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Investment in the future
It has been nearly two years since Engel took the position, but the media still occasionally compare the previous state of BMW before he came with its condition after his appointment. Despite the fact that the competition is as furious as always, the Chinese automobile market, especially for luxury cars, has witnessed an unexpected change in the two years since Engel came here.It is not the same as old good days: the blowout of sales of luxury cars is long over and the time when profit can be made solely by selling new cars has ended. Manufacturers have to shift strategy to find a new profit-making model for its dealers and itself. It is also extremely urgent to make the adjustment.
For automobile manufacturers, the development of mobile internet and the growth of social media have also dramatically changed their customers' demand and the environment of communication. Whether it is a century-old brand or a hot upstart, all the businesses have to adjust the strategy and form a new way of brand communication. More importantly, the era of electric cars comes early. Compared with the previous years of tepid growth, the global market for new energy vehicles, especially the Chinese market, has ushered in a time of accelerating growth. All kinds of favorable policies and increasing interest and demand of the public have indicated that the electric time are approaching, which will transform people’s way of travailing. As for the automobile manufacturers, going first means being ahead in this future-oriented battle.
In this larger context, BMW is destined to experience a sweeping change. As a leader, Engel are rewriting BMW’s history in China in his own way.Since 2007, BMW has been discussing how to face the future development of automobile industry. As a result, new energy vehicles that are born to address traffic problems in mega-cities become the inevitable direction. Not like other manufacturers who conservatively choose to follow instead of lead in the new energy field, BMW has established its leading role firmly in the industry from the very beginning. After setting up its new sub-brand i series, BMW designed and developed its totally new i3 and i8 models from nothing, instead of only shifting the traditional engines into electric ones and then making adjustments. “Born to be electric” is literally true.
“For us, BMW i3 and BMW i8 are not only car models; they represent a new idea and a new trend. This idea of sustainable development will not only exist in the application of the product, but also cover the whole value chain through the process of development, production, usage, and later recycling.”
Apart from innovation in electric technology, BMW i series strategy attach more importance to application and popularization of new material. In the bodies of BMW i3 and BMW i8, carbon fiber composite material which features complex processing technology and high cost, has played a leading role. 50% lighter than steel and 30% lighter than aluminum, this high-tech material were used only in race cars, aerospace, medical treatment and other fields. The cost of investment is extremely high in large-scale production of vehicles. However, BMW has seen the unlimited opportunities of this trend very early, and has formed a joint venture plant with its cooperative partner SGL at Moses Lake in the United States, which will become the largest manufacturing base of carbon fiber.
BMW has invested a large amount of money in this program - over 750 million euros in carbon fiber composite material and spare parts. However, in Engel’s eyes, this “investment in the future” is quite necessary because that “BMW i series has improved the development of new technology and new process from which concepts of other models of cars can benefit.”Back to the Chinese market, the universally accepted “largest new energy vehicle market in the world”, Engel is very confident. “The Chinese government has shown unprecedented support for new energy vehicles with confidence and determination, which can be seen from their ambitious goal - the total sales volume of new energy vehicles should exceed 5 million by 2020.” With clear strategy for new energy vehicle, mature products, active promotion from the government, and a passionate team, BMW i series are reasonably expected to precisely seize every market opportunity. With the launch of BMW i series, this revolutionary means of transportation will come into reality in China.[detail]
Karsten Engel
Karsten Engel earned a degree in business administration in the University of Munich in 1985, and then joined BMW AG and served as a controller for several years there. Karsten Engel served as head of the company’s motor-sports activities afterwards. He became a regional manager in Southeast Asia between 1994-1998, and then worked in Asia as head of BMW Rover Korea (1998-2000) and BMW Thailand (2000-2002). He returned to Germany to take charge of BMW Munich in 2002 and then left shortly from 2005 to 2007. He came back to BMW in 2008 and served as senior vice president of after sale and channel strategy department of BMW Group Germany and senior vice president for sales and marketing of BMW Group Germany . Before appointed new president and CEO of BMW Greater China region, he was the president of BMW Germany.
Investment in the future Investment in the future
Running

