BMW Ditches Model S Challenger Due To Cost

Over the last two years, one topic has often come up on BMWBLOG and other media outlet – a new addition to the BMW i family. Often referred to as the i5 or i6, the third i model was thought out to be a Tesla competitor which would not only offer a more attractive design than the i3, but also significant more space and versatility.

Back in April, we wrote that the rumored i5, instead of having a design built upon the i3 and/or i8, will look closer to “regular” BMW models and will arrive before 2020.

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SanJoseDriver - 5/25/2017 1:49:45 PM

-4 Boost

Oh snap, good for Tesla (and Audi) but bad for expanding the EV market and giving consumers more choices.

GermanNut - 5/25/2017 2:35:03 PM

+3 Boost

Consumers will have plenty of choices in the near future. This is a huge problem for BMW as EVs become more popular and its competitors have confirmed they will launch all-electric models in the near future.

SanJoseDriver - 5/25/2017 6:06:39 PM

-3 Boost

VW also scrapped a new Phaeton and cited it not being as good as a Model S as the reason (it was not even an EV). Competition helps drive innovation and keeps cost low, so while I'm a huge Tesla fan I also don't want them to have a monopoly for premium EVs.

MDarringer - 5/25/2017 8:13:28 PM

-7 Boost

@SanJoseDriver The Phaeton was an absolute pig mongrel of a crap pile. Not making another had nothing to do with the Tesla S. That was just VW saving face. VW isn't capable of a Model S. Audi isn't either, but they will do one for twice the price.

HenryN - 5/25/2017 8:21:39 PM

-3 Boost

@MD wrote "VW isn't capable of a Model S. Audi isn't either, but they will do one for twice the price."

For a moment, I thought you have converted to a Tesla fan. Scary thought!

It's a widely held belief that as soon as major makers such as VW, Audi, MB and BMW join the EV race, Tesla would not have a chance. Maybe you finally see the light ?

MDarringer - 5/25/2017 10:52:29 PM

+5 Boost

@HenryN There is no light to "see".

Tesla is hardly a game-changer in terms of technology. They have the same EV technology as everyone else.

EV technology is still a long way from being a viable replacement for ICE in terms of "fill" time, range, and vehicle price comparable to an ICE vehicle.

Am I "against" EVs? Nope!

Am I against dimwitted fanboys? Most decidedly.

mre30 - 5/25/2017 10:57:46 PM

+5 Boost

BMW is not doing this car because the business case does not work.

EV's are a commodity consumer project not a unique intellectual product like web real estate. There is no long term, enduring, early adoption advantage to being the "best" EV manufacturer for a snapshot in time (unlike the benefits of being "first" like Facebook, Amazon, Apple, and perhaps even Uber were).

Tesla will run its course and either be absorbed by a legacy car company or else it will go out of business. Tesla sells in tiny volume relative to the car market as a whole.

Trust me, once EV volumes start to ramp up, the legacy automakers will be jumping right in, fast.

Let me translate the "BMW Ditches Model S Challenger Due to Cost" title for you all...it should read:

"BMW Realizes after its "i-division" proof of concept that there is not enough volume in the segment to make a choice to cannibalize internal combustion R&D investment just to have an additional "play" in that segment. BMW will confidently and quickly enter the segment once it is proven to be an enduring segment"

That's it.

HenryN - 5/26/2017 1:16:22 AM

-4 Boost

"BMW will confidently and quickly enter the segment once it is proven to be an enduring segment" - yeah right. There's a word that describes this type of character: "laggard".

Where is the proud BMW who won't back down from a challenge ? No wonder MB is taking your girl to the dance.

MorePower - 5/26/2017 6:53:08 AM

+1 Boost

BMW knew that a new Model S is around the corner along with probably not reaching the performance/dollar the current Model S achieves.

MDarringer - 5/26/2017 8:50:55 AM

+4 Boost

A new Model S? LOL Riiiiiiiiiight.

SanJoseDriver - 5/29/2017 3:59:27 PM

-5 Boost

Tesla does updates constantly, I don't think they will ever do a completely "new" Model S but it will continue to get better year over year. Here is my rough timeline for potential major improvements on the S and X:

CONFIRMED
- 2017: Battery switch-over to 2170 cells, will increase power slightly and reduce weight by ~100 lbs while also cutting manufacturing cost

SPECULATION
- 2017 Q4: Brand new dashboard, potentially a full interior refresh minus the seats
- 2018 Q1: AutoPilot v3.0 Hardware (faster CPU, better/more cameras)
- 2018 Q3: New Powertrain, potentially quad motors with torque vectoring: more range, power, and 4x4 capabilities to help differentiate from the Model 3 with dual-wheel drive and performance editions
- 2019: Exterior refresh, likely the rear and maybe the door handles
- 2020: Might move to the Model Y platform to cut costs, they should be around the same size/wheelbase

carloslassiter - 5/28/2017 5:16:19 PM

-4 Boost

For a year I've been reading the heroic posts from this forum's regulars all telling me that Tesla was going to get crushed when the "Premium Brands" brought out their own Model S competitors.

Any of you geniuses want to change your predictions? or will you double down on the tripe you've been typing?

Please note this is not an invitation for dpalmo to make yet another post humping the Audi A3 econobox.

SanJoseDriver - 5/29/2017 3:48:30 PM

-4 Boost

Tesla is still around? I thought they were going to go bankrupt in 2015, I mean 2016, no 2017, surely in 2018.

I hope some of the posters bought shorts to put money where their mouth is... let's see what actually happens in the next few years.