, over the past months, the transaction prices, which are under the responsibility of the dealers, they have changed differently. In June, they went down, and then they stabilized in the months after. And then sometimes they also went up by two, three points. In September, they went up to the level of June again. There's some fluctuation. There is a stimulus in different provinces, which the dealers are using. This is how it will continue. During that time, we're supporting our dealers in profitability as well as in liquidity, as I said earlier. In October, the October figures are on the level of June. Things are stabilizing, and we're seeing a growth again. Now I would like to ask Mr. Zipse that we don't do a forecast for 2025 yet. About the future of BEVs and the global situation in the USA. Good morning. We don't do any forecasts for 2025 yet. Give me some background information. First of all, we've got the X3 at BMW. That was traditionally a very strong product. It is a new product. And we're quite confident because it is a big technological leap. Even though it's an ICE, you should never underestimate this vehicle. And especially when there will be a change in growth rates in the BEV, that will help this product. So that's a big tailwind for us. And then also the Mini has all the vehicles next year, all the vehicles which we have announced, whether it's the Aceman, the Countryman, the Cooper as a combustion engine, or fully electric. So all of that will give us some tailwind. So on the product side, and as you know, at BMW, it's always about products. Apart from the Neue Klasse, we are quite confident that things will stabilize for us. You can see that I'm trying to instill some confidence. As far as the US market goes, let me mention a figure from the month of October because it's very up-to-date information. We have sold 3,500 BEVs in one month. That means more than 10% more than last year. So we need to look very closely at what is really happening and general trends. It's always difficult to generalize them. And also in Germany, there is less demand, even less demand than in other regions. And there's no big debate whether the Neue Klasse will be launched at the right time. It is actually the absolutely right time because the worldwide markets are growing. There are some shifts between the regions. There are regions with slower growth. And of course, there are also shifts between manufacturers. And as we have heard earlier, we're doing quite well. We're well positioned. Thank you, gentlemen. Thank you, Ms. Amann. Next question, please. The next question is by Wilfried Eckl-Dorna, who's working for Bloomberg News. Good morning, everybody. Mr. Zipse, Mr. Mertl, I have a very short question, which it was asked before, but it wasn't properly answered. I wanted to know about the situation in China. What is your forecast for the sales, not just electric vehicles, but for the market as a whole for the remainder of this year? And when do you expect that there will be a recovery of the market there? That's all. Thank you, Mr. Eckl-Dorna. Mr. Mertl will answer that. About the overall market, we believe the overall market has about a 1% increase compared to last year. And when we look at BMW, we can stress that we have now our X3. The Mini is going to be fully available. The X3 is being launched. And our 5 Series is doing better every month. And therefore, we can see at the end of the year, see a different figure compared to the Q3. And also in China, the IBS problem is solved piece by piece. And we're getting better every month. And we see that in our sales figures. And we will hopefully be able to report like that in the end as well. Next question, please. T he next question is by Daniel Zwick at Welt am Sonntag. Good morning. I've got a question about tariffs. Mr. Zipse, you mentioned protectionism before. And now the EU has introduced these penalty tariffs on Chinese electric cars. What does that mean for you? Is the iX3 going to be produced in Europe from now on? And then also when we look in the other direction, Trump declared himself the winner now and has also already received congratulations from other heads of state and government. It seems to be pretty clear. He has also announced tariffs or threatened with tariffs on the import of cars from Europe. What would that mean for you? Would you have to invest more in the U.S. even? Thank you. Mr. Zipse, please. Mr. Zwick, we expected your question. Of course, the tariffs have been adopted, but negotiations are ongoing. At the moment, we could say that both sides have strengthened their negotiation position. We are involved in this whole process. I'm on the phone with parties concerned. Our statement remains that these tariffs will see no winner. Whenever you have bilateral relations which are being jeopardized, and we believe that when new import tariffs are being introduced, the EU Commission will have a detrimental impact on free trade. It might lead to a trade conflict. The European Commission is aware. They know that if they adhere to their decision, it will be a bad decision and they know that themselves, so I remain hopeful and the iX3 is no longer an import product. We're mostly affected when it comes to the Mini, the Mini Cooper electric, and the Mini Aceman electric. That is the main topic. And what the price design will be, what it could be, that will remain to be seen. It has a negative effect on the market. And it affects negatively those customers who want to buy electric cars here. So let me say that it's actually they're shooting themselves in their own leg, if I may put it this way. So much about that. Thank you. Thank you, Mr. Zwick. Next