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BMW Exec Trashes Electric Cars, Tax Credits at Launch of ActiveE

 
1,797 views Apr 20, 2011
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BMW ActiveE electric car, at BMW Manhattan media event, April 2011

BMW ActiveE electric car, at BMW Manhattan media event, April 2011

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In the rulebook  of product promotion, remembering to not say horrible things about your product has to be number one. 

It’s a shame BMW North America President and CEO Jim O’Donnell seems to have forgotten that fact while taking part in a public event. 

Speaking on Monday at an event in Manhattan marking the next phase in BMW’s electric car program due to start this Fall,  O’Donnell waxed lyrical about his own opinions of electric vehicles and the U.S. federal tax credits given to help consumers buy them. 

Sadly, his opinions are hardly new, and sound a little like those we’ve heard voiced by executives from other German automakers. 

“(EVs) won’t work for most people” O’Donnell stated. “For at least 90 percent and maybe more of the population, (an EV) won’t work.”

His evaluation strikes us as a little odd, especially since most daily commutes in the U.S. are within the 35 mile mile all-electric range offered by the 2011 Chevrolet Volt and well within the 73 mile range offered by the 2011 Nissan Leaf.

On the tax credit system, O’Donnell was brutally candid. 

BMW ActiveE electric car, at BMW Manhattan media event, April 2011

BMW ActiveE electric car, at BMW Manhattan media event, April 2011

Enlarge Photo

“I believe in a free economy. I think we should abolish all tax credits,” he said, making clear  he was voicing his own opinions rather than those of the company. “What they are doing is putting a bet on technology, which is not appropriate. As a taxpayer, I am not sure this is the right way to go.”

If O’Donnell is so against tax credits and electric cars, what of the future of BMW’s ActiveE program and new BMWi sub-brand? 

No. Both are apparently safe, with the ActiveE lease scheme due to start later this year and both the i3 and i8 set to launch by 2013.  

O’Donnell reiterated that he felt the technology behind electric cars was being given an unfair advantage over other fuel types such as clean Diesel technology - also being developed by BMW - and that he wanted a “level playing field” between all so-called “green” fuel technologies. 

BMW diesel hybrid likely to feature in next-gen 5-series

BMW diesel hybrid likely to feature in next-gen 5-series

Enlarge Photo

Interestingly, O'Donnnell admitted BMW will still take federal tax credit money, even if he disagreed with the system. We guess you can't look a $7,500 gift in the mouth, even if you morally object to how it came into existance. 

Beyond that though, we can't see BMW offering any favors to early adopters of electric cars, nor to those who seek to buy its i3 or i8 cars when they launch in a few year's time. For now, BMW appears to be a reluctant member of the electric vehicle club. 

[The Detroit News (subscription required)]





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Comments (21)

  1. By Ken Posted: 4/20/2011 2:23pm PDT

    I agree with Jimmy. We should take away all of the tax credits and subsidies, but to be fair, we must do so for all industries. That means no more oil subsidies / tax credits and no more farmer subsidies / tax credits. As consumers start to pay the true price for oil and the true price for food, I'm guessing electric car growth will accelerate.
     
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  2. fb_100001663981238 avatar Daniel Chavez Moran Posted: 4/20/2011 2:52pm PDT

    It is sad to see the CEO of BMW of North America giving a speech like this. It seems out of place. I don't believe he would speak in that manner about his company.
     
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  3. By Noel Park Posted: 4/20/2011 4:39pm PDT

    I wonder how much they got in the way of tax breaks and subsidies when they built their US assembly plants? I don't know if I would go so far as to say "Stupid is and stupid does", as they do seem smart enough to entice people to buy their overpriced products, LOL. So how about "Arrogant is as arrogant does", which fits pretty well for Germany car companies IMHO.
    Watching your competition self destruct - priceless!
     
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  4. By jeffhre Posted: 4/20/2011 5:13pm PDT

    Ken, "As consumers start to pay the true price for oil and the true price for food, I'm guessing electric car growth will accelerate." What if you fellas and most other folks guess wrong? Our vaunted human intelligence begins to look no more effective than a colony of yeast in a vat, ravenously growing their energy needs while quickly consuming their future. Just sayin' - - - -
     
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  5. By Norbert Posted: 4/20/2011 5:19pm PDT

    Is he concerned it will be too difficult to compete against electric cars? If EVs really don't work, wouldn't people find out soon enough? If the tax credits make them work in the current situation, then it proves they are worth it.
     
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  6. MichaelThwaite avatar Michael Thwaite Posted: 4/21/2011 3:39am PDT

    @ken; Absolutely! And, throw in a carbon tax and then let's see what people choose!
    I'm utterly baffled by O'Donnell's comments, they're at such odds with the image of, and message being sent out by BMW corp.. I can only assume that he's trying to protect the old guard.
    He is, at least consistent. This is not the first time that he's come out with this message. The thing is, when you come on stage swaggering and pronouncing that it's unfair and diesels should get a chance, you really should look around and check first to make sure that you're not on your own.
     
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  7. fb_1037649216 avatar James Poch Posted: 4/21/2011 4:34am PDT

    The US patrols six oil maritime straits at a cost of $75 billion a year(Rand Corp). Without this subsidy, who knows how much gas would cost? Iran takes over the strait of Hormuz and the Suez Canal? $7. Pirates harass oil going through the strait of Malacca? $5. All of the above $10? It angers me when people start to complain about subsidies for EVs when gas has been subsidized for 75 years.
     
