BMW's CEO, Oliver Zipse, announced on Saturday at the IAA auto show in Munich that the company generates the same profit from its electric vehicles as it does from its traditional petrol and diesel vehicles, DW reports.
He presented the "Neue Klasse" (New Class) of electric cars, emphasizing that the assumption that combustion engines are consistently more profitable than electric cars is incorrect.
Despite the higher production costs of electric cars, BMW offsets these expenses with the premium prices that customers are willing to pay. Zipse stated that they currently profit from every electric car and expect this trend to continue with the Neue Klasse, making it a highly profitable venture.
BMW's new electric models are entering a competitive market where Tesla has initiated a price war. While BMW has not disclosed the pricing for the Neue Klasse, Zipse promised that it would be a very competitive offering, ensuring they remain competitive in the market. At the Munich auto show, BMW unveiled a prototype for the Neue Klasse, which is part of their multibillion-euro initiative to compete with Tesla and other electric vehicle manufacturers.
The company is renovating its primary assembly plant in Munich to produce Neue Klasse vehicles, with plans to launch them by the end of 2025. This project represents BMW's most significant investment in its history, as it involves entirely new technologies across all areas of the company, although specific investment figures have not been disclosed, according to Frank Weber, BMW's Chief Technology Officer.
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