CARB Public Meeting May 24+25, 2007BMW GroupPage 1

Statement

Karl-Heinz ZiwicaVP EngineeringBMW of North America

CARB Public Meeting, May 24th 2007 Status Report on Zero Emission Vehicle Program

CARB Public Meeting May 24+25, 2007BMW GroupPage 2

BMW 325i model year 2007BMW 325i model year 1990Output 168 HP + 28 % 215 HPTorque 164 Nm + 52 % 250 NmFE City/Hwy 18 / 22 MPG + 17% / + 32% 21 / 29 MPGInterior volume 93 cu. ft. + 14% 106 cu. ft.0-60 acceleration 9.4 s + 23% 7.2 sEmissions level MY90 CARB - 96 % PZEVWeight 2890 lb + 16 % 3551 lb

CARB Public Meeting Status Report on Zero Emission Vehicle Program

consumer attributes

fuelconsumption

- 18%emissions

CARB Public Meeting May 24+25, 2007BMW GroupPage 3

The BMW Hydrogen 7.BMW CleanEnergy. Responsibility with Performance.

Full Size Automobile Active Safety Passive Safety Convenience Mobility / Telematics Performace

CARB Public Meeting Status Report on Zero Emission Vehicle Program

CARB Public Meeting May 24+25, 2007BMW GroupPage 4

Time

Tech

nolo

gy

Increased power densityReduced fuel consumptionNear ZERO emissions

7 Series bi-fuel- NOx < 30% SULEV

7 Series mono-fuel - NOx < 10% SULEV -No carbon based emissions- No criteria pollutants

+ lifetime emissions

Improvements in progress

+ hydrogen storage

Future activities

+ efficiency

+ compatible with ZEV mandate

CARB Public Meeting Status Report on Zero Emission Vehicle Program

CARB Public Meeting May 24+25, 2007BMW GroupPage 5

GM17%

FORD13%

BMW 3%

NISSAN8%

CHRYSLER9%

HONDA12%

TOYOTA23%VW/AUDI 3%

MERCEDES 3%HYUNDAI 2%

Total Registrations California1

1Data source: CARB (average 2003-2005)

A significant gap still exists between large volume and intermediate volume manufacturers.The 60,000 threshold should be adapted to the present market situation.Implications of adjusting the threshold need to be examined.

CARB Public Meeting Status Report on Zero Emission Vehicle Program

CARB Public Meeting May 24+25, 2007BMW GroupPage 6

BMW generally supports the IERP’s findings and directionally agrees with the proposed revisions to the existing ZEV regulation.BMW has successfully shown the feasibility of a Hydrogen ICE production car.By focusing on improving ICE technology, BMW can make the biggest contribution to clean air and sustainable mobility future.Remaining in the intermediate manufacturer category would allow us to do so.We will continue to work with the ARB staff to achieve regulatory requirements that will address any concern with respect to hydrogen ICE durability.

CARB Public Meeting Status Report on Zero Emission Vehicle ProgramBMW Position and Proposal