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BMW Does a Complete U-Turn on its EV Program

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The production version of the i4 Concept will reach the U.S. next year. It will use a shared platform.

A week before unveiling the all-new iNext battery-electric vehicle, BMW said it will “realign” its strategy and begin developing a unique architecture solely for “electric drives,” rather than sharing the same platform for vehicles using both battery and conventional gas and diesel powertrains.

That’s a complete about face for the Bavarian marque which, in recent years, had hoped to save money and simplify manufacturing by coming up with common architectures that could roll off the same line. But it also marks a return to BMW’s original strategy when electrified models like the all-electric i3 city car and plug-in hybrid i8 sports car used unique platforms.

“The aim is to create an overall optimum with the new architecture,” CEO Oliver Zipse said during BMW’s quarterly earnings presentation on Wednesday.

(BMW preps for i4 launch, confirms plans for all-electric 5-Series and X1.)

Over the past decade, the auto industry has gone back and forth on the appropriate approach to developing electrified vehicles, pure battery-electric models, in particular. Some, like the Ford Focus Electric and the Volkswagen e-Golf, shared common platforms with the gas and diesel versions of those vehicles. Others, such as the original BMW i models, as well as the new Ford Mustang Mach-E and VW ID.3, used unique architectures.

BMW says the production iNext should get nearly 400 miles of range per charge.

Each approach had both pluses and minuses. Shared platforms result in design compromises, often limiting the amount of batteries that could be stored on a vehicle – impacting range, among other things. But development costs can be held down, while increasing the flexibility of a company’s assembly lines.

Unique platforms, most adopting a skateboard-style layout with batteries and motors mounted below the load floor, can handle larger packs, increasing range and lowering a vehicle’s center of gravity. But that means additional development costs and the tooling up of plants dedicated solely to EVs.

With an upcoming wave of new products BMW had aimed for a compromise strategy. They use flexible platforms that can squeeze more batteries under the load floor for models like the all-electric i4 fastback due out next year. But there’s space for a conventional internal combustion engine for products such as the next BMW 4-Series.

Now, , “We will realign our vehicle architecture from the middle of the decade,” said Zipse, adding that, “Our new cluster architecture is geared towards electric drives” exclusively.

BMW’s i3 is one of the automaker’s best-selling electric vehicles. It uses a unique, rather than shared, platform.

“Our new plant in Hungary plays a key role here,” said the CEO, noting that production of “the new BEV-centered architecture will start there.”

(BMW and Mercedes suspend joint autonomous vehicle development program.)

The plan is to make the new strategy a high priority, an all-new product development operation reporting directly to Zipse. But it will be able to reach out to all other areas within the company, from engineering to sales and marketing which “gives us more control and makes us much faster,” he explained.

The shared platform strategy had come under intense scrutiny within BMW, noted German magazine Automobilwoche, Over the summer, Manfred Wochs, the head of the BMW Works Council, had warned that it resulted in “too many compromises” that could set BMW back competitively, especially in key markets like the U.S. and China.

BMW is racing to get a leg up in an emerging market segment that currently is dominated by the upstart Tesla – with an assortment of traditional competitors, as well as start-ups like Lucid, Fisker and Rivian, aiming to gain share.

But Zipse insisted that BMW will be ready when its new EVs hit market around 2025. “We anticipate that the demand for fully electric vehicles will continue to increase significantly from 2025 onwards. Exactly then – keyword timing – we will ignite phase III of our transformation.”

(BMW may go for a plug-in hybrid with upcoming X8 M.)

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Tesla CEO Musk Cuts Model S Price — for Second Time This Week

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Tesla CEO Elon Musk showed his competitive streak this week, cutting the price of the Model S for the second time in three days.

Tesla CEO Elon Musk must be feeling the pressure to keep up with the Joneses, or in this case Lucid CEO Peter Rawlinson plus the armada of automakers readying new electric vehicles, as he cut the price on the Model S — for the second time this week.

“The gauntlet has been thrown down! The prophecy will be fulfilled. Model S price changes to $69,420,” Musk proclaimed in a tweet Wednesday afternoon. The new price, in addition to reinforcing his love of the number 420, is in response to the price for the base model Lucid Air.

The potential Tesla fighter’s entry-level battery-electric sedan is priced at $77,400; however, it will be eligible for the federal government’s $7,500 EV tax credit, dropping the price to $69,900. The pricing for the four trim levels of the Air were revealed Wednesday morning, and marked the second time Musk’s looked to one-up the current top competitor.

(Lucid fills in some blanks about its $77,400 Tesla Model S fighter.)

