BMW CEO Reithofer Shows Strong Support For Electric Vehicles

Dr. Norbert Reithofer, CEO of BMW AG stands beside the concept i3

It's common today for people to question the legitimacy of the commitment major OEM's have today in regards to their electric vehicle programs. Most are in one way or the other developing or have already brought to market a car that plugs in. Some are pure EV's like the Nissan LEAF and others are plug in hybrids like the Chevy Volt.

While both Nissan and Chevy are clearly committed to plug in vehicles by offering volume production cars and will make as many as they can sell, some other manufacturers haven't been so supportive of them. These manufacturers have begrudgingly made a few thousand copies with the sole purpose of complying with the California Air Resource Boards mandate which requires the top six auto manufacturers to lease or sell a minimal amount of zero emission cars. These low volume "compliance cars" generally get very little support from the manufacturer and even less support from the dealerships, many of which don't even stock them in regular inventory.

Over the past couple years many people and even a few journalists have commented on blogs and EV websites that they believe BMW is also just developing the i3 for CARB compliance and they have questioned BMW's commitment to plug in vehicles. Being in the MINI-E and now ActiveE programs and having the opportunity to talk to program managers and engineers working in the electric vehicle team I have never doubted that BMW was serious about electric vehicles but I understand why others may. Many people wanted an electric BMW they could buy and the trial lease programs of the MINI-E and ActiveE didn't offer that. However their wait will soon be over as the i3 will be available for sale before the end of the year. It will be a full scale production car, available all over the world and BMW will make as many of them as there is demand for. It's not a limited run compliance car and BMW is going to do what they can to support their dealership network and assist them in selling them.

Even though everything I've seen points to BMW taking electric vehicles very seriously, it's still great to see the CEO comes out as supportive of their plug in vehicle program as Dr. Reithofer did this week at BMW's Annual General Meeting. Other than Nissan's Carlos Ghosn, I haven't seen a CEO of any other major automobile company come out as strongly in support of their companies venture into making electric vehicles. He even calls for Germans to get over their "angst" with electric cars. Well done Dr. Reithofer!

The following is an excerpt from the Statement by Dr. Norbert Reithofer, Chairman of the Board of Management of BMW AG, 93rd Annual General Meeting of BMW AG in Munich on 14th May 2013:

"But  2013 is also about revolution for us, as we launch series production of our electric vehicles.

At last year’s Annual General Meeting, we showed you the BMW i8 concept car: a plug-in hybrid; a genuine sports car with the fuel consumption of a small car. Today, you can view the pure-electric BMW i3 concept car. We believe in electro-mobility – and are putting it on the road. Germany is respected and admired the world over for its engineering expertise and powers of innovation. But “German Angst” is also a concept the rest of the world is familiar with. “German Angst” refers to how, when it comes to making radical changes, we in this country like to engage in long and fearful discussions: because we Germans tend to see more problems than opportunities. And it is no different with electro-mobility.

Being the spearhead of change means taking a calculated risk.
There is no guarantee of success – not even on the road to sustainable mobility.
Progress has to be imagined, earned and paid for.

Ladies and Gentlemen,

The future belongs to those who dare to take bold actions. We cannot ignore the need for new approaches – especially when circumstances are changing. Because the market certainly punishes latecomers.

Shaping change also means overcoming resistance.

As Machiavelli wrote, 500 years ago: “…the innovator has for enemies all those who derived advantages from the old order of things, whilst those who expect to be benefited by the new institutions will be but lukewarm defenders”.

Or, quite simply: The innovator stands alone.

Customers are waiting for attractive options – options which we can deliver.
We will succeed in this. And I can give you seven reasons why:

First:

Our BMW i models have strong emotional appeal. Customers will buy an electric car if it appeals to them just as much as a conventional vehicle. I myself have test-driven both the BMW i3 and i8 several times. I can assure you that these cars’ step-less acceleration to top speed guarantees real “sheer driving pleasure”. The i3 and the i8 fit the brand perfectly. They are genuine BMWs.

