Bad news for petrolheads: one of the most loved by car brands – BMW – will rapidly get rid of the traditional models with the internal combustion engine, otherwise it will have to annually pay a large environmental fine to the European Union.
Last year Klaus frolich, BMW’s chief engineer, gave a prediction about how long it lasts in the production of the internal combustion engine: the diesel it took 20 years, diesel engines – 30 years. Yesterday, there were new data on this burning issue: BMW has published a financial report on its activities for the past year and told about plans for the near future.
The report shows that the net profit of the company last year compared with 2018, decreased by 28.9% to EUR 5 billion. The cost of the development of new models increased by 11.9% to 5.95 billion euros. Apparently, the management and shareholders of BMW not happy with this imbalance, and by the end of 2022 the company intends to reduce costs by at least € 12 billion. The required savings will be achieved primarily through rejection of traditional models with internal combustion engines: in 2021, their range is reduced by half compared to the current.
In the hit list, of course, will be the least popular and the most toxic in the ecological sense, the engines, in particular petrol V12 and 6-cylinder diesel engine with four turbochargers, what, in fact, already warned FR. What kind of motors will join the hit list is still unknown, but something tells us that the most serious damage will be caused to the line M models. We add that under the reduction were also hybrid sports car BMW i8, but here the reason is not toxicity, and low demand and high cost of production – in other words, the model does not bring profit, but because, in April, will disappear from the product line.
The reduction of models with internal combustion engines need BMW to reduce the potential penalty for excess CO2 emissions in Europe. According to the forecast of the analytical Agency PA Consulting, at the end of 2021, the German company could lose about 750 million euros environmental fine and have a net loss, which does not return. Electric cars and plug-in hybrids, on the contrary, improve the ecological statistics of the company, and therefore the number of models in the BMW range will increase to 25 by 2023. The range of pure electric vehicles by 2023, according to the slide presentation, in addition to BMW i3 will consist of 11 models. Among them, the long-announced electric crossovers iX3 and iNext, an electric sedan i4. What are the other models, while one can only speculate, but according to contours on the same slide, we expect two sports cars, two crossovers and four cars (this may be the sedans, liftbek, or so-called four-door coupe).
BMW expects that in 2021, the demand for female models will increase twice in comparison with indicators of 2019, when it was sold 145 800 of these machines. You understand that it is very small, say only in 2019 BMW brand shipped customers 2 185 793 of the car. That is now on the female share of machinery account for just 6.7% of the fleet sales. But in the period from 2021 to 2025 th BMW strategists expect that the demand for “green” models will increase by 30% annually. It turns out that by 2025, BMW wants to sell about 830 thousand cars per year female, that is, their share in the shipment volume will reach one third. Not too optimistic, but honest Outlook. It turns out that after 2025, the traditional BMW models, albeit in a highly abridged range, will remain the main product of the company.