BMW Combustion Engine Future: Zipse Defends Continued Production

BMW’s Multi-Drivetrain Strategy: A Summary

This article details BMW CEO Oliver ‍Zipse’s outlook on the future⁢ of automotive drivetrains, emphasizing a diversified approach rather than a singular focus on electric vehicles (EVs).Here’s a breakdown of the key points:

1. Variety‍ is Key:

*⁢ Multiple Drivetrains: BMW plans to offer five different drivetrain options for its next⁢ X5, including a hydrogen version. thay intend⁣ to continue selling a variety of drivetrains (BEVs,plug-in ‍hybrids,diesels,etc.) as long as⁢ customer demand exists.
* Against Forced Phase-Outs: Zipse criticizes legislation forcing the end of popular drivetrains, arguing the market should dictate their fate. he points to BMW’s investment in updating internal combustion engines to meet Euro 7 standards⁢ despite the timeline.
* Complexity Management: he believes managing a complex portfolio of drivetrains is crucial for safeguarding the company.

2. Flexible Platforms & Segmented Approach:

* Platform Strategy: BMW utilizes both singular (dedicated EV platforms like the iX3) and flexible platforms.
* Size Matters: Flexible platforms are more cost-effective for ⁢larger cars (5 Series, X5, 7 Series) with minimal range impact (e.g., losing 10km of range). Smaller cars rely on dedicated platforms due to space constraints.
* Customer Indifference: Zipse believes customers are frequently enough unconcerned with minor range differences, justifying the simultaneous use of flexible platforms.

3. Decarbonization Beyond Tailpipe Emissions:

* All Drivetrains Contribute: Zipse argues that all drivetrains can contribute to CO2 reduction.
* against Subsidies: ⁢ He opposes direct buying subsidies ‍for specific drivetrains, believing they distort the market. He favors tax incentives and subsidizing power as more effective⁤ methods.
* lifecycle Approach: He advocates for a broader focus on total lifecycle emissions, not just tailpipe emissions.‍ Current regulations focusing solely on tailpipe emissions are considered “simple, inefficient” and create “unpredictable market effects.”

4. Concerns with Artificial Deadlines:

* Lost Value: zipse warns that setting artificial deadlines for phasing out combustion engines could lead to important lost sales value (perhaps up to ⁢a decade’s worth) due to residual⁣ value concerns.
* Public Perception: He suggests the focus on tailpipe emissions is driven by its ease of explanation to the public, rather than being the most effective ⁣decarbonization strategy.

In essence, BMW under Zipse is positioning ⁣itself ⁣as a pragmatic player, responding to market demands and advocating for a more holistic and flexible approach to reducing⁢ carbon emissions in the automotive industry. They believe a diverse drivetrain portfolio is essential for continued success and a lasting future.