Showing posts with label Launch Edition. Show all posts
Showing posts with label Launch Edition. Show all posts

Friday, February 21, 2014

BMW i3 Production Delays Reported

Virtually every facet of the i3's manufacturing process is different and BMW is evidently struggling to manage setbacks
According to Jay Cole over at insideevs.com i3 production is currently 50% lower than expected at this point in time. Cole's source is Manager Magazine Online, a German Publication, which states the high rejection rate of the carbon fiber parts made for the car. The article goes on to say that BMW's recent announcement that the company will be investing another 100 million euros to increase the production of carbon fiber is tied to this issue.

Manager also says BMW is only churning out 70 i3's per day which is about half of what they were hoping to be making by now. BMW began i3 production in October so they are four months in and now have over 11,000 i3's on backorder. Plus, US sales are only just beginning so it would appear that even if BMW gets the current problems solved in short order (and that's a big "if"), it will still probably take them nearly a year to catch up with demand since the orders will continue to pile up. It has long been speculated that BMW will have the capacity to make between 30,000 and 40,000 i3's per year once they are running at full production.

It seems we now have some answers to two things which were puzzling US customers recently. A couple months ago BMW announced that US i3's will not have a moonroof available. This comes long after it was announced that the i3's with Giga World and Tera World interiors get the moonroof included with the packages. To make matters worse, most of the i3's here in the US are pre-production European spec cars and they all have sunroofs. So everyone that had the opportunity to test drive an i3 got teased with seeing the moonroof that they were later told they won't be able to have. Then, a few weeks ago BMW announced the first three months of i3 US production would be limited to a "Launch Edition" version. The Launch Edition is fully loaded with every option available on the car and the most expensive Tera World interior. The only thing the customer can choose is the color (and only the metallic colors are available) and if they want the optional 20" sport wheels.

Many people speculated that is was simply a money grab and BMW knew the car would be in high demand so they could get away with making anyone that wanted one of the first i3's in the US buy one that was loaded. Now, with the recent news about production difficulty, I think it's obvious the reasons the moonroof isn't available at launch, and custom ordering isn't available for another three months, is solely because BMW is struggling to refine the manufacturing process and eliminate the problems they are currently having.

I've had the opportunity to talk with many BMW program managers over the past few years. One of the things that has always stood out to me was how on one hand they were really excited about the i3 because of how special and different everything about it is, while on the other hand they would always acknowledge how big a challenge it was going to be. Everything about the i3 is different. BMW has never made a car that required special manufacturing processes for virtually every stage of assembly. Besides the electric powertrain, most of the materials used in the car are even different. While the biggest challenge is likely working with carbon fiber on such a large scale, they are also using more aluminum on a car than they ever have and are using interior materials that they have never worked with before. Then there is the outer thermoplastic body panels which BMW has never used before which has even led to the painting process presenting challenges.

So personally I'm really not surprised by all this. The i3 is a revolutionary new car for BMW, and nobody else is making anything quite like it. Yes, there are some that will look at it and say "It's just another 80 mile electric car, big deal", or "It's nothing more than a Nissan LEAF that costs $50,000". I respect everyone's opinions, and for some people it doesn't represent any more value than a $30,000 Nissan LEAF and that's fine. However when I see the i3 I see the future of the automotive industry and I applaud BMW for taking the enormous risk of building such a radically different car, something that nobody else is attempting to build. Yes, I wish it had more range and I think BMW would have been better served if it could really deliver 100 miles of consistent real world range for most drivers, and it's clear it will not. But that's the biggest knock I can offer and it's far from a deal breaker for me. BMW will get past these initial manufacturing snafu's. The top concern at this point should be quality, which I'm sure it is. The production numbers will increase and by the end of the year I'm sure they will have everything running as smoothly as planned. The question is will the customers wait many months for their i3 to be made? I suppose the people that don't put as much weight on how special it is may not, but those that appreciate how unique the car really is will. After all, there is nothing else out there they can get that is quite like the i3.

Thursday, February 6, 2014

US i3 Orders Limited to Special "Launch Edition" Package For First Three Months

You want one of the first i3's in the US? You'll be getting the full leather Tera World interior as seen above and every option available besides the 20" wheels then. Welcome to the "Launch Edition i3"

Just yesterday, BMW i dealers received a bulletin that informed them they can officially begin to process customer orders and place them in the pipeline. Many customers have already left deposits at their local BMW dealerships even though it wasn't an official order yet, with the hope of being one of the first people to take delivery of this revolutionary vehicle. However they didn't have an official order place in the system, that was just to have a place in line reserved for them and to make sure they got one of the few allotted cars their dealer would get for 2014. So now that these reservations can be turned into official orders, everyone must be really happy, right?

Not so fast. In a move that will most certainly anger many of the enthusiastic people waiting patiently for their i3, BMW informed the dealers that the initial first three months of US i3 production will be restricted to a special "Launch Edition" i3. The Launch Edition i3 has the top of the line interior Tera World and every option available on the car besides the 20" Sport Wheels which you can add if you would like. (Options include: Metallic paint, Parking Package, Technology and Drivers Assist Package, DC Quick Charge Option, Heated Seats and the Harman Kardon Premium sound system). The only choice the customer gets is whether or not they want the range extender, the exterior paint color and if they want the 20" Sport wheels. So unless the people waiting in like with deposits are willing to take a fully loaded Launch Edition i3, they will have to wait an additional three months for production of the custom ordered i3's to begin. The Launch Edition i3 production will run from March to May so custom ordered i3 production will not begin until June.

As expected this isn't sitting well with a lot of folks who have had deposits and reservations for many months now. I've had over a dozen people reach out to me today to confirm whether or not this was true after being notified by their dealer. Some thought the dealer was just trying to jack up the price of their car by making them get options they didn't want and were seeking clarification from me. I wish I could tell them it wasn't the truth, but this is how it's being done. The unfortunate thing is many people have expiring leases and planned to make due for a few weeks until their i3 came in but now the gap is more like 3 or 4 months and they don't know what to do. Should they bite the bullet and get an additional ~$4,000 of options they didn't necessarily want or wait till July for the i3 spec'd the way they ordered?

Here is the cost breakdown of the Launch Edition i3:

Base:141A(BEV): $41,350.00
Color:B81: $550.00
Tera world:ZTW: $2700.00
Parking Package:ZPK: $1000.00
Tech+Driving Assist:ZTD: $2500.00
Heated Front Seats:494: $350.00
DC Fast Charging:4U7: $700.00
Harman/Kardon:674: $800.00
Destination: $925.00

Total: $50,875.

If you want the range extender just add $3,850, so a Launch Edition i3 REx will set you back $54,725.


The only exception to this is ordering process is for the current ActiveE drivers like me. As a "thank you" for participating the the ActiveE trial lease program, BMW is allowing us to order our cars "a la carte" in addition to giving us the heated seats and DC quick charge options for free. BMW is also creating some unique features that only our cars will have like interior, exterior and door sill badging, embroidered front trunk liner and BMW i floor mats. Plus we get priority ordering and the first batch of i3's that come to the US will include our cars and we should begin receiving them the end of April. BMW is calling our cars the "Electronaut Edition i3" and these only be purchased by current ActiveE drivers. The ironic thing is, I ordered my i3 REx with the Tera World interior and every option available including the 20" sport wheels. So even though I had the freedom to build my car the way I wanted to that the other early i3 buyers won't have, I'm still getting the car loaded just like the Launch Edition anyway.

I'm sure this will elicit some interesting comments below.