BMW & Tesla Taking Different Approaches But Will Ultimately Face Off

Horatiu Boeriu of BMWBLOG recently did a piece titled "BMW vs. Tesla - Which Company Is A Bigger Innovator?" in which he mentions that while both companies are competing in the premium automobile segment and are committed to electric mobility, they are taking different paths to achieve success.

I'm not going to try to analyze who has it right or who is a bigger innovator, but it's clear that both companies have chosen to focus on different aspects of their respective vehicles. With Tesla, it's all about the batteries. Unlike every other automobile manufacturer, BMW included, Tesla's approach isn't for their electric cars to complement their lineup of gasoline and diesel offerings since they don't have any. Instead, it is to render gasoline vehicles from their competitors obsolete. In order to do so, their cars have to be at least as good or better than most features of competing gas cars; and that includes range, performance and utility. BMW on the other hand doesn't need to necessarily worry about making everything better. They can focus on specific needs of certain customers and make a vehicle that is better than any other at a specific set of tasks, without cannibalizing sales of other vehicles in their lineup. If you accept that premise, it's not difficult to understand why we have the Model S and the BMW i3.

Tesla knew they had to knock it out of the park with their first high volume vehicle offering. They knew they had to offer a car that could stand its ground against all of the top luxury sedans while offering a range long enough to allow for road trips enabled by the Supercharger network. Even though that was an enormous task, and one that few automotive analysts really believed they would pull off, they did just that and the Model S is a smashing success. No disrespect to the sexy styling or the fabulous performance of Model S, but the heart and soul of what the car is can be attributed to the enormous battery pack it uses, filled with industry leading, high energy-density batteries. Tesla is all about the batteries. Even though the Model S uses batteries that have a higher energy density than any other EV manufacturer, they still aren't satisfied. They aren't waiting for the market to bring them better, cheaper cells for their future cars. Instead they are in the process of building what will be the first of many Gigafactories, which will be the largest lithium ion battery manufacturing plants in the world. This will drive down costs, guarantee that they have the supply that they need, and allow them to constantly upgrade to better cells without needing to wait for battery manufacturers to retool production facilities to produce them. The key to Tesla's success is having the best batteries available, and to manufacture them for less than what their competitors are paying for comparable cells. It's the only way to offer large battery, long range electric vehicles and be able to price them competitively.  It's Tesla's edge, and perhaps their only hope to compete and actually beat the large, established automakers.

BMW's not in the battery business and is unlikely to follow Tesla's path as such. As mentioned above, since they didn't need the i3 to do everything better than any other gas offering as the Model S had to, BMW could focus on a specific set of goals with their first electric vehicle. The i3's code name was the Megacity Vehicle and the goal was to develop a car that would be the perfect electric vehicle for the increasing populations within the megacities of the world. They also wanted this car to represent a departure from traditional manufacturing processes with an emphasis on sustainability.  They set out to make the most efficient production car available today and they achieved that goal. The extensive use of carbon fiber reinforced plastic and aluminum allowed BMW to shave 400 to 500 lbs off the car which played a primary role in its efficiency.

Will BMW leave Tesla in their rear view camera? That doesn't look very likely at present.

I believe the i3 is as much of a learning experience for BMW as it is their first electric vehicle. Every step of the manufacturing process was rethought and redesigned for the i3. In fact, the i3 uses 70% less water and 50% less electricity to manufacture than a comparable-sized conventional BMW would. In addition, the Leipzig manufacturing plant where the i3 is made is now completely powered by wind-generated energy. So as much as the i3 is an important vehicle to BMW today, the lessons learned bringing it to market today will pay dividends when future i cars are made. The i3 indeed paved the way for the rumored i5 and other models from the i brand. You can expect larger battery, longer range electric cars from BMW i in the not-so-distant future. I suspect by the time Tesla releases the Model III, BMW will have an electric offering which is comparable size, range and price, and that will be good news for the consumer.

My i3 had a visit by its big brother. I'm one of the few lucky people outside of some select journalists who have driven an i8 on public roads. The future is definitely looking electric!