question, please. Next question is by Stephen Wilmot from The Wall Street Journal. S tephen, are you there? I have two questions. One is, in the event of higher tariffs on vehicle shipments to the U.S., will you make adjustments to your production plans? And secondly, I want to ask what the market share trend is in China. What was your market share in the Q3? And how did that compare to the same quarter last year? Thank you. I think we should not speculate whether tariffs are going to be introduced or not because there's a lot of negotiation tactics in play here. We should not believe that new tariffs will definitely come. But even if the main volume which we're selling in the U.S. is being produced in the U.S., so whether it's the X3, X4, X5, X6, X7, they're all being manufactured in the U.S. And they make up the largest part of our volume. If we see higher volumes because of this situation, then we're well prepared for that. Thank you. Second part of the question was about China. Well, currently in China, we have 3.3% market share with BMW and Mini. So as of September, we lost half a percentage point. And in the quarter, we lost 1%. And that is mainly due to IBS. So in the Q4, you will see a recovery. We will regain market share as soon as we're selling more vehicles in the Q4 again. Thank you so much. Next question, please. Next question will be by Michael Gerster, Automobilwoche. Good morning. Can you all hear me? Yes, we can. I also have a question about China and about the long-term trend. When it comes to combustion engines, the market is decreasing. When it comes to electric vehicles, the German manufacturers don't play a major role, and had the CFO of Porsche, Lutz Meschke, said that there's a structural change in demand, so they're expecting that the Chinese market will not recover in the long term, we all have the same problems here, and the question is whether you are also prepared for such a scenario so that you're saying so that China is not going to recover or get back to the figures we have seen previously and whether you have thought whether you can also move into other markets and which other markets could exist. Are there any new markets which you could tap into, and another short question about the fuel cell vehicles which you have planned. Here, my question is, what are the main markets you have in mind there? And then also, what figures you're expecting per year for these fuel cell vehicles? Thank you, Mr. Gerster. I will pass this question on to Mr. Zipse. Mr. Gerster, good morning. Well, let's take a look at the figures, first of all, because not every competitor is the same. Year-to-date in China, when it comes to pure BEV, we have 83,011 units, including October. That is a growth, almost 5,000 units more compared to last year. So we're not shrinking. And we have over 80,000 units. So we do play a role. Of course, we have a low market share, but only between 3% to 4%. And that is also the case here. The fact that this does not correspond to our growth ambitions, that is true. We have reduced them, but we're still growing. And we do play a role. We want to expand that with a Neue Klasse, a completely new technology cluster, which will elevate BMW to a new level. Then secondly, it is important to recognize that the market in China is growing. The market is not shrinking. The question is, who are the competitors? The capacities and market ambitions will be adjusted. They're not as high as last year. A scenario where we don't play a role anymore, that is absolutely not true. It is a huge market for us. It's working quite well. Of course, there's a price pressure in the lower price segments, especially in these lower price segments. There's price pressure because of the Chinese manufacturers. We're adjusting our prices. We are doing that with a Mini, which is produced locally. We are there for this reason so that we can remain competitive. To sum up, the growth has slowed. We're adjusting our capacities. But it is still at a very high level. And one more thing I would like to add, the strategy of China, the electric vehicle strategy, has different pillars. There are the pure electric vehicles. It's going very well. A lot of investments have been made. And that is working. And the second part is long-range plug-in hybrids in all shapes and sizes. And we're also a part of that. And the third pillar is hydrogen. A lot of people are overlooking that. China is the only nation. They're saying we have three pillars. And they all have their limits. And that's why China is playing a role there as well. And I was just in the Middle East, where we're also making major investments in order to offer hydrogen on the supply side. And in 2028, we will introduce a vehicle. And then there will be demand for hydrogen. And we believe, no matter where we're going to produce the vehicles, we believe that hydrogen will be the third pillar. In Germany, you don't notice that as much. But abroad, you can see that that is going to be an important market growth segment in the next decade. Thank you, Mr. Zipse. Next question, please. The next question is by Gabriel Wirth from BR. Can you hear me? Yeah. Yeah. We can hear you. Great. I have a question for Mr. Zipse. Did I understand you correctly? Unlike the competitors, you want to adhere to the CO2 targets within the EU. Yes. Yeah. That was the answer of Mr. Oliver Zipse, the CEO of BMW. Yeah. Please, can you elaborate on that? Can you, Mr. Wirth? Mr. Wirth, I think the answer, yes, is 100% clear. But I can comment on that. I just wanted to make it clear so that everybody understands it. I need that for the BR radio in German. I need a clear answer for the radio. Okay. Let me