cawimmer430
Piston Pioneer
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- Christian Alexander Wimmer
I found this on Autolies and this pissed me off. Here's my response I posted on Autolies.
This article bothers me for these reasons:
First, it makes it sound as if hybrids are overall fuel-efficient: they're not. As has been said often, hyrbids achieve their prime fuel economy benefits in an urban environment where the electric engine can function. Outside of this environment, fuel economy drops, especially with heavier and more powerful gasoline-powered Lexus hybrids.
Second, BMW sells a lot of fuel efficient cars in all markets EXCEPT the United States. If you go to Australia, The Middle East, Japan and various other Asian or African countries, you'll find consumers have the choice to purchase BMW cars like the 320i or 520i or in some cases the 320d / 520d / 525d being offered in these markets. These cars are particularly fuel efficient and are far from slow either.
Come to think of it, BMW sells more fuel efficient cars on a whole (globally) than Lexus! So what the hell is this article trying to say?
Clearly this article is written from an American perspective and they're used to seeing powerful 6-cylinder and 8-cylinder BMW's. I got the feeling the guy who wrote it had no clue about what BMW does outside the US. They've got diesels, they've got a Hydrogen 7-Series that is being improved as we speak and they're working on better engine technolgy for the next generation models meaning more power while using less fuel and emitting less toxins. This is further boosted by the addition of a Start-Stop function in the newer BMW models.
BMW's are seen as sporty and fast in the United States, hence a "fuel efficient" BMW won't fly at first. I hear BMW is bringing over their 530d or 535d. Hopefully consumers in North America will awake from this hybrid hype and see that diesels can be fun, fast and frugal while at the same time clean and environmentally friendly.
BMW must play catch-up to Toyota
"But the worry is that BMW is trapped in a 21st century Catch-22 -- how to make its high-performance cars more efficient and boost profits at the same time. Caught off guard by the rising popularity of Toyota (TM) and Lexus hybrid models, BMW is now trying to catch up with its own fuel-saving innovations tailored to combustion engines. Research and development spending rose 14% in the second quarter to $645 million. Installing the innovations across its entire model range is not cheap.
And so far consumers are not willing to pay a premium for a fuel-efficient BMW, analysts note. As a result, BMW's costs are going up, but the price of its cars do not recapture the investment in fuel-efficiency innovations. "Our first experience with [new technologies to boost efficiency] is that it gives us competitive advantage, but pricing remains a challenge," admits Krause. "Over time we will solve it."
Catching Up with Lexus' Hybrid
BMW Chief Executive Norbert Reithofer, who took control 11 months ago, is all too aware of the profit conundrum and has been huddling regularly with his top lieutenants on how to fuel earnings growth amid environmental challenges. During mini-retreats at a Bavarian lake called Tegernsee, an hour's drive from headquarters, the 51-year-old former production chief provokes intense debate on everything from engine technology to climate change. This fall Reithofer will present the results of the high-powered confabs: a 10-year strategic plan designed to boost profits and keep up the Bavarian automaker's growth trajectory.
That plan is likely to include a road map for future models that can compete with Toyota's hybrid juggernaut, cost-cutting measures to polish margins, and details on shifting more production to BMW's U.S. plant in Spartanburg, S.C., as a currency hedge. "The Lexus LS600 hybrid is a very sophisticated evolution of a hybrid. It caught BMW flat-footed. BMW will have to spend a lot to catch up," says Thomas Aney, analyst at Dresdner Kleinwort in Frankfurt.
Link: Global Auto Sourcing
This article bothers me for these reasons:
First, it makes it sound as if hybrids are overall fuel-efficient: they're not. As has been said often, hyrbids achieve their prime fuel economy benefits in an urban environment where the electric engine can function. Outside of this environment, fuel economy drops, especially with heavier and more powerful gasoline-powered Lexus hybrids.
Second, BMW sells a lot of fuel efficient cars in all markets EXCEPT the United States. If you go to Australia, The Middle East, Japan and various other Asian or African countries, you'll find consumers have the choice to purchase BMW cars like the 320i or 520i or in some cases the 320d / 520d / 525d being offered in these markets. These cars are particularly fuel efficient and are far from slow either.
Come to think of it, BMW sells more fuel efficient cars on a whole (globally) than Lexus! So what the hell is this article trying to say?
Clearly this article is written from an American perspective and they're used to seeing powerful 6-cylinder and 8-cylinder BMW's. I got the feeling the guy who wrote it had no clue about what BMW does outside the US. They've got diesels, they've got a Hydrogen 7-Series that is being improved as we speak and they're working on better engine technolgy for the next generation models meaning more power while using less fuel and emitting less toxins. This is further boosted by the addition of a Start-Stop function in the newer BMW models.
BMW's are seen as sporty and fast in the United States, hence a "fuel efficient" BMW won't fly at first. I hear BMW is bringing over their 530d or 535d. Hopefully consumers in North America will awake from this hybrid hype and see that diesels can be fun, fast and frugal while at the same time clean and environmentally friendly.
BMW must play catch-up to Toyota
"But the worry is that BMW is trapped in a 21st century Catch-22 -- how to make its high-performance cars more efficient and boost profits at the same time. Caught off guard by the rising popularity of Toyota (TM) and Lexus hybrid models, BMW is now trying to catch up with its own fuel-saving innovations tailored to combustion engines. Research and development spending rose 14% in the second quarter to $645 million. Installing the innovations across its entire model range is not cheap.
And so far consumers are not willing to pay a premium for a fuel-efficient BMW, analysts note. As a result, BMW's costs are going up, but the price of its cars do not recapture the investment in fuel-efficiency innovations. "Our first experience with [new technologies to boost efficiency] is that it gives us competitive advantage, but pricing remains a challenge," admits Krause. "Over time we will solve it."
Catching Up with Lexus' Hybrid
BMW Chief Executive Norbert Reithofer, who took control 11 months ago, is all too aware of the profit conundrum and has been huddling regularly with his top lieutenants on how to fuel earnings growth amid environmental challenges. During mini-retreats at a Bavarian lake called Tegernsee, an hour's drive from headquarters, the 51-year-old former production chief provokes intense debate on everything from engine technology to climate change. This fall Reithofer will present the results of the high-powered confabs: a 10-year strategic plan designed to boost profits and keep up the Bavarian automaker's growth trajectory.
That plan is likely to include a road map for future models that can compete with Toyota's hybrid juggernaut, cost-cutting measures to polish margins, and details on shifting more production to BMW's U.S. plant in Spartanburg, S.C., as a currency hedge. "The Lexus LS600 hybrid is a very sophisticated evolution of a hybrid. It caught BMW flat-footed. BMW will have to spend a lot to catch up," says Thomas Aney, analyst at Dresdner Kleinwort in Frankfurt.
Link: Global Auto Sourcing
