BMW left to catch up with electric cars after pioneering charging

At the stage of BMW’s all-electric i3 launch in 2013, Herbert Diess claimed that the company had “completely redesigned its mobility.” This model, one of the first mass market electric vehicles, He predicted, “Rewrite our industry rulebook.”

Eight years later, Dís is certainly rewriting the rulebook. But at Volkswagen, the aftermath of the diesel emissions scandal is driving the group to push € 35 billion into battery-powered vehicles.

Meanwhile, the company he resigned in 2015 is catching up in the EV market.

Electric models manufactured by the closest competitors, such as the Mercedes luxury EQS and VW’s Audi e-tron series, are already on sale. Both brands are adding several new electric models to their lineup. BMW will begin delivering its flagship iX and i4 electric vehicles to customers in November.

Instead of rewarding its pioneering spirit, BMW’s top 20 shareholder, Union Investment fund manager Michael Muders, said BMW was punished as “too early.”

“They burned 2 billion euros on the i3, and the market wasn’t ready yet,” he said.In the face of stable but modest demand for vehicles, BMW did not follow up on the widely anticipated i5, and Some of the engineers and designers working on the i-range have left, Mainly for EV startups.

When electric cars finally began to take hold in the last few years (expected to sell more than 3 meters in 2021), BMW said, “I was late because I wasn’t ready.” “We had to start from scratch, or near zero,” said Ingo Speich, portfolio manager at Deka, another BMW investor.

Oliver Zipse, BMW’s CEO, strongly opposes it. “I don’t think we’ll be late,” he said last month as a bystander at the Munich car show. “We sold the most electrified car of the year among the premium manufacturers.”

Indeed, according to figures compiled by Bernstein, BMW sold about 232,000 electric vehicles in the nine months to the end of September, lagging behind micro EV maker Shanghai GM Goryeo at BYD in China. I am.

But, like the models sold by the BMW-owned Mini, there were only 60,000 pure electric cars. The rest are plug-in hybrids, which include a combustion engine, but can only run for a short time on batteries.

A purer electric BMW is on the road. BMW will offer battery-powered models in “all relevant segments” by 2023, in addition to the iX and i4, Chief Financial Officer Nicolas Peter said, including the best-selling 5 Series and X1 SUV versions. I told the Financial Times. BMW plans to offer a 10m fully electric vehicle over the next 10 years.

BMW iX on display at Shanghai International Automotive Industry Exhibition
BMW iX © Hector Retamal / AFP / Getty Images on display at Shanghai International Automotive Industry Exhibition

However, it is also clear that the company has no plans to end its combustion engine lineup early. Half of the cars sold in 2030 are expected to be gasoline or diesel models, Zipse said in September: [this half of the market], You are setting yourself to a shrinking course. “

BMW’s public position contrasts with the major competitors who have fought BMW to achieve more ambitious EV targets. Daimler, the owner of Mercedes, said in July that Audi was “in a position” to be fully electrified by 2030. Announced in August That 2026 will be the last year of the gasoline or diesel model launch.

Their position is supported by a forecast by consultancy McKinsey last month, which predicted that the three major car markets in Europe, the United States and China would be about 70% electricity by the end of the decade.

But Zipse said BMW wasn’t sure if the changes would be made so quickly. “Now we can only see the time from 2021 to 2030 … everything else is ambitious,” he said. BMW added, “I want to stay profitable.”

His candidness has not been rewarded by investors. Daimler’s share price rose 42% this year, Audi-owned VW rose more than 30%, but BMW’s share price rose more than 20%.

The company, which is more than 45% owned by the Quandt-Klatten family, is “not happy with the valuation of the capital markets,” said Zipse, although there is less pressure from shareholders.

BMW announced last month that it raised its profit margin guidance from 7-9% to 9.5-10.5% in the midst of the semiconductor crisis, which devastated the sector and cut sales by a third. I’m sure. It will help.

Jürgen Peeper, a car analyst at the German private bank Metzeler, believes the market will not take long to revisit BMW. In terms of profitability, “they are the winners of the last four to five quarters of premium brands,” he said.

“Maybe VW and Tesla are more important [electric vehicle] “Platform,” added Pieper. “But sitting on the BMW, I think this product is great.”

BMW also said that if the predictions are wrong, it can prepare for the faster growing electric vehicle market, and a dedicated all-electric “Neue Klasse” series will be announced in 2025.

We have recently invested in Lilac Solutions, a US startup that promises to use recyclable and recyclable materials in future models and claims to be able to extract lithium for EV batteries from salt water.

However, there are no plans to follow rivals with higher electric vehicle goals.

“We think twice before telling anything,” Peter told FT. “We do not change or over-promise what we do not intend to offer.”

BMW left to catch up with electric cars after pioneering charging

Source link BMW left to catch up with electric cars after pioneering charging

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