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BMW is the latest automaker suggesting a wave of EV buyers is expected to hit the market in the coming year. The German automaker’s CFO, Nickolas Peter, said in a video conference Monday he expects pure electric vehicle sales to reach 400,000 next year as demand continues building and supply chains ease.

BMW set to hit higher end of electric vehicle sales goal

BMW’s Chief Financial Officer (CFO) says it’s been a turbulent year for the German automaker, but things are looking up from here.

Lockdowns in China and supply chain issues during the first half of the year cut into profits. Furthermore, Germany and the UK saw demand slow as rising energy prices shook the markets, while France, Italy, and Spain remained stronger.

When asked about gas prices and energy supply due to the war in Ukraine, the German automaker’s CFO responded, saying, “the gas issue will not have any direct impact on us this year,” as BMW has already cut back its gas usage in Germany and Austria by 15% and will reduce further if needed.

BMW expects to continue seeing pressure this year, yet in 2023, it believes it can take another massive leap in electric vehicle sales. The automaker expects between 240,000 to 245,000 electric vehicle sales this year, more than double that of 104,000 in 2021, and it is hitting its goal of a 10% EV share of overall sales.

The luxury automaker expects that number to rise even further to about 400,000 in 2023 as buyers continue demanding pure electric vehicles.

In North America, BMW currently offers two pure EVs, the BMW iX SUV and the BMW i4. In China, the automaker also offers the BMW i3 and its first-ever fully electric 7-series, the BMW i7 sedan, which is slated to release in North America in 2023.

BMW-electric-vehicle-sales-i7
BMW i7 Source: BMW

On top of this, BMW is launching its Neue Klasse (new class) vehicle platform specifically for electric vehicles in 2025 for its “next-generation” EVs.

By the end of the decade, BMW looks to achieve 50% electric vehicle sales of its overall total.

Electrek’s Take

BMW said it sold 75,891 electric vehicles in the first half of 2022, more than doubling from 2021. The automaker’s CFO seems confident that electric vehicle sales will continue picking up this year and into 2023 after mentioning demand picking back up in the third quarter.

With several highly anticipated EV releases (Rolls Royce Spectre, BMW i5, MIINI Countryman) next year, I wouldn’t doubt BMW’s ability to meet its target. However, the question going forward will be how well it can manage its supply chain and ramp production of these vehicles.

Demand isn’t the issue. BMW mentioned the “high desirability of its pure electric models among customers worldwide” in its first half electric vehicle sales release. The issue will come down to resolving the supply chain bottlenecks, which have been disrupted since the pandemic.

The energy crisis in Europe is adding fuel to the fire, as several critical auto parts suppliers are being affected and passing on higher costs to automakers.

Other German automakers, including Volkswagen and Mercedes-Benz, have both prepared for the worst, increasing orders from suppliers outside the affected area, according to Reuters. Will BMW be next to follow? If they are going to hit their aggressive electric sales targets, I wouldn’t be surprised to see them do the same in the near future.

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‘A real wildcard’: World’s largest wealth fund issues inflation warning on hot commodity markets

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‘A real wildcard’: World’s largest wealth fund issues inflation warning on hot commodity markets

Nicolai Tangen, chief executive officer of Norges Bank Investment Management, during a news conference in Oslo, Norway, on Tuesday, Jan. 30, 2024.

Bloomberg | Bloomberg | Getty Images

The chief executive of the world’s largest wealth fund says there are many wild cards in financial markets right now, but the “big worry” for investors is what a commodities rally could mean for the inflation outlook.

Nicolai Tangen, CEO of the Norges Bank Investment Management (NBIM), told CNBC’s “Squawk Box Europe” on Tuesday that soaring energy and raw material prices could prove to be a significant headache for major central banks as they continue to fight inflation.

As of Tuesday afternoon, the S&P GSCI, a benchmark index that tracks the performance of global commodities, had jumped 9% since the start of the year, outpacing the broad S&P 500 index.

Oil and copper prices have climbed around 13%, respectively, year-to-date, while gold has repeatedly notched fresh record highs in recent months.

Asked whether he had any concerns about hot commodity markets, NBIM’s Tangen replied, “Yes, the big worry is just what that could mean for inflation right?”

He added, “So, if energy and raw material prices continue to move up, that is going to feed through to end-product prices, which are going to be higher. And that could be the real wildcard when it comes to inflation expectation.”

'Clearly a lot of froth' in the tech sector right now, says the CEO of the world’s largest wealth fund

NBIM manages the so-called Norwegian Government Pension Fund Global. The world’s largest sovereign wealth fund, which was valued at 17.7 trillion kroner ($1.6 trillion) at the end of March, was established in the 1990s to invest the surplus revenues of Norway’s oil and gas sector.

To date, the fund has put money in more than 8,800 companies in over 70 countries around the world, making it one of the largest investors across the globe.

