Electric, yes, but not exclusively. Like Porsche or Volkswagen, the Bavarian manufacturer BMW supports the transition to electric, decided in particular in Europe, but also the continuation of the use of heat engines in certain circumstances.
“Our position is very clear: it is the decarbonization of the automotive industry. But decarbonisation does not mean that there is a single solution to achieve this goal”, summarized this Friday in BFM Business Nicolas Peter, member of the BMW Group Finance Council.
Electric but also thermal
The German manufacturer is one of the pioneers of the electric car, since 2011 and the launch of its dedicated brand, BMW i. If in 2024 it plans to sell one in five cars in 100% electric mode, the combustion engine is also part of its technological roadmap.
“The world markets are developing at very different speeds in the different engine systems, continues Nicolas Peter. All over the world, markets are demanding internal combustion engines and the BMW Group will be ready to [y] deliver cars”.
“Thermal engines in which we will continue to invest to reduce their emissions”, specifies the number 2 of the group. This Wednesday, during the conference on the annual results (see box below), Oliver Zipse, chairman of the board of directors, had defended synthetic fuels, like his colleague from Volkswagen a few days before.
Electric, hydrogen, BMW will invest in “2022, 2023 […] about 7,000 million euros in R&D, huge sums”, continues the leader. The group also invests in its industrial equipment: 1,700 million euros in the United States, to be able to manufacture electric cars at its plant in Spartanburg (South Carolina).
A consequence of the American IRA? “At the same time, we are investing in Hungary, in the east of the country, where we will produce from 2025 a new generation of electric cars called ‘Neue Klasse’, answers Nicolas Peter. We have just announced that in the middle of our three factories in Bavaria , we are going to invest in a factory for the production of battery modules. We are doing both: we are investing in Europe, but also in the United States.”
“A one-size-fits-all approach will weaken the industry”
Betting only on the electric car presents several risks for Nicolás Peter. “We need an approach to Europe that is reasonable, which means accepting the goal of decarbonizing the industry. Reaching the goal but will weaken Europe’s key industry,” warns BMW number 2.
Like Carlos Tavares, who denounced in October in BFM Business the red carpet extended to Chinese brands in Europe, some car manufacturers have been warning the European authorities for several months of a transition that may be too massive, perhaps too fast. Especially in a context where the United States also wants to protect its industry with the IRA.
An awareness that the European authorities have not yet had according to Nicolas Peter: “it could definitely be better”.
BMW’s number 2 points to another concern regarding the 2035 date for the ban on the sale of combustion engine vehicles. “We are ready for 2035, reaffirms the number 2 of BMW. Does 2035 make a lot of sense from our point of view? No, because when you look at the infrastructure, in some countries it goes more or less well, but in large countries we are far from the coverage that is being developed to provide the charging network that our customers need to use 100% electric vehicles”.
Europe has not yet announced a date to vote again on the 2035 project.
A target of 8 to 10% operating margin in 2023
BMW released very good full-year results this week: 142.6 billion euros in turnover (+28% in a year) and a record net profit of 18.6 billion euros, a strong increase of 49% in a anus. BMW is aiming for an operating margin of between 8 and 10% this year. These forecasts for the sale of electric cars -one in three in 2026- have been well received by investors.
Source: BFM TV
