German auto giant BMW is doubling down on its brand value, as it prepares to roll out a fleet of software-controlled electric vehicles to take the fight to Chinese rivals and Elon Musk’s Tesla.
Speaking to CNBC ahead of next week’s Munich car show, where struggling European automakers are expected to face off with Chinese newcomers, BMW CEO Oliver Zipse introduced the world premiere of the iX3 sports utility vehicle.
The SUV is the first production model to be developed as part of BMW’s long-awaited Neue Klasse platform of EVs.
The Munich-headquartered company wants to release more than 40 new and updated vehicles onto the market by 2027, as it seeks to keep pace with competitors.
Zipse told CNBC’s Annette Weisbach on Friday that the iX3 debut is the result of a five-year journey.
“It is the most important and the biggest single investment we’ve done ever, and it shows the path into the future. And what you see here is only the first car of a series of models, which employs the same technologies,” Zipse said.
BMW has sought to revolutionize the digital offering of its new models by focusing on a so-called “superbrain architecture,” which replaces hardware with a centralized computer system.
The company says an “all-new digital nervous system” for the Neue Klasse platform has more than 20 times the computing power of its current vehicle generation.
These digital platforms provide the computing capacity for automated driving and infotainment functions, as well as basic car functions, such as climate control and comfort features.
The push to highlight the firm’s technological development comes as legacy European car manufacturers scramble to close the gap with leading players of software-defined vehicles. U.S. EV-maker Tesla, alongside Chinese manufacturers including Xpeng and BYD, currently dominate this space.
“There is fierce competition, especially price competition in China. There are a lot of new players in the market [and] there is a tough fight about market share,” Zipse said.
On the other hand, Zipse said the company has just over 3% market share worldwide and doesn’t have to compete in every market segment. What will help in the areas that it does compete, Zipse said, is the firm’s brand value.
“BMW is a promise. The brand is a promise to have the highest possible quality, to have the latest technology, and to be very customer orientated. I think that is very important,” Zipse said.
Shares of BMW are up around 13% year-to-date.
By CNBC
Email your news TIPS to Editor@Kahawatungu.com — this is our only official communication channel