For nearly two months, Rawlinson, a former top Tesla executive who left to start Lucid, and his company’s first product have enjoyed the spotlight. The Phoenix-based company’s Air set new standards for range – 517 miles – and performance with a 0-to-60 mph time of just 2.5 seconds. He expanded on that with a video showing the Air racing through the quarter mile in a time of 9.9 seconds, adding it was actually a little faster than that.

The second Model S price cut came after Lucid Motors CEO Peter Rawlinson revealed the price for the base model of the new Air sedan.

If nothing else, Musk is competitive. During the company’s Battery Day event, he revealed the Model S Plaid with a range of 520 miles and a 0-to-60 time of less than 2 seconds and a quarter-mile time of just 9 seconds — with prices starting at $134,490 with orders being taken immediately. Deliveries are expected to begin in “late 2021.”

Lucid’s base model sedan is expected to deliver an EPA-estimated range of 406 miles on a charge. The Tesla Model S logs in with an EPA-rated range of 402 miles per charge.

Earlier this week, Musk cut the price of the Model S by $3,000, or 4%, a move some observers believe designed to prop up sales as a growing list of competitors enters the battery-electric vehicle market.

(Tesla slashes Model S price tag another $3,000.)

The Model S Long Range was set to start at $71,990 in the U.S. after the first price change Tuesday. Tesla announced a similar reduction in China, where last month it also trimmed the price of the Model 3 sedan by 8%, with a base version now starting at $36,805.

Although Lucid seems to be a direct competitor, Tesla is facing a potential onslaught of competitors that have been scrambling to catch up to the California-based EV maker that is currently the segment leader in sales.

Ford, Volkswagen, Mercedes-Benz, Hyundai, Volvo/Polestar, Porsche and General Motors are just some of the established players that have invested billions in recent years into their electric vehicle development plans, some of which already have EVs on the road with more coming in the next 12-24 months. That doesn’t account for startups like Fisker, Rivian and Lordstown set to roll out vehicles starting next spring.

The initial price cut was not only viewed as a hedge against the oncoming horde, but also as a way to perhaps drum up a few more sales to help Tesla meet its 2020 delivery goal of 500,000 vehicles. The company set a record in the third quarter with 139,300 vehicles — a new record. In total, Tesla’s delivered 318,687 vehicles through the first three quarters, meaning the company will need to set another new record of 181,313 vehicles to hit the target, which is about a 30% increase compared with last quarter.

In recent years, Tesla’s sprinted to the finish line each year with the fourth quarter being its strongest. Tesla delivered 112,095 cars compared to the 95,356 and 97,186 in the second and third quarters last year.

(Tesla speaking truth about its power at Battery Day.)

The push to get to 500K would likely require two things: a newfound efficiency increase and some sacrifice on the part of workers.

