BMW’s huge financial challenge to meet tougher CO2 emissions in 2021

Automobilwoche interviewed BMW M CEO Norbert Reithofer and he said that BMW will face huge financial challenges to meet tougher CO2 limits that will take effect in 2021 in Europe. This is a big challenge especially with BMW trying to cut $5.5 billion in costs.

Reithofer adds that complying with the new regulations will require the company to spend billions and their plan is for the new family of engines (Bx) to allow BMW to meet the CO2 targets while staying ahead of the competition.

BMW has already reduced their CO2 emissions by more than 30% since 1995 and are now at 133 grams per kilometer. The figure of 100g/km of CO2 corresponds to an average fleet consumption of about 4 liters per 100 kilometers.

In 2016, BMW will be celebrating its 100 years of existence and the contract of Reithofer will also expire as CEO of the company. Reithofer commented on this elegantly: “We have our Strategy Number ONE, which extends into 2020 and is fine-tuned once a year. The world is turning faster and faster. That is why our leadership team meets once a year at a two-day strategy retreat. We like to invite specialists as well. Once it was a quantum physicist. We wanted him to tell us what was heading our way over the next 20 years, especially in basic research. For example, what changes will quantum computers bring?”

Reithofer also also confirmed that the BMW i8 is currently sold out: “With this car, our customers need to be patient. We had no comparable measure at all in our sales planning. The i8 is a vehicle that — like the Z8 a few years ago — is not designed for large volumes. Instead, we’re talking about a few thousand units.”