I do not, naturally, think of BMW as an electric car company. I know they sell electric cars because David owns one and I’ve driven a bunch of them. It dawned on me when I looked at the just-released sales report from BMW that the Bavarian automaker was the first traditional luxury carmaker to take electrification seriously so it shouldn’t be a surprise to me that they’re the furthest ahead.
BMW is absolutely smoking the other German luxury brands when it comes to electrification (and the American and other European ones, too). It’s not just growing quickly, it’s selling a ton of models. Sure, it’s not Tesla, but other than BYD no one is Tesla.
It’s a day that ends in “y” so let’s toss in a labor update in The Morning Dump from our friends up north, I’ve also got some Lordstown Motors news (seriously), and it’s Tuesday so I’m going to share some Škoda news.
BMW Has Sold A Lot Of EVs So Far This Year
The photos for this TMD are of the BMW iX, which I’ve driven and have yet to make time to review. For those of you who were put off by the way it looks I regret to inform you that, actually, the BMW iX is very good. It not only delivered efficient range, it felt like a car in a way many EVs do not these days. There were buttons! I love buttons.
Apparently, making good cars is a nice recipe for selling cars. In its latest sales report, BMW celebrates a 5.1% growth globally. This isn’t a giant number as BMW, like other automakers, is coming out of years of supply chain disruptions.
Electric cars, though, are selling in significant numbers. Through the first three quarters of 2023, BMW Group BEV sales (that includes Rolls-Royce, Mini, and BMW) reached 246,867, which is an increase of 92.6% year-over-year. If you add in PHEVs, that number grows to 385,411, but it’s obvious that BMW BEVs are leading the way in growth (when you add PHEVs, growth drops to 36% year-over-year).
This makes sense as the BMW i4 (shown directly above) and iX (shown above that) are competitive, whatever you think about how they look. The xM is a little harder for me to understand, but in the United States, the company managed to move more than 1,600 of them YTD. By comparison, BMW has sold more than 12,000 of the iX YTD, which is a year-over-year increase of 281%.
To put this in context, Mercedes is a somewhat close second with 174,500, which is up 97%. Audi hasn’t released numbers yet, but they’d sold about 75,000 BEVs through the first half of the year so, if that rate holds, it should be in third..
Unifor Is Going After GM
Ford made a quick deal with Unifor, Canada’s autoworker union, and has benefitted from not having to fight a battle on two fronts. GM, though, wasn’t able to reach a deal in time.
From Automotive News Canada:
“Pattern” refers to Unifor’s strategy of trying to take their Ford deal and apply it to other automakers. GM and Unifor reportedly couldn’t agree to demands related to pensions/retiree support and a strategy for part-time workers.
Also, I definitely included this story because of this hilarious photo of the most Canadian-style raised fist I’ve ever seen. It’s like Lech Walesa just way, way more polite. Happy Canadian Thanksgiving week!
Bankrupt Lordstown Motors Assets Purchased By Old CEO
The seemingly never-ending struggle of Ohio-based electric truckmaker Lordstown Motors adds yet another chapter to its story. I guess this is Chapter 12 since the last one was Chapter 11.
Per reports, a company called LAS Capital LLC, which is basically the former CEO Stephen S. Burns and some of the company’s former employees, purchased the company’s assets for about $10 million. I’ll give local outlet The Cleveland Plain Dealer a chance to describe what’s going on here:
The sale includes all machinery, including the hub motor assembly lines, the battery module assembly lines, the battery pack assembly lines and related or associated machinery and all inventory, among other items..
The deal contains termination rights for both the company and LAS Capital, including the right to terminate the deal if it doesn’t close by Oct. 31.
A Lordstown spokesman said in an email to cleveland.com and The Plain Dealer that the company is not providing additional comment beyond the documents that were filed.
It’s not yet clear what the company will do with the assets should the deal close.
Škoda Will Re-enter Kazakhstan’s Market
I would be remiss this Tuesday if I didn’t mention the big news in the Škoda world. Sure, there’s a new Kodiaq, but let’s talk about the surprise announcement coming out of Central Asia. Škoda is back!
