BMW Group to accelerate its electrification plan to launch 25 models by 2023

BMW and Daimler AG establish five joint ventures for mobility services

2019/10/18

Summary

BMW X6 BMW Vision M NEXT
BMW X6 to be launched in November 2019
(IAA 2019)
BMW Vision M NEXT concept represents a plug-in hybrid sports car
(IAA 2019)


 The BMW Group aims to be the number one in mobility technology in the premium segment while intensifying its work on the ACES (Autonomous, Connected, Electrified, and Service/Shared) challenges.

 Regarding its electrification plan, the Group announced that it would launch over 25 new electrified vehicles globally with more than half comprising electric vehicles (EVs) and the rest plug-in hybrid vehicles (PHVs) by 2023, two years earlier than originally planned. In 2020, the MINI brand’s first battery EV and the BMW iX3, the brand’s first all-electric SUV, will be released. The BMW i4 EV coupe and the iNEXT that will feature Level 3 autonomous driving function are expected to go on the market in 2021.

 As for the autonomous driving field, the BMW Group will partner with Daimler AG to develop next-generation driver assistance technologies including autonomous driving on highways and autonomous parking. In China, BMW will cooperate with Tencent to develop autonomous driving cars adapted for the Chinese market. Besides, BMW is building a driving simulation center in Munich which is indispensable in the development of autonomous driving technology. The center will be completed in 2020.

 With respect to mobility services, the BMW Group and Daimler AG agreed on a merger of their business units in March 2018. Following the approval by the responsible competition authorities in December of the same year, the two companies established five joint ventures for providing various mobility services including multimodal transport, charging, ride-hailing, parking and car-sharing.

 During the first half of 2019, unit sales of the X family SUVs and i Series electrified vehicles increased. The all-new Z4, 8 Series and X7 made good starts. BMW plans to launch the all-new 1 Series, 3 Series Touring and X6 as well as the 8 Series Gran Coupe, a new variant of the 8 Series, by the end of 2019.

 In China, the BMW Group’s largest market, it raised its stake in BMW Brilliance Automotive (BBA), a joint venture with Brilliance China Automobile, to 75%. BBA plans to double the production capacity at its Tiexi plant in Shenyang City by building a new plant on the site. The joint venture will also remodel the facility at its Dadong plant to prepare for the production of the fully electric BMW iX3 SUV from 2020.

 The BMW Group reaffirmed its 2019 business outlook when it reported its business results for the second quarter. In 2019, the Group’s profit before tax is expected to fall significantly from the previous year as growing uncertainty such as Brexit and the U.S.-China trade frictions may have an economic impact while R & D expenses will remain at a high level for electrification and other future technologies, and manufacturing costs will increase due to stricter regulatory requirements. Global unit sales are projected to increase slightly, but the automotive segment’s EBIT margin is expected to lie within the range of between 4.5 and 6.5% compared to the original guidance of 6-8% due to the provision recognized in connection with ongoing antitrust proceedings in Europe.

 

Related Reports:
German OEM Electrification Strategies, Including EV Product Timelines (Oct. 2019)
Frankfurt Motor Show 2019: European OEMs (Sept. 2019)
Auto Shanghai 2019:Displays of the German Big 3 Automakers (May 2019)
BMW Group: launching premium-segment and electric models (Sept. 2018)