Recently, on the occasion of the world premiere of BMW's new-generation X concept car (BMW Vision Neue Klasse X), Wei Bofan, director in charge of research and development of BMW Group, accepted an exclusive interview with foreign media. He is directly responsible for the next generation of electric vehicles, which is probably the most important BMW development project of the last 20 years and the next 20 years.
According to foreign media reports, the all-round interview covered BMW's product layout strategy, powertrain direction, highlights of the new generation of models, and views on competitors. Most importantly, Wei Bofan said: BMW will continue to invest in internal combustion engines, and at the same time build the best electric vehicles to drive.
1) After making an early investment in the electrification of the i3 (i01) in 2013, BMW changed its strategy, and eleven years later, BMW still does not have a dedicated modular platform for electric vehicles. Even though a new generation of architecture is coming, it is not yet fully there. Why is that?
Weibo: When we look at the automotive industry, we realize that we live in a very special time, not only do we not know what will happen in the next three years, but in fact we are not even sure what will happen at the end of the year. Almost all customers who enter our dealerships are skeptical about which type of drive type of BMW is best for them.
Even consumers who are keen to embrace new things want to know if they have the right conditions to buy a battery electric vehicle. As a result, we are also seeing some customers take a step back and choose to sell their battery electric vehicles and buy plug-in hybrids. This is because they realize that the infrastructure is not yet ready, and the extended electric range of the latest PHEVs opens up new possibilities. The government's uncertainty about the EV incentive program will only exacerbate the dilemma of each automaker's product planning. That's why investing in powertrain flexibility is crucial for BMW.
2) Did this "inversion" of BMW's priorities disappoint the market?
Weibo: Two years ago, I heard and read comments that people were waiting for BMW to commit to pure electric vehicles and their dedicated platforms faster. But that's not the point, the point is, first of all, it is necessary to assess whether there are prerequisites for this "all-in" strategy in electric vehicles. Is there enough green and clean electricity?Are there enough sustainable raw materials?What about a charging infrastructure that works for everyone?Is there a recycling system for all materials?
The answer to all these questions is no, and as a result, the strategy we defined turned out to be the most correct and favorable to us. That's why whenever I visit a dealer, they tell me that it is crucial to give the consumer a choice (to choose a different type of drive system). Customers always choose the model first and then decide which powertrain they need.
3) Will this change with the arrival of a new generation of models?
Weibofan: Yes, but it's not. The reason why I say yes is because with the new generation architecture, we will start mass-producing electric vehicles. And the "no" is because we will continue to sell gasoline, diesel, plug-in hybrid vehicles. Our goal is to continue to deliver the best engines in each category, which requires ongoing investment. In addition, internal combustion engines will continue to be sold in many parts of the world beyond 2035. We don't want our electric vehicles to adopt modern propulsion technology at the same time that the internal combustion engine becomes an old engine that is technologically obsolete.
4) Does this mean that BMW will continue to invest in internal combustion engines, while other rival manufacturers have already announced that they will no longer invest in this area?
Weibo Wei: Absolutely. We will continue to invest in and develop petrol, diesel and plug-in hybrid engines, after all, this is not just about new, stricter limits on polluting emissions in Europe, but a global process.
5) Why did BMW choose to show the sedan version of the new-generation concept car first before its SAV version, considering that the next-generation production model will be launched first?
Weibo Fan: We have completed both prototypes of almost all future BMW models at the same time, and in fact, they will enter the market almost simultaneously (we will start production of pre-production units this year and series production in 2025 – first in Hungary, then Munich, then in the rest of the world).
Therefore, the decision to start the production of the new generation of models with the SAV was a strategic consideration, as half of BMW's global sales today come from the X family. This means that in some regions, they account for up to two-thirds of sales, and these models are leaders in their respective fields. But both concepts are inspired by our slogan "The Ultimate Driving Machine", which means that our electric car will also be the best handling car on the road.
6) Is this related to the vehicle's universal control computing unit?
Weibo: The new dynamic performance control system is one of the core elements and probably the most important. It is very difficult to build such a complex controller, which contains all the DNA of BMW car dynamics of the last three decades - steering, 4×4, ABS, rear-axle steering, brakes. Everything that we developed in-house, all the algorithms, is integrated into a new electronic control unit that no other brand can do.
