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Reverse-engineering i3 shows BMW profits after 20,000 sales

"This is, without a question of a doubt, the most advanced vehicle on the planet. It's as revolutionary as the Model T was when it came out." That is exceptionally high praise, and it's not even being heaped on one of the million-dollar hybrid hypercars from Ferrari or McLaren. It's not even being attributed to a particularly zealous Tesla fan. Nope, it's coming from a mustachioed man in suburban Detroit, and he's discussing a $42,400 BMW hatchback with Forbes. Of course, said hatchback is the revolutionary i3, and Sandy Munro's statements carry some degree of authority, as his company is tearing apart and analyzing every little nut, washer and bolt on the four-seat EV. Munro's eponymous company performs reverse-engineering analysis, meaning they rip apart brand new cars and sell the information to the world's automakers, saving OEM's both time and money. The most interesting thing it has discovered thus far? That even with the high costs of two of the i3's most important elements – carbon-fiber-reinforced plastic and lithium-ion batteries – his company's analysis shows that BMW need only sell about 20,000 units a year to turn a profit, Forbes reports. While Munro's company is often contracted by automakers, he's gone it alone on the i3 project, dropping about $1 million into in-depth analysis. That's a lot of money, but the company should be able to turn around and sell its findings for about $500,000, with a batch of Chinese automakers already queued up and ready to buy. Analysis of individual i3 components will also be available from a sort of a la carte menu. To see what it is about the i3 that has Munro speaking so highly of it, head over to the Forbes website and check out the feature article and video on the reverse-engineering process. Featured Gallery 2014 BMW i3: First Drive View 33 Photos News Source: ForbesImage Credit: Copyright 2015 Sebastian Blanco / AOL Green BMW Hatchback Electric Sandy Munro

BMW exec says public chargers not important for EV success

What has BMW learned from years of electric vehicle test programs and working with Mini E drivers and the ActiveE Electronauts? According to BMW board member Herbert Diess, it's that public charging is not an important piece of the puzzle of making EVs a success. The way those early EV drivers used their vehicles told BMW that, "public infrastructure is not really very important because most people are charging their cars at home," Diess recently told Wards Auto. It's a message we've heard before. Diess' personal experience fits with this conclusion, he said. After driving his company's new i3 city EV for over a year, "not once have I touched public charging." Of course, the i3 does let the driver search for public charging stations and BMW has a partnership with ChargePoint, and Diess is not hinting that BMW is totally against the idea of public charging. Still, Diess' comments are not likely to find a warm welcome with everyone in the EV scene. An August 2012 UCLA study titled "Financial Viability Of Non-Residential Electric Vehicle Charging Stations" (PDF) clearly states: Adoption by consumers will largely be a function of the electric vehicle charging options available. Studies show that most EV charging currently takes place in the home (Carr 2010). Even so, in order for EVs to gain widespread consumer adoption, it is critical for an infrastructure of electric vehicle supply equipment (EVSEs) to exist outside the home. Even BMW's own electric drivers have been sending mixed messages. In 2010, a study of Mini E drivers found that 87.5 percent said a public charging infrastructure is necessary, though 75 percent later said they could manage without such a network.

Audi investing $30.3 billion through 2018 for product expansion

How does Audi plan to reach two million units in annual sales and pay for the 11 new models it's adding to its lineup - an expansion that may include models named SQ2, Q9 and F-Tron? By increasing its investment to 22 billion euros ($30.3 billion US) between now and 2018. That figure represents an increase of about 500 million euros over the previously planned outlay, according to a report by Automotive News, and that could be due to Audi wishing to goad the momentum that pushed it to 1.5 million annual sales two years ahead of schedule.
It's also about staving off the challenges from BMW and Mercedes-Benz. Now that BMW has been able to turn some of its attention away from its "i" series of Megacity cars, it will reportedly spend more than planned in 2014 as it continues the rollout of ten all-new vehicles and 15 new-generation vehicles through the end of next year. Mercedes, having been dropped to third in the sales race, is preparing to add 13 new cars over the next six years.
Audi's money is going into technology, into product like the next-generation TT and the Q1 and production expansions and upgrades all over the world. The expenditure represents just under a fourth of Volkswagen's 84.2 billion-euro ($115.7 US) outlay devoted to taking the number-one global automaker title away from General Motors and Toyota by 2018.