The BMW Group says “up to 50 percent of traditional drivetrain variants” will be killed off from 2021 onwards as the German firm looks to offset costs related to the development of electric vehicles.

The Munich-based company made the announcement when presenting its financial results for 2019.

“To compensate for the high upfront expenditure on future-oriented technologies, the BMW Group remains committed to improving efficiency continually,” it said in a statement.

“Upfront expenditure in the technologies of the future such as e-mobility needs to be financed. That is why we continue to work with strong determination on those matters that lie in our own hands and maintain a clear focus on performance and efficiency,” explained Nicolas Peter, member of the board of management of BMW AG for finance.

"By optimising our core business, we are systematically ensuring greater financial strength and performance. We are growing in the right segments, and therefore generating the funds needed to ramp up our sustainable mobility strategy,” he added.

BMW said “up to 50 percent of traditional drivetrain variants will be eliminated from 2021 onwards in the transition to creating enhanced, intelligent vehicle architectures – in favour of additional electrified drivetrains”.

“It is in this area that the full impact of these measures will come into effect, particularly in the years after 2022,” the statement added.

In addition, BMW said development times for new vehicle models would be “reduced by as much as one third”.

“Moreover, the model portfolio is regularly assessed with a view to finding additional potential ways of reducing complexity.”