BMW anticipates a significant reshaping of the global automotive industry, with CEO Oliver Zipse predicting a period of consolidation. Speaking ahead of the IAA Mobility show in Munich, Zipse indicated an expected “selection process” within the industry, prompting BMW’s five-year initiative to fundamentally renew its model range with the “Neue Klasse” (New Class) vehicles.
The electric iX3, the inaugural model of the Neue Klasse, will be publicly unveiled on September 5th. BMW plans to modernize its entire portfolio – currently comprising 57 models – over the coming years. Zipse emphasized the unusual scale of this undertaking, describing it as a deliberate “all-in” strategy, acknowledging the industry’s limited tolerance for error.
The decision to integrate the Neue Klasse technologies across the entire BMW range stemmed from internal discussions concerning the future of existing models if only a limited number of future-focused vehicles were developed. This led to the commitment to essentially redesign every model within a short timeframe, starting with the iX3 and followed by a redesigned 3 Series sedan next year.
Zipse expressed a lack of surprise at the recent performance of Tesla, suggesting that a shift in market dynamics was anticipated given the limitations inherent in Tesla’s existing architecture.
Industry analysts acknowledge the potential for BMW to regain lost ground with the Neue Klasse. Stefan Bratzel, Director of the Center of Automotive Management research institute, noted that BMW appeared to have lost momentum following the initial launch of its i3 electric vehicle in 2013, but is now attempting a “quantum leap” with the Neue Klasse.
However, Bratzel cautioned that for a manufacturer of BMW’s size, the success of this substantial investment is critical. He highlighted the importance of maintaining competitive pricing, noting the potential challenge posed by emerging competitors like Chinese smartphone manufacturer Xiaomi, which plans to enter the European automotive market in 2027 and may offer comparable vehicles at significantly lower prices.