Reason number two:

We take a holistic approach to future mobility. More than that, in fact: As an engineer I can promise you that we are revolutionising automotive construction.

The vehicle architecture of the BMW i3 is unique: with a Life module and a Drive module.

• The materials we use are unique: a passenger compartment built of carbon fiber and a Drive module made of aluminum.
• The production processes are unique: High-tech adhesives are now used for procedures that used to require welding, bolting and soldering.
• Our production times are unique: We use fewer parts, and modules are produced in parallel. As a result, production of the BMW i3 takes only half as long as that of a similar-sized vehicle from our regular portfolio.

 There are also benefits for our associates, whose work has been made easier.

• Workstations are more ergonomic.
• Assembly is quieter.
• Production halls use natural light.

None of this has been done before.

The third reason:

We monitor customer needs around the globe. Drivers in Shanghai and California are not particularly interested in how we get from Flensburg to Garmisch. They have different everyday mobility issues.
And they need different solutions. Companies who focus only on the German market as a measure of the success of electro-mobility will fall short. After all, megacities are already limiting conventional individual transportation.

In Beijing and Shanghai, for example, number plates are awarded by lottery, with considerably more applicants than plates. But electric vehicles are exempt from the lottery process and the associated fee. These local, and even national, decisions will boost demand for electric vehicles and other drive trains.

Customers around the world have tested our electric MINI E and BMW ActiveE cars, clocking up more than 20 million kilometres. Their experience has shown that:

A range of 150 km is perfectly adequate for the vast majority of drivers. Also, with a range extender, that distance can be increased to up to 300 km.

• Worldwide, the average distance driven daily is no more than 64 km. Most cars are not actually in use for more than 22 hours of the day – so the battery can easily be charged during that time.

Fourth reason:

Many customers have already told us they are interested in buying a BMW i3 – a car they have not yet seen as a series model, with a technology they are not familiar with. Customers trust in our expertise and powers of innovation. They trust that we can deliver “sheer driving pleasure” in our electric cars, too.

The fifth reason:

We have received a lot of encouraging feedback from media and analysts.

Even before 2013 had started, SPIEGEL magazine declared: “The BMW i3 is the car of the year.” Auto-BILD wrote – I quote: “This car is a revolution. The i3 does everything differently and many things better.” End of quote. Try it for yourselves, Ladies and Gentlemen: Google BMW i, and see which company people believe is capable of shaping the mobility of tomorrow.

The sixth reason:

Our mobility services are in step with the times.

Around 110,000 customers in Germany and the US are already using our DriveNow car sharing service – with more joining every day. Our ParkNow mobility service in San Francisco is also gaining momentum.  As well, more and more people are taking advantage of our practical apps such as “Park at my House” and “My City Way” for easier mobility in cities. In this way, we are also reaching out to younger target groups.

And the seventh reason why we will succeed:

When it comes to the future of mobility, BMW has very good instincts.
We lead the way.

• We focus on sustainability. Others follow.
• We focus on carbon fibre. Others follow.
• We focus on three-cylinder engines in the premium segment. Others follow.

Boldness and a pioneering spirit have made the BMW Group what it is today: the world’s leading manufacturer of premium automobiles.

BMW i will not decide our future success alone. But the fact of the matter is:
We need both: evolution and revolution; continuing development and radical change.

In Leipzig, the pre-series BMW i3 models are already rolling off the production line.

In case anyone is still in any doubt – this is a clear signal that the i3 is definitely coming to market. And we will earn money with it, too."

The i3 Concept Coupe Stars in Geneva

Dr. Norbert Reithofer, Chairman of the Board of Management, BMW AG, addresses the media in front of the i3 concept coupe'

There has been a lot of prognosticating on the interwebs lately in regards to what BMW will have to say about the upcoming i3 at the Geneva Motor Show. Some have speculated they will unveil the actual production i3 while others have guessed BMW will simply offer a little more information, just enough to keep us interested without disclosing too much.

