Thu
Mar 18 2010

BMW goes back to an alternative future

Hilton Holloway
I would like to have been at yesterday’s BMW financial press conference to hear CEO Norbert Reithofer admit that the BMW brand was gearing up to produce a range of small front-drive cars.

The carmaker has agonised over the front-wheel drive question before. In the early 1990s, BMW built a number of front-drive 3-series prototypes. Back in those days, before the premium brand boom, BMW was a much smaller company.



FWD baby BMW range confirmed

While BMW’s new boss Bernd Pischetsrieder was convinced BMW needed to expand into more market niches, he thought it should not be done under the BMW roundel.

In 1992-3, Land Rover approached BMW, wanting to buy the company’s new straight-six turbo diesel engine. BMW asked Land Rover’s owners, British Aerospace, whether it would sell Land Rover.

BAe said it would offer the whole Rover Group to BMW for £800m, big money back then. BMW snapped the company up in February 1994, delighted to get Land Rover, Range Rover, Mini and the front-drive Rover brand.

Of course, BMW soon had plenty of time to repent when it unwrapped the endless problems suffered by ‘the English patient’ and also found itself paying substantial licence fees to Honda in order to keep building Rover’s Honda-based cars.

Indeed, when BMW broke up Rover Group in 2000, the reason it gave was that instead of finishing the development of the planned front-drive Rover R30 model, it would now build an entry-level car under the BMW brand. So Rover was no longer needed.

The R30-derived 1-series was, of course, rear-wheel drive, and when it was launched BMW ran a series of punchy ads claiming the superiority of rear-drive, calling it ‘standard drive’ to underline the point.

So it seems quite ironic that BMW has arrived back at the philosophical point the company was at in 1993. Should it build front-drive models under the BMW badge, or stick to using a separate (in this case Mini) brand?

Although the market has changed massively, if BMW had decided back in 1993 that it could take the risk and build a front-drive BMW, it would have saved itself a huge amount of trouble.

Amusingly, Reithofer’s announcement was almost 17 years to the month after BMW bought front-drive Rover but singularly failed to buy the actual front-drive technology.

Still, at least the new baby BMWs will be based on a new front-drive platform that is 100 per cent pure Munich. And by the time they’re launched in 2014, it will two decades since BMW made the fateful decision not to build its own front-drive cars.


Sign-in or register to add your comments

About Hilton Holloway

Has two product design degrees and used to design mountain bikes. Realised that cars were a lot more interesting in 1990, and has been writing about them ever since.

Comments

Lapps March 18, 2010 10:35 AM

So, BMW is designing a range of cheaper, lighter, less powerful cars using technology best suited to cheaper lighter less powerful cars.

And your point is??

nicksheele March 18, 2010 10:54 AM

Good blog. However, you don't emphasise enough Pischetsrieder's business decision to acquire Rover's front-wheel drive technology for BMW really lay in his personal, emotional desire to relink back to his great uncle, Alec Issigonis, the inventor of the Mini. This clouding of a major business step for BMW with a personal desire lay at the root of Pischetsrieder's eventual sacking by BMW and the hundreds of millions of marks wasted by BMW in its Rover adventure.

You also should consider that BMW's consideration of a move into front-drive small cars in the early to mid 90s was also driven by their shadowing of Mercedes-Benz's moves. In 1993 M-B were investing heavily in Project Vision A, which became the A-class. BMW saw this as s threat by their old rivals and needed to counter it. As it turned out, neither the expensive A-class, predicated on a frugal and partially battery-powered future or BMW's counter with acquiring Rover's small cars portfolio could be called other than failures.

JackB March 18, 2010 1:46 PM

I'm sorry, but the most important point in this story is totally missing here. No boss will admit that, because they don't want to undermine new models' worth, but the sole reason for those front-drive abominations is horrid EU legislation. It forces all manufacturers to go below the average figure of 120g of CO2 for an entire range of cars of a given brand from 2012. And that's why the hateful Cygnet was born. All in the name of hoax global warming hypothesis.

HiltonH March 18, 2010 3:03 PM

JackB - I don't know if you can remember back to 1990, but we were all in 'green panic' back then, too. If was that era that spawned the Mercedes A-class, as NickS says. The pressures on BMW to go front-drive then, were the same as today, if not quite as intense.<P>

But you're right. Eco-concerns are at the bottom of all these front-drive, premium car decisions.<P>

Lapps - The point is that BMW considering going it alone on front-drive as far back as 1992, Now they've finally done it.

Faustcar March 18, 2010 4:45 PM

Excellent blog indeed. I have also wondered whether part of the reason for BMW purchasing Rover and Land Rover was to get access to the 4x4 know-how available at Land Rover, to assist with their own development of what would eventually become the X5. If that is true, maybe the purchase was in the end more succesful then it is usually given credit for. Thoughts anyone?

noluddite March 18, 2010 5:06 PM

'Still, at least the new baby BMWs will be based on a new front-drive platform that is 100 per cent pure Munich.' I may be mistaken but I thought I read that the platform was to be shared with Mini and Purrgrot? Won't the latter have some input? Like the irony though.

david RS March 18, 2010 5:38 PM

The pressure to make FWD is stronger today than in the 90s. It enables to reduce CO2 emissions ; and also better benefits in passive safety.

It enables to make cars cheaper, more habitable.

A layer of marketing above and it will be good.

This is what I feared.

And when it will arrive and when BMW will extend it to its range, BMW will loose somewhere its soul.

Everyone does not feel the effects of the RWD, but it is one of the major characteristics of the brand.

They may do good FWD. The problem isn't here.

You can go to Audi, which is well ahead in perceived quality.

HiltonH March 18, 2010 6:08 PM

Faustcar

The X5 had been partly developed by BMW before it bought Rover. It was mostly based on the E34 5-series iX Touring. Indeed, jacked up 525IX Touring prototypes were snapped on the M40 back in 1996.

BMW pressed the button on the X5 when they decided BMW could build its own road-biased SUV.

noluddite

As far the reports from the BMW press conference go, BMW will do this platform alone and then offer it to 'existing partners'.

Better that the Mk3 Mini and BMW 0-series are based on a BMW platform, than based on PSA-BMW platform. They need to demand premium prices so, from a marketing point of view, I'd guess that a mass-maker really can't be involved the engineering.

All about Autocar

Newsfeeds

Subscribe to our news with our RSS feeds

Advertise

To advertise with Autocar contact us

Buy our magazines

Discover our titles at themagazineshop.com

Autocar latest issue - cover 15.2.12

NEW ISSUE OUT NOW

FAST, EASY & SECURE
SUBSCRIBE NOW>>