BMW & MINI’s Conservative EV Strategy Is Starting to Look like The Smart Choice

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Five years ago, BMW and MINI placed a bet on an electrification strategy summed up in four words: “the power of choice.” The concept was simple—give consumers the ability to choose between combustion or electric power in any type of car the brands offer. Rivals criticized the approach as too conservative, predicting that such products would be flawed and fail to sell. Fast forward to 2024, and it seems that the power of choice is exactly what consumers want.

Just before Oliver Zipse became CEO of BMW in 2019, he spoke at an event at the MINI plant in Oxford, expressing the need for caution regarding electric vehicles. “Flexibility is key,” he stated, referring to the plan to electrify BMW and MINI’s model range while maintaining maximum flexibility for both the company and its customers. At that time, many competitors were making aggressive, multi-billion-dollar moves toward electrification to compete with Tesla.

However, in July, BMW surpassed Tesla in European electric car sales, a milestone that highlights the success of its pragmatic and methodical approach to electrification.

BMW and MINI’s more conservative approach wasn’t due to indecision. As a relatively small global manufacturer, they couldn’t afford to make multi-billion-dollar bets and be wrong. They had to be pragmatic, relying on engineering solutions to strike the right balance.

One example of how they achieved this is the MINI Countryman. The car was designed with an architecture that accommodates both internal combustion engines (ICE) and electric power, allowing both versions to be produced on the same assembly line. While it sounds straightforward, the amount of planning and foresight required was immense. Yet BMW and MINI have managed to execute it successfully.

That said, there are downsides to this approach. EVs built on platforms that can also accommodate ICE vehicles miss out on the space-saving advantages of electric motors and flat battery packs. As a result, they may have slightly smaller batteries and be less efficient overall. Charging speeds, too, tend to be slower than some competitors.

On the other hand, ICE cars built on these platforms face higher ride heights, as they’re designed to accommodate battery packs and other electric vehicle components. This can lead to heavier and bulkier structures. Zipse himself acknowledged this in 2019, but didn’t think it would be a dealbreaker for consumers, stating: “You may find 2kg here and 2kg there, but that is not relevant for a buying decision.”

BMW is betting that consumers won’t mind these trade-offs, including the slower charging speeds. Given that much of the global charging infrastructure isn’t yet capable of supporting high-speed charging, they believe consumers aren’t missing out—yet. One benefit of this single-platform strategy is lower investment costs, which should, in theory, keep prices more competitive for buyers.

This strategy is now being recognized by many in the industry as the right move, and other automakers are beginning to follow suit. The results speak for themselves: BMW reported a €3.7 billion profit in Q2 2024.

What This Strategy Means for the Future of MINI?

MINI will continue the “power of choice” strategy until its 5th-generation model family debuts in early 2030. The brand plans to transition to an all-electric lineup globally by 2031. The new Countryman will take advantage of BMW’s forthcoming Neue Klasse platform, which features 800-volt architecture. However, it remains unclear how MINI will approach the smaller Cooper.

If the past few years have taught us anything, it’s that plans can change. And if consumer demand for alternatives to EVs remains strong, BMW and MINI’s “power of choice” strategy may continue for longer than expected.

The post BMW & MINI’s Conservative EV Strategy Is Starting to Look like The Smart Choice appeared first on MotoringFile.

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