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width: 100%; margin-right: 0; margin-top: 10px; } html div#gJSomKNtPm.mo-optin-has-custom-field div#gJSomKNtPm_inpost.columbine-container div.columbine-column textarea.mo-optin-form-custom-field.textarea-field { min-height: 80px; }div#gJSomKNtPm *, div#gJSomKNtPm *:before, div#gJSomKNtPm *:after {box-sizing: border-box;-webkit-box-sizing: border-box;-moz-box-sizing: border-box;}div#gJSomKNtPm_inpost_container div.mo-optin-powered-by{margin:5px auto 2px;text-align:center;}div#gJSomKNtPm_inpost_container div.mo-optin-powered-by a {font-size:16px !important; text-decoration: none !important;box-shadow:none !important;border-bottom-width:0px !important;cursor:pointer !important;}div#gJSomKNtPm_inpost_container #mo-acceptance-checkbox {background-color: #fff;line-height: 0;border: 1px solid #bbb;width: 16px;min-width: 16px;height: 16px;margin: 0 5px 0 0 !important;outline: 0;text-align: center;vertical-align: middle;clear: none;cursor: pointer;}div#gJSomKNtPm_inpost_container .mo-acceptance-label {cursor:pointer}div#gJSomKNtPm_inpost_container div#gJSomKNtPm_inpost p {padding:0px !important;margin:0px !important}div#gJSomKNtPm .mo-optin-form-wrapper label {color:inherit;font-weight: normal;margin: 0;padding:0;}div#gJSomKNtPm.mo-cta-button-flag .mo-optin-form-note .mo-acceptance-label {display:none;}div#gJSomKNtPm .mailoptin-video-container { position: relative; padding-bottom: 56.25%; height: 0; overflow: hidden; } div#gJSomKNtPm .mailoptin-video-container iframe, div#gJSomKNtPm .mailoptin-video-container object, div#gJSomKNtPm .mailoptin-video-container embed, div#gJSomKNtPm .mailoptin-video-container video { position: absolute; top: 0; left: 0; width: 100%; height: 100%; }#gJSomKNtPm .mo-optin-form-container .mo-optin-spinner { border-radius: inherit; position: absolute; width: 100%; height: 100%; background: #fff url(https://www.thedetroitbureau.com/wp-content/plugins/mailoptin/src/core/src/assets/images/spinner.gif) 50% 50% no-repeat; left: 0; top: 0; opacity: 0.99; filter: alpha(opacity=80); } #gJSomKNtPm .mo-optin-form-container .mo-optin-success-close { font-size: 32px !important; font-family: “HelveticaNeue – Light”, “Helvetica Neue Light”, “Helvetica Neue”, Helvetica, Arial, “Lucida Grande”, sans-serif !important; color: #282828 !important; font-weight: 300 !important; position: absolute !important; top: 0 !important; right: 10px !important; background: none !important; text-decoration: none !important; width: auto !important; height: auto !important; display: block !important; line-height: 32px !important; padding: 0 !important; -moz-box-shadow: none !important; -webkit-box-shadow: none !important; box-shadow: none !important; } #gJSomKNtPm .mo-optin-form-container .mo-optin-form-wrapper .mo-optin-success-msg { font-size: 21px; font-family: “HelveticaNeue – Light”, “Helvetica Neue Light”, “Helvetica Neue”, Helvetica, Arial, “Lucida Grande”, sans-serif; color: #282828 !important; font-weight: 300; text-align: center; margin: 0 auto; width: 100%; position: absolute !important; left: 50%; top: 50%; -webkit-transform: translate(-50%, -50%); -moz-transform: translate(-50%, -50%); -o-transform: translate(-50%, -50%); -ms-transform: translate(-50%, -50%); transform: translate(-50%, -50%); } #gJSomKNtPm .mo-optin-form-container .mo-optin-form-wrapper .mo-optin-success-msg a { color: #0000EE; text-decoration: underline; }div#gJSomKNtPm div#gJSomKNtPm_inpost .mo-optin-form-headline, div#gJSomKNtPm div.mo-optin-form-container h2, div#gJSomKNtPm div.mo-optin-form-container h1 { font-size: 32px !important; }div#gJSomKNtPm div#gJSomKNtPm_inpost .mo-optin-form-description, div#gJSomKNtPm div.mo-optin-form-container div#gJSomKNtPm_inpost p { font-size: 18px !important; }div#gJSomKNtPm div#gJSomKNtPm_inpost .mo-optin-form-note { font-size: 14px !important; }@media screen and (max-width: 768px) { div#gJSomKNtPm div#gJSomKNtPm_inpost .mo-optin-form-headline, div#gJSomKNtPm div.mo-optin-form-container div#gJSomKNtPm_inpost h2, div#gJSomKNtPm div.mo-optin-form-container div#gJSomKNtPm_inpost h1 { font-size: 30px !important; } div#gJSomKNtPm div#gJSomKNtPm_inpost .mo-optin-form-description, div#gJSomKNtPm div.mo-optin-form-container div#gJSomKNtPm_inpost p { font-size: 18px !important; } div#gJSomKNtPm div#gJSomKNtPm_inpost .mo-optin-form-note { font-size: 14px !important; } }@media screen and (max-width: 480px) { div#gJSomKNtPm div#gJSomKNtPm_inpost .mo-optin-form-headline, div#gJSomKNtPm div.mo-optin-form-container div#gJSomKNtPm_inpost h2, div#gJSomKNtPm div.mo-optin-form-container div#gJSomKNtPm_inpost h1 { font-size: 25px !important; } div#gJSomKNtPm div#gJSomKNtPm_inpost .mo-optin-form-description, div#gJSomKNtPm div.mo-optin-form-container div#gJSomKNtPm_inpost p { font-size: 16px !important; } div#gJSomKNtPm div#gJSomKNtPm_inpost .mo-optin-form-note, div#gJSomKNtPm div#gJSomKNtPm_inpost .mo-optin-form-note * { font-size: 12px !important; } }div#gJSomKNtPm .mo-mailchimp-interest-container { margin: 0 10px 2px; } div#gJSomKNtPm .mo-mailchimp-interest-label { font-size: 16px; margin: 5px 0 2px; } div#gJSomKNtPm input.mo-mailchimp-interest-choice { line-height: normal; border: 0; margin: 0 5px; } div#gJSomKNtPm span.mo-mailchimp-choice-label { vertical-align: middle; font-size: 14px; } div#gJSomKNtPm .mo-mailchimp-interest-choice-container { margin: 5px 0; }div#gJSomKNtPm .mo-mailchimp-interest-label { display:inline-block!important; } div#gJSomKNtPm span.mo-mailchimp-choice-label { vertical-align:baseline!important; } div#gJSomKNtPm .mo-mailchimp-interest-container { padding:18px 0 6px 0; } div#gJSomKNtPm .mo-mailchimp-choice-label { font-size:16px!important; }