BMW's Flexibility Is Paying Off During 'Rollercoaster' EV Transition - Related to charger, trump, freezes, flexibility, is

BMW's Flexibility Is Paying Off During 'Rollercoaster' EV Transition

BMW has been conservative with its transition to EVs, betting on flexible platforms that can also underpin internal combustion models.

This has put it in an ideal place in terms of overall market share.

BMW plans to continue to spread around its R&D funding into combustion and hybrid powertrains, helping it ride out a "rollercoaster" transition, one executive says.

BMW. Like most automakers, is taking a long, hard look at the current EV market. After some careful consideration of the state of the industry, it's made a decision that's straight out of Toyota's playbook: it's not putting all of its eggs in one proverbial powertrain basket. But unlike rivals like Mercedes and Audi, its previous bet on flexible platforms means it won't be quite as hard to keep its combustion products coming.

The business took some flack for this approach a few years ago. When it committed to building many of its EVs on the same platforms as its internal-combustion products. The i4, i5 and i7 all ride on the same architectures as their gas-burning siblings. That makes it much easier for BMW to adjust its mix of EVs to ICE products, giving it flexibility that rivals don't have. Mercedes has now copied that approach, announcing that the forthcoming CLA EV will also be available as a hybrid.

Mercedes, like many other brands. Charged headfirst into EVs. Whether it was FOMO or simply the industry shifting rapidly, manufacturers sunk tens of billions of dollars into a market that ended up "not developing" as quickly as planned. This has especially hurt many European companies, many of which bet it all on rapid EV sales growth that hasn't quite materialized. Fortunately for BMW, the German organization has long been hedging its bets. And, , that now means continuing to invest in both combustion and hybrid powertrains—especially with the new presidential administration shaking things up so significantly.

“I think it would be naive to believe that the move towards electrification is a one-way road. It will be a rollercoaster ride,” expressed BMW board member, Jochen Goller, in an interview with the Financial Times. “This is why we are investing in our combustion engines. We are investing in modern plug-in hybrids. And we will continue rolling out electric cars.”.

It seems not too long ago that automakers were being slammed for not investing quickly enough in EVs or failing to commit to a wholly-encompassing EV strategy to electrify their entire lineup for many markets. This pressured many German rivals (like Volkswagen, Audi and Mercedes-Benz) into jump-starting their efforts of electrifying their fleets. However, BMW's continued bet on versatility is now paying off while others are struggling to adjust to a slowing global transition to EVs—and it doesn't have to blow up billions of dollars in investment to shift strategies.

Sound familiar? It should, because this is a play straight out of Toyota's "multi-pathway" playbook to maintain a mix of all powertrains across its fleet. Predictably, this early commitment has put BMW in a very, very good spot. Stock analysts like Patrick Hummel from UBS say that the consistency has positioned the brand "pretty much where they need to be" in the share of the global EV market.

In 2024, BMW sold 426,594 EVs across the big blue marble. A new record. EVs represented around 17% of BMW's total sales—add-on hybrids and electrified vehicle sales made up around a quarter of the brand's total for the year. Not only is this a decent mix for the luxury brand, but it's also enough for BMW to meet EU emission targets without needing to throw piles of cash on the hoods of their cars to encourage sales.

Looking locally to the presents a bit more uncertainty. With the incoming presidential administration shaking the EV tree through the potential elimination of the EV tax credit and an upcoming increase in tariffs. BMW's electrified future has become more speculative than ever. Thankfully, 65% of its cars (including the majority of its high-margin SUVs) are built domestically which makes the brand less vulnerable to these risks.

China, however. Is much tougher market for the firm. BMW is facing the same problem that other automakers in the market are running into: China's clients want the new affordable. High-tech options coming from domestic brands. From affordable vehicles to luxury marques, Chinese-built vehicles are simply becoming more competitive to global brands like BMW and others. This has led to a sharp decline in sales for imported brand in the country, regardless of powertrain. However, with the market share of EVs growing outside of China, BMW might just be alright.

Even though BMW is continuing to invest in combustion-powered cars and hybrids. It isn't giving up on EVs, either. In fact, BMW plans to launch its Neue Klasse platform this year, which promises competitive EVs with longer range. Faster charging and a heavy focus on software. Analysts are calling it a smart play that could help position the brand as a leader not just in multi-energy powertrains, but also in the emerging market of software-defined vehicles.

