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BMW Group announces an armada of EVs that includes the full Mini range

BMW plans to significantly increase the number of electric cars in its range during the 2020s. It outlined plans to launch several battery-powered models, including M cars, and transform Mini into an EV-only brand by 2030. In the medium-term future, the firm's lineup will include electric variants of the 5 Series, the 7 Series, and the X1, though they will likely be based on the next-generation cars, not on the models currently found in showrooms. They'll join the i4 — a 3 Series-sized sedan with a fastback-like design — and the iX crossover in the lineup. BMW hopes to have at least one electric model representing it in about 90% of its current market segments by 2023, and it realistically expects that EVs will account for approximately 50% of its global sales by 2030. Beyond 2025, the Munich-based firm will align its range with a new strategy it calls Neue Klasse, a name borrowed from a series of enthusiast-friendly sedans and coupes sold during the 1960s and the 1970s; the 2002 is arguably the best-known Neue Klasse model. Fast-forward to the 2020s, and the designation will denote cars built with a new IT and software architecture, powered by new-generation electric technology, and designed to be sustainable. EVs shaped by the Neue Klasse approach to design will be positioned in many market segments, ranging from mass-produced cars (like the 1 Series hatchback sold in Europe) to high-performance M models. Most will be powered exclusively by batteries, but some will be available with a hydrogen-electric powertrain. Highly automated driving technology will be available, too, though BMW stressed its EVs will be enjoyable to drive. Crucially, the firm plans to increase its annual revenue by offering configurable and bookable features available during a car's entire life cycle; think of this system as an a la carte menu for cars. If you buy a used 2027 5 Series in 2031, for example, you'll theoretically have the ability to configure it with many of the options and features you want even if it wasn't ordered new with them. Some might even be enabled for a pre-determined amount of time. You might not need heated seats if you live in Tucson, but you might want them for a weekend if you're going skiing. What about Mini? Confirming a wave of recent rumors, BMW-owned Mini will exclusively sell electric cars in less than a decade.

Senior VP Hildegard Wortmann says BMW's electric journey is just beginning

Anyone who questions BMW's effort or sincerity on electrified vehicles should have a chat with Hildegard Wortmann, the German automaker's senior vice president over product management for automobiles and aftersales. I was fortunate to do just that at the Detroit North American International Auto Show earlier this year. ABG: Where might BMW go with electrified vehicles beyond your i3 urban EV and i8 high-performance hybrid sports car? "That [regulatory] train has left the station" - Hildegard Wortmann HW: I think a big advantage is that we now have two bookends: BMW i [green] and BMW M [high performance]. We can use those bookends to foster the BMW brand in total. Are electrified vehicles the answer to CAFE and European regulations? Is that the future? We don't know, but that [regulatory] train has left the station. To achieve all of these regulations worldwide, there is no way to do it without electrification. That is why the activities of BMW i are not just to launch new products. They are our build-up in competence for learning and gaining experience in electrification. We will use those learnings for the total BMW brand. Technology-wise, we now have a really good understanding of what to do, what not to do, how to work with this and how to get a lot of learnings from the infrastructure and everything that goes with it. And depending on how quickly the market takes off, we can scale it and use it across the range. We will use the competence we will have in vehicle electrification for more than just BMW i. There will be other derivatives and electrification of other products. ABG: Do you see BMW offering pure EVs with larger batteries for greater range? HW: That's a big feature of the Tesla. The question is to find the best balance [of range vs. battery size, weight and cost]. On the i3, we tried to have the right balance between how much range customers need for daily driving and how much battery we put in there. The market will show us. We have over a million kilometers driven by consumers in the Mini E and ActiveE and a fairly good understanding that those people are not driving that much. Putting a really big battery with all that weight into a car that is meant for urban mobility does not make sense. ABG: What about extended-range EVs beyond the i3's optional small range extender engine? "This whole EV movement is in its very early stages." HW: This whole EV movement is in its very early stages.

Car subscription services: A slow, expensive start — but the potential is huge

Americans are used to paying for subscriptions — to magazines and cable television, for instance — but experience shows they'll cancel when the price of admission gets too high, or there are more tempting alternatives. Cord cutters ditched nearly 1.5 million pay-TV subscriptions in 2017, according to a survey by Leichtman Research Group. Cable TV started out cheap with basic offerings, and then got expensive. The auto industry's subscription offerings are new, but they're starting out costly, and not price-competitive with traditional leasing. The upside is that they take the hassle out of car ownership for busy people by letting the service take care of maintenance, insurance, licensing and taxes. And they give consumers choice, often allowing relatively painless switches between different cars in the automakers' lineup. Subscription services also point the way toward an ownership-free auto experience, and offer an easy transition to a potential world where ride- and car-sharing will be dominant. Subscriptions are here to stay, but consumers may take a while to "get" them. Lincoln's subscription service for lightly used 2015 to 2017 models, offered through the Ford-owned Canvas beginning this year, got off to a slow start. Many early subscribers canceled. Last month, Cadillac announced it would " temporarily pause" its $1,800-per-month Book subscription service for "adjustments" as of December 1. According to the Wall Street Journal, "Snags with the back-end technology used to support the service made some customer-service functions tedious and time-consuming, adding costs for the company." The challenge for automakers is to come up with a strategy that offers consumers a compelling, affordable option to regular ownership, and one that can also make a profit. I think they'll find that sweet spot, but they're not there yet. Jack Nerad, former executive editorial director at Kelley Blue Book and author of " The Complete Idiot's Guide to Buying or Leasing a Car," points out that "A lot of people expected that subscriptions would be very valuable for people who wanted inexpensive transportation, but the reality is quite the opposite. Subscriptions are offering more choices for the wealthy.