BMW refers to "Project i" to its push into electric cars.
BusinessWeek published an article on March 12th on this topic.
Currently, BMW is spending more than $1 billion on the development of a small car for urban drivers that will be electrically powered.
In New York and Los Angeles, BMW started a test market on such all-electric vehicles. BMW is leasing 500 MINI Sedans that have been modified to run on batteries. Daimler is currently testing eletric SMARTs in London.
This test project shall help to eliminate the industry's biggest fear that only few would be willing to pay a higher price for a car that only can drive 150 miles between charges.
Despite all the prejudices, BMW had no problems finding customers eager to pay $850 per month to lease such a mdifies MINI, although only 2 seats are usable because the batteries are displaced in the rear seats.
The moto of "you drive the future" seems hip!
Despite these great news, the indusrty still faces many problem that have to be solved. Even if the prices in battery fall to a third of its currnet price, the batteries per car still cost $14,000, as Boston Consulting Group estimated.
More optimistic consultants such as Consultant Bain & Co argue that by 2020 the costs of batteries will have fallen to $4,000 per car which would allow the car manufacturers to offer a showroom price of $20,000.
Especially BMW should be in a better position with this innovation than its rivlas becasue the well-heeled people who drive Bimmers might be just the kind of buyers who would want a sporty electric for commuting and short trips around town!
I really hope that this innovation becomes a great and not too costly alternative. It would help to solve many environmental problems. I would definitively consider buying such a car!
Would you be a potential customer?
