Skip to main content
Sister Publication Links
  • Automotive News
  • Automobilwoche
  • Automotive News Canada
  • Automotive News China
Subscribe
  • Subscribe
  • Newsletters
  • Login
  • HOME
    • Latest news
    • Automakers
    • Suppliers
    • New Product
    • Environment/Emissions
    • Sales By Market
    • On The Move
    • Auto Shows
    • Munich Auto Show
    • Geneva Auto Show
    • Paris Auto Show
    • Beijing Auto Show
    • Shanghai Auto Show
  • Features
    • Long Read
    • Interview of the Month
    • Focus on Electrification
    • Focus on Technology
    • Segment Analysis
    • Cars & Concepts
    • Supplier Spotlight
    • Europe By The Numbers
  • Opinion
    • Blogs
    • Commentary
    • Guest columnists
  • Photos
    • Photo Galleries
    • Geneva Photo Gallery
    • Beijing Photo Gallery
    • Frankfurt Photo Gallery
    • Paris Photo Gallery
    • Shanghai Photo Gallery
  • Podcasts
  • Car Cutaways
  • EVENTS
    • ANE Congress
    • ANE Rising Stars
    • ANE Eurostars
    • Meet the 2021 winners
    • Browse photos from the 2021 awards ceremony
  • More
    • Publishing Partners
    • Social Media
    • Contact Us
    • Media Kit
    • About Us
    • Capgemini: Securing the industry's future through a radical rethink
    • Capgemini: Succeeding with the automated driving journey through AI
    • HEXAGON: Plugging into data is the only way to make winning EVs
    • TUV Rheinland: Battery testing center for large battery packs and more
    • TUV Rheinland: Ideas, services and certifications for smart mobility
    • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
    • Toyota Europe
    • UFI Filters
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter
MENU
Breadcrumb
  1. Home
  2. Automotive News Europe
March 16, 2016 01:00 AM

BMW's new strategy puts focus on EVs, self-driving cars

  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    Reuters
    A decade after taking the top spot in the global luxury-car market, BMW is at a crossroads. CEO Harald Krueger addressed a news conference in Munich today.

    MUNICH (Bloomberg) -- BMW CEO Harald Krueger vowed to push the company deeper into the market for electric cars and accelerate the introduction of self-driving features, while broadening the range of lucrative luxury models that will help fund his strategy.

    Krueger laid out the plan in his first major review since becoming CEO last year. Novelties include the introduction of more SUVs, including the full-sized X7, as well as more versions of high-end models such as the new 7-series flagship sedan, Krueger said today in Munich, where the company is based.

    In a statement BMW also said it will launch a roadster version of its i8 plug-in hybrid sports car, along with an new version of its i3 compact EV with increased battery capacity and a longer range, as well as a plug-in hybrid for its Mini brand.

    The approach is the centerpiece of a strategy review by Krueger and is aimed at maintaining pretax profit margins at a minimum of 10 percent through 2020.

    A decade after taking the top spot in the global luxury-car market, BMW is at a crossroads. Years of rolling out new models ranging from coupe-like SUVs to seven-seat wagons have left the company with few niches that could spur growth. Rival Daimler has a chance to reclaim the crown as early as this year after catching up to BMW with a slew of new models and upgrades of its best-sellers.

    “We need to manage our current business to perfection, while continuing to grow in a targeted fashion, in order to secure the necessary investment,” Krueger said in the statement.

    The carmaker’s last major strategic shift was in 2007, when then-CEO Norbert Reithofer pushed the sporty brand to invest billions to reduce fuel consumption, produce its first electric vehicle and pioneer the mass production of carbon fiber. Krueger said today that he’ll add open-top versions of the i8 plug-in, while also broadening the range of cars that come with the optional M high-performance packages.

    Unlike rivals Mercedes-Benz and Audi, the owner of the BMW, Rolls-Royce and Mini brands isn’t part of a broader group, meaning it has to absorb the costs of developing these new technologies on the strength of its current offering. Growth though is slowing as Daimler AG’s Mercedes and Volkswagen’s Audi push for the No. 1 spot, and brands including Maserati, Jaguar and Alfa Romeo expand to give luxury-car buyers more options.