Running

Running is one of the most popular ways of exercise, which is easy to do without specific requirements for venue, clothes and equipment. No matter it is on the playground, on the road, on the fields or even in the woods, people can run anywhere. Running outdoors, people can breathe fresh air, which can not only relieve stress generated from work or study.
Telling the BMW Stories in a new way
At the BMW Joy Night on September 21st, 2014, the main roles on the platform include BMW i3, BMW i8, and BMW owners with “BMW Stories” from all over the world. As a part of the global brand communication platform - the “BMW Stories”, the Chinese market officially introduced this platform on that very day. “2016 will mark the 100th anniversary of BMW. Since established in 1916, BMW has witnessed world wars, economic crises and considerable challenges. Looking back is a process of exploring itself and finding future directions.”
In Engel’s eyes, BMW customers and BMW owners are the most important parts of the nearly century old brand since its birth. “Allow themselves to review, explore and tell their own BMW stories - this is a more touching approach and a more special perspective. Moving on, we will take more actions in this direction.” The launch of the “BMW Stories” indicates that BMW is experiencing a revolution in brand communication. With the popularization of social media, automobile manufacturers have to keep pace with the time and make innovation in brand promotion and communication. According to BMW’s official report, over 150 million people have viewed, participated and posted “BMW stories” - this is the largest-scale social media communication activity in the history of automobile industry.
For BMW China, apart from keeping its characteristics of being dynamic and fun to drive, the idea of sustainable development should be improved. “JOY is BMW is a very classic case which successively refined and interpreted JOY, BMW’s global position in the Chinese context and culture. This direction will be kept. At the same time, we will enrich the essence of our brand. We will focus on responsibility, partnership and sustainable development in the future.” During the JOY Night on September 21st, a German couple over 60 years old told their “BMW Love Story” and touched the countless audience. The couple, married for over 40 years, has drove BMW Isetta to participate an “a thousand mile rally race” and started their legendary love journey since that time.
New way of brand communication of BMW will focus on real feelings of particular individuals instead of grand and epic introductions. It’s BMW’s new trend to introduce BMW owners as the representatives of this brand. In this interview, I heard a surprising and moving love story from Engel himself when asked about his own “BMW Story”. Engel met with his girlfriend when he was working for BMW M in 1990. To impress the girl, Engel invited her to drive his BMW Z1 to watch car race in Monte Carlo. After this romantic journey, the beautiful girl became the wife of Engel and now lived with him and their two children in China. This should be the charm of this brand - to witness love and happiness in the lives of people who are BMW owners.[detail]
Karsten Engel BMW story BMW Z1
精彩问答
  • 1

    Tencent Auto: In your opinion, what are the differences between BMW i3, BMW i8 with traditional electric cars?

    Karsten Engel: BMW i3 and BMW i8 are born to be electric, which is completely different from the strategy of other producers. They simply transformed the traditional engines into electric engines, but we developed a new concept from the very beginning based on an electric car’s features. This includes the concept of lightweight, the application of carbon fiber composite and the understanding of customer’s real demand. For us, BMW i3 and BMW i8 are not only car models; they represent a new idea and a new trend. This idea of sustainable development will not only exist in the application of the product, but also cover the whole value chain through the process of development, production, usage, and later recycling.
  • 2

    Tencent Auto: As for the follow-up promotion, how to mobilize the dealers to innovate the promotion of i series?

    Karsten Engel: We introduced the i series through a brand communication platform. We launched an activity globally to provide an opportunity for our customers to tell their own BMW stories. This is a more touching approach and a more special perspective. Currently BMW has just started doing this, so future establishment and promotion of i series are not likely to consider traditional means.We have held two auctions of i model, and are considering adopting similar creative ways to introduce our brand to Chinese customers. For example, we will promote our brand through the effect of word-of-mouth, new media and other personal channels.
  • 3

    Tencent Auto: In the future, will BMW try a whole new method of marketing and brand communication in China?

    Karsten Engel: For BMW, we have set two orientations since a couple of years ago: Firstly, we will continue to keep our characteristic of being very dynamic and joy to drive. At the same time, we have to improve the idea of sustainable development, and we are very dedicated to become the most sustainable automobile brand.
  • 4

    Tencent Auto: We believe BMW has picked up a precise time to launch the electric products and sub-brand in accordance with China’s policies. How did BMW do that?

    Karsten Engel: BMW i series have kept pace with the market by now for the following three main reasons: first, clear strategy; secondly, extremely innovative and excellent products; thirdly, a passionate team.

Persistence

Sports Enthusiast

Low Profile

Charming Smile

Romantic

Rigorous

Prudent

  • Karsten Engel
  • Karsten Engel
  • Karsten Engel
  • Karsten Engel
编者按
EDITOR'S NOTE
Karsten Engel has devoted most of his career life to BMW. This dedication and loyalty can be traced in his Germanic blood and genes, or it can be explained by his deep love towards this brand. After he took the office, there were a large number of reports with titles such as “Take over from high level” and “Where should BMW Go”. Two years later, BMW continued his legendary history with remarkable sales number in the Chinese market. We all felt the changes of BMW made by Karsten Engel who has given the brand a new style that is both history and future oriented. After our interview, Karsten Engel took the flight to Germany. During this busy and productive October, there will be the annual Paris Motor Show and the Oktoberfest in Munich as well. I don’t know whether he will spare some time for Munich to enjoy this festival as his old tradition for a long time, but he does have reason to toast his remarkable performance in the Chinese market after he took the position. Prost!
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