BMW knows that by focusing on a specific set of needs (efficiency, performance, sustainability) rather than long range, the i3 isn't as well suited for road trips as the Model S. They knew that every kWh of battery that they added would sacrifice efficiency and increase the cost of the car. I still maintain that if BMW had indeed used a slightly larger battery and delivered a true 100-mile EV, it would have been much better received, but that's a pointless argument now. While it does have a shorter range, the i3 does have features that are not even available in the Model S, such as adaptive cruise control, collision avoidance with automatic braking and self parking. As you would expect from BMW, the i3 is an extremely fun car to drive, and a great addition to the current lineup of EV offerings. I think it fits in well situated directly between the Model S and the LEAF in price.

My i3 at home

BMW did realize some customers would want a longer range so they offered the range extender as an option. It's really a great option to have and while I personally like how well it works, it isn't for everybody. Many have argued that the REx ruins the purity of an EV, and while I can agree with that, I can't agree that it shouldn't be an option. If such a feature allows more people to buy a plug in car, then I think that's great. I see the range extender as a temporary fix until batteries get better, lighter and cheaper, but a necessary evil at present. Obviously BMW agrees with that and unlike Tesla, they will wait for the market to bring them improved battery tech while Tesla has decided to bring improved battery tech to the market. Different approaches, different cars and I don't think either is right or wrong. They are both working on bringing cutting edge technology to market today with the promise of even better things to come. BMW and Tesla aren't going head to head in the EV space right now, but they certainly will. Competition is good because it forces innovation. Maybe Horatiu was onto something after all.

One last point: If Nissan does deliver on the rumors that the next generation, 2016 LEAF will have a 150+ mile range, and they can deliver it for a reasonable price, then both Tesla and BMW should be concerned, very concerned...

BMW and Tesla going nose to nose in the premium electric vehicle market is inevitable.

Touchy "Door Ajar" Warning Light an Issue With Early i3 Builds

If you already drive an i3, you've probably seen this warning pop up on the dash.

The rear coach doors have been one of the more talked about features of the i3. Most people seem to favor conventionally opening rear doors, especially when they are considering hauling the kiddies around in the back as it can be difficult to open the doors in tight parking spaces.

Surprisingly, the feedback I've gotten from many early i3 owners has been generally positive in regards to coach doors, (or at least there haven't been any complaints!) so perhaps in practice they aren't as cumbersome as many predicted they might be. However there does seem to be a problem that has popped up with regards to them. As soon as the first i3's hit the roads I heard from a few of the first owners that the rear door ajar warning light would come on often during cornering. I didn't report on it since it was only a couple people and there are always minor build issues with new models. I figured BMW would get it sorted out quickly and I wouldn't hear anything more on it.

Close me first!

That doesn't seem to be the case. We are about seven months into production and I've now had more than a dozen i3 owners tell me they experience this regularly if they don't close the rear coach doors very hard - in other words slam it shut. Some of these people have only taken delivery very recently, so they aren't driving some of the first cars off the assembly line. They don't believe it's a safety concern, and the door is not in any danger of opening as it is securely locked. There doesn't appear to be a physical switch in the door jamb, so it would seem the sensor is some kind of magnetic switch inside the door that needs to make contact and is extremely sensitive. So much so that it loses contact when the car is in a tight turn or goes over a bad bump in the road.

This really isn't anything alarming and not completely unexpected. The i3 is a brand new model and BMW is using materials and manufacturing processes they have never employed before. There will likely be some minor issues like this, however it does need to be corrected. As I'm sure many of you can attest it's quite annoying to have one of these warning lights turn on and off all the time, especially at night when the display is brightly illuminated. I'd hate to have to resort to the decades old "black tape over the annoying warning light" solution on my brand new $56,000 urban mobility pod!

BMW i3 Production Delays Reported

Virtually every facet of the i3's manufacturing process is different and BMW is evidently struggling to manage setbacks

According to Jay Cole over at insideevs.com i3 production is currently 50% lower than expected at this point in time. Cole's source is Manager Magazine Online, a German Publication, which states the high rejection rate of the carbon fiber parts made for the car. The article goes on to say that BMW's recent announcement that the company will be investing another 100 million euros to increase the production of carbon fiber is tied to this issue.

Manager also says BMW is only churning out 70 i3's per day which is about half of what they were hoping to be making by now. BMW began i3 production in October so they are four months in and now have over 11,000 i3's on backorder. Plus, US sales are only just beginning so it would appear that even if BMW gets the current problems solved in short order (and that's a big "if"), it will still probably take them nearly a year to catch up with demand since the orders will continue to pile up. It has long been speculated that BMW will have the capacity to make between 30,000 and 40,000 i3's per year once they are running at full production.

