Jagmeet Kaur
Rutgers Business School
Ravi Vadapalli
Keep this story going! Share below!
The new BMW eDrive technology is the new drive technology found in all BMW i models and plug-in hybrids, and is comprised of an electric motor, high-voltage lithium-ion battery and an intelligent energy management system. Zero emission driving is possible due to the electric motor. Cars are able to drive certain distances without using any fuel. For example, X5 xDrive40e is capable of travelling up to 30 kilometres without using any fuel. All of the eDrive vehicles rely on a special performance li-ion battery to store energy, and utilize a built-in cooling system to constantly keep the unit at the ideal temperature. This helps increase output and maintain service life. Intelligent energy management is necessary to make sure everything is running smoothly.
The BMW Group was involved with the innovation, through efficient processes and close interaction of the development departments, each individual contributes directly to the creation of new products. The innovative power of the BMW Group is confirmed by approximately 60,000 design utilities and protective rights. Keeping a close eye on customer benefits, the BMW Group pursues a three-stage process of innovation. First, the development specialists, interacting with partners in development from all over the world, identify trends and technologies pointing into the future.The second step, specialists in innovation management assess the results achieved for their technical and economical implementation, as well as the benefits actually offered to the customer. The third step is the solutions developed in this way to the appropriate standard of technical maturity are then carried over by the BMW Group’s engineers to the series development process and, ultimately, to a specific product. The exterior and interior design expresses the personality of the product through its strong design. The company follows UN sustainable development goals, the company does take care of the responsibility for society and the environment seriously.
By the end of 2008, BMW was feeling the effects of the 2008 financial crisis. Sales were dropping significantly with a 90 percent drop in profits. With new environmental regulations in the EU, manufacturers had to rethink their business models. eDrive was a way to drive up sales while also cooperating with the new laws. Millennials were also shifting away from owning an expensive car and were moving towards public transportation. BMW wanted to diversify both its product and its service portfolios while also finding new business models and revenue streams. BMW then launched a separate unit called “project i” and their sole purpose was to develop new ideas about cars that would reduce the environment impact in all aspects of the supply chain, from raw materials to after-sales support.
BMW has a history of being environmentally reliable and responsible. This benefits the Earth, stockholders/company’s financial assets and personal reputation (pr). Since 2006, BMW has recorded a 36.5% drop on energy consumption since 2006. Compared to its competitors and other car manufacturers, BMW is one of the leading innovators that implement technological advances to reduce waste through various methods. “In environmental protection, which is a central element of sustainable business, we strive for continuous improvement with the help of management systems such as EMAS, in order to comply with our environmental responsibilities to even higher degree. However, this aspiration does not end at the factory gate: we expect a reduction in environmental impact from our partners too.” (Ursula. M, Head of Department SEP.) At the very beginning of BMW’s Environmental Statement, they make it known that being eco friendly is a top priority in not only the company’s goals, but their partners as well. It is very clear that BMW’s inspiration for their innovations comes from their strive to overachieve in reducing waste and protecting our planet.
The impact of Edrive technology has been significant on business for BMW. In 2017 BMW has sold more than 100,000 electrified cars. BMW group has accounted for more newly registered electric vehicles than any other manufacturer, with a share of 21 percent. In the electrified vehicle segment, BMW Group’s market share is already three times bigger than its share of conventional share market. When BMW Introduced a sub brand called BMW i in 2011 it helped boost their business in Europe as well as their market share. In 2016 it is expected to reach 2.6 billion in Europe which is up from 220 million in 2009. BMW Group was the first automobile company to appoint their own environmental officer in 1973. They have continued to try leading the way for others by reducing their own resource consumption, lowering emissions, and avoiding waste. This eventually lead them to creating Edrive technology, which resulted in their cars reducing energy consumption by 36.5%. They also reduced water consumption by 31.9% as well as reduced Co2 emissions by 61%.
BMW’s eco innovation directly relates to their mission to eliminate waste as efficiently as possible. “Environmental management is part of our commitment to sustainability. The BMW Group systematically improves resource efficiency in its global production network and has set itself concrete goals to be achieved by 2020. For each vehicle produced, energy/water consumption, process wastewater, waste for disposal and VOC emissions must each be reduced by 45% (base year: 2006).”
Get stories of positive business innovations from around the world delivered right to your inbox.
Saif Ali, Assistant Controller
BMW US Capital LLC has approximately 18 employees making it a small department for BMW’s American entities. BMW of North America, LLC was found on 1975. This company imports and distributes their luxury vehicles. BMW US Capital LLC was found on 1993, making it 25 years old. This department is located in Woodcliff Lake NJ. For BMW’s American entities, BMW decided it needed its own treasury center for American affairs. This department manages short and long-term liquidity of finances, funds American business interests/affiliates, as well as manages interest and foreign-exchange risks.