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Transportation

Citing EV 'Rollercoaster' In US, BMW Invests In Internal Combustion (msn.com) 102

An anonymous reader quotes a report from the Financial Times: BMW has pledged to continue investing in combustion engine and hybrid technology as it warned of a "rollercoaster ride" in the US transition to electric vehicles following the return of Donald Trump as president. Board member Jochen Goller said the group remained optimistic about sales of petrol and plug-in hybrids in the US even if demand for EVs slowed over the next few years on the back of policy changes under the new administration.

"I think it would be naive to believe that the move towards electrification is a one-way road. It will be a rollercoaster ride," Goller, who is in charge of customer, brands, and sales, told the Financial Times at BMW's headquarters in Munich. "This is why we are investing in our combustion engines," he said. "We are investing in modern plug-in hybrids. And we will continue rolling out electric cars."
BMW faces significant challenges in the Chinese market, with a 13% decline in sales amid intensifying price competition and growing dominance of domestic brands. Analysts note that while the company still sees China as a growing market, pricing pressures and an overcrowded automotive sector pose ongoing risks to BMW's long-term positioning.

It'll likely become even more difficult for BMW and other automotive companies to gain market share in the Chinese market with BYD's latest announcement. The Chinese automaker said it will be offering its advanced "God's Eye" autonomous technology in mass-market EVs like the $9,500 Seagull, while expanding globally with government-based EV initiatives.

Citing EV 'Rollercoaster' In US, BMW Invests In Internal Combustion

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  • TFA Link (Score:4, Informative)

    by Kunedog ( 1033226 ) on Monday February 10, 2025 @10:37PM (#65157857)
    https://www.ft.com/content/b7c... [ft.com] TFS link is just the MSN homepage.
  • It's Trump (Score:5, Informative)

    by rsilvergun ( 571051 ) on Monday February 10, 2025 @11:21PM (#65157947)
    They are expecting retaliation against the entire EV market from Trump. He got hundreds of millions of dollars from oil interests. We have hard data to chose that one's reasons gas prices stabilized was having so many EVs. So the oil industry wasn't going to let that fly.

    I do wonder what Elon Musk is planning. It's clear from his $55 billion dollar pay package, the 5-year-old drivetrain on Teslas and The fact that without government subsidies he only makes $500 per car that he doesn't intend for the company to live all that much longer. He's going to get what he can out of it but I wonder what if anything are his plans after that.

    Assuming we ever have another election (with how much voter suppression we had last cycle I have doubts) then he's going to lose his SpaceX contracts. The military considers him a national security risk after the stunt he pulled in Ukraine. He's always going to be rich of course because we don't put guys like him in the poor house.

    I suspect his plan is to try and get into the treasury and start using a cryptocurrency that he personally controls for government payments thereby effectively making him our entire banking system, kind of like how China has that everything app. That's what he's been talking about with X for some time.

    It remains to be seen if we're dumb enough to let him do it.
    • Hey guy...whacky conspiracy theories about billionaires stealing your lunch money was *our* thing. I'll trade y'all back the antivax for it.

    • I do wonder what Elon Musk is planning. It's clear from his $55 billion dollar pay package, the 5-year-old drivetrain on Teslas and The fact that without government subsidies he only makes $500 per car that he doesn't intend for the company to live all that much longer.

      People still buy the Toyota Camry, and that's basically been the same car for damn near close to two decades. Swap out the cheese grater front grille and the whale-tail ass with their retro equivalents and you've got a car straight out of the early 2000s. If Toyota can do it successfully, Tesla can continue to milk their current lineup for many years to come. There's also absolutely nothing wrong with Tesla's 5-year-old powertrain; it still smokes most of the ICE vehicles on the road.

      Musk's bigger proble

      • The Camry from today is a far cry from a Camry 20 years ago. There's no comparison in terms of safety, performance, build quality and features. On the other hand the Camry is a lot more expensive today than it was 20 years ago even adjusting for inflation.

        Musk's political antics are because his businesses are falling apart and he knows it. He's always relied on government programs for everything except for that one golden parachute he got from PayPal during the .com bubble. Tesla was built on a scheme t
        • The Camry from today is a far cry from a Camry 20 years ago. There's no comparison in terms of safety, performance, build quality and features.

          I'll give you that by going hybrid-only for the 2025 model year, Toyota has finally made some much needed changes to the car. But prior to that, they got away with selling a car with relatively poor performance for its class (unless you opted for the larger engine) for decades, and it still sold well. As you said though, those changes came with a much higher price tag.

