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BMW seeks partners for electric Mini, could make it an all-EV brand

LOS ANGELES — Germany's BMW is talking with other automakers "around the world" to try to find partners to lower the cost of electrifying its future Mini small cars, management board member Peter Schwarzenbauer told Reuters. "We are talking to many OEMs (manufacturers) around the world, not only in China, (about) how to electrify smaller cars," Schwarzenbauer said. "There's no final conclusion on it." Chinese automaker Great Wall Motor said last month it was discussing a possible venture to build Mini vehicles in China. BMW currently does not build Mini vehicles outside Europe. Schwarzenbauer declined to discuss the Great Wall situation, saying "this was speculation." However, he said building smaller electric cars was challenging, not only because of the financial costs, but also the engineering problem of fitting batteries with sufficient range into a smaller vehicle package. BMW has worked with rivals before to share the costs of clean vehicle technology. The automaker has a partnership with Toyota to develop fuel cell vehicles. BMW has said it plans to launch a new, electric Mini model in 2019. Eventually, Mini could become an entirely electric brand aimed at urban consumers, Schwarzenbauer said. Mini sales in the United States have fallen 10 percent through the first 10 months of this year, as demand for many smaller cars has waned in favor of sport-utility vehicles and trucks. "It's really only in the U.S. where we are facing this with Mini," Schwarzenbauer said. BMW will not try to reverse that trend by adding larger SUVs to the Mini lineup, Schwarzenbauer said. Instead, he said, "the way for Mini in the U.S. is ... building the Mini brand in the direction of the electric urban mobility company." On a separate issue, Schwarzenbauer said BMW intended to offer a self-driving car planned to debut in 2021 at a price that could be below $100,000. The iNEXT model, which BMW previewed earlier this year, will be offered to individuals, ride services fleets and put into service in BMW fleets, Schwarzenbauer said. "By 2021, you will have a lot of people who want to own this car," he said. "It will be a normal price. We are thinking of scaling this. To bring a $150,000 electric car is nice, but it will not really scale." When it launches, the iNEXT may not be offered with complete, so-called Level 5, autonomy because the regulatory and legal frameworks for such a vehicle likely won't be in place, Schwarzenbauer said.

BMW discussing new plant with Mexican authorities

Drawn in by low wages and manufacturing costs, BMW could be the next automaker to set up a manufacturing facility in Mexico. Automotive News is reporting that the German automaker has had discussions with local Mexican governments regarding a possible assembly plant, but there is no word as to when a decision may come down. Last we heard, BMW was reportedly looking to build the 3 Series in Mexico.
A key determining factor for this new plant is a free-trade agreement between the US and Europe, which according to the article, would give BMW better "flexibility and cost structure" to open another plant in North America. In terms of luxury automakers, Audi is currently building a new plant in Mexico and Mercedes-Benz is considering opening one in conjunction with Nissan for the CLA-Class, and in the bigger picture, Honda and Mazda are also preparing to kick off vehicle production in Mexico.

BMW wants to expand DriveNow carsharing program to 25 new cities

Daimler's Car2go car-sharing service just announced that it will debut in Rome, its 26th global city. Now, BMW says it wants to expand its own carsharing program to, wait for it, 25 more cities. Coincidence? We think not. BMW is looking to bring its DriveNow carsharing program, with its Mini Coopers and 1 Series, to as many as 15 new cities in Europe as well as 10 in the US, Bloomberg News says, citing comments BMW executive Peter Schwarzenbauer made at the Geneva Motor Show last week. The service is now operational in Berlin, Hamburg, Cologne, Munich, Dusseldorf and San Francisco and serves about a quarter-million people. Of course, it's that last city, where DriveNow started operations in August 2012, that's been somewhat problematic. San Francisco has tough guidelines when it comes to where the cars can be parked, with so few public parking areas to choose from. DriveNow charges $39 for membership in San Francisco, then $12 for the first half hour of driving and 32 cents for each additional minute. DriveNow competes directly against Car2go, which charges around $25 to become a member and then 41 cents a minute to rent a Smart ForTwo.