Washington — BMW's North American chairman and CEO apologized for critical comments about the future of electric vehicles.
In a statement posted on a company website Friday, CEO Jim O'Donnell apologized for comments first reported on April 18 by The Detroit News. In a meeting with reporters in New York, O'Donnell said the U.S. government should end the $7,500 tax credit for EVs. He also questioned how quickly EVs will be adopted.
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"From a practicality point of view, (EVs) won't work for most people," O'Donnell said on April 18. "For at least 90 percent and maybe more of the population, (an EV) won't work (at the current battery range)."
On Friday, he backtracked from those comments after several automotive blogs picked up on his comments. "I sincerely apologize if I have offended the strong network of electric vehicle advocates whose support has been deeply meaningful to us at BMW," O'Donnell said in his statement, adding he is "100% behind our company's plans to design, develop, lease and sell electric vehicles."
O'Donnell had expressed skepticism about EVs in a talk with reporters.
"I believe in a free economy. I think we should abolish all tax credits," O'Donnell said on April 18, adding it was his personal opinion. "What they are doing is putting a bet on technology, which is not appropriate. As a taxpayer I am not sure this is right way to go."
O'Donnell said BMW will accept tax credits for EVs, but he wants a "level playing field" between different technologies, like clean diesels, which he said are "slightly disadvantaged" by tax policy.
In his statement Friday, he sought to clarify his remarks.
"We also understand that we are a country of diverse living and driving conditions and that electric vehicles may not be the natural choice for all drivers, many of whom will want to choose other advanced technology vehicles. That's why BMW Group is investing in the broadest possible range of future innovation — gas and diesel engines that significantly improve performance, cleanliness and efficiency, hybrids, BEVs and even hydrogen. We strongly believe all these technologies have a role to play in a sustainable future," O'Donnell said. "It is still too early for governments to pick winners and losers, which is why incentives should be aimed at a range of innovative actions that can meet diverse needs, rather than only one or two technologies. This is what I was trying to convey with my comments — consumers are smart enough to decide the best vehicle for their particular needs, so if incentives are applied, we should be mindful of market dynamics."
The German automaker is moving ahead with its electric vehicle and will unveil two EVs in 2013. The company will lease 1,100 of its next-generation electric vehicle — the ActiveE — this fall. BMW said it will lease about 700 of the ActiveE in the United States in six markets: the New York metropolitan area, Boston, San Francisco, Sacramento, San Diego and Los Angeles.
When it begins leasing the ActiveE this fall, the two-year-lease will cost $499 a month with a down payment of $2,250. This is the second-generation electric vehicle BMW is leasing as it prepares to sell its i3 — a pure EV — in 2013. It also will sell a small number of i8 vehicles — a super car with an electric motor and a hybrid gasoline engine — for more than $100,000.
dshepardson@detnews.com
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