It’s a known fact that some automakers have been selling electric vehicles at a loss but BMW is happy to announce it is making money with its current crop of EVs. Speaking with Automotive News Europe at the 2023 IAA Mobility in Munich, CEO Oliver Zipse went as far as to say the automaker’s “i”-badged models are already “very profitable.” He went on to mention the exact same thing about the new wave of EVs slated to arrive in 2025 when the first Neue Klasse models will be released.
BMW’s head honcho emphasized the NE-based electric cars “will definitely not be less profitable than today.” Existing EVs utilize platforms developed for vehicles with combustion engines, namely UKL2 in the case of the iX1 and the upcoming iX2 while the bigger ones ride on an adaptation of the modular CLAR architecture. Neue Klasse will radically transform cars since it’s going to be a platform developed from day one for EVs.
In the same interview, Zipse said the German luxury brand will stick by its 8-10% long-term target for profit (EBIT) margins, mentioning it might be even more profitable in some quarters of the year. In fact, BMW has already raised its projection for the EBIT margin for 2023 to 9-10.5% after improving the availability of its more expensive models and enjoying a strong demand from customers.
The first Neue Klasse models will be a sedan and an SUV in the 3 Series segment – both of which have already been previewed by the Vision Neue Klasse concept and a camouflaged prototype, respectively. Four additional cars will be released by 2028. Sources close to BMW have told us there might be an i3 Touring and an iX4, plus full-fat M versions of the electric M3 and X3.
Several factories are preparing to put Neue Klasse EVs on their assembly lines, starting with Debrecen (Hungary) in 2025. The plants in Munich (Germany), San Luis Potosi (Mexico), Spartanburg (United States), and Shenyang (China) have already been confirmed to build NE-based vehicles in the latter half of the decade.
Source: Automotive News Europe
