BMW is leaning on premium vehicles to cope with a planned electric vehicle uptake - Business Insider

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BMW is taking a massive risk by leaning on premium new car sales as fears of an impending global recession continue to climb:

Despite the threat of a recession and worse-than-expected car sales in 2019, BMW CFO Nicolas Peter still believes the company's premium segment will experience growth next year, per Automotive News Europe. What is unknown though, is whether this growth will be enough to hold over BMW until the company begins to see returns on its EV investments.

BMW isn't the only company taking on risks with its EV investment strategy. Heavy investments in retooling factories for electric drivetrains are leading to fewer jobs in the auto industry because, in part, EVs require fewer parts to assemble.

Due to changing labor needs, automakers are risking alienating employees at a time they still need them to produce traditional gas-powered vehicles. This is a risk that GM took and is currently paying for — the company is experiencing a labor strike, partially in response to concerns over the shift to EVs. The strike has already cost GM over Join thousands of top companies worldwide who trust Business Insider Intelligence for their competitive research needs.

 

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A calculated risk that could yield a larger reward than the status quo automakers that choose to be cautious.

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