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Chairman says BMW will make 100,000 electric vehicles a year by 2020

We know demand for the BMW i3 has been high, both in the US and Europe. It appears that BMW's crystal ball is showing a steady increase in interest between now and 2020. By that year, according to Norbert Reithofer, chairman of the board of management for BMW AG, the company expects to build 100,000 units a year. That's not quite as EVs many as Tesla is talking about for 2020 (500,000), but it would represent quite an increase from the roughly 20,000 units that the best-selling plug-in vehicles moved in 2013. Reithofer told Automotive News that plug-in vehicle production would steadily increase by 2018 before hitting full stride at the end of the decade. He also made sure to clarify that there was external pressure to make 100,000 EVs a year: "we will be forced to build them in a six digits figure to comply with stricter emission rules." The plug-in electric vehicles are just one part of BMW's effort to reduce emissions. In prepared remarks delivered at the company's annual accounts press conference (available in full below), Reithofer said, "Customer demand [for i3] is exceeding our expectations. ... We believe the electric motor is a future technology for zero-emission driving in urban areas. Battery technology will continue to progress. ... When it comes to emission-free long-distance driving, however, electric cars featuring hydrogen fuel cell technology offer great potential." He didn't say how many fuel cell cars BMW expects to make and sell in 2020, but BMW's collaboration with Daimler and Renault-Nissan is supposed to launch the "world's first affordable, mass-market fuel cell electric vehicles as early as 2017." Statement and presentation by Dr. Norbert Reithofer, Chairman of the Board of Management of BMW AG, Annual Accounts Press Conference 2014 19.03.2014 Good morning, Ladies and Gentlemen! The core task of a company is to safeguard its future. This means we must ensure that our products and services are always inspiring our customers. We need to think ahead and continually take our business model to the next level. We also have to remain profitable so we can invest and bring new ideas to life. Our ambition of the BMW Group is: Always to consider the long term in all our planning, to follow our own path successfully, and to be a pioneer in our industry. Our business model is clear: Individual mobility in the premium segment.

A look back on BMW, South Carolina and Southern manufacturing

It has been 20 years since BMW broke ground on its Spartanburg, SC manufacturing facility, and while the automaker doesn't have any plans to mark the moment, economists and industry analysts have taken a closer look at the facility's impact on South Carolina, the South and global manufacturing. As of November, the Spartanburg plant's 7,000 employees cranked out 25,000 vehicles per month, and BMW has poured some $6 billion into the state since the plant opened in 1993. While that figure nearly matches the state's proposed budget for next year, some say there have been drawbacks.
To begin with, South Carolina provided BMW with hundreds of millions of dollars worth of public money and tax breaks with little public oversight, setting a precedent that would repeat itself with other corporations. The Detroit News reports that a Pew Center evaluation found 26 states didn't have a sufficient system for evaluating tax incentive performance. But BMW opened the door for a Southern manufacturing renaissance, with automakers from Mercedes-Benz to Hyundai and Volkswagen opening plants in the Deep South.
While states have raced to offer ever sweeter tax and cash incentives for big manufacturers, officials say BMW is proof the system can pay dividends. You can read the full piece here.

BMW considering North American engine plant?

BMW may be set to expand its US operations with a new engine plant, Bloomberg reports. The Bavarian automaker already has its Spartanburg, SC factory which builds the company's X3, X5 and X6 crossovers. According to the story, Mexico is also under consideration for the BMW engine factory, with the report claiming a final decision will be made in 2014.
"Establishing local motor manufacturing abroad is more complex than assembling cars, but it's a logical step for them to eventually start making engines in markets where they're expanding vehicle production," Juergen Pieper, an analyst for Bankhaus Metzler tells Bloomberg. Building engines in the US or Mexico would save BMW from having to ship engines for some of its most popular models across the Atlantic.
BMW, for its part, hasn't said anything concrete. Spokesman Mathias Schmidt is quoted in the story saying, "As part of our long-term growth strategy, we're frequently looking at different countries for possible locations of future production facilities. No decisions have been made yet, though, for an additional plant."