BMW is in a better position than German competitors in the electric car crisis. The head of the supervisory board explains the planned recipe for success of the new class.
Munich – After two terms and ten years at the head of the BMW supervisory board, Norbert Reithofer will retire in 2025. The 68-year-old, who led the Bavarian automobile manufacturer through ups and downs, speaks in an interview about the major challenges of the industry and the future of BMW.
A central theme: the “New Class” electric generation, which will roll off the assembly line from next year and should make the premium manufacturer ready for the new age of e-mobility.
BMW and the Neue Klasse: “Will be very competitive in China”
China has been a stronger growth engine for years. But like other German car manufacturers, BMW recorded a decline in sales figures in the People's Republic. Reithofer sees the new “New Class” as a great opportunity to reverse this trend. “I tell you: With the new class (…) we will also be very competitive in China.” Technologically, we are making a big leap forward,” explains the 68-year-old Manager Magazine. In addition to the electric drive with battery, he considers the on-board electrical system and the operating concept to be crucial in this regard.
The vehicles should be technologically on par with the competition from China and be competitive in terms of costs. The new generation of electric cars will also “enable a leap” in the profitability of e-mobility. Over 50 percent of car sales in China are already electric vehicles or plug-in hybrids. In addition to the People's Republic, BMW will also stand up to Tesla and Co. in other markets in Asia and North America.
BMW and the decline in sales: parallels to the financial crisis
Reithofer, who led BMW as CEO during the financial crisis of 2008 and 2009, recognizes parallels to the current situation in the auto industry: Back then, too, the group would have had to face profound changes. However, the current crisis, which is also affecting BMW, differs in one essential point.
New market participants such as BYD from China are putting established manufacturers with great know-how in the field of e-mobility under pressure. In addition, traditional engine technology is playing an increasingly smaller role, which further challenges renowned giants such as BMW, Volkswagen and Mercedes-Benz.
The long-time BMW manager praised China's largest technology group: “BYD has a very impressive product range in its price segment.” This was already evident at the IAA 2023 in Munich.”
BMW Supervisory Board Chairman Reithofer on competition, regulation and trade conflicts
In the conversation, Norbert Reithofer warned of an escalation in trade conflicts between the USA and China. Many important raw materials and battery cells come from Asia and local production is unusual. “If you want to be successful in the USA and in China, you also have to produce in the respective country and deal with the local conditions,” explains Reithofer.
At the same time he criticizes… Manager Magazine the excessive regulation in the EU. Instead of creating excessive bureaucracy, Reithofer advocates more pragmatic solutions. He is also skeptical about the planned phase-out of combustion engines from 2035. Instead of using a drive technology, manufacturers should be allowed to decide for themselves how to comply with stricter emission limits. “We are thinking in too many extremes,” says the head of the Munich supervisory board.
Electric cars from BMW: profitability of e-mobility as a core issue
Currently, almost 20 percent of newly sold BMW models already have a battery-electric drive. Profitability is one of the biggest challenges in this segment. With the “New Class” BMW will make the leap to the top in the global markets and advance the transformation to electromobility. “We have never underestimated a competitor – but at the same time no one should underestimate BMW either,” is the challenge.
Incidentally, the BMW official does not see Germany as a manufacturing location at risk: Although BMW has reduced production in this country, Reithofer emphasizes the importance of home. The new BMW plant in Debrecen (Hungary) is important to fulfill the company's growth ambitions.
According to information, if Reithofer steps down, the German Press Agency (dpa) Nicolas Peter was elected to the supervisory board and then as its chairman. He was the Munich-based CFO from 2017 to May 2023. (PF)
