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BMW is unveiling its new seven Series at Grand Central, showcasing its most advanced technology yet. Matt Miller is there in person and joins us now with the CEO of BMW North America.
Hey, Matt, Yeah, I'm in my comfortable place here in the car world, but also at Grand Central Station, which is majestic. Here with Sebastian Mackinson, the head of BMW North America. Sebastian, welcome, or maybe I should say thank you for welcoming me here. Why choose Grand Central Terminal for this? It's a global debut.
Right right it is.
I mean, we were looking for the right location to show our flagship car, the new seven Series, and we didn't want to have any location but Vanderbilt Hall at Grand Star Station, such an iconic space in this fantastic city. It is unmistakable design, but it also stands the test of time, and I think that's a very fitting to the seventh series for BMW.
So I'm test driving currently a previous generation seven Series stickered at two hundred grand. What kind of margins are you making on these cars?
You know, that's part of our financial calculations, which is not something.
We talk about in the public space.
But we develop the cars with a lot of investment and with a lot of dedication and professionalism and passion, and then we sell them at the right price in the market.
So what's the difference between this new car? What have you changed versus the previous generation and what are the powertrain choices?
Yes, so one thing is definitely the external looks. I think we have cleaned up the front quite a bit. You have one line of front lights. Before there were two lines. It has become cleaner and I think it makes an unbelievable entrance. So this is not a car you sneak in unnoticed. You have a grand entrance when you come to this car, and if it's at nighttime. With a light design, that's even more. We also have replaced chrome. Led is the new chrome in this car.
You see the kidney light layout. We also have a new light design on the back. Now in the interior, we have a lot of things which we developed, which what we call the Neuer cluster, a lot of those digital elements ui UX Interface, customer interface.
They all make.
It now into other BMW models and the first one where this happens is actually the seventh series. Now you talked about drive trains, we will have two options on the internal combustion engine, a six cylinder and a V eight. We will have two options on the pure electric vehicle, both being one hundred percent electric drive train.
And we have also a.
Pluck in hybrid vehicle when you want to go half the way.
So what privee electric but also have a gasoline?
What are your customers choosing? I mean, I imagine for a luxury vehicle like this, a lot of people want the V eight right. On the other hand, as gas prices climb, I would also imagine that more people are starting to go back to electric after the backlash and the loss of the subsidy that we saw last year.
Yeah, we see.
I mean, obviously geography geography of the preferences are a bit different in the geography of the United States, but in general, we saw last year about a quarter of our seven serious customers opting for a fully electric car. I happened to drive it that vehicle for one year, and I have to say the luxuriousness and the luxury driving experience in a seventh series is even enhanced more when it is purely electric, no vibrations, You're in your
own space. It is a great, great thing to experience. But obviously we are known I mean Bavarian, Bavarian Motorworks.
We are Bavarian Motorworks.
We are known for our engines, and people love our V eight engine and that's why we give it the customers the choice.
We call it technology openness.
You can go this way or that, but one thing is sure, it's always the seven series, not the compromise vehicle.
We hear the same thing from Rolls Royce, which is of course a brand that you own as well. People that want the ultimate luxury often choose the Specter.
Now they have the Nightingale.
You know, if they want to spend three, four or five million dollars, how much customization can you do on your higher end cars? Because you know, right now the name of the game is customization.
Customer drops two three four.
Thousand dollars, wants to be able to choose the exact color, choose the exact interior, and make different combinations.
I mean, just to make sure we are starting here, just around one hundred thousand dollars. Okay, you don't have to go that high, as you just mentioned if you want to drive a seven serious but that part of side. Just to call out some numbers, you have five hundred different possibilities for a vehicle color. You can change a lot of interior trims, materials and colors, which mathematically makes
up to seven hundred combinations. And you can also in the BMW individual world, you can come with your own wishes and we can mention a color if you have like your color, which is obviously then a special service, but we can make that color and put it on your car.
Sebastian, I got to pin you down on the electric vehicle question because since the war in Iran started, we've seen gas prices soar, not just.
Here but around the world.
And although EV sales had dropped substantially after the end of the tax credit, at least online, I've seen more and more people, you know, brag about having gotten an EV and having a low, you know, monthly bill. What are you seeing in terms of EV sales.
I would say you see in the online what we see in the online, what customers do in the online world. We see in a slight uptick in interest.
On our electric products.
But for the time being, I wouldn't call it a drastic change. So I understand the chatter in the in the marketplace, in the public space, and we see that as well, but it didn't yet and maybe it will not materialize on the customer preference.
So our sales, we do sell electric vehicles, but the.
Majority of sales is UH is combustion engine vehicles.
Is the war affecting at all sales of these high end vehicles because I look at something like this and I think a shake could be driving this through you know the Emirates? Are you seeing any drops there?
I mean, we have always impact of the overall economic situation and different markets react different to that. I'm not familiar with the exact our impact on the on the local sales, but as you can imagine, if you have uncertainty which is always impacting the economy, that is not necessarily helpful for your vehicle sales.
I know the United States North America is your territory, right, but this car is has got to be a hit in China. They love their big limousines, their large luxury sedans. How has how has the seven series been doing in China?
What do you expect from this new vehicle?
It has been doing very well, and our expectation is that with this version that will continue to be the case, or probably we have an opportunity there to also expand our market position. It is definitely car which is very well received in China. But I have to say our designers did a fantastic job with this car.
It really has a global appeal.
It has this special about special thing about itself. It is the seventh series and people expect something from that. I mean behind you, it's not on camera right now, I'm sorry, but it's the first ever generation of this numbers well and that is something which has been built and now it's its own legacy. And now with this car, with this new front, I think that's a seven.
And it's a seven in China, in.
The Middle East, in Europe, and in the United States, in South America.
And I know, I mean, you're number one in terms of big luxury car sales in China, but of course they're coming after you. They've got a competition on your heels. Are you more comfortable in a market like the United States where China is held firmly out of the market.
I wouldn't talk about comfort level.
I mean I have, as you say, I'm responsible for the business in the.
US and in the America's region.
Some of the markets we have new competitors in the market space or new entries from China. In South America mainly maybe now a little bit in Canada. I mean, you always have competition in the market. That what keeps you on your on your toes and makes you think about how you can do things better. So competition as such is not really a new thing. So there's one competitive more or ten competitors more.
That's what we have to deal with.
In every market is a little bit different, all.
Right, Sebastian, thank you so much for inviting us down here at Grants on Sure Terminal showing us the pleasure global debut of your new seven series. Bashi and Macatson runs the North American business for BMW.