Bmw using wind turbines to save costs and protect its profits

Article by Christian A., on February 21, 2013

Nearly a quarter of the power required to operate BMW's Leipzig plant in Germany will be supplied by four wind turbine towers. BMW Group is doing this as part of efforts to protect its profits as costs are expected to rise due to Germany's 550 billion-euro ($740 billion) shift away from nuclear energy. This plant produces the X1 SUV and it’s also where the i3, its first electric car, will be assembled.

Meanwhile, Daimler AG is putting up a power plant at a truck facility and Volkswagen AG is considering a project to build at least five generators. What has been urging these German automakers to undertake these measures is a plan by Chancellor Angela Merkel to close nuclear reactors and give renewable energy a boost. This has resulted to higher taxes on power purchased from commercial producers.

Sebastian Bolay, an energy policy analyst at DIHK (a manufacturers trade group in Berlin), said that Merkel's energy switch has led to all German industrial producers either already generating their own power or seriously mulling this plan. It costs much less to generate one’s own power and it also makes them avoid the impact of grid failures. A 47% increase in a clean-energy surcharge in 2013 may add up to 254 million euros to the combined power bills of Germany’s auto manufacturers and parts suppliers. The surcharge has increased by as much as six times since 2006.

BMW, VW and Daimler (the parent of Mercedes-Benz) are facing the challenge of controlling costs as auto demand in Europe is on track to have its sixth straight annual drop in 2013 after last year’s sales fell to the lowest level in nearly 20 years. Due to the sluggish demand, the strain on automakers as the result of costly labor and high energy rates gets more intense.

Germany’s Economy Ministry said that last year, the power for big manufacturers in Germany averaged 10.4 euro cents per kilowatt-hour. In comparison, the average in France is at 7.25 euro cents, where PSA/Peugeot-Citroen builds the DS line that rivals BMW, and 6.76 euro cents in Romania, which is the base of Renault's budget Dacia brand.

Topics: bmw, technology

If you liked the article, share on:

Pin It

Comments

Recommended

Lamborghini has disclosed that it is looking into the possibility of releasing electric vehicles. With the Volkswagen Group revealing that it will be releasing electric vehicles within several years, there...
by - March 25, 2017
Daimler AG, through its Smart division, has disclosed that its two electric models, the Smart ForTwo and the Smart ForFour are now open for orders in Germany. Official market launch...
by - March 25, 2017
Lamborghini has officially offered clear proof that the Huracán Performante was able to set a new record at the Nürburgring Nordschleife with a time of 6:52.01 It was in early...
by - March 25, 2017
Top Gear has revealed that for its “Stars in a Reasonably Fast Car” segment, it will now be using a slightly enhanced Toyota GT86, which in the U.S. