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BMW rules out fourth brand, favors new "sub-brand"

 
2 1,927 views Aug 4, 2009

“What’s wrong here? You like working with us. You appreciate your job. But you drive a vehicle from a competitor?”

“What’s wrong here? You like working with us. You appreciate your job. But you drive a vehicle from a competitor?”

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Since the release of its official strategy in September of 2007, media sources around the world have been speculating that BMW was looking at either launching its own new brand or acquiring one to help expansion. BMW already has a foothold in the luxury and ultra-luxury segments with its BMW and Rolls-Royce brands, respectively, plus it has the Mini small car brand as well, but reports suggested that the automaker may launch or revive a fourth brand for its upcoming family of Project i cars.

BMW CEO Norbert Reithofer has now made the final word on the topic, putting an end to claims of a new brand and reconfirming earlier statements that no existing brand fits the criteria BMW seeks in a partner at present. At one point it was thought BMW was interested in acquiring Volvo or possibly even the Triumph brand.

Speaking with the Wall Street Journal, Reithofer said the first Project i car will feature an electric drivetrain and will be launched under a "BMW sub-brand" comparable to BMW's M badge, which marks high-performance cars.

Reithofer also revealed that the vehicle will be launched "in the first half of the next decade," but failed to provide any further details. Earlier this week BMW confirmed that it would be partnering with SB LiMotive, a joint-venture between Bosch and Samsung SDI, for the supply of lithium-ion batteries for the new vehicles.

In related news, Reithofer also confirmed that BMW was still in talks with France’s PSA Peugeot-Citroen over a possible deal to build new engines together, as well as Daimler on joint purchasing and sharing certain components.



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Comments (2)

  1. ma_Im a korean XD avatar Im a korean XD Posted: 8/4/2009 7:39pm PDT

    Hmm. cool!!
     
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  2. ma_Jim avatar Jim Posted: 8/5/2009 5:51am PDT

    The idea that a company whose sales are off 40% and who admits that the core business is not coming back soon, would spend the money necessary to market a 4th brand was ludicrous. This was the GM biz plan and look where that got them.

    BMW has some very serious challenges facing them;

    -adjusting the brand image to the change/requirements for efficiency,
    -the collapse of the credit market and the resulting tightening of credit requirements, making it difficult for interested consumers to afford the brand.
    -the need to find the money to fund development of alternative drive train technologies. Necessary for a brand whose reputation is built on engineering excellence.
     
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