BMW CEO says Neue Klasse at least as profitable as current EVs

MUNICH (Reuters) – BMW (ETR:)’s new Neue Klasse EV line will be at least as profitable as battery-powered electric vehicles already being sold by the German luxury carmaker, CEO Oliver Zipse said on Saturday at the IAA (NYSE:) car show in Munich.

“We are very profitable with electric cars today, already today,” Zipse told reporters, adding that the Neue Klasse would be “very profitable. We will … definitely not be less profitable than today.”

Zipse said the company would stay within its 8%-10% long-term target for profit (EBIT) margins in its automotive segment, adding that in some quarters the group could exceed that range.

For 2023, BMW last month raised its EBIT margin outlook for its cars division to between 9%-10.5%, up from 8%-10% previously, on the basis of a strong order bank and improved availability of its premium vehicles.

BMW’s Neue Klasse, to be launched in 2025, is at the heart of the carmaker’s efforts to replicate past successes and catch up with EV pioneer Tesla (NASDAQ:), which is also staging a return to the IAA this year.

Zipse earlier said BMW was planning to roll out six models within 24 months of the Neue Klasse’s launch, adding these would range from sports activity vehicles to sedans.