From a Škoda press release:
Škoda Auto operated in Kazakhstan between 2005 and 2021, delivering over 23,000 vehicles to customers in the country. To ensure consistently high standards of customer service, the company has engaged a new production and sales partner for its regional operations. Starting next year, vehicles produced at the factories in Mladá Boleslav and Kvasiny will be assembled for the Kazakh market at a plant operated by Allur Company in Kostanay and distributed to local dealerships. The model series available to customers will include the Kodiaq, Kamiq, and Karoq SUVs alongside the bestselling Octavia.
In Kazakhstan, where currently only 186 cars are registered per 1,000 residents, Škoda Auto sees considerable growth potential in its automotive market. The overall market sales volume is forecast to surpass 200,000 units in total within the next five years. With these projections, the car manufacturer aims to harness the momentum, targeting a sustained market share of 5% between 2024 and 2028.
The re-entry into the Kazakh market aligns with Škoda Auto’s ongoing internationalisation strategy. In September 2023, the brand celebrated its official launch in Vietnam. Additionally, it is strategically leading the Volkswagen Group’s ‘Brand Group Core’ in the ASEAN region, aiming to leverage growth opportunities for the Group. Moreover, the Czech automaker strategically oversees the Volkswagen Group’s activities in the dynamically growing Indian market.
Everywhere but here…
The Big Question
Of the German lux brands, which company is best positioned to take advantage of the growing shift towards electrification?
I am very optimistic about BMW’s EV pivot, because they act like they’re taking it seriously.
I don’t think BMW is better positioned to take advantage of the pivot off fossil fuels than other German luxury automaker. But I think BMW will do well because they are more committed to it. They’re not treating it like a fad.
Technically, “a ton” of electric BMWs would less than half of one unit. Not exactly profitable.
“BMW Is Quietly Selling A Ton Of Electric Cars”
If they TRULY sold a Ton of Electric cars, and given that 1 ton is 2000 pounds, and given that BEVs typically weigh at least twice that, it tells me they sold about ONE HALF OF AN ELECTRIC CAR…
LOL
As for which German luxury brand is best positioned… I think I’ll put my money on Audi since they have access to what Porsche developed as well as what VW developed.
Not to mention VAG’s ownership of Electrify America. If they were forced to set up their own charging network, they may as well make the Dieselgate penance work for them.
A friend of mine picked up an i4 M50 a couple of months ago. This is the model with motors on each axle, made to compete with the high end Teslas. It’s unquestionably godawful ugly from the front but it is a great car. Rides and handles extremely well, especially for such a big, heavy vehicle. I took it for a short drive and was blown away by it. It was my first time driving a really powerful electric car, and when I stepped on the go pedal, I could not only feel my head getting pushed back on the headrest, I could feel all the blood in my face getting pushed to the back of my head. One thing I neglected to pay attention to was steering feel – I don’t know whether BMW has managed to take the novocaine out of it or not, so there might be that. Otherwise, it’s a really impressive car, and not badly priced given the competition.
Honestly this is a big win and I love it. For me personally, it’s totally changed my attitude toward the brand (and I imagine others’ too). Before, I was in a JDM phase and never cared too much about BMW, but since I’ve become a definite EV convert, it excites me so much that BMW is really doing well with electrification and still pushing it. I actually like their other cars a lot more than I ever did as a result too.
I honestly think the i3 is when EVs conceptually peaked. I know the current lineup is a bit of a stopgap but I really like the funkier designs. Still, BMW is making the most interesting EVs on the market IMO.
A couple of years ago I was at a state park with EV charging spots. One of them had a giant BMW crossover parked in it and I was all ready to be morally outraged…until I noticed it was actually plugged in.
I’m not sure how or why, but I can definitely confirm that BMW’s electrification efforts are flying under the radar. I didn’t even know they made anything with a plug at that point.
The safe answer: probably BMW even though the Porsche Taycan is the only electric I find remotely interesting. BMW has successfully pivoted their products to appeal to the new kind of customer that they need in numbers to succeed along with selling cars that look like cars (if ugly ones, but that’s nothing new) as opposed to Mercedes’ generic lozenges and Audi’s aging bland design language.
Personally I wish they kept the look of the early i-series, think that was peak. But even with the conventional looks they have now they look better than the competition
My god are those ugly
BMW has finally found a way to make a BMW that doesn’t leak oil or consume bearings often, and they’re running with it. Finally without all that pesky Dino juice that has to get places, BMW is free now. Their arch nemesis defeated by the hands of Global warming. It’s a whole new day in Bavaria!
