BMW has timed its shift to electric cars well and its upcoming products will reverse the perception the automaker is behind on electrification and will make its stock compete with the likes of Tesla, its top executive said.
“There may be a perception that we took an opportunity , but we actually didn’t take an opportunity ,” CEO Oliver Zipse told Reuters as a part of a series of boardroom interviews entitled “Delivering Net Zero.”
“We waited for the instant when electromobility is basically stepping into higher volumes,” Zipse said.
Automakers are racing to develop electric cars amid tightening CO2 emission standards in Europe and China.
BMW says it expects half its sales to be fully-electric models by 2030, which is seen as a more conservative approach than rivals like Volkswagen, which has seen its stock lifted by ambitious electrification plans.
VW has developed its own electric vehicle platform from the bottom up. Next month Daimler will unveil the EQS flagship electric sedan, its first Mercedes-Benz model on a fanatical electric platform.
BMW currently builds combustion engine, hybrid and electric models on shared platforms. Critics say shared platforms compromise the performance of electrical vehicles. It will launch its New Class electric-focused platform in 2025. The platform is meant to be fully electric but also will underpin cars with gasoline and diesel combustion engines, including plug-in hybrids.
“If you inspect what’s happening within the market with these (dedicated electric) platforms, the cars all look alike,” Zipse said. “BMW serves very specific, high-paying customers, i feel they are doing not want cars who all look alike.”
Zipse said he expects the ecu Union will further tighten its CO2 emission targets for 2030.
He said the bloc shouldn’t overreach on so-called Euro 7 car emissions proposals for pollutants including laughing gas and lung-damaging particulate due this year – Germany’s auto industry says some proposals into account could effectively combustion engines from 2025.
“We should roll in the hay during a reasonable thanks to keep the combustion engine alive” because engine improvements will help reach climate goals, he said.
Zipse said BMW’s market cap of around 55 billion euros ($64.7 billion) is less than its assets of around 60 billion euros. “Something is wrong there,” he said. “That would assume that you simply do not have a future.”
Asked if BMW could become a “story stock” like electric automaker Tesla, Zipse said: “Of course we will .”