Fewer rate cuts

European Central Bank President Christine Lagarde had also signaled the impact of commodity prices last week, in the broader context of the institutions next monetary policy steps. She said the central bank remains on course to cut rates, barring any major shocks — but stressed that the ECB would need to be “extremely attentive” to commodity price movements.

“Clearly on energy and on food, it has a direct and rapid impact,” Lagarde said.

Euro zone inflation slowed by more than expected to 2.4% March, bolstering expectations of a near-term rate cut. Market pricing for interest rate cuts, which has been highly volatile in recent weeks, now also points to the ECB appearing set to ease monetary policy before the U.S. Federal Reserve.

With most readings putting U.S. inflation at around 3% and not moving appreciably for several months, traders on Tuesday afternoon were pricing in a 13% chance of a U.S. rate cut in June, according to the CME Group’s FedWatch tool. That’s down from nearly 70% last month.

A worker supervises the furnace in the foundry at the ZiJIn Serbia Copper plant in Bor, Serbia, on Thursday, April 18, 2024. Copper prices have rallied recently, driven by an improving outlook for global manufacturing and mine disruptions.

Bloomberg | Bloomberg | Getty Images

Tangen said Norway’s wealth fund continued to believe it would be “tough” for central banks to get inflation down toward target levels, and major central banks would move differently, depending on local inflationary pressures.

Acknowledging multiple factors that now underpin inflation, Tangen said, “You have some of the geopolitical tensions, you have near-shoring, you have the climate effect on food through the world’s harvest, you’ve got some changes in trading routes and so on, and wage inflation is also higher than perhaps we had expected.”

He added, “We are expecting fewer rate cuts than the market did, of course, earlier in the year. I have to say my surprise is that the market has taken it so well. I would have expected the market to have reacted more negatively to this postponement of interest rate cuts.”

— CNBC’s Jeff Cox contributed to this report.

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Mercedes unveils 2025 electric G-Class, with 4 motors and tank turns

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Mercedes unveils 2025 electric G-Class, with 4 motors and tank turns

Mercedes unveiled its 2025 electric G-Class tonight – which it’s calling the “G580 with EQ technology” – in Beverly Hills, CA, and we’re here at the reveal with all the details.

Mercedes first surprised us with its “EQG” concept at IAA in 2021. Now it’s heading to production, but with a somewhat more plain name.

At the time we had almost no details, but now we’re learning all about the upcoming electric off-roader here in the wilds of… Beverly Hills, California.

So, maybe no heavy off-roading demonstrations are in the cards for today.

But the electric G-Class does have off-roading chops. It comes with 4 independent electric motors putting out a combined 579hp and 879 lb-ft of torque. Each motor has its own 2-speed transmission, giving access to a low-gear with 2:1 gear reduction for off-roading, and the 4 independent motors mean the car can vector torque to whichever wheels need it – even better than a locking differential.

4 wheel motors also means the G580 will be capable of what Mercedes calls G-Turn, its branding of what we’ve previously seen referred to as “tank turn” when Rivian was working on it (but later abandoned and pivoted to “front dig mode” instead). This means it will be able to do 2 full rotations on the spot by spinning the wheels on the left and right sides of the car in opposite directions at once.

However, this feature is more of a toy, just for fun. Mercedes also has a G-steering feature, which is sort of a mini-version of the G-turn, which will help you make extremely tight turns by activating torque vectoring to help make tight turns (though unlike the EQS, it doesn’t have rear-wheel steering).

The G580 can climb up to a 100% (45º) grade and hold stable on lateral slopes of up to 35º, ford 33.5 inches of water (6 inches deeper than the gas version), with 9.8 inches of ground clearance, a 32º approach angle, 30.7º departure angle and 20.3º breakover angle, with independent double wishbone suspension in the front and a solid de Dion axle in the rear.

To help you see where you’re going, the G580 has a “transparent hood” feature, which uses a camera to show what’s in front of and under the car on the internal display. This is important for off-roading, because if you’re going over a ridge or something and can’t see under the hood, the transparent hood can help you see where you’re going.

But it’s also a Mercedes, which means it’s fancy inside. And the 2025 model will be particularly fancy, as it’s only available in EDITION ONE trim with lots of exclusive interior and exterior touches. But you’ll be able to customize the car basically any way you want through Mercedes’ MANUFAKTUR car customization process.

So whether you’re conquering a real jungle or just the concrete jungle of… Rodeo Drive, or Las Vegas for the latest cryptocurrency convention, you’ll feel right at home in the Mercedes G-Class.

That fanciness is certainly needed to justify its price, which Mercedes hasn’t yet released, but said that it will be “in the ballpark” of the G63 (which starts at around $180,000).

The G580 is smaller than the the gas-powered G-Class. At 182″ it’s about 10 inches less long, but just as tall (78″) and as wide (76″). It shares the same 113.8in wheelbase as the gas model.

Otherwise, the exterior shares the boxy design of the gas version. Unlike many EVs, it doesn’t adopt a particularly curvy exterior, and still has a textured grille area.

