BMW's electric secret

The electric newcomer, which will sit below the 1 Series, has been confirmed by BMW chairman Norbert Reithofer.

“Later this year, we will decide about building an electric car,” he says.

“Modern lithium-ion batteries would allow for the combination of an electric drivetrain and sheer driving pleasure.”

No further details, but in his annual report he is happy to talk about other additions to the group's line-up – an all-wheel-drive Mini, compact X1 four-wheel-drive and a slightly smaller Rolls-Royce – for next year.

Reithofer also says BMW is taking new directions as it works towards a sustainable future. But he believes plenty, particularly better fuel economy and fewer emissions, can still be achieved with traditional engines.

“Last year we reduced our average fleet fuel consumption more than 9 per cent,” he says. “Our present line-up includes 22 BMW and five Mini models that run below 140g of CO2/km. We will cut fuel use 25 per cent in our new-car fleet between 1995 and the end of this year.”

BMW will produce its first hybrid, based on the latest X6 four-wheel-drive, and is pushing more diesel engines. Ultimately, Reithofer sees a diesel-electric hybrid.

But it's not all good news. Reithofer talks about cutting the BMW workforce by 3100 and cites a range of threats, from rising prices for raw materials to urbanisation.

“Average speed in greater Tokyo is already down to 15km/h. You might as well bike,” he says.

But he believes BMW has a workable long-term strategy.

“Individual mobility will remain a trend,” he says. “And a company that wants to be a frontline player has to consider the world of tomorrow.”

 Would you consider buying a hybrid car to beat the oil price rises?