BMW share lower: BMW concludes direct contracts with manufacturers for planning security – additional shifts planned for e-car i4

To avoid delivery bottlenecks, the car manufacturer BMW is now concluding direct contracts with the manufacturers of important components – Inova Semiconductors and Globalfoundries.

This increases the planning security and transparency of the required quantities for everyone involved and secures BMW’s needs in the long term, said Andreas Wendt, Member of the Board of Management of BMW AG and responsible for purchasing and the supplier network. The agreement now guarantees the automaker the delivery of several million microchips per year, which in this case are required for Iseled’s smart LED technology. This lighting technology has so far only been used in the BMW iX electric car, but will also be installed in several other model series in the future.

Unexpected high demand: BMW is planning additional shifts for the i4 e-car

The car manufacturer BMW wants to introduce additional shifts at the Munich plant due to the high demand for the fully electric Coupé i4. There are now talks with the works council, said a BMW spokeswoman on Wednesday. One possibility, for example, is to work on Saturday in addition to the two shifts a day from Monday to Friday.

The “Wirtschaftswoche” reported that the waiting time for an i4 ordered was already nine months. That’s why BMW wants to introduce Saturday shifts in Munich in the first quarter.

BMW spokespersons said that the demand for the i4 was “higher than expected,” and that waiting times lasted until the second quarter of 2022. Production of the large coupé, which competes with Tesla’s electric cars, started at the end of October – a little earlier than originally planned. According to Sales Director Pieter Nota, there are currently a significant five-digit number of orders for the i4 in Europe.

So far, around 1,000 3 and 4 series cars are built in Munich every day. The fully electric i4 now comes off the same line as the 3 and 4 series with gasoline, diesel and hybrid drives. The vehicles differ mainly in their electric drive and battery.

Theoretically, the i4 could also be built at the BMW plant in Mexico, where 3 and 4 series also roll off the assembly line. But in the short term this cannot be implemented because of the necessary systems and employee training, and there are no specific plans, said a spokeswoman. It is possible, however, to create more capacity for the i4 in Munich by relocating orders for three to other locations.

The production of the new electric car is less affected by semiconductor bottlenecks: It enjoys “a certain priority” in the group, as Munich plant manager Peter Weber said at the start of production.

On Wednesday, the BMW share temporarily fell 0.22 percent to 90.64 euros on XETRA.

FRANKFURT / MUNICH (Dow Jones / dpa-AFX)

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