So while other automakers are taking a step back and reevaluating an EV-only or EV-heavy approach. BMW looks like it's exactly where it needs to be—riding the ups and downs of the market with some contingency plans at the ready.

“We anticipated that people wouldn’t want to be discriminated against because of the power train,” expressed Goller. “We’ve gone the path which others are now following.”.

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Trump Freezes EV Charger Funding And Nobody Is Happy About It

Because of his extensive background in businesses like hotels, mail-order steaks and private universities. Many people assumed that President Trump's second tenure in the White House would be inherently good for business. Yet many businesses now feel they're being left holding the bag after Trump's administration ordered an immediate freeze to America's federally funded electric vehicle charger rollout last week. They're hoping the powers that be will reconsider.

That kicks off today's edition of Critical Materials, our morning roundup of technology and automotive industry news. Also on today's docket: Nissan searches for a new partner, and several European automakers warn their investors of a tough environment for 2025. Let's dig in.

Do you know anything about the NEVI charging freeze? Get in touch. We at InsideEVs want to know what's next for the EV charger freeze, including any lawsuits that may be filed to halt the decision. Get in touch by emailing or contact me securely on Signal at .

30%: Trump's NEVI Funding Freeze Hits A Lot Of Existing Investments.

It's no secret that the rollout of the NEVI-funded network of DC fast chargers, approved by Congress as part of the Inflation Reduction Act of 2022. Hasn't exactly blitzed the country with plugs on every corner. Even as America's charging network grew at a rapid pace in 2024, the NEVI-funded ones in particular had a penchant for taking a while because they relied on many things—a complex process of grants to the states, work with utility companies and. Local permitting processes that can vary wildly from place to place. (For more on how that happened, I'll turn you to Suvrat Kothari's excellent story on the subject from last summer.).

Yet the NEVI program was working, slowly but surely. And it was an integral part of the charger rollout for many companies. Now that Trump has ordered a freeze on the program, many different groups are urging him to reconsider.

Those include automakers, reports Reuters:

A group representing automakers and. Electric vehicle charging companies on Friday urged the Transportation Department to quickly restart a $5 billion government EV infrastructure program. The Electric Drive Transportation Association, whose members include General Motors, Toyota, BorgWarner, EVGo, Stellantis, Walmart and others, presented it urged the Trump administration "to quickly resume the critical work of the program and minimize uncertainty for states and their businesses. Who have invested in infrastructure to serve local and national goals for advanced transportation."

And it includes fuel retailers and gas station owners. Yes, really. That's because many of them have invested heavily into adding EV chargers at existing fuel stops across America. It's a move that makes a lot of sense: so many of them are already situated in ideal locations to aid travel, and. Drivers are already accustomed to stopping there, so why not? Many of them are in the middle of big investments to add those chargers, and they don't want to see the plug get pulled (pun very intentional) at such a critical time.

NATSO and SIGMA: America’s Leading Fuel Marketers. Are responding to the Federal Highway Administration’s announcement that it will suspend approval of state electric vehicle infrastructure deployment plans under the National Electric Vehicle Infrastructure (NEVI) grant program. “The NEVI program has in many states helped catalyze existing gas stations and truck stops to install fast, state-of-the-art EV charging stations,” mentioned David Fialkov. Executive vice president of government affairs for NATSO and SIGMA. In other states, NEVI has been implemented poorly, with chargers either still not built or, if they are. They’re in places nobody wants to stop.” Fialkov noted that it is encouraging that Trump Administration is reevaluating rather than abandoning the NEVI Program. “(We) intend to work closely with the Administration to share our experience and keep what’s been working, while reconsidering clearly unproductive approaches.”.

. At least one state has already halted any further disbursement of NEVI grants. Detroit' Michigan is pausing second-round submissions of the NEVI program and working with the federal government to determine what this means for "contracts in various stages of agreement" and construction already in progress.

EV owners in the Wolverine State told reporters they're unhappy with the move. As—and this will come as a surprise to no one reading this website—they want to see more chargers pretty much everywhere. Experts say this back-and-forth EV policy inconsistency throws the auto industry into a tizzy at a time when it's trying to make the cars of the future.

The NEVI freeze fits the Trump administration's pattern of unilaterally halting funding previously allocated by Congress, a move many legal experts and. Constitutional scholars say is against the law. Federal judges have blocked many of these decisions so far.