    “There’s not much they can do in terms of adding more products,” Dominic O’Brien, a London-based analyst with Exane BNP Paribas, said before BMW released the strategy report. “The three key themes of emissions reduction, connected cars and autonomous driving will keep spending on research and development at an elevated level.”

    BMW predicted another year of record sales volumes, revenue and earnings, while group earnings will rise only slightly this year, compared with a forecast of solid growth last year.

    Revenue from the automaking segment will grow slightly, the company said, compared with a significant increase last year. BMW’s focus on conserving its resources was evident in its decision to refrain from an expected special payout for investors this year, as the company celebrates its 100th anniversary. 

    In addition to battling its traditional rivals, BMW also faces the emergence of new competitors such as Tesla Motors and potentially Apple. The company outlined its view of future luxury autos last week when it presented a concept vehicle where the steering wheel and center console retract, enabling the driver to turn to face the front passenger.

    “We need to act swiftly in the digital world and be prepared to take risks,” said Krueger.

    Automotive News Europe contributed to this report

    RECOMMENDED FOR YOU
    Punch CEO Guido Dumarey to speak at Automotive News Europe Congress
    Recommended for You
    Guido Dumarey Punch
    Punch CEO Guido Dumarey to speak at Automotive News Europe Congress
    Polestar CEO Thomas Ingenlath 2022
    Polestar CEO Thomas Ingenlath to speak at Automotive News Europe Congress
    Maria Grazia Davino Stellantis 2020
    Stellantis Europe sales and marketing chief to speak at Automotive News Europe Congress
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up and get the best of Automotive News Europe delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    SUBSCRIBE TODAY

    Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.

    SUBSCRIBE NOW
    Connect with Us
    • Twitter
    • Facebook
    • LinkedIn
    • Instagram

    Founded in 1996, Automotive News Europe is the preferred information source for decision-makers and opinion leaders operating in Europe.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI  48207-2997
    Tel: +1 877-812-1584

    Email Us

    ISSN 2643-6590 (print)
    ISSN 2643-6604 (online)

     

    Resources
    • About us
    • Contact Us
    • Advertise with us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Awards
    • Rising Stars
    • Eurostars
    • Leading Women
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News Europe
    Copyright © 1996-2022. Crain Communications, Inc. All Rights Reserved.
    • HOME
      • Latest news
      • Automakers
      • Suppliers
      • New Product
      • Environment/Emissions
      • Sales By Market
      • On The Move
      • Auto Shows
        • Munich Auto Show
        • Geneva Auto Show
        • Paris Auto Show
        • Beijing Auto Show
        • Shanghai Auto Show
    • Features
      • Long Read
      • Interview of the Month
      • Focus on Electrification
      • Focus on Technology
      • Segment Analysis
      • Cars & Concepts
      • Supplier Spotlight
      • Europe By The Numbers
    • Opinion
      • Blogs
      • Commentary
      • Guest columnists
    • Photos
      • Photo Galleries
      • Geneva Photo Gallery
      • Beijing Photo Gallery
      • Frankfurt Photo Gallery
      • Paris Photo Gallery
      • Shanghai Photo Gallery
    • Podcasts
    • Car Cutaways
    • EVENTS
      • ANE Congress
      • ANE Rising Stars
        • Meet the 2021 winners
      • ANE Eurostars
        • Browse photos from the 2021 awards ceremony
    • More
      • Publishing Partners
        • Capgemini: Securing the industry's future through a radical rethink
        • Capgemini: Succeeding with the automated driving journey through AI
        • HEXAGON: Plugging into data is the only way to make winning EVs
        • TUV Rheinland: Battery testing center for large battery packs and more
        • TUV Rheinland: Ideas, services and certifications for smart mobility
        • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
        • Toyota Europe
        • UFI Filters
      • Social Media
        • Facebook
        • Instagram
        • LinkedIn
        • Twitter
      • Contact Us
      • Media Kit
      • About Us