BMW increases R&D spending for electric, autonomous vehicles

by SpeedLux
BMW i3 electric car

German automaker BMW will boost research and development (R&D) spending to an all-time high of up to 7 billion euros ($8.6 billion) in 2018 as part of motivation to bring 25 electrified models to market by 2025.

The Munich-based maker of BMW, Rolls-Royce and Mini vehicles stated that regardless of higher spending it aims group pre-tax profit to be more than 10 billion euros in this year, at least in line with 2017’s level.

In its yearly report, BMW also cautioned of a possible effect from trade barriers and any anti-dumping customs duties in the United States and added that Brexit could have an unfavorable long term effect.

Spending on developing electric and autonomous vehicles prompted R&D costs a billion euros higher in 2017, reaching 6.1 billion euros.

Investment will boost by a further high three-digit million euro amount yearly, mainly from the ongoing new model initiative in addition to continued work on e-mobility and autonomous driving, BMW stated on Wednesday.

BMW’s R&D ratio for this year is expected to be between 6.5 percent and 7 percent of sales. In the upcoming two years the R&D ratio is expected to remain above its average target corridor of 5 percent to 5.5 percent range, BMW stated.

You may also like

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

SpeedLux

SpeedLux is a high-authority automotive blog providing the latest automotive news and reviews. SpeedLux covers everything related to cars, bikes, and motorcycles, from news and reviews, to troubleshooting guides, tips and tricks, and more. SpeedLux was born in 2009 and we have over 20,000 articles published on our blog. We thank all our readers, as well as our partners, without whom we could not have reached this level.

Subscribe

©2009 – 2024 SpeedLux – Daily Automotive News and Reviews. All Right Reserved.