          By comparison, I've test driven a Model 3 and nothing about the car feels dated. Plus, when you stomp on it, there's no question about it

          • Pretty much every electric car has excess power because otherwise the recuperation wouldn't be very effective.

            • by shilly ( 142940 )

              Absolutely none of that is true. You can get EVs with only moderate acceleration — this is true of every single EV supermini on the market with the exception of the Alpine a290, and even that’s not that fast (just under 7 secs). And those EVs all have good regen, enough to enable one-pedal driving.

    • by MTEK ( 2826397 )

      I do wonder what Elon Musk is planning.

      A few things about Elon: (1) he gets bored easily; (2) his behavior is at odds with Tesla customers/investors; (3) he is currently getting a taste of ultimate power-- operating within an unchecked executive branch of the post powerful country on Earth.

      Remember what Elon said to advertisers who threatened to boycott X? "Go fuck yourself." That's what we're dealing with here.

      I suspect Elon is growing bored of Tesla and wants to swap-out his shares for something potentially MUCH bigger-- leaving everyone else

  • Why not something like the i3 with the range extender? Something like that, I know people who swear by those because they are arguably the best of both worlds, especially here in the US where the power grid isn't really reliable in places.

    • BMW makes a lot of motorcycle engines, so I guess they are still equipped to build hybrid drivetrains like that of the i3.

      With battery density increasing, it could be possible to have that small displacement engine there idle most of the time just in case 100 or 200 miles of ev range are not enough.

    • yes, a range extender is definitely better than a hybrid but still a compromise
      • yes, a range extender is definitely better than a hybrid but still a compromise

        A "range extender" is a type of hybrid and so it doesn't follow to claim it better than a hybrid. It would make sense to call a range extender a superior form of PHEV but that depends on the application. If the PHEV is used for towing then some kind of mechanical link from ICE to the wheels would be quite helpful in vehicle longevity and performance. If the ICE in the PHEV is as much for cabin heat on long cold drives as it is for backup in case there's busted EV chargers at the next stop then a range ex

  • by timeOday ( 582209 ) on Tuesday February 11, 2025 @12:10AM (#65158027)
    The US is indeed digging a levee to protect our domestic market for gas cars. Cheap domestic gasoline makes it so easy. It will work for some time.

    Except there is no guarantee Trump will allow Germany to beach its lifeboat here. Trump is threatening 25% tariffs on EU auto imports. Does BMW's announcement mean they know something we don't?

    • by evanh ( 627108 )

      The oil price can't really go down without also adding more subsidies to fracking. Current levels of fracking in USA depends on the current high oil prices.

    • Trump is threatening 25% tariffs on EU auto imports. Does BMW's announcement mean they know something we don't?

      BMW manufacture in the USA. Not just manufacture in the USA, their single largest plant is in the USA. They are unaffected by tariffs. In fact some 70% of the BMWs manufactured in the USA are currently exported.

  • BMW may be good at some things... like, they make nice interior and especially cup holders. But they are really really bad at things like mechanics, electronics and most of all anything related to computers.

    I own a BMW i3. I bought it new in late 2016. Since then I have driven or rented 6 other modern BMWs.

    BMW should be legally restricted from doing anything with an electronic circuit involved.

    By comparison, Tesla, BYD and Nio are substantially better. And if BYD is in business and they appear financially s
    • BMW: Burned More Wiring (direct experience). It took them 15 years to make a brake light pedal switch that would last more than 3 years.
    • BMW should be legally restricted from doing anything with an electronic circuit involved.

      The best part about recent BMWs is how much "coding" you, the owner can do. Thousands of parameters affecting pretty much every element of the vehicle, it's actually pretty mind blowing. From lighting, HVAC and entertainment to braking, steering and stability control there is stuff you can tune in almost every ECU. At your own risk of course.

      https://www.bimmergeeks.net/pr... [bimmergeeks.net]

    • The truth is that only car company with a decent UX department for their infotainment is Tesla.
      Up to the point that I consider Tesla an IT company that installs it's software on car-shaped hardware.

      And the trend of moving everything to a touch screen does not work for cars, even with good UI/UX design.

    • by ukoda ( 537183 )
      Maybe it just me but I just can't get past how ugly those BMW kidney grille designs are. So that only leaves the Z series, where they don't have the space to go full ugly, that don't make want me make to throw up when I consider owning one. Personally taste again, but I like the grill on the Tesla Model 3.
  • by battingly ( 5065477 ) on Tuesday February 11, 2025 @01:04AM (#65158093)

    I'm sure a lot of multinationals are looking at the US as a lost cause right now. How can you do business in a country that is being run with the sole purpose of exacting petty retribution on as many people as possible.

