BMW I2 to Become Company's First Jointly-developed EV With Daimler
The unlikely alliance between BMW and Daimler, solidified earlier this year, is in the opening stages of producing something tangible. The duo are already said to be working on a joint platform for electric vehicles, which the German business publication Manager Magazin claims will underpin a new EV from BMW.
Called the i2, the battery-powered subcompact is to be slotted beneath BMW’s existing i3. While rumored to be similar in size, the i2 will abandon the i3’s carbon fiber body in an attempt to minimize costs and broaden appeal. Daimler would follow by producing its own version, likely using Mercedes-Benz’s EQ sub-brand.
Since BMW has yet to confirm development on a next-generation i3, the i2 could serve as its replacement. Truth be told, the current i3’s utilization of high-cost materials probably cut into profit margins that were already thinned by the lofty development fees associated with EVs. Joint development, which should help immensely, has gradually become the preferred solution for automakers looking to produce electric cars at higher volumes.
BMW development chief Klaus Fröhlich carefully suggested to the German outlet that, despite robust global sales, it might be time for the i3 to consider making room for something else.
The BMW i2 is currently rumored to arrive in 2024 with an MSRP below 30,000 euros. By comparison, the i3 starts at around 35,000 euros. Once Daimler gets in on the action with its own version, the pair expect 500,000 joint sales annually. However, the model is suggested to have a target range of just 186 miles. While relatively competitive in 2019, there are already affordable alternatives offering superior range — and that gap will only widen in the coming years.
[Image: BMW]
A staunch consumer advocate tracking industry trends and regulation. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.
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"the current i3’s utilization of high-cost materials..." There is piece cost (cost of the parts in each vehicle) and there is tooling amortization (up-front cost of metal stamping dies, for example, divided by number of vehicles produced). Depending on expected volumes, the 'break point' could favor carbon fiber reinforced panels (typically higher piece cost) or stamped steel (typically huge up-front investment).
186 miles = 298 km That is perfectly fine for a small city car which will predominantly be driven in an urban or provincial setting where people tend to have shorter trips. It is logical to assume that these small EVs will be purchased for urban usage, and not cross country road trips. And perhaps there will be optional larger, more energy dense battery packs available for more range for those who need it. Side note, I drove past that location today where the photo of those two i3s was snapped. It’s the grounds of the former ‘Schlachthof’ in central Munich.
Just give them some leftover third-gen electric Smart Fortwos, and rebadge them. Problem solved.
Daimler: "How do we get out from under Smart, producing these electric city cars!" Also Daimler: "Let's do a joint venture with BMW to produce electric city cars!"