BMW To Streamline Vehicle Equipment To Free Up Money For EV Development
Automakers are between the hammer and the anvil these days, as they need to invest more than usual into new technologies (electrification, autonomous, connected cars, etc) while still keeping a balance between revenues and costs.
BMW for example spent €5.16 billion on R&D last year, which was 5.5% of revenues, but in 2017 through 2019 the company still intends to spend between 5.5 to 6% of revenues.
To assist on the balance sheet side, the German manufacturer will cut costs, decreasing the number of engines and equipment choices for its products.
BMW’s finance chief Nicolas Peter said:
“We have over 100 steering wheels on offer. Do we need that many variants?”
“In the 5 series we have four diesel engines on offer. I would not bet on there being four diesel engines on offer in the next generation vehicle,”
In the U.S., BMW will drop its manual gear shift in the 2 series Coupe, as well as in the entry-level versions of the new 5 series diesel.
According to BMW, plug-ins (at least now) are less profitable than conventional models, which also makes the transition to electrification more demanding.