  • by molarmass192 ( 608071 ) on Tuesday February 11, 2025 @01:05AM (#65158095) Homepage Journal

    All this focus on EVs and the environment misses the point. I didn't buy 2 EVs to save the planet. I bought them because EVs are far cheaper to run than ICEs, and they're far more reliable. There are no $250 oil changes every 3 months or annual "service intervals" at $2K a pop. It's also significantly cheaper to fill an EV than an ICE. Our main EV (Model X) used $1700 in electricity last year with zero scheduled maintenance to cover 28K miles. That's $0.06/mile. The SUV we had before that cost $110 to fill and got 18 miles to the gallon if you took it easy. It also required an annual recommended service at Lexus that was never less than $1500. So the Tesla cost $1700 to cover 28,000 miles, the Lexus cost $6000 in fuel plus $1000 in oil changes, and a $1500 annual service. So to drive the same distance in comparable cars, the EV cost $1700 while the ICE cost $8500, so for us, ICEs were 5x more expensive to drive. There's absolutely no way I will ever go back to an ICE for a daily driver, and arguments against EVs are always from people who don't have one. Now, they're not a good fit for everybody. Regardless of what others claim, you really need an EV charger at home if you drive more than 20 miles a day. If you take regular road trips beyond 150 miles each way, you're going to find stopping to charge for 20 minutes isn't fun regardless of what toys are available on the touch screen. So there are caveats, but for us, it's been a significantly better experience than we had with 2 Lexus ICEs.

    • by ukoda ( 537183 )
      Those ratios only get bigger outside the USA with its abnormally cheap gas. If you can charge from solar panels like I do then it is effective free to fuel. After 5 years of driving my Tesla Model 3 Performance my only expense has been registration and insurance, apart from a few supercharger sessions on road trips.
    • Lol, you fall for the "service intervals" thing? Here's a tip: oil changes should cost no more than $100 Canadian and service intervals are there to help support dealers, not benefit you. Any good mechanic will tell you a good new vehicle doesnt need anything except for oil until well after 100k Km.
    • I bought them because EVs are far cheaper to run than ICEs, and they're far more reliable. There are no $250 oil changes every 3 months or annual "service intervals" at $2K a pop.

      Nobody in their right mind spends $250 on an oil change and $2k on an annual service. At those prices no wonder you think ICE's are expensive

    • by rykin ( 836525 )
      I mean, yeah, 6c/mile sounds nice, but I just did the math on my 2008 Honda Fit, and I get 9c/mile. That's with the cost of gas/oil changes. I haven't had to do any of crazy expensive maintenance that you suggest one needs every 3 months, and my oil changes are $50-60. The car has been paid off for about 8 years now. Sure, I've had to change the brakes and the tires once in a while, but those are expenses that even EVs have to deal with. So my Fit costs me roughly $2700 to get 28000. Sure, not as impressive
  • With this, they’re effectively saying they’re caught between the devil and the deep blue sea. On one side, Trump’s America which he’s committed to ICE (so this announcement makes sense) and tariffs on steel and quite possibly EU autos in the future (so this announcement makes less sense). OTOH, there’s China, which was a growth driver for them, but in which they’re losing ground and profitability due to Chinese OEMs’ offerings and a market focused on EVs. And then t

  • After renting a Tesla a couple of weeks ago, I'll never own an electric car. Sure, the acceleration is great, although unnecessary. But it's like learning to drive all over again. it's difficult to know how fast one is driving as there is no engine sound. The jerky deceleration as the regenerative breaking kicks in was nerve racking. The car itself was noisy, far to much road noise for a car this expensive. Charging at the office was a PIA, one had to download an app and request permission because they we
    • After renting a BMW a couple of weeks ago, I'll never own a gas car. Sure, the acceleration is terrible. But it's like learning to drive all over again. It's difficult to know how fast one is driving as there's inconsistent engine sound. The jerky acceleration as the gears shift was nerve racking. The car itself was noisy, far too much road and engine noise fo ra car this expensive. Refuelling at the office was a PIA, they didn't have a gas station, so I had to go to a gas station, wait in line, then stand in the freezing cold holding a smelly gas pump to refill the tank, rather than just waking up to a full charge in the morning. THe damn thing shut off at a traffic light when I opened the door becuase I thought it was not closed tightly and only knew it when the light changed to green and woudln't go. And hte field of view was just awful, all I could see was hood.

      Granted, some of these things are just related to the learning curve and my co-workers did tell me 'you get used to it." But I didn't see how ANY of them contributed to an improved experience over my Ioniq 5. And many contributed to unsafe driving.

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