It seems we now have some answers to two things which were puzzling US customers recently. A couple months ago BMW announced that US i3's will not have a moonroof available. This comes long after it was announced that the i3's with Giga World and Tera World interiors get the moonroof included with the packages. To make matters worse, most of the i3's here in the US are pre-production European spec cars and they all have sunroofs. So everyone that had the opportunity to test drive an i3 got teased with seeing the moonroof that they were later told they won't be able to have. Then, a few weeks ago BMW announced the first three months of i3 US production would be limited to a "Launch Edition" version. The Launch Edition is fully loaded with every option available on the car and the most expensive Tera World interior. The only thing the customer can choose is the color (and only the metallic colors are available) and if they want the optional 20" sport wheels.

Many people speculated that is was simply a money grab and BMW knew the car would be in high demand so they could get away with making anyone that wanted one of the first i3's in the US buy one that was loaded. Now, with the recent news about production difficulty, I think it's obvious the reasons the moonroof isn't available at launch, and custom ordering isn't available for another three months, is solely because BMW is struggling to refine the manufacturing process and eliminate the problems they are currently having.

I've had the opportunity to talk with many BMW program managers over the past few years. One of the things that has always stood out to me was how on one hand they were really excited about the i3 because of how special and different everything about it is, while on the other hand they would always acknowledge how big a challenge it was going to be. Everything about the i3 is different. BMW has never made a car that required special manufacturing processes for virtually every stage of assembly. Besides the electric powertrain, most of the materials used in the car are even different. While the biggest challenge is likely working with carbon fiber on such a large scale, they are also using more aluminum on a car than they ever have and are using interior materials that they have never worked with before. Then there is the outer thermoplastic body panels which BMW has never used before which has even led to the painting process presenting challenges.

So personally I'm really not surprised by all this. The i3 is a revolutionary new car for BMW, and nobody else is making anything quite like it. Yes, there are some that will look at it and say "It's just another 80 mile electric car, big deal", or "It's nothing more than a Nissan LEAF that costs $50,000". I respect everyone's opinions, and for some people it doesn't represent any more value than a $30,000 Nissan LEAF and that's fine. However when I see the i3 I see the future of the automotive industry and I applaud BMW for taking the enormous risk of building such a radically different car, something that nobody else is attempting to build. Yes, I wish it had more range and I think BMW would have been better served if it could really deliver 100 miles of consistent real world range for most drivers, and it's clear it will not. But that's the biggest knock I can offer and it's far from a deal breaker for me. BMW will get past these initial manufacturing snafu's. The top concern at this point should be quality, which I'm sure it is. The production numbers will increase and by the end of the year I'm sure they will have everything running as smoothly as planned. The question is will the customers wait many months for their i3 to be made? I suppose the people that don't put as much weight on how special it is may not, but those that appreciate how unique the car really is will. After all, there is nothing else out there they can get that is quite like the i3.

BMW i3 Production Video Series

BMW released a four part video series which shows in great detail the construction process of the i3. From carbon fiber manufacturing, to battery pack construction and full vehicle assembly on the production line at Leipzig. It's rare that a manufacturer allows such a detailed look at how they make a car. There's over an hour of combined video in the four part series below. If you are an i3 enthusiast, or even just a car person, this is definitely worth watching.

i3 Modifications, a Sport Version and Fun

I found this photoshopped i3 on Bimmerpost. It looks to me like the creator has the right idea!

Now that we've seen the production i3 and BMW has revealed most of the specifications, I'm ready to begin the modifications! Evidently someone on the Bimmerpost forums is ready also because he used his photoshop skills and went to work on creating his own autocross-ready i3. I like it! It's even in the Laural Gray that I'm leaning towards so that made it all the better.

So this gets me wondering if BMW even realizes there are people out there that will want to modify their i3. BMW has already said there won't be an M version of the i3 and I conformed that with a program manager recently, but that doesn't mean they won't offer modification parts for those interested. After all, BMW cars are some of the most modified of any manufacturer. I hope they aren't under the assumption that just because i3 customers are concerned with things like sustainability, environmental issues, energy policies or just like driving electric that they won't share the same enthusiasm for driving as their combustion car customers do.

