Many people have dreamed about what a future of cars that don’t use internal combustion engines would be like. While such an idea might seem far off to some, one analyst is claiming that BMW is working to completely ditch fuel burning engines within ten years’ time. Many are saying that his claims are unbelievable, but some are hoping that what he is saying does indeed become true. That BMW has often been at the forefront of the industry only works to add at least a little credibility to the claims.
The analyst in question is Ron Baron, who works for Baron Capital managing various mutual funds. In the interest of full disclosure, the company currently holds about $250 million in Tesla investments. Baron claims that BMW is looking to kiss off gasoline and diesel since electricity is a much more affordable way to power vehicles. The exact opposite was true when the automobile was still a fairly new invention, which is why internal combustion engines became the preferred means of propulsion.
As evidence of the upcoming transition BMW is going to push, Baron cites a visit two of his research analysts recently made at the Munich headquarters as well as carbon fiber and battery facilities in Germany. According to Baron, the talks with the BMW financial team indicated that the company would be ditching internal combustion engines within ten years from now. Of course, BMW has not confirmed those claims.
Among Baron’s claims is that traditional automakers and workers unions have been fighting to suppress electric powertrain technology. They view such a change as a threat, considering that they would require the complete retooling of factories and require fewer workers in the assembly process. He also claims that car dealers have banded together against electric cars since they don’t generate as much back-end revenue in the form of service visits.
Of course, all of Baron’s claims are controversial and certainly open to debate, considering how bold they are.