Solutions good for the compliance BEVs, or low-volume, will not work well in the future, when BEV sales will be high.

According to media reports, BMW works council is not fully happy with the company's flexible platform approach of offering cars with various powertrains - from internal combustion engines, though hybrids and plug-in hybrids to all-electric.

The reason for that is a compromise of new all-electric cars in terms of efficiency, range, overall package, compared to a dedicated BEV approach.

BMW started with stand-alone EVs (i3 BEV and i8 PHEV) early, but then backed away to a flexible approach.

In other words, employees are worried that BMW cars will not be fully competitive with stand-alone electric cars - like Tesla, to not search far.

"BMW should shift course and establish a technology platform just for electric cars, moving away from developing cars that can be fitted with either electric or combustion engines, the head of the influential works council said.

“Only with our own e-architecture can we fully exploit the advantages of an electric vehicle,” Manfred Schoch told Der Spiegel magazine."

On the other hand, we must note that BMW opted for a flexible solution to limit costs in times of high uncertainty of which type of powertrain will sell better. Depending on demand, they can virtually produce any volume of any type in the same plant.

It may pay off in the transition period, but obviously, once the all-electric car sales will increase to a high volume, justifying stand-alone models, it would be suicide to drag the ICE architecture and sacrifice the precious points of efficiency.

We believe that BMW simply assumed several years ago that it's not the right time yet. If they were wrong, BMW's BEVs will have a tough road ahead.

Anyway, at some point in the future, probably no more than 5-10 years from now, they will have to switch to stand-alone BEV models and dedicated BEV platforms.

Source: Reuters