BMW’s future EVs will match ICE cars in profits, claims CEO Oliver Zipse

BMW claims its future electric cars will match their internal combustion engine-powered counterparts in profit, claimed BMW CEO Oliver Zipse during the automaker's annual shareholder meeting. He said that the automaker is targeting 30 per cent cost savings by using the Neue Klasse's platform's cylindrical cell format.

Zipse said that the Neue Klasse EV platform underpinned by electric vehicles will be as profitable as the carmaker's ICE models. Speaking about the new generation EV architecture, Zipse said that the Neue Klasse platform will feature advanced battery chemistry and new cell formats to offer improved power output. He said that the latest GEN6 drivetrain generation stands for more power, new cell chemistry and new cell formats.

The German luxury car marquee will commence production of Neue Klasse architecture in 2025 and initially use it for all-electric midsize vehicles. The new EV architecture will be built at a new plant in Debrecen in Hungary, where the foundation stone will be laid on 1st June. The automaker plans to start the first pre-series car production 26 months later.

Interestingly, this new factory will operate without any fossil fuel and all power used there will be generated on-site or sourced from suppliers using renewable energy. BMW will sign supplier contracts by the end of this year. Speaking about the supply chain strategy, Zipse has said to Auto News that BMW aims to create a carbon-neutral material sourcing strategy.

The move comes as part of the brand's strategy of shifting 50 per cent of its global vehicles to EVs by 2030. Also, the automaker is aiming to hit two million cumulative electric vehicle sales by 2025 and in 2022, the car brand predicts EVs will account for 10 per cent of all its global deliveries. For that, BMW plans to put eight all-electric vehicles on the roads by the end of this year.