Bayerische Motoren Werke Aktiengesellschaft

Ladies and gentlemen, welcome back to our Q3 call. Our CEO, Oliver Zipse, and our CFO, Walter Mertel, are also back in the room with me. The line will be open shortly for your questions. The operator will first give you some technical instruction. Please go ahead.

Ladies and gentlemen, we will now begin our Q&A session. If you have a question, we ask that you please use the raise hand function at the bottom of your Zoom screen. Or if you have dialed in, please press star nine to enter the queue. Once your name has been announced, you can ask a question. If you want to withdraw your question, please lower your hand using the raise hand function in the Zoom app or via telephone, press star nine. Thank you and a moment for the first question, please. The first question is from George Galilee at Goldman Sachs. Please unmute yourself and begin with your question.

Yeah, good morning and thank you for taking my questions. The first question I had was around the underlying profitability of the business. If we add back something in the region of 800 million euros for the IBS provisioning, it would imply an auto margin of around 5%. And I think if we also look at your full year guidance, it would seem to suggest a margin in the range of 5% to 7% for the fourth quarter. So is this the right way to think about the underlying level of profitability at BMW today? Or are there still factors related to IBS that are suppressing the margin both in Q3 and Q4 on an underlying basis? The second question I had was with respect to your North American manufacturing footprint. Obviously, it's too early in terms of the election and what that might mean for trade and tariffs. But could you just give us some insight into the flexibility you have in the plant in Spartanburg? Can you increase the capacity there? What kind of shift structure are you operating? And would that plant also be capable in theory of producing large sedans in the future? Thank you.