So I'm wondering who fires the first legal salvo in this fight. Car companies? Charging companies? Electric utilities? Gas station owners? Tesla, which received $31 million to build out more of its chargers? If you know what's coming, get in touch via the information listed above or my email down below.

60%: Nissan, Fresh Off Its Breakup With Honda. Is Getting Back Out There.

The planned Honda-Nissan merger seems to be off the table. But that doesn't solve any of Nissan's problems—dwindling finances, an aging product lineup, declining sales and. A warning from executives that it maybe has 12 to 14 months of runway left before potential bankruptcy talks. (And that was almost three months ago, by the way.).

Nissan's previously introduced technical partnership with Honda, which predates merger talk, is expected to continue. And Nissan may be looking at other merger partners now; reportedly, Taiwanese tech giant (and iPhone manufacturer) Foxconn is back in play, too. I also wouldn't rule out some kind of involvement from a mainland Chinese automaker looking to gain a bigger foothold in other markets.

For now. Automotive News reports Nissan is in self-rescue mode:

Nissan CEO Makoto Uchida on Feb. 13 is expected to discuss quarterly earnings and enhancement his restructuring plan in a bid to stoke confidence in Nissan’s future. Nissan will focus first on its strategy for eliminating billions of dollars in fixed and variable costs through the fiscal year ending March 31. 2027, . The initial phase aims to stabilize free cash flow, allaying market concerns about cash burn. As the Honda tie-up crumbles, Nissan must now show that Uchida’s plan has legs of its own. “The top priority for Nissan right now is the turnaround plan,” mentioned one of the people. “It should be convincing and quick. We cannot wait anymore.”.

That story is interesting because it capabilities several information, presumably within Nissan. Who are pushing back on this "verge of collapse" narrative now. They say that no one at Nissan liked the idea of being this junior-partner subsidiary to Honda, and. That they have time to correct what went wrong. “We’re confident about coming out of this financial crisis,” one source expressed. “We’ve done it before.”.

We'll see. But any partner will face a very difficult capital and regulatory environment that's different from just a few years ago, plus newly added chaos with tariffs being part of the new administration's plans.

90%: Europe's Automakers Warn Of A Tough Year Ahead.

Tariffs, still-high interest rates, a slowdown on EV incentives and. Charger funding and all the other headaches they had in 2024 to boot: it's going to be a tough year for Europe's automakers. And they all give the same reasons why that's the case.

Porsche's shares slid Friday after the automaker warned investors that profits will slow as it reinvests in internal combustion power, but also must invest in future hybrids and EVs too, the Wall Street Journal reports:

In a statement late Thursday. It expressed it would take an 800 million euro ($ million) hit on operating profit this year as it invests in new models with combustion engines and plug-in hybrids, which will send costs higher and weigh on its margin. Like many western carmakers, Porsche also struggled with challenging conditions in China where intense competition has pushed prices lower. While economic pressures have seen buyers in the country pare back on luxury spending. Costs related to the expansion of customization capabilities, battery development and its corporate organization will also rise this year, it expressed. The enterprise in the recent past disclosed it is in talks to terminate the contracts of its finance chief and sales director.

Volvo presented the same thing. Warning of "hyper-competition" and an uncertain road ahead in terms of demand for electrified cars—plus the costs needed to make them. And while BMW has some very ambitious EV plans ahead too, it also needs to stay the course on conventional engines and hybrids, the Financial Times reports:

Board member Jochen Goller unveiled the group remained optimistic about sales of petrol and. Plug-in hybrids in the US even if demand for EVs slowed over the next few years on the back of policy changes under the new administration. “I think it would be naive to believe that the move towards electrification is a one-way road. It will be a rollercoaster ride,” Goller, who is in charge of customer, brands and sales, told the Financial Times at BMW’s headquarters in Munich. “This is why we are investing in our combustion engines,” he unveiled. “We are investing in modern plug-in hybrids. And we will continue rolling out electric cars.”.

This also speaks to why automakers want what they call regulatory certainty: what kinds of cars must they make, at what rate. And what support will they get to actually sell the electrified vehicles of tomorrow? And in the in particular, all of that has now been thrown into a tizzy.

100%: How Can The EV Charger Rollout Be more effective?

Maybe the NEVI program has its issues. But nearly everyone in the transportation space will tell you that not investing here, or leaving it all purely up to market demand. Will put the behind rivals like China. Is there a superior way to roll this out than what's been done so far? Share your thoughts in the comments.

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Petronas right-sizing workforce for survival – GCEO

Petronas president and group CEO Tan Sri Tengku Muhammad Taufik has expressed that the firm intends to right-size its workforce amidst an evolving and increasingly challenging global operating environment. The Edge reports.

“This is not a retrenchment; it is a right-sizing workforce exercise. This is to ensure the survival of Petronas in the coming decades. If we don’t do it now, there will be no Petronas in 10 years,” Muhammad Taufik told a media briefing, adding that the number of jobs that will be affected is still unknown.

In the second half of the year, the new structure will be out, and. Some employees will be redeployed to new roles while others will be displaced, he presented.

The exercise, which mainly aims to reduce “enablers” – those in administrative roles – is expected to be completed by year-end. Petronas currently has 15,000-16,000 enablers out of its 52,000-53,000 global workforce, and this ratio is above industry average.

Muhammad Taufik stressed that the right-sizing is not a result of the Sarawak government’s request to take over the gas aggregator role from Petronas in the gas-producing state.

It is advanced to make such a move when the organization is financially sound, instead of waiting until Petronas is forced to cut jobs due to shrinking business, he unveiled, adding that this is a hard and bitter pill that the organization needs to swallow.

Upstream development projects will be more risky and difficult due to geological factors, which will eat into Petronas’ share in its production sharing contracts (PSCs) as its partners will require a bigger share for the high risks they need to bear.

Subsequently. The lucrative margins Petronas now enjoys will shrink over the years, to low double digits from above 20% currently, added Muhammad Taufik, who has led the national oil corporation since July 2020.

Moving forward, he mentioned Petronas cannot be confined to only a few products. The trend is to provide a complex web of products to clients, Muhammad Taufik mentioned, citing blue ammonia as an example – clean gas produced from hydrocarbons, whose carbon dioxide component is separated and stored using carbon capture, utilisation and storage (CCUS) technology.

Hence, Petronas has to be cost-efficient and nimble to respond to new market dynamics, and for it to remain viable, it must “go sharp and fast”, and. Operate in a cost-effective manner, he introduced.

Muhammad Taufik emphasised that the right-sizing, which will be transparent and be undertaken by a task force, is not to cut costs to achieve certain profit targets.

Shell and ExxonMobil also in recent times presented job cuts amidst rising volatility and the long-term decline of oil prices. Shell cut 20% of its workforce in two exploration subdivisions while ExxonMobil expects to slash nearly 400 jobs by 2026, following the acquisition of a shale producer in Texas.

Petronas’ last such review was in 2016, at the peak of a downturn, when it presented 1,000 job cuts that represented under 2% of its over-50,000 workforce then.

As its oil and gas sale and. Distribution exposure narrows, Petronas’ long-term role could focus on upstream exploration, as well as processing products from hydrocarbons, in line with its petrochemical segment’s expansion into specialty chemicals. The group is also looking at commercialising technology, best practices, and renewable energy.

In its growth journey, Petronas has incurred high consultancy costs and could do more in centralising its applications and. Processes, its staff heard during a town hall meeting last Wednesday. There was red tape, including too many committees, that slowed the decision-making process.

Besides the long-term oil price downtrend, market uncertainties include the potential for lower-cost producer Russia to supply hydrocarbon to its allies, including Petronas’ clients, as well as the possibility of a drilling bonanza in the US as endorsed by Donald Trump, the staff were told.

Petronas, which has channelled trillion to the government since its inception and RM235 billion worth of dividends in just the last five years, has been weathering multiple headwinds over the past decade.

Besides oil price volatility and rising scrutiny towards carbon emissions, which led to higher operating costs and tighter financing conditions, Petronas has had to contend with volatility in petrochemical demand. Higher dividends to the federal government, and higher oil revenue and sales tax paid to Sabah and Sarawak in response to demands for a fairer share of resource revenue under the Malaysia Agreement 1963.

It is also facing depleting hydrocarbon resources in Malaysia, and is competing with other energy giants in green energy. It is spearheading one of the largest offshore deepwater carbon capture projects in the world in Sarawak, to prepare for the global energy transition.

For the six months ended June 30. 2024, Petronas booked a net profit of billion on revenue of billion. Capital expenditure totalled billion. Its cash balance stood at billion as at end-June, against borrowings of billion. Giving it a net cash position of billion.

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