BMW to focus on profitability on electric cars for now

2014 was a great year for BMW in terms of electric cars. The BMW i3 and i8 were launched then and it has never stopped being a favorite in this segment. BMW really won the game in a lot of ways. The electric cars they released were carbon fiber-intensive, brimming with advanced technology, and was popular with the general public. However, recent news says that BMW has not yet achieved the sales they’d hope to make for these electric cars. BMW spent so much time and money in creating these cars, they now have to recalibrate and consider profitability.

The approach that BMW will be applying moving forward is said to be a little slow or reserved. In fact, BMW only presented variants of current models in the 2017 Geneva Motor Show. The ALPINA B5 Biturbo actually stole the show and was the most exciting BMW in the showcase.

Do not be alarmed, BMW is only investing in a change. Instead of focusing on the future of mobility, BMW will now shift focus on what customers want and are able to buy now. This will ultimately help in their profitability.

“We’re transforming BMW from a carmaker into a tech company and a mobility-service provider,” BMW CEO Harald Krueger told Bloomberg. “During this transformation, there’s one constant factor — a rigorous focus on what helps our customers and what they desire.”

BMW will continue developing battery technology though. The BMW engineers are not yet happy with the state of the batteries that they offer so this will continue to be an investment in the future electric cars that they will be making. BMW will further invest in this before developing new electric vehicles.

“BMW is large enough to master the investment demands for future technologies and keep profitability up,” said Krueger.

There are some, though, who believe that BMW is going to be left behind by other more innovative automakers. “The danger is that these new vehicles like Mercedes’ EQ and Volkswagen’s I.D. are a huge success, leaving BMW wrong-footed,” Harald Hendrikse, a London-based analyst with Morgan Stanley, to Bloomberg. “The push for electric cars does feel more real this time.”

Though, Hendrikse does go on to say that it’s possible for BMW’s approach is a safe one. “BMW’s decision to go for a gradual approach feels like the safer one in terms of investment outlay,” he said. “There’s no evidence to suggest people need a special-looking electric car and won’t buy a 3-Series with a good battery range.”

Source: Bloomberg