Well, BMW didn't reveal the production i3 (which is looking more and more likely to happen in Frankfurt in September) but the chairman of the Board of Management, Dr. Norbert Reithofer, did have this to say to the media today as he addressed the media in front of the i3 Concept Coupe':


Ladies and Gentlemen, Welcome to the BMW Group!

This is what individual mobility of tomorrow looks like and we will bring it to the road – as early as this year. This stands to show that we don’t just talk the talk. We walk the walk – because we are convinced that e-mobility is the technology of the future. We all know how the world is changing. In megacities, the car can only have a future if we take the right steps to lead it from low-emission to zero-emission technologies today. We strongly believe that sheer driving pleasure will also work without emissions.

The BMW i range offers a broad range of possibilities. What you can see here in Geneva is a variant of the BMW i3 – the BMW i3 Concept Coupe.

And I can tell you this much: Many of the components used for this Coupe are close to the series vehicle. This model highlights the great dynamics of the fully-electric BMW eDrive technology. Just like the BMW i3, the Coupe offers a maximum output of 125 kW or 170 hp. This e-drive is an in-house development – which is what customers expect from a company called Bayerische Motoren Werke AG. The underbody is fitted with lithium-ion batteries that provide the power to the e-drive.

We believe that customers will decide to buy an e-car if they receive compelling offers. Still, success is not guaranteed. But I am an engineer, and as such I know that technical progress and pioneering work require a daring approach. At the BMW Group, we have tackled the issue of e-mobility from a holistic perspective, and let me add: more so than any other automaker.

This means:

A completely new vehicle concept, consisting of Life and Drive modules.
New materials such as CFRP.
Sustainable production.

The media will have the opportunity to test-drive the BMW i3 this fall. I have already driven it quite a few times, and let me tell you: Cruising the city in this agile and noiseless sprinter is, without a doubt, sheer driving pleasure. Unfortunately, our stage is too small; otherwise, I would be happy to give you a little demonstration on the spot. Thank you very much to the BMW i3 Concept Coupe!

The BMW i range is one example of the foresight that we have at the BMW Group. We aim to provide our customers once and again with innovative solutions and attractive services, which meet their individual demands and offer them additional benefits. Proof of this is the vehicle we would like to present to you next.

So now I think we have a more defined timeline. Here is how I think it will proceed:

-Between now and the Frankfurt Auto Show in September we will continue to get little bits and pieces of i3 information, just enough to keep everyone interested and media satisfied. An occasional journalist will get to drive in one, but not for a comprehensive review.

-The production i3 is introduced in Frankfurt including specifications and pricing. 

-The media will get full access to drive and review them in October.

-European sales begin in November and US sales start in January. 

Do you agree? Post your thoughts below in the comment section.

Rumor: BMW i3 to cost between $43,000 and $49,700

According to automobilwoche.de the i3, BMW’s first entry into the EV market will be priced similarly to the current entry level 5-Series, somewhere between €35,000 - €40,000 ($43,000 - $49,700US).

This isn't really a surprise since BMW CEO Norbert Reithofer previously said the i3 will be priced less than a five series. Given the current five series starts at about $48,000, this price range seems in line with those comments. If you look below at my previous post below, you'll see the poll I started that asks "What would you pay for an i3?" It seems the poll results are very close to what I expect the i3 pricing to start at, which is right around $45,000. 

BMW CEO: BMW i3 Will Cost Less Than a 5 Series

 

BMW CEO Norbert Reithofer recently stated that the 2013 BMW i3 would cost less than a BMW 5 series sedan. While that may not be earth shattering news, it does give us a pretty good idea where the i3 will be positioned price wise. List price for a new 528i is currently about $45,000 so my thoughts that the i3 would be somewhere between the $35,000 price that Car & Driver recently reported the i3 would cost and the rumors that it would be in the low to mid 40's seem to be right on target.

At this point I'm going to guess a starting list price of $42,500. If you qualify for the $7,500 federal tax incentive (and if it's still there in 2013!) then you could drive away in your new i3 for around $35,000 to $38,000 depending on how well appointed you want it. I think that a pretty fair price for a car that has the kind of cutting edge technology the i3 is going to have.