Not to be outdone by the "new kid on the block," Tesla, automotive giants Mercedes and BMW are stepping up their game.
At this week's International Motor Show (IAA) in Munich, both BMW and Mercedes unveiled their latest electric concept cars, marking the most aggressive push yet by these seasoned German automakers into the realm of electrification.
Mercedes showcased its concept car, the CLA, based on its latest electric-only MMA platform, with production expected to commence in 2024. Meanwhile, BMW displayed its electric concept, the Neue Klasse, set for production in 2025.
While these are still concept models, and actual production could vary, it's evident that with Tesla's plans to make its Berlin factory the largest in Europe, these native European automakers are feeling the heat. Following the opening of the Munich Motor Show, both BMW and Mercedes saw a slight uptick in their stock prices.
Mercedes CLA Concept: Outlasting Tesla
According to Mercedes, the new concept car has an energy consumption of about 12kWh per 100 kilometers, and when fully charged, can travel up to 466 miles. A 15-minute charge can power the car for 250 miles, surpassing Tesla's top range.
Mercedes also mentioned that they are developing a proprietary operating system for the new electric CLA, dubbed MB.OS, which will encompass navigation, assisted driving, and in-car entertainment.
Interestingly, Mercedes' presentation emphasized the car's range and charging speed rather than its performance. The concept car displayed at the Munich show featured many "concept car frills," including water-cooled processors on the floor, silver leather seats, a moonroof, and a "super screen" with almost no physical buttons.
Furthermore, the 2024 production model of the CLA will come equipped with L3 autonomous driving capabilities. However, this feature won't be available at launch but will be gradually rolled out through OTA updates.
BMW and Alibaba are aiming to provide support to at least 300 companies within the next three years.
BMW's Neue Klasse: Biggest Investment in History
The name "Neue Klasse" (New Class in English) harks back to a model introduced by BMW in 1962, which later became known as the BMW 1800. This model played a pivotal role in BMW's success during that era.
By naming their new electric model after this classic, BMW aims to replicate past successes, highlighting the company's high hopes for this vehicle.
The concept car features a glass roof, which BMW says "reflects the brand's classic elements." Additionally, the new model will come equipped with a so-called "Panoramic Vision," or heads-up display.
Details about the car's range and charging capabilities were scant. However, BMW stated that the vehicle would feature a significantly improved electric platform, boasting a 30% increase in range, a 30% faster charging speed, and an overall 25% increase in vehicle efficiency. Based on this new platform, BMW plans to launch six new models over the next 24 months.
BMW executives stated that the development goal for the Neue Klasse is to cut battery pack costs in half and increase range per kilowatt-hour by 25%.
At the IAA, BMW CEO Oliver Zipse mentioned that the Neue Klasse would be "highly profitable," emphasizing that the company's profits would not be any less than they are today.
BMW revealed that the new electric platform would be produced at its factory in Hungary, where the company plans to invest 22 billion USD for the Neue Klasse to build a new battery manufacturing and assembly plant. Production will later expand to factories in Munich and Mexico.
Frank Weber, a member of BMW's board, stated in a release:
"For the Neue Klasse, we have initiated the largest investment in the company's history."