*Don’t look at BMW’s history with water pumps or really anything that has coolant running though it*
I wonder how the window regulators will hold up. 🙂
My guess, not well. As long as one goes down you’re fine.
I will gladly replace bearings, valve covers, oil filter gaskets, water pumps, and pretty much anything else to get the enjoyment the BMW ICE cars give me the past 30 yrs. LOL
It’s truly what makes a BMW, a BMW.
The worlds 10w60 suppliers are terrified of this new reality!
LOL, that’s why it’s on my Amazon Subscribe and Save to stockpile just in case it disappears. Perhaps someone will make a home DIY refiner appliance to make my own.
It’s not so much that people think BMWs are bad, it’s that the divorced beaver face is unquestionably bad – but not all of them have that. Slap the chief designer across the knuckles and do a facelift, problem solved.
Why can’t BMW hire a good designer? It’s been a clown show since Bangle.
I think BMW understood the assignment and its making good cars, they have great offerings and options for everyone. They started with the i3 and i8 way ahead than everyone else (German market)
Mercedes designs are tacky right now. Audi is just playing safe, I think being part of the VW group limit their decisions and risks they can take.
But my first option in the luxury EV market is Volvo, their latest designs are amazing, having the support from a huge corporate that is Geely is helping them a lot.
Does Polestar count as Volvo? I rented a Polestar 2 for a week recently and was very impressed. I’d buy one.
I have a C40, and it has been a solid, no-problems car.
Man I covet an i8 so hard… still minimum $75K and that’s too rich for my blood.
BMW Has Sold A Lot Of
EVshideous looking cars So Far This Year. #ftfyOld enough to recall being really impressed seeing the 8 series when it came out, and thought the minimal frontal area was about as small as possible for a front engine design. Now with EVs they are going huge, non-functional grills?
The reason BMW is in the best position compared to Merc, VW, Audi, etc. Is because of their planning of the CLAR platform, it was their future looking platform designed to accommodate ICE, PHEV, & EV. It first appeared almost 10 years ago, and was slowly phased in for each models next gen. BMW next gen happens religiously every 8 yrs. Instead of everyone else making EV only platforms or rushing some junk to market. BMW took their time. As much as I love the i3 & i8 which were ahead of their time, can you imagine how many they would sell today at what the price was 6yrs ago.
A year ago we purchased a 2023 X5 45e. It is the best car we have ever owned. Our last tank of gas netted us 1500 miles of range, with mpg coming in the mid 80’s. For 90% of our driving we are in electric only mode. And if we decide to drive from IL to MN to see family? No problem- gas is always an option.
It’s really, really unfortunate that we have this technology, and great products in the space that solve the real problems in front of us and we’re going to ban them anyway.
How much harder is it going to be to convince people to accept a lesser product so that we can get the last 1% of our gasoline consumption out of the system?
California, the US leader in this, is not banning hybrids in 2035. Just gas-only.
They are capping the percentage of PHEVs that can be sold at a low share, so in practice it is a ban.
The EU has 11x the population of California.
Only 10% of the PHEVs on the market would qualify under California’s 2035 rule. By 2035 it is unlikely any of those would pass other CARB regulations.
My Dad is on his second Tesla- he loves them and was considering the same X5 before he ended up with the Y. He just likes the Tesla more.
Another family member has two Subarus. I tried to convince him to go PHEV and he deliberately won’t. He thinks it’s a “waste” because it only goes 30-40 miles on electric. “BEV is the way forward.”
While BEV is great in long term thinking, how much impact could we as a group make if we all started migrating towards PHEVs that get 80+ mpg? The tech is here. The range anxiety is gone. Costs are in line with ICE… I really view it as a win across the board and a great compromise between the ICE folks and the BEV folks.
Impact of EVs, PHEVs, whatever is a super long term goal. While I have never seen any story on realistic impact, for pretty much most it’s about possibly saving the planet for our children or children’s children. If 45% of new cars starting in 2024 were full EV increasing to 100% in 2035, the pollution svaings would be completely negated by increasing population. Only at about 85% or more of all new cars being EV does it outweigh additional pollution from increased population. Pretty scary and that’s with per capita pollution reduction of 50% between now and 2035.
If only we could have seen this coming.