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  8. By  Tom Moloughney Posted: 4/21/2011 4:46am PDT

    "If O’Donnell is so against tax credits and electric cars, what of the future of BMW’s ActiveE program and new BMWi sub-brand?"
    Yes Nikki you're right, the ActiveE and i line and safe, O'Donnell doesn't get a say in what products he gets or what direction BMW goes in. Actually, it's the fact that BMW is investing so much resources to electric cars(and he can't do anything about it) that has him upset. If he had his way, BMW would be focusing solely on efficient diesels, which I definitely agree should be a bigger part of their product mix, but not at the expense of continues investment in electrics.
    Luckily, his bosses in Munich have more vision than Jim. One only wonders how much more of this they will take before he is reprimanded
     
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  9. By Mark Davis Posted: 4/21/2011 5:45am PDT

    Has O'Donnell just done a "Gerald Ratner", lets hope so! Guess he will be shown the door soon!
     
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  10. By Cliff Posted: 4/21/2011 7:50am PDT

    wow what an idiot. its actually 90% of people could use an EV due to the fact most dont drive long distances. If we dont get help from the government at first it will take waay too long and be waaay too expensive at first to implement these new technologies. I cant see this guy keeping his job much longer.
     
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  11. By James Posted: 4/21/2011 8:25am PDT

    O'Donnell is like a spoiled child that didn't get their way and takes every opportunity to whine about it.
    Get over it Jim. You're superiors(I don't usually use that term but it does apply here) have decided they need to develop a robust plug in vehicle program and are investing a lot of money to do so.
    The decisions have been made whether you were consulted or not. You can bitch about like a child or get on board and do what's best for the company. Don't you understand you look foolish when the company is dong all they can to advance their EV program and you're standing on the sideline saying "Eh, it'll never work, we're wasting our time"
    If I'm on the Board of BMW, I'm telling you to shut your pie hole, or you're done
     
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  12. By Todd Posted: 4/21/2011 3:34pm PDT

    Agree with Tom. Michael, you're right, he is consistent...same message at Wash D.C. show. Perhaps if he drove an EV for a while, he'd feel differently. I don't have any inside info but if I was to guess, based solely on his comments along, he probably drives a 7 series and has never even sat in the MINI E.
     
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  13. By Bill Posted: 4/21/2011 3:47pm PDT

    He's as stupid as the German car company bosses are. Who vants a BMW EV anyway? Zey are so friggin' German.
     
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  14. By John Christian Posted: 4/21/2011 5:19pm PDT

    'Talk about your career limiting moves. Another EV-phobe. Poor Jim rejects the obvious. Sadly, he is either not that bright, or ignorant of the huge oil subsides.
     
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  15. By Carl R Posted: 4/21/2011 6:09pm PDT

    Well Jim, I worked for BMW for about 12 years, and You should be Fired for yor comments. I hope electric cars is not in your future.By the way, the people who lease the activeE should get the tax credit for helping BMW market it. And thank you BMW for making a great product.
     
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  16. By Carl R Posted: 4/21/2011 6:12pm PDT

    Well Jim, I worked for BMW for about 12 years, and You should be Fired for yor comments. I hope electric cars is not in your future.By the way, the people who lease the activeE should get the tax credit for helping BMW market it. And thank you BMW for making a great product.
     
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  17. fb_1341732987 avatar Douglas Kerr Posted: 4/21/2011 6:39pm PDT

    O'Donnell is correct as far as the 90 percent of the U.S. public not accepting EV's. This is largely because of attitudes like myopic and uneducated BMW executives like O'Donnell not realizing that SOMETHING has to be done to get our country off the addiction to Arab oil.
    Perhaps O'Donnell and other fools legitimately believe that diesel is the answer, but simply waiting for an old petro technology to get better is not going to save us from the grip of people who hate us.
    I would at least expect auto manufacturers to understand the absolute need to change the technology that propels our vehicles. O'Donnell needs to be replaced. Now.
     
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  18. By Noel Park Posted: 4/22/2011 9:21am PDT

    #13 Bill - My sentiments exactly!
    #17 Douglas Kerr - Same answer, LOL.
     
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  19. By Chris O Posted: 4/22/2011 10:10am PDT

    BMW isn't into EV's because they like the idea, but because ever more stringent emission regulations force them to come up with something that compensates for their low MPG luxury vehicle business. Apart from that there is no upside to EV's for a company that defines itself as an ICE technology leader. In fact I reckon BMW is one major battery breakthrough away from becoming a more or less obsolete brand unless they find a way to reinvent themselves.
     
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  20. By SPARKY Posted: 4/22/2011 9:24pm PDT

    I drive a 30 yr old EV. This man is unfortunatly speakingt the truth.
    I have 10, 12v power batteries that were series charged, until I overloaded the charger.
    Now Each battery is charged individually, yes 10 smart chargers, that protect the batteries.
    It gives a better balancing on the new set.
    I have run out of electricity 5-6 times in the 2 years, I've had the car. I generally have had to fix something on the car every time I drove it.
    I love this car.
    It takes a special person to drive one.
    I would say that the target audience would be 1/10 of one percent of drivers.
    The government may start charging a premium to go Green, as they won't get the gas tax, and They will eventually track each one of us, by GPS, for tax purposes.
    Sparky.
     
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  21. By Fairportfan Posted: 4/26/2011 9:49am PDT

    I don't know what the end-to-end efficiency on electric cars is (that is, what percentage of the potential energy in the coal makes it to the wheels), but i'd be surprised if it equals that of an internal-combustion powered vehicle.
    .
    And, even if it does, the only advantage of EVs that i can see is that it moves the pollution somewhere else, where the self-righteous people driving them don't have to see it.
    .
    And, before anyone starts in about wind or solar - power densities of wind and solar are too low to support a large fleet of EVs.
    .
    As to "charging a premium to go Green" - nope. But they'll start charging a tax to pay for the roads you drive on ... the tax on gasoline you're doubtless so happy about not paying goes to. Freeloader.
     
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