BMW CEO, Oliver Zipse stated that the luxury carmaker would not be abandoning the lower-priced auto segment in its EV line-up. He gave the state in an event hosted by Bosch, the leading auto parts supplier. BMW is not known for having cost-effective vehicles in its models.
BMW’s CEO stated at the event, “We are not leaving the lower market segment. Even if you consider yourself a premium manufacturer, it is wrong to leave the lower market segment – that will be the core of your business in the future.”
These comments talk about BMW’s status as a luxury that has already been existing. The automaker released its Q3 earnings last week, reiterating that it expects to double electric vehicle sales again in 2022 though remaining cautious as rising material costs and interest rates are pressuring orders. On top of this, BMW has several high-profile EV (expensive) releases like its first electric seven series, the BMW i7, launching this month (starting price over $119,000), and the recently revealed Rolls Royce Spectre, starting around $400,000.
However, the CEO’s comments starkly contrast with recent statements from German luxury rival Mercedes-Benz, which plans to allocate three-fourths of its investments into top-end and core luxury segments. With a $1.7 billion investment in October, BMW looks to add EV and battery manufacturing capabilities in the US to take advantage of the growing demand fueled by climate initiatives.
EV goals
Furthermore, BMW aims to introduce an electric vehicle in all segments, with at least six pure EV models coming by the end of the decade. BMW’s chief financial officer warned last week that although sales of fully electric vehicles were expected to double this year from 2021 levels, the company expected rising inflation and interest rates to weigh on incoming orders, particularly in Europe.
According to the BMW blog, If we were to analyze the current and future BMW lineup, then at least a couple of models come to mind. The BMW 1 Series has been long overdue for electrification, being one of the series models which doesn’t have a PHEV or EV model. According to the usual source, a new generation 1 Series (F70) will arrive in 2024. But the first 1 Series electric might not launch until 2027 when a BMW i1 (NB0) is allegedly planned. While the F70 codename hints at the same front-wheel-based architecture (FAAR), the NB0 denotes the upcoming Neue Klasse platform. Both models are rumored to be manufactured in Germany.
