BMW performs green handbrake turn, trails new electric car brand

Short of Ryanair announcing that it was to ditch the short-haul flight business to invest in high-speed rail, it is hard to imagine a decision to better symbolise the extent to which low-carbon technologies are now edging out their carbon-intensive rivals.

Just days after admitting it was to quit Formula 1 to increase its focus on environmentally sustainable automotive technologies, BMW, the German car giant that has built its brand around large, luxurious and carbon-intensive vehicles, announced it is to launch a new sub-brand to deliver electric cars.

Speaking on a conference call late last week, Dr Norbert Reithofer, chairman of the board of management at BMW, said that the company's "project i" initiative to develop a new urban electric vehicle called the Megacity would be launched as a new sub-brand.

Promising that further details will be announced later this year, Reithofer said that the announcement coupled with the announcement that the company has already secured a lithium-ion battery supplier for the new vehicle in the form of SB Limotive underlined BMW's commitment to the emerging electric vehicle sector.

"We as well as other companies have invested early on in the development of new, economic technologies," he said. "Now it is all about establishing suitable regulations on an international level that will help a new type of mobility to grow. A reliable framework is important for every car maker to continue to invest effectively and efficiently."

BMW is currently preparing to launch its first electric car in the form of an electric version of the Mini, but the new sub-brand will represent the first model to be offered only as an electric version.

Reithofer added that the company would also continue to accelerate efforts to enhance the fuel efficiency of its conventional vehicles, which have already seen fuel consumption of its BMW and Mini fleet in Germany fall by an average of 5.9 litres per 100km.

The company also reiterated that its controversial decision last week to leave Formula 1 Racing was driven in large part by its desire to increase focus and resources on low-carbon developments.

Leaving no doubt that the company's priorities have shifted, Reithofer stated categorically that "the sustainable alignment of our company is also the driving force behind our decision to end our Formula 1 activities with the end of the 2009 season".

In related news, Toyota further underlined the increasing primacy of greener cars with the announcement it has already received 2,000 advanced orders for the latest version of its Prius hybrid car ahead of its UK launch this week.