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Reverse-engineering i3 shows BMW profits after 20,000 sales

"This is, without a question of a doubt, the most advanced vehicle on the planet. It's as revolutionary as the Model T was when it came out." That is exceptionally high praise, and it's not even being heaped on one of the million-dollar hybrid hypercars from Ferrari or McLaren. It's not even being attributed to a particularly zealous Tesla fan. Nope, it's coming from a mustachioed man in suburban Detroit, and he's discussing a $42,400 BMW hatchback with Forbes. Of course, said hatchback is the revolutionary i3, and Sandy Munro's statements carry some degree of authority, as his company is tearing apart and analyzing every little nut, washer and bolt on the four-seat EV. Munro's eponymous company performs reverse-engineering analysis, meaning they rip apart brand new cars and sell the information to the world's automakers, saving OEM's both time and money. The most interesting thing it has discovered thus far? That even with the high costs of two of the i3's most important elements – carbon-fiber-reinforced plastic and lithium-ion batteries – his company's analysis shows that BMW need only sell about 20,000 units a year to turn a profit, Forbes reports. While Munro's company is often contracted by automakers, he's gone it alone on the i3 project, dropping about $1 million into in-depth analysis. That's a lot of money, but the company should be able to turn around and sell its findings for about $500,000, with a batch of Chinese automakers already queued up and ready to buy. Analysis of individual i3 components will also be available from a sort of a la carte menu. To see what it is about the i3 that has Munro speaking so highly of it, head over to the Forbes website and check out the feature article and video on the reverse-engineering process. Featured Gallery 2014 BMW i3: First Drive View 33 Photos News Source: ForbesImage Credit: Copyright 2015 Sebastian Blanco / AOL Green BMW Hatchback Electric Sandy Munro

China probing German automakers over spare parts

The Chinese market has proven to be a boon to German luxury automakers. However, the way that the companies have allegedly been controlling their supply of spare parts has begun to draw the ire of the nation's government. According to insiders speaking to Bloomberg, officials from the country's economic planning organization have opened a probe into Audi, BMW, Mercedes-Benz and some Japanese carmakers over claimed price inflation and limiting supply.
Specifically, the investigation centers around two aspects of how the companies do business, according to Bloomberg. Investigators want to know whether the original equipment component makers are able to sell spare parts only to automaker-authorized dealers or if they are also available to independent shops. There is also the issue of whether the price markup on replacement pieces is too high. The tight controls could be partially explained by China's reputation for producing counterfeit parts.
Evidently, the investigators haven't checked parts prices at car dealers elsewhere in the world. At least in the US, paying more at the dealer for factory components just goes along with owning a vehicle. If evidence of price fixing is found, the companies could face fines the equivalent of millions of dollars, according to Bloomberg.

Will next BMW Project i car be an i6?

BMW may be steadily working its way through the single digits when it comes to the i sub-brand of plug-in vehicles for the next few years. The automaker started with the i3 and the i8, and we heard rumors about an i5 and an i7. Oh, and we've heard about a potential i4, too. None of these have been confirmed. Still, next up is the i6, according to Automobile. There aren't a ton of details, but the all-electric vehicle would be about the same size as the 3-Series line that's long been a workhorse for the German automaker. Like the other Project i vehicles, the i6 would have a lot of carbon fiber in order to reduce weight and help with range extension. The model would also likely have multiple electric motors as well as a state-of-the-art lithium-polymer battery that would provide a big single-charge range, though, again, no specifics on that number. Word got out earlier this year about a supposed i5 model that would be a plug-in hybrid with a gas-powered engine and two electric motors that combine for about 540 horsepower. Other reports said that the four-door sedan would actually fall under the i7 badge. BMW North America chief Ludwig Willisch said this past spring that the sedan in question wouldn't be seeing the light of day any time soon. BMW has already doubled US sales of its two Project i vehicles this year. Through November, Bimmer's sales of its i8 plug-in hybrid quadrupled from a year earlier to about 1,600 units, while sales of the i3 electric vehicle jumped 89 percent from a year earlier to about 9,600 vehicles.