Photo: BMW
According to BMW board member Milan Nedeljkovic, who’s in charge of production for the Bavarian brand, his company will significantly reduce its production costs by the middle of this decade in an attempt to keep up with rivals such as the VW Group, Daimler, and of course, Tesla.
“We will lower the production costs per vehicle by 25% by 2025, compared with the level in 2019,” said Nedeljkovic, as quoted by German newspaper Handelsblatt. Meanwhile, last month BMW said that it’s still on course to meet its profit targets for 2021, despite rising raw material costs, reports Reuters.
Furthermore, the German carmaker is bullish on its 2021 targets even though the global chip shortage could worsen and impact production. On a more positive note, sales of electrified BMW models have more than doubled in the first quarter of this year, with the company saying that we could see 2 million of its fully electric cars on the road by 2025.
Back to the topic at hand, we currently have no way of knowing what type of cost-cutting measures will be applied, but there’s a chance that they could be of the drastic type, seeing as a five-year deadline can be a short period in the car industry.
Off the top of our heads, they could halt all development projects regarding gasoline and diesel engines, which is where we’re heading anyway, industry-wide. Their homeland rivals Audi are already set (allegedly) on killing their combustion engine-powered cars, with recent reports suggesting that all new Audi models built after 2026 will be battery-electric.
As car enthusiasts, we can only hope that no cost-cutting measures will be applied as far as interior build quality or the assembly process itself. At the same time, we wouldn’t mind seeing them implementing more sustainable materials as long as the quality remains worthy of the premium segment.
Furthermore, the German carmaker is bullish on its 2021 targets even though the global chip shortage could worsen and impact production. On a more positive note, sales of electrified BMW models have more than doubled in the first quarter of this year, with the company saying that we could see 2 million of its fully electric cars on the road by 2025.
Back to the topic at hand, we currently have no way of knowing what type of cost-cutting measures will be applied, but there’s a chance that they could be of the drastic type, seeing as a five-year deadline can be a short period in the car industry.
Off the top of our heads, they could halt all development projects regarding gasoline and diesel engines, which is where we’re heading anyway, industry-wide. Their homeland rivals Audi are already set (allegedly) on killing their combustion engine-powered cars, with recent reports suggesting that all new Audi models built after 2026 will be battery-electric.
As car enthusiasts, we can only hope that no cost-cutting measures will be applied as far as interior build quality or the assembly process itself. At the same time, we wouldn’t mind seeing them implementing more sustainable materials as long as the quality remains worthy of the premium segment.
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