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BMW Eyes Record Sales, Profits

CEO promises BMW battery cars will maintain brand's "sheer driving pleasure."

by on May.13, 2011

BMW CEO Reithofer promises a year of record sales - and profits.

After a strong first quarter, The BMW Group expects to harvest record profits this year – and it is also targeting an all-time sales record, the Bavarian maker’s CEO said.

“We have ambitious plans for 2011,” said Norbert Reithofer, Chairman of the Board of Management of BMW AG, at the Annual General Meeting held in Munich.

Once content to be a relatively niche player, focusing on a narrow range of high-line products, BMW has been stretching the boundaries of luxury and intends to push even further, expanding not only traditional offerings but a mix of new “green” machines that will culminate in the debut of an all-new sub-brand focused on battery power.

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The expanding line-up should bolster demand, Reithofer said, telling shareholders, “We aim to deliver more vehicles than ever before – well over 1.5 million vehicles.”

The company’s finances have clearly been on the upturn.  And it continues to push for an EBIT – or Earnings Before Interest and Taxes — margin target of more than 8% for the automotive segment. It helps that buyers are willing to give BMW a significant premium for its products.

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BMW Planning Triple Reveal at LA Auto Show

ActiveHybrid X6 and 7, Vision concept car make N.A. debuts.

by on Nov.25, 2009

The fuel economy of a microcar, the performance of an M-Series model; the 2010 BMW Vision makes its North American debut at the L.A. Motor Show.

The fuel economy of a microcar, the performance of an M-Series model; the Vision makes its North American debut at the L.A. Motor Show.

Showgoers at Los Angeles’ Staples Center will get a good look at three high-efficiency models from BMW, when the 2009 L.A. Auto Show opens, next week.

Though first seen at the Frankfurt Motor Show, in September, it will be the first North American showing of the ActiveHybrid X6, ActiveHybrid 7 and EfficientDynamics concept car, all collectively pointing to the various strategies the German maker will use, in the coming years, to cope with demands for significant increases in fuel economy.

High-Performance News

High-Performance News

The challenge facing the automaker is to maintain its reputation for sporty, dynamic handling, even as it meets tough new mileage and emissions standards here and abroad.  It’s a challenge that will be particularly difficult for luxury makers, who generally produce larger, more powerful products than mainstream manufacturers, and traditionally rely on a scoff-law approach by defying U.S. regulations and buying their way clear by paying fines.

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BMW Sees Green

Automaker must launch an array of alternative powertrains - without sacrificing its performance roots.

by on Sep.02, 2009

From hybrids to hydrogen vehicles, BMW promises to go green, but can the maker hold down costs – and maintain the distinctive ride and performance that justifies its hefty product premium?

From hybrids to hydrogen vehicles - and possibly with diesel-hybrids, like this Vision Concept - BMW promises to go green, but can the maker hold down costs – and maintain the distinctive ride and performance that justifies its hefty product premium?

BMW has an alternative Vision of the future.

No, the Vision show car making its debut at the 2009 Frankfurt Motor Show, this month, won’t be rolling into showrooms anytime soon.  Its diesel-hybrid powertrain is far too complicated and expensive to produce – for now.  But Vision concept underscores the automaker’s increasingly energetic search for cleaner, high-mileage technology that can supplement, potentially even replace, the traditional powertrains that it has long relied on.

But “going green” poses some potentially serious challenges for the company, officials acknowledge.  For one thing, while new laws may require – and consumers demand – cleaner, more fuel-efficient vehicles, the German maker must maintain the distinctive performance and ride that allows it to charge a premium for vehicles ranging from the subcompact 1-Series to its big 7-er sedans.

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There’s also the issue of cost.  Despite the traditional premium consumers have paid for the marque’s “spinner” logo, BMW officials question how much more motorists will shell out for “clean” vehicles.

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