BMW CEO Unveils Neue Klasse, Details Strategy for China and EU-US Tariffs

In an exclusive interview at the Munich Auto Show, BMW Chairman Oliver Zipse unveiled the groundbreaking Neue Klasse, a vehicle he calls the "best overall product in the industry." He also shared his insights on the competitive Chinese auto market, the strategic role of plug-in hybrids, and the ongoing EU-US tariff negotiations.

The Neue Klasse: A New Era for BMW

Chairman Zipse described the Neue Klasse as both the culmination of a five-year development journey and the start of a new one. This flagship electric vehicle represents BMW's largest-ever investment, totalling well over €10 billion, and involved a majority of the company's employees.

The vehicle is designed to be a global benchmark, featuring a range of up to 800 kilometres (497 miles) and ultra-fast charging capabilities that add 370 kilometres (230 miles) of range in just 10 minutes. A completely new user interface adheres to the "eyes on the road, hands on the wheel" philosophy, while a futuristic exterior design does away with chrome in favor of light accents.

Key Specs of the Neue Klasse:

• Range: Up to 800 km (497 miles)
• Charging Speed: 400 kW, adding 370 km (230 miles) in 10 minutes
• Power: Four high-performance computers onboard
• Starting Price: Below €70,000 in Europe

Zipse emphasized that the technology developed for the Neue Klasse will be rolled out across the majority of BMW's portfolio within two years, ensuring the company's competitiveness is not a short-term proposition.

A "Very Chinese Product": BMW's Strategy in China

Addressing the critical Chinese market, Zipse acknowledged the intense local competition and price wars but expressed confidence in BMW's position. He stated that the Neue Klasse would be "more Chinese than ever," developed in close cooperation with local tech giants like Alibaba, Deepseek, and Huawei.

This strategy includes significant local content, not just in battery production but also in software development. Zipse characterized the current market phase as a natural development for a young and dynamic auto industry, expressing belief that there remains room for international players with high technological competence, like BMW.

The Enduring Role of Plug-In Hybrids

Contrary to the view that hybrids are merely a bridge technology, Zipse framed them as a key competitive advantage. He pointed to their growing market share and stated that offering consumers a choice of drive trains—including plug-in hybrids—for the foreseeable future is a valuable strategy. He concluded that ultimately, it is the consumer who decides what technologies have a future.

Navigating the EU-US Tariff Landscape

On the topic of tariffs, Zipse highlighted BMW's substantial footprint in the United States, where its Spartanburg plant has received over $50 billion in investment and serves as a major export hub. He argued that the current situation, with 15% EU tariffs into the US and 10% US tariffs into the EU, creates an imbalance.

He expressed a strong hope for a quick conclusion to negotiations, advocating for a 0% tariff rate for European imports to create a level playing field. For a global company like BMW that both imports and exports in nearly equal measure, a balanced tariff agreement is crucial for long-term profitability.

BMW's Market Leadership and Future Outlook

When noted that BMW's market capitalization has significantly overtaken that of rival Mercedes-Benz, Zipse viewed it as a signal of investor confidence in the company's future. With the Neue Klasse serving as the foundation for a full family of upcoming vehicles, BMW is positioning itself for a "bright future," backed by its largest investment ever and a strategy that balances global scale with local relevance.