BMW to sell Sub-Branded 100% Electric Vehicle
August 6, 2009 - BMW announced it will launch a new line of environmentally friendly vehicles as a sub-brand to their own brand name, signaling a strategy shift for the German automaker.
The news comes on the heels of the company's announcement that it would discontinue its involvement in Formula 1 racing to focus resources on sustainability. "We are pooling technical and financial resources in the areas of sustainability and the development of new technologies. The BMW Group is the world's leading premium manufacturer in the automobile industry and, in our opinion, "premium" should lead by example. From our perspective, this creates a special accountability for the company, its products, its social commitment and the premium business model that we pursue", said Norbert Reithofer, Chairman of the Board of Management of BMW AG.
This strategic move may have been spurred on by the company's quarterly decline; Quarter 2 results issued on Tuesday have earnings before interest and taxes at $169 million Euros, and while better than analysts predicted, is only 39% of the year-earlier level. While the company declined to give a forecast for 2009, they did predict their EBIT to recover to 8-10% by 2012.
In 2007, BMW developed a corporate strategy called "Number ONE," in which all current activities are constantly evaluated for business viability, as well as their contribution to the future sustainability of the company.
While this will be the company's first foray into electric vehicles under its own brand name, BWM already offers an electric car under its "Mini" brand, as does industry competitor Daimler under its "Smart" brand. Last year, Volkswagen announced it would have a plug-in hybrid on the road by 2010, and just last month Ford announced three new electric models would be on the road in the next three years.
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