I'll take it one step further. Even if they don't cross pollinate the i and M brands, they could still make an i3 Sport version. Give it a special interior, offer it in a unique, bold exterior color, beef up the suspension, put on some real tires and give it a little more torque and HP(I'm sure they can do that with the same motor they have with very little tweaking) and you'll have a 6 second 0-60 car that will have better handling than 90% of all the sports cars out there. Sure it will probably cut 10 miles or so off the range but I think there are many of us out there willing to make that sacrifice.

I know BMW knows the market, and they know people want fun. Even if they are driving a "futuristic, sustainably manufactured" car. All that's great, but it's nothing if it's not fun. :)

BMW i Does New York

I found a nice place to hang in between the events

The BMW i Born Electric Tour had its only North American stop last week as they set up shop in New York City at a great space across the street from Bryant Park at 1095 Avenue of the Americas.

Just give me a mic and I'm ready to talk EV!

I actually went to the event twice. Once on Tuesday for a private event that only the BMW ActiveE lessees were invited to, and again on Sunday. I made a presentation on Sunday to the participants of the developers Hackathon that BMW i had over the weekend. BMW asked me to talk to the group about my experiences driving BMW's electric cars, the MINI-E and ActiveE over the past 3 1/2 years and I happily agreed to do so.

There wasn't much in the way of new information on the i3 there for me anyway, but this wasn't really meant for those of us following the progress of the i brand closely. It was meant to open the door to the general public for the first time and to show them a glimpse of what BMW i is all about. BMW i is much more than just the cars that are coming from it. It's about the future of urban mobility and where BMW believes we are going. BMW i will have strategic mobility partners like DriveNow, ParkNow,  MyCityWay and ParkatmyHouse.com to compliment the cars they will be selling. These services will compliment their plug in line and make urban mobility easier. BMW i is also focusing on sustainable manufacturing and electric vehicle recharging. The carbon fiber used on the i brand cars is made with 100% renewable energy at BMW's Moses Lake, WA carbon fiber plant and the entire Leipzig assembly plant for the i brand cars will be powered by a wind farm that is currently being built. The materials used for the interior also reflect the sustainability theme: "The interior of BMW i3 Concept is characterized by the visible use of natural resources such as European eucalyptus wood. The natural materials underscore the premium standard of BMW i while conserving resources – and during disposal, they emit only as much CO2 as the plant stored during its growth phase. The leather used in the interior is tanned using a natural agent derived from olive leaves. The olive leaf extract provides natural protection against fading and wear while giving the leather a unique look and unmistakable character. The cowhide from southern Germany is thus not only environmentally friendly, but also produced for maximum durability. The wood used in the dashboard is made entirely of timber grown in Europe and certified as 100% sustainable by the Forest Stewardship Council (FSC). By crafting the wooden components in Europe, BMW ensures short delivery routes and sustainability in all stages of production." There were plenty of displays that focused on the sustainability side of the brand. Personally I think they could have benefited from balancing that off a bit with some more info on how the cars are fast, smooth and fun to drive.

Jose giving one of many i3 presentations

There were very helpful and well informed assistants there, in particular a woman named Barbara was very helpful. She led one of the tours on Tuesday and was on the main floor on Sunday answering questions about the i3. However the best presentation award in my opinion goes to Jose Guerrero of BMW i. Jose spent much of Tuesday night at the i3 display explaining every detail (that he can at this time) to the ActiveE drivers. Jose was great and the ActiveE Electronauts that I spoke to all thought he was very informative and entertaining to listen to. 

I think BMW did nice job on the whole event. They need to begin to inform the public as to what BMW i is all about. As I said before, this wasn't geared for people like me who have seen the concept i3 & i8 a few times already in person and follow everything that is announced. However for the person off the street it was an eye opener. I watched the people walk in on Sunday and marvel at the cars. A couple people even said to their friends "Yeah, but they'll probably never make these because they are too cool" I quickly jumped in and told them that these cars will be on sale starting next year and they were very happy to hear it. One of the real highlights for me was on Sunday. I was talking to Barbara on the main floor and a guy walked up to me and introduced himself. He said he recognized me from reading my blogs and that he's been following them for a while now and reads every post. That was really cool and I want to thank him for taking to he time to stop by and say hello as well as for following my blogs. Hearing people tell me they enjoy them is what really keeps me doing it.

Have a Happy Thanksgiving everyone!

The i3 advertised range: You better deliver on this promise BMW!

A smaller battery means quicker charging. The i3 will fully charge in 3 hours compared to the ActiveE's 5 hour recharge time

BMW had a display that showed that New York City already has over 100 public charging stations installed