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The shift to producing electric vehicles (EVs) is proving costly for BMW, driving the automaker to lean on its high-end vehicle models to stay profitable, according to Automotive News Europe. In 2020, the German auto giant plans to deliver up to 145,000 7-series sedans, 8-series sports cars, M8 performance coupes, i8 plug-in hybrid sports cars, and X7 SUVs.
This delivery number is up 32% from the 110,000 premium vehicles BMW is expected to deliver in 2019, and over twice the 65,000 premium vehicle deliveries it made in 2018. BMW is pushing for more deliveries for these pricier models to help prop up profits as it awaits returns on significant EV-related R&D investments. As of April 2019, BMW plans to commit at least $6.5 billion to develop EVs, including $4.5 billion on EV battery technology, according to Reuters. BMW’s investment is part of its recently expedited effort to produce 25 electrified models by 2023 — the company initially planned to meet the goal in 2025.
Read The Full Article On: Business Insider