BMW will not leave the lower-priced segments it competes in during its transition to electrification.
While speaking during a recent event in Berlin organized by supplier Robert Bosch, BMW chief executive Oliver Zipse noted that the lower-priced segment will prove important to the car manufacturer moving forward.
“We are not leaving the lower market segment,” he said. “Even if you consider yourself a premium manufacturer, it is wrong to leave the lower market segment – that will be the core of your business in the future.”
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BMW’s stance differs dramatically from that of rival Mercedes-Benz, Auto News notes. In May, Mercedes-Benz revealed that it will drop its entry-level models and instead focus future investments on higher-end vehicles that generate greater profits.
“We are further sharpening the focus of our business model and product portfolio in order to maximize the potential of Mercedes-Benz even in challenging conditions,” Mercedes-Benz Group chairman and chief executive Ola Kallenius said at the time.
The automaker has confirmed it will cut its number of entry-level models from seven to four and is looking to pursue growth in the AMG, Maybach, EQ, and G-Class brands. This strategy also prompted the creation of the Mythos series that will be dedicated to producing highly-exclusive vehicles. No less than 75 per cent of future investments will be used to develop new luxury models.
“Most luxury companies build their portfolio on the basis of one or two true icons,” Kallenius added. “Mercedes-Benz has the good fortune to have multiple iconic products and brands at the upper end of its portfolio – such as the S-Class, the SL, the G as well as the AMG and Maybach brands. We see great potential here to expand our ‘top-end’ portfolio with even more fascinating products for our customers.”
