BMW to Hit EV Targets Early

BMW predicts that more than 50% of its sales will be all-electric vehicles well ahead of a 2030 target. The automaker also forecasted in a recent press conference that it will have a hydrogen-powered car enter production in the second half of the decade.

It expects slightly increased deliveries and an 8% to 10% margin this year, up from its 7% to 9% target in 2022. But it tempered enthusiasm by cautioning that high costs from supply chain troubles and a potential deep recession could impact the outlook.

BMW finance chief Nicolas Peter reported that he expects energy and chip supply to stabilize but still predicts significant cost burdens from logistics bottlenecks and high raw material prices.

Still, BMW reported plans to keep prices stable, despite a recent history of passing on higher costs to customers.

The forecast mirrors the rest of the auto industry, which hopes for a stronger 2023 but sees supply chain problems, high inflation in Europe, and uncertainty over China’s post-pandemic economic recovery as risks.

Chief Executive Oliver Zipse also said he could envision a hydrogen-powered vehicle going into production by mid-decade. An expansion of the hydrogen fueling network will be needed to make that happen, reported development chief Frank Weber on the call.

“We see hydrogen-electric vehicles as a meaningful complement to e-mobility, even with something of a time lag,” Zipse said.

The BMW iX5 Hydrogen test vehicle has a 310-mile range and can refuel in three to four minutes. The vehicle is being tested in various countries, BMW reported in a press release.

The German carmaker reported an 8.6% margin in auto business on earnings before interest and tax of $11.37 billion and cash flow of 11.1 billion euros.