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http://www.cleanmpg.com/photos/data/2/European_Union_Flag.jpg The company is developing an all-new electric vehicle under its "Project i." (http://www.businessweek.com/magazine/content/09_12/b4124078381283.htm)

http://www.cleanmpg.com/photos/data/501/Large_format_LiON.JPGJack Ewing - Business Week (http://www.businessweek.com) - Mar. 12, 2009

What kind of range can we expect from BMW? Will we care after we see the price tag? --Ed.

Frankfurt - For years, BMW resisted building hybrid cars, believing that more efficient gasoline or diesel models were a smarter bet. But as the hybrid gives way to the all-electric vehicle—at least in the eyes of optimists—the German automaker aims to be at the front of the pack. BMW is spending more than $1 billion to develop a small car for urban drivers that will include an electric-powered version. "We [in the auto industry] have the internal combustion engine so strongly fixed in our minds that we think it will last forever," says BMW Chief Executive Norbert Reithofer. "I don't believe that."

Although Reithofer is vague on the timing, BMW is working on the electric vehicle under an initiative called Project i. Reithofer says he may even create a new brand for high-end city cars, in addition to the company's current BMW, Mini, and Rolls-Royce nameplates. To gauge interest and test the concept, in New York and Los Angeles BMW is leasing 500 Mini sedans that have been modified to run on batteries.

To head Project i, Reithofer tapped one of his star executives, Senior Vice-President Ulrich Kranz, who was instrumental in transforming the British-built Mini into a hip, upscale brand. Project i will also develop vehicles with gasoline engines, a necessity in emerging markets lacking reliable power grids. But the 80-member team has increasingly focused on... http://www.businessweek.com/magazine/content/09_12/b4124078381283.htm

Will the electrics be more reliable than other beemers? Will the hold their value better?

Are the current quality problems caused by the road zombies that just get in and ride? Every bimmer trade I see has the service light lit.

BMW reliability is an interesting story. OK, I lie...it's not that interesting. But it's educational. "The Ultimate Driving Machine" doesn't have to be complicated, and wasn't complicated right through the late '90s. The formula was 1 well-designed vehicle body, one properly configured but otherwise conventional suspension, 6 cylinders lined up in a row for natural balance, some high quality but normal comforts, add air, spark, fuel, insert driver, and go. Great fun and excellent reliability, albeit at a price.

Then they got on the toy bandwagon with the other up-market makes. Unfortunately they did it all at a rush, and by my assessment they just weren't prepared for the kind of quality control you need to multiply the number of parts on your machine and make it just as reliable as before. The real kicker is that they weren't ever that bad in terms of the number of breakdowns, at least compared to other European and American makes. But unexceptional reliability plus outrageous repair prices makes for a heck of a bad reputation. So now people who could afford one but not in a trivial sort of way tend to be scared off if they are at all informed.

Electric cars aren't that complicated, so if they get it wrong I will be impressed in a cynical sort of way.

I was implying the same thing, EVs are extremely simple. But the electronics (interior comforts) would be all BMW. I can't imagine that they'd do anything special for the EV in that dept, except reducing consumption.