The only solution to the climate problem is an orders of magnitude increase in carbon-neutral power generation with a simultaneous order of magnitude decrease in cost.
The technologies that consume the energy are noise and we’re wasting our breath arguing about them.
The population we already have want to increase their energy consumption enough already without even taking new people into account. And they don’t care one iota about the vehicle type mandates of western economies.
Don’t get me wrong. I own and daily a BEV. They’re great if they work for you.
But there’s a huge portion of the market – probably more than 50% – where a BEV would be a serious inconvenience while a PHEV would reduce their emissions by 80-90% without any significant effect on their lifestyle.
What’s the BMW price spread between median ICE they sell vs median EV/PHEV?
Most BMWs are not cheap when new, if they’re making cars that feel like BMWs to the kinds of people who buy new BMWs at a comparable price point, it seems like that would really help to move some units.
Most other legacy manufacturers EV/PHEV offerings are priced a lot higher than their ICE vehicles and don’t necessarily play in the same market space, where as BMW appears to be serving the same market segments with ICE and EV, and guess what its working
When we bought our X5 45e, it was essentially the same price as the 40i and that doesn’t take into account the $7,500 tax rebate we qualified for.
The spread is way way closer in BMW than for non-luxury marques. Plus they are super competitive with other EVs in general. The lowest i4 MSRP is $52k vs Ioniq 6 SEL at $49k. Of course the Hyundai has more money on the hood but it’s surprisingly close.
They seem to be essentially priced the same as ICE right now, and they try to make the performance look the same on paper. I think their numbers are very conservative on their EV and PHEV stats. A 330i is about $1000 less than a PHEV 330e. An i4 is about $4000 more than a 4 series ICE.
A ton of electric cars would be about half a car right?
Oh wait, electric, that would be a third.
Honestly I would say BMW but the got rid of the i3.
BEVs with (optional) range extenders are the best bet for the near future.
This x1000
My dad took delivery of an X5 50e (PHEV) that he custom ordered about 6 weeks ago, and let me tell you…it is a ridiculously good car. The interior design, fit, and finish is in a league of its own and well ahead of modern Audi (my mom has a 22 SQ5 that I’ve driven a fair amount, so I’m speaking from some experience) and Mercedes, who’ve taken a “ALL OF THE TECH, EVERY LAST BIT OF IT” approach to their EVs/PHEVs. The driving experience is phenomenal as well, even in pure EV mode.
Something BMW has set out to do that other manufacturers haven’t is to make their EVs more or less feel and operate like their normal ICE vehicles. I drove my dad’s car about 30 miles all electric and honestly it didn’t really feel any different than it does in hybrid or sport mode other than not having quite as much grunt. Then when you decide you want to hoon you can put it in sport and take advantage of nearly 500 total horsepower. It is a heat seeking missile in that mode. I did a couple 0-more than I will admit in a public forum pulls on some deserted country roads in it and it was shockingly fast. Like…probably the fastest car I’ve ever driven.
He also now commutes on electricity and even with his tech aversion/initial reluctance to adapt to plugging it in every night the lifetime fuel economy is still in the high 40s. For a 5000 pound luxury SUV that’s insane. And you get 44 miles of EV range. So basically…I understand why folks are gravitating towards the BMW EV experience.
They’ve done a really good job making EVs that still feel like BMWs, and the technology is present but it’s very well integrated and not at all overwhelming. Say what you will about their exterior designs or the weight the M cars have gained, but pretty much everything they have on offer is at or near the top of its segment right now. They’re clearly firing on all cylinders (pun intended) at the moment and it’s going to be interesting to see if they maintain their edge in the electrified space going forward, because between their PHEVs and BEVs right now, most of which they’ve integrated into their normal models very well, they are indeed on a bit of a roll.
And you know what? I don’t like the grille either, but if for some reason I needed a new car tomorrow I’d go lease an i4 xdrive 40. They’re leasing at $599 a month, have a range of 307 miles, hit 60 in the high 4s, and if the automotive press is to be believed more or less drive like the 3 series that they share a platform with. Plus…they’re liftbacks! There’s a very good chance my next car is an electrified Bimmer of some sort.
Honestly I’d go try one out if you haven’t. I get that BMW BAD AND UGLY is very much the enthusiast groupthink right now but they’re implementing a lot of this technology in a way that makes me a little less hesitant about the electric future. They understand the assignment.
