BMW is showcasing two key new technologies that will underpin the company's future growth strategy.
IHS Global Insight Perspective | |
Significance | BMW has made two significant announcements regarding its new range of front-wheel-drive (FWD) models. It will launch the FWD Concept Active Tourer at the 2012 Paris Motor Show, while it has also revealed the specification details of its new 3-cylinder powertrain. |
Implications | The Active Tourer is the first BMW to be built on the company's ULK1 FWD architecture that will form the basis of a new generation of BMW-badged models, as well as the next-generation Mini. In addition, the 3-cylinder engine is a very important new powertrain in terms of lowering range average emissions and engine downsizing. |
Outlook | The ULK1 platform and the 3-cylinder architecture are both key technologies in the company's efforts to expand its compact range of cars and they form a major component of the company's future growth plans. The 3-cylinder powertrain will also be used in bigger models such as the 3 Series and will be a key technology. |
BMW will launch the first model to be based on its UKL1 platform at this month's 2012 Paris Motor Show in the form of the Concept Active Tourer. The model will showcase BMW's new platform technology and act as a prelude for the company's range of new front-wheel-drive (FWD) vehicles. This is a highly significant move in the history of BMW, which has always placed rear-wheel-drive (RWD) chassis architecture as a central component of its brand DNA. However, with all the premium OEMs extending their ranges into the lower segments and price points, the company is abandoning this philosophy. The concept is a plug-in hybrid (PHEV) with a compact MPV-like five-door hatchback bodystyle, the like of which BMW has never before offered in its range. The model features the company's new 1.5-litre 3-cylinder gasoline (petrol) powertrain, which drives the front wheels, while the rear wheels will be powered by an electric motor. The model is likely to be badged as the 1 Series GT when it goes into production, although it owes nothing to the styling and architecture of the existing RWD 1 Series. With dimensions of 4,353 mm in length, 1,834 mm in width, and 1,560 mm in height, the Concept Active Tourer is 6 mm shorter, 49 mm wider, and 5 mm taller than the second-generation Mercedes B-Class. The model gives a strong indication as to what the production MPV that will form part of the FWD range will look like. It will form part of a range of models, including a sedan and coupé, which will be built on the ULK1 platform and which are integral to BMW's drive to increase its annual brand sales target to 2 million units by 2020.
The company has also announced official details of its key new 1.5-litre, 3-cylinder powertrain, which also makes its debut in the Concept Active Tourer. The engine, which will be used in all compact BMW models, as well as rumoured high-efficiency versions of the 3 Series, will be given the B38 internal code name. It will also be used, mounted longitudinally, in the new i8 PHEV sports car. The unit will also be available in a diesel version (B37). The engine is expected to be between 5% and 15% more efficient than the company's range of existing N20 gasoline powertrains. It features an alloy block Valvetronic variable valve timing, a single turbo, 11.0:1 compression ratio, and a longer stroke than the N20. The powertrain is the first step in BMW's modular powertrain strategy, according to which all the company's volume powertrains will be built on the same 500cc cylinder design. BMW claims that the powertrain will develop between 40 and 66 bhp per cylinder, which puts power out at between 120 bhp and 200 bhp depending on the variant. This gives the unit a specific output in line with existing 2.0-litre, 4-cylinder engines. The torque outputs are expected to be between 44 lb-ft and 66 lb-ft, giving a range of 132 lb-ft and 198 lb-ft. Perhaps the cleverest aspect of the design of the new family of 3-cylinder powertrains is the sheer amount of commonality between the gasoline and diesel variants. The two engines will be able to be manufactured on the same production line and share 60% of the same parts.
Outlook and Implications
The ULK1 architecture and the B37 and B38 powertrains are absolutely key technologies to the future of BMW in terms of maintaining the company's overall sales growth and increasing its penetration into the smaller, compact segments. Both these technologies underpin the company's major sales drive into the compact segments, a strategy that all of the "big three" German premium brands are pursuing. BMW has long since followed a strategy whereby the definition of what is a premium car brand will shift, in general terms, from an emphasis on luxury equipment and sheer size, towards advanced powertrain technology, lightweight materials, and overall efficiency. There is also growing customer acceptance of smaller premium-brand cars. These two general trends are key to BMW's future strategy of hugely expanding its model offerings in the B and C segments, with both the BMW and Mini brands. IHS Automotive forecasts that the BMW brand will easily meet its target of 2 million unit sales by 2020, thanks to growth through models based on the ULK1 platform. In combined terms, including sales of the Mini brand, IHS Automotive forecasts that just under 960,000 BMW Group models built on the FWD architecture will be sold by 2020. In combined terms the firm's sales will rise from a forecast 1.76 million units this year to 2.58 million units by that time, with around 70% of this growth coming in the B and C segments.