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.