The SQ5 is only modern in the sense that you can still buy one. The B9 platform went on sale in 2017 and will be replaced by the B10 soon. I’m also not sure the groupthink on BMW is bad. I mean we all agree their styling has taken a dive, but from a driving and performance perspective they can’t be beat right now, especially in the enthusiast/tuning community. My S5 was competitive with comparable Bimmer’s 6 years ago but it can’t hold a candle to their offerings today.
they should sell the Lordstown shit to Rivian
Agreed. This seems super fishy to me.
Rivian is smart enough not to want an obsolete plant in union Ohio.
Their Normal, IL factory was previously-union (Chrysler/Mitsubishi/DSM), and half of Rivian’s Normal staff worked there under the UAW/DSM, so it wouldn’t necessarily be a given that Lordstown would be union under Rivian.
Tesla’s Fremont factory was also UAW under GM and Toyota, but it isn’t under Tesla.
BMW will do well because they are building BMWs that happen to be electric. The problem a lot of brands seem to have is that they are making EVs that get badged with their brand. If you don’t differentiate your EV from the EV pack and it doesn’t feel like part of your vehicle line, who are you really building for?
That said, the EV winners are going to be the ones positioned to pivot into new battery chemistries or other tech that will push them ahead in range and/or charging speed. And it is very hard to predict who’s going to be able to jump ahead with those things.
Very much this. And from the limited research I have done it seems like they are priced pretty close to the ICE cars too.
Earlier this year, I went to a BMW dealer to look at a used I3. It had been sold the day before, but they had just gotten a 2021 330e back from a lease turn in and I ended up driving it and loving it. It proved to me that BMW knows what they are doing with electric (I was coming from a Gen 1 Volt). I rode in an I4 M50 at the EV rides at the Detroit Auto Show, and wow that thing was fast. I’d even say faster acceleration than I would really want. The 330e was really made for the Euro market as a compliance car and for tax reduction, but it’s still a good car if you can handle only have 20-25 miles of electric range. The nice thing is that I can go a lot longer between expensive BMW maintenance for brakes and oil changes by driving 90-95% electric.
If it wasn’t for the awful Houston roads I’d probably be in a 530e for a daily. The PHEV BMWs are an attractive proposition.
Audi’s problem is their BEV’s fall solidly in the “it’s fine” category. Range is OK, power is OK. Styling doesn’t stand out (which I actually love about them). IIRC they don’t have true one pedal driving either. If you like Audi’s, you might buy an Audi EV. If you are indifferent to the brand, there’s no reason to get into an Audi EV. If you’re one of the few weirdo’s left that wants an actual car, a Model S Plaid is faster and cheaper than an RS e-tron GT with a charging network that can’t be beat.
If you’re a gearhead that’s interested in electrification, BMW is the way to go. If you’re an Instagram influencer, the Benz is for you. Audi just kind of…exists, doing electrification with the mediocrity of old school GM.
Have a friend who just got the Q4 eTron. They really like it, but at the end of the day if the BMW had been 1. available and 2. with the same discounts as the Audi, thats where their money would have gone.
Exactly. There’s nothing not to like about them. They’re well styled, comfy, typical excellent Audi fit and finish on the inside, but they just don’t do anything better than anyone else. If you’re familiar with Audi, you’ll feel right at home in an electric Audi, and while that seems like a safe bet it might be a bit of a gamble as it leaves out people who want that electric car futuristic vibe.
Canadian strikers. Half of them look like they’re holding invisible mugs of beer and the rest look like they’re rolling dice (which may be partially accurate). Gotta love ‘em. Nice people.
As to the QOTD, I’d say VW is best positioned to surf the electrification wave.
VW certainly has all the tools in their belt. But they’re using them to produce completely uninspiring vehicles. Maybe they think they’re going to make the next RAV-4? I’d rank them as “most likely to blow their opportunity.”
Between VW’s teething issues with the ID.4 and building up hype around the ID.Buzz but dragging their feet forever before bringing it to the US, I’d say they probably already blew their opportunity.
They had that ad. ‘Pressure makes diamonds!’
Pressure also makes hemorrhoids.
“I wonder if there is beer on the Sun.”
–Zap Rowsdower, Canadian cinematic icon