A simpler lineup for BMW with focus on electrification

KUALA LUMPUR: Times are changing and so is the approach with which automakers plan their future. Take for example BMW that is now moving towards a simpler lineup, one that is more focused on electrification. Also, like Renault and VW, it's essential for BMW to reduce its lineup as only then its operating margin can increase.

Speaking of which, as per Nicolas Peter, Member of Board of BMW AG, Finance, huge investment will be made by BMW to make the shift from the conventional engine to electric car lineup.

Further, it is to be noted that it is electric vehicles are expensive to develop and currently account for only a small sales portion, thus making them less profitable for the automaker. Therefore, it is important that BMW works out a way to obtain the best possible returns. For doing so, Peter explains that BMW would require a huge investment, as it'll help the automaker to access different cost levels.

Reduced complexity - several body-type and engine options, will also help the automaker cut cost. BMW is also working on scrapping the lesser-used features and upgraded software that'll focus on a simpler and efficient way of manufacturing vehicles.

Apart from this, BMW will now work harder in the digital department. According to a poll conducted on the Chinese consumer, it was concluded that people were willing to switch brands in search of a better digital experience.

With so much in its hands, BMW remains confident about handling the situation pretty well without any sort of external assistance.

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