try that once again. Yes. Yes. We adhere to that. And let me tell you why. Because for over five years, these goals have been set. They didn't develop overnight. And people were able to adjust their product portfolio. And in the European market, nothing happens overnight. Things take a long time to develop. And our BEV market is growing. We have the plug-in hybrids. And we also have improved ICE engine cars. Also, the ICE vehicles have been improved as far as their fuel consumption goes with the 48-volt network. And we're also thinking in different scenarios. Of course, the market can look different. But in all the different scenarios, it shows us that our product portfolio will meet its targets. And therefore, we believe we are preparing ourselves. We don't want an adjustment in 2025. But what we want to see is a review in 2025 for the years after, as of 2030 onward, where we will—I mean, next year, we're only talking about a decrease of the fuel consumption of 15%. But in 2030, we're talking about minus 55%. And that is going to be an enormous step in one year. And we're not talking about 2035 when we're talking about minus 100%. So we will be able to achieve that. But we're still open for review whether these short-term segments actually make sense and whether it's feasible or not. So does that answer your question, Mr. Wirth? Y es. Next question, please. Next question is by Regina Ehm-Klier, Mediengruppe Bayern, Passauer Neue Presse. Good morning. I hope you can hear me. I would like to know about the employment figures, especially when it comes to Germany. We have seen negative headlines in Germany. What are the plans for BMW for their employees? And you said, Mr. Zipse, before about the growing sales figures in Europe. What are the figures like for Germany? You talked about other European countries. You didn't talk about Germany. And a short question also about the hydrogen vehicles. Will they be produced exclusively in the U.S., or will they also be produced in Europe? Thank you. So let's get started with the development of our employee figures. Well, it is well known that unlike other companies, we have still employed new employees. We had a growth in our guidance. We're taking on people for all new skills, which we need, and especially when it comes to all things digital, also for the new technologies. And we have these people on board now. And that means without giving out a guidance for next year already, but since we already have everybody on board, so we will continue in that vein. Thank you so much. Mr. Zipse, please. You asked about the sales figures in Germany. Well, the current figures, including October, let me just read that out. Per month in Germany, we have sold more than 184,000 vehicles, 6,400 more than last year, about 3% more. And in the month of October, 19,000. 19,000, that's almost 2,300 more, over a 10% growth in October. So things are positive. And we're also seeing the same picture for the BEVs here. As of October, we sold about 29,500 year to date. This is also more than in the previous year. So the overall market is growing for us as well as the BEV market in Germany. So we don't agree that everything is really that the outlook is bleak. On the contrary, our product portfolio helps us to strengthen our market share. And about the production sites for hydrogen, we will announce that whenever we are ready. But of course, we're continuing our cooperation with Toyota here as well. And our last question now is by Automotive News Europe, Mr. Nick Gibbs. Thank you very much for taking my call. I had a question about the targets. You're on track to, as you said, hit the 2025 targets, but to want to review CO2 targets for 2030. Which models do you think will be hardest to switch to BEV from ICE? Which segments? Or do you imagine keeping an ICE vehicle in each segment? And my second, actually, yeah. I suppose the second question again would be about tariffs. I mean, if Trump has said the most beautiful word in the dictionary is tariff, what could be the impact of those? Would you consider pushing more of your, maybe some of your sedan models into America for production there? Thank you, Nick. We will answer in German. We will first hear from Mr. Zipse. When you look at our product portfolio, in all segments, we have electric vehicles. When it comes to the Mini, we have three cars which we have switched to electric, apart from the ICEs. And then we have the X1, the X2, the i4. We have the iX and the 7 Series in electric. And also the 5 Series. Next year, we will have the Neue Klasse. So the question, which is the most difficult to change? Well, we're following the markets. In all segments, there's a demand for electric vehicles, but not exclusively. So the question is not, where is it the hardest to switch? The question is rather, what is our overall product portfolio? And apart from our flexible approaches, we also are going to introduce the Neue Klasse, which is a new electric architecture. And why? Because the markets are large enough, so we can afford to do so. And in each and every segment, we will also offer highly efficient 48-volt ICEs. So there's no end date for that. And about the tariffs in the United States, we talked about that earlier. We rather have an advantage because we have a big footprint in the United States for the United States and with the right vehicles. So we shouldn't be too nervous about that of what could potentially happen. It might actually offer us a benefit. But it is much too early to discuss these tariffs now. I think that concludes today's conference. Thank you for taking the time. Thank you for your participation. I conclude now this conference and all the.