7) Are you sure that the M electric car has an electric motor on each wheel?
Weibo Fan: Yes, for example, the all-electric BMW M3 of the future. Each wheel is powered by an electric motor, which brings a total power of nearly 1 megawatt and more than 1,300 horsepower. As you can imagine, it will be a very special realization, and it will be special to drive. When I participated in testing the prototype, even I was amazed by it.
In fact, our engineers in the M Division are concerned about the transition to electrification because they are worried about losing the very important elements that define the true value of the BMW M, namely the internal combustion engine and transmission. But at the same time, they realized that with these very precise and powerful controllers, it is possible to increase the dynamic capabilities of our cars to a higher level than internal combustion engines.
8) Will Tesla (which already produces 2 million EVs a year) and competitors from China put BMW under noticeable pressure?
Weibo Wei: At BMW, electric vehicle sales have increased by 75% by 2023, and we are already the leader in the luxury electric car market. In the case of Tesla and Chinese manufacturers, we are concerned about the prices of the electric vehicles they sell – Tesla's prices have dropped, and the prices of Chinese brands are artificially low. We know that these are not sustainable practices, as EVs are still more expensive to produce, which deprives them of the possibility of being profitable.
We are not involved in price wars and will not be involved. We looked at the entire German mainstream premium market in January and found that the i4 was the best-selling electric sedan, suggesting that our strategy was correct. As for brands that have cut prices significantly, it will be reflected in their financial reports.
9) You mentioned the profitability of electric vehicles, so can the new generation models get the same profit margins as the internal combustion engine models?
Weibo: We hope it's going to be on the same level. We have achieved a 50% cost reduction in the electrification transition (motors, batteries, power electronics), which will allow us to have a more competitive price, yes, but still more expensive than equivalent petrol/diesel models. But we have to take into account that electric cars cost much less per kilometer to use, which is why diesel cars have been successful in Europe for decades (diesel cars are more expensive, but people prefer them because the fuel is cheaper and consumes less energy).
10) Does this mean that the main purchase driver for European users is the price of the energy they need to use their cars?
Weibo Bofan: Absolutely, yes. The single factor that has the greatest impact on the increase or decrease in EV market share is the price of gasoline/diesel, rather than environmental concerns, raw material costs, or any other factor.
11) With the current changes in customer value and market conditions in the automotive market, who are BMW's current main competitors?
Weibo Wei: Customers don't compare companies, they compare products directly. This means that the all-electric BMW i4 will have to compete with the Tesla Model 3, while the BMW 3 Series with internal combustion engines will have to be better than the Toyota hybrid and superior enough to justify the price increase for the high-end product. This means that in this new era, everything is more complicated for us.
12) Until recently, "traditional" car brands were seen as old-fashioned, but at the same time, BMW also began to produce software. Tesla is a software company that also produces cars. Do you think that after the launch of the new generation of models, the two areas will have the same weight within BMW?
Weibofan: I would like to think so. I can tell you that, apart from Tesla, we are the only automaker in the world to have 6 million cars that can be updated online via OTA. I'm not just talking about updates to the surface infotainment layer, I'm talking about updates to the vehicle's driver assistance systems. At BMW, we've never postponed the production of new models for software or battery reasons, but some of our competitors can't say the same.
13) BMW is very keen to highlight the relevance of the circular economy and its future. What were the decisive factors in this challenge?
Weibo Fan: The battery problem is fundamental. If we consider a large 600 kg battery, 80 to 90 percent of which are valuable materials, 95 percent of which can be recycled. If this problem is not solved technically, everything else (seats, dashboard, tires...... ) are all residual and have a much smaller impact on the entire automotive production cycle, value chain and the environment.
Write at the end:
BMW is not only a luxury brand, it is now going all out for electrification, it is also an electric car brand. BMW's vision of the next generation of future mobility is about to become a reality, and in terms of product layout and new highlights, we can clearly feel BMW's strong strategic determination, excellent system capabilities and firm execution capabilities. When the century-old luxury brand is fully in full swing, a truly luxurious electric era has been unveiled – the name of a new generation has been restarted, and the future has come.
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