BMW boss Oliver Zipse (56) sees the elections in the USA and the struggle for one Brexit trade agreement calmly. “We can get along with any government,” Zipse told journalists in Munich. And if Great Britain and the EU should collect customs duties on cars and parts from January, that would be a burden, but it would not bring BMW’s business model to a standstill: “That won’t kill us.”
BMW builds engines, mini and Rolls-Royce cars in England. At the same time, Great Britain is the fourth largest sales market for the group after China, the USA and Germany. BMW will not withdraw from there, said Zipse. We are prepared, even if Brussels and London fail to create a trade agreement in the few days before the end of the transition period.
Growing demand for electric mini and X5 plug-in hybrid
In the Corona crisis, the car suddenly gained importance again in all regions. With half a year delivery time, some models are almost sold out, said Zipse. Especially with the X5 plug-in hybrid and the electric mini “we are surprised and pleased with the high demand”. BMW did not foresee that there is a purchase premium of 9,000 euros for electric cars in Germany today.
The minis will still be available with internal combustion engines. The wishes of the customers are very different. “We react very flexibly. If one day the whole world will only buy electric cars, we’ll only make electric cars. But it cannot be assumed that it will be in 2030,” said Zipse.
The mobility services are being put to the test. BMW and Daimler have bundled car sharing, taxi brokerage, parking and charging apps in the joint subsidiary Free Now (formerly Your Now). It would take a billion euros in investment every year to turn these services into a business. The US driving service Uber has now offered BMW and Daimler one billion euros for the taxi app.Zipse said: “We’re looking closely: What is a portable business? What is sustainable? What works better with partners?” Sharing is only successful with high occupancy. “With 20 percent usage, nobody can make it profitable.”