The decision to stick with a traditional-looking grille goes hand in hand with Mercedes’ recent decision to add a “more classic grille option” to its EQS. And it turns out, if you want the G580 with the traditional G-Class grille, you can just get the standard grille, directly from the gas version, if you prefer it (but then you don’t get those cool lights).

And overall, Mercedes said it was very important to maintain the overall design of the G-Class. So it hasn’t tweaked it to make it look electric, other than some grille modifications and a couple aero bits.

Mercedes says the vehicle has “optimized aerodynamics,” which was surely a primary design intent of this vehicle that consists solely of straight lines. But actually, there have been a couple small changes, like a slightly modified A-pillar and a strip above the windshield to smooth out the front edge of the roof.

As for details on its electric drive capabilities, the aforementioned 4 motors can sprint to 60mph in an estimated 4.6 seconds, and reach a top speed of 112mph/180kmh. These aren’t the fastest numbers out there, but the car isn’t meant to be a racecar – Mercedes could have gone with a bigger battery, or more power, but that would have meant other compromises elsewhere, and Mercedes said that it was far more important to focus on the total package.

Mercedes hasn’t told us a range number yet, but with a 116kWh battery and a face that’s even flatter than its electric-triangle-on-wheels competition, we can imagine its somewhere in the mid-200s. It’s 473km on WLTP, which is 293mi, but WLTP is a little more lenient than EPA numbers.

More importantly than overall range, Mercedes says the G-Class will DC charge from 10-80% in 32 minutes, with a 200kW peak charging rate (and an 11kW AC charge rate). That maths out to an average charge rate of approximately 150kW on DC over the full session, which is pretty reasonable.

Given the car’s massive 116kWh (usable) battery, it still doesn’t charge nearly as fast as a Hyundai/Kia E-GMP car, but it’s still quite good compared to other chunky EVs (the G580 weighs ~6,800lbs/3,805kg, with a GVWR of exactly 3,500kg – the maximum allowed by German law).

The G580 comes with 5 regenerative braking settings, including Mercedes “D-auto” setting, where the car intelligently decides to apply regenerative braking based on traffic conditions (we recently tried this setting on the eSprinter, but struggled to find a situation where it would be useful). Regen activates off-throttle, suggesting the possibility of one-pedal driving, but we haven’t had a chance to try it out and see if its max 217kW regen braking capacity is really strong enough to avoid most brake pedal usage.

For a final cool electric touch, the car has done something new with its iconic rear end. In place of the spare tire carrier that typically adorns the backside of the G-Class, there’s an optional compartment which can be used to store charging cables or the like. You can still opt for the spare tire, too, but I really like the charging box.

Electrek’s Take

Look, this is a G-Class. It’s a statement car, it’s an image car. If you like it, you know that you like it. For the majority of drivers, its off-road capabilities really won’t matter all that much.

What matters here is whether it stays true to the G-Class, and as far as we can tell, it does. It looks like a G-Class and it feels like a G-Class. The doors thunk closed like a G-Class.

And an important note – Mercedes said, “if the G can go electric, any car can go electric.” We, of course, agree. This is a car that has been defined in many ways by excess, with the gas version getting just 14 miles per gallon. And yet here it is, in electric trim, with a huge battery (but not out of line with other huge EVs), beating the gas version’s performance both on- and off-road.

As for the name – while “G580 with EQ technology” is a bit of a mouthful, I actually like the simple designation “G580.” Surely people will refer to it as “the electric G-Class” or the like, but by giving the car a regular model name, Mercedes is saying that it’s treating the car like a regular car.

Instead of siloing EVs into their own sub-brand, Mercedes is saying that this is a G-Class, and if you want a G-Class, this is a G-Class. Mercedes was clear that this is not a rational vehicle, that its customers don’t need a G-Class, they want a G-Class.

So there you go. If you want a G-Class, this is a G-Class.

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Daily EV Recap: Tesla Self-Driving Homicide

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Daily EV Recap: Tesla Self-Driving Homicide

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Daily EV Recap: Tesla Self-Driving Homicide

Listen to a recap of the top stories of the day from Electrek. Quick Charge is now available on Apple PodcastsSpotifyTuneIn and our RSS feed for Overcast and other podcast players.

New episodes of Quick Charge are recorded Monday through Thursday and again on Saturday. Subscribe to our podcast in Apple Podcast or your favorite podcast player to guarantee new episodes are delivered as soon as they’re available.

Stories we discuss in this episode (with links):

Tesla driver arrested for homicide after running over motorcyclist on Autopilot

Tesla officially unveils new Model 3 Performance with 0-60 mph in 2.9 sec

Arres Prevent robot uses advanced AI to fight potholes

Allye Energy wants to power your job site with used Land Rover batteries

Tesla skirts Austin’s environmental rules at Texas gigafactory

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Daily EV Recap: Tesla Self-Driving Homicide

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