Interesting article from the German Press

[Davidfromdigswell]

A friend in the car industry forwarded this to me:


BMW i-Series: BMW’s Risky Project

Spiegel Online

By Tom Grünweg

(Summary)

July 09, 2013

GERMANY --- Although there are already plenty of electric cars on the market, none of the other manufacturers are take things as far as BMW with its i-Series. Not only are those models fuel-free, they also shun the use of steel.

BMW banks on carbon fiber to offset the weight of the batteries and is the first automaker to do so for a production model. BMW is thus treading unchartered territory in terms of chassis construction. That necessitates a budget amounting to billions of euros and BMW is thus extremely risky: If it doesn’t pan out, the impact will be two-fold: On the one side, BMW’s earnings will suffer because the cars won’t sell; on the other is a lack of funding for other vehicles that BMW could have sold otherwise.

Within the automaker, the project is highly controversial as a result, although nobody who works for BMW will admit this officially. The expected difficulties with regard to the battery, the carbon fiber body and the powertrain turned out to be much less severe than expected. But there were problems related to the classic production process. How does one paint a carbon fiber body, for instance; how does one add components, and how is the suspension to be tuned? "We were surprised at how mundane the problems were," said Ulrich Kranz, who heads the project.

What also puts the project in jeopardy is the rapidly changing public opinion regarding electric cars. The project was launched during a period of euphoria regarding alternative powertrains. At present, however, consumers seem much less enthusiastic.

"BMW’s i-models will initially not be profitable. In fact they will weigh on earnings," said the German auto expert, Ferdinand Dudenhöffer. The expert nevertheless regards BMW’s choice as the right one. "As much as we currently still have our doubts regarding electric vehicles, in the long term there will be no alternative in places such as China’s megacities." By combining electric engines with high-tech carbon fiber bodies, BMW is setting itself apart from other battery-powered offerings and securing a technological advantage for years to come, Dudenhöffer believes.

What counts in the end is whether customers can be won over by the product. Earlier fuel misers such as VW’s three-liter Lupo or the Audi A2 have serve as proof that good intentions and public pressure do not guarantee success.

 

[Parker]

Really interesting article my thoughts are these.........

BMW banks on carbon fiber to offset the weight of the batteries and is the first automaker to do so for a production model. BMW is thus treading unchartered territory in terms of chassis construction. That necessitates a budget amounting to billions of euros and BMW is thus extremely risky: If it doesn’t pan out, the impact will be two-fold: On the one side, BMW’s earnings will suffer because the cars won’t sell; on the other is a lack of funding for other vehicles that BMW could have sold otherwise.

First thing if the i3 doesn't pan out BMW is probably uniquely equipped to exploit all the R&D in many other upmarket, high margin models such as the 7 Series and maybe the 5/6, Z4, 3 Series convertible. So whilst for other makers the i3 would be make or break BMW COULD (and probably will) use the expensive tech in their other high end cars.

What also puts the project in jeopardy is the rapidly changing public opinion regarding electric cars. The project was launched during a period of euphoria regarding alternative powertrains. At present, however, consumers seem much less enthusiastic.

Don't underestimate the huge pent up demand in the middle classes ...... I have a feeling this is the car many have been waiting for. Whilst in the UK there are no Green MP's most middle class people I know are Green (as best they can be) as long as it doesn't involve too many compromises, organic veg, fair trade everything, recycling. With the i3 they can do their bit..... whilst still driving a very nice car.

What counts in the end is whether customers can be won over by the product. Earlier fuel misers such as VW’s three-liter Lupo or the Audi A2 have serve as proof that good intentions and public pressure do not guarantee success.

The A2 is always brought up in these arguments - however as someone who really wanted to buy one there were major issues with it
1) a Posh city car should always be offered with an AUTOMATIC ...... it was never offered with one here. Who wants to sit in stop start traffic for 45 mins wrestling with the clutch - no one I know
2) the ride was b*****y awful - a common Audi trait but in the A2 it was the worst Audi ever ......rock hard and jiggerly - terrible
3) and lastly it was too small - yes it may have been the optimum size for economy but it was far too narrow - that probably could have been overlooked if 1 & 2 had been addressed.

The Lupo 3L was the motoring equivalent of a hair shirt - only the most die hard Green would have bought it.

I think the i3 addresses all the issues of the A2 - and for all the millions of Suburban families with drives and garages it will be an ideal 2nd car ..... and once they have it they may realise actually the don't need their ICE car as much as they thought.

Just my 2p worth........