The BMW Group’s finance boss says that the German automaker is set to streamline its manufacturing process as it seeks to offset increased spending on research and development in the years to come.
Automotive News reports that the Munich-based brand will thus offer fewer engine options while also paring back its extensive equipment portfolio.
“We have over 100 steering wheels on offer. Do we need that many variants?” Nicolas Peter, member of the board of management for finance, asked.
Interestingly, the stance has already seen manual transmissions being dropped from certain ranges in certain markets (the 2 Series coupé in the United States, for instance, can no longer be had with a stick-shift). Fewer engine options are also on the cards, Peter hinted.
“In the 5 Series, we have four diesel engines on offer. I would not bet on there being four diesel engines offered in the next-generation vehicle,” Peter said.
BMW spent €5,16-billion (approximately R76-billion) of its 2016 revenue on research and development last year, according to the publication. This equates to some 5,5% of the year’s revenue.
“The next three years will be between 5,5% and 6%,” Peter said.
Much of that spend is likely to go to the development of electric and autonomous vehicles, although the German automaker will still have to develop more efficient combustion engines to meet Europe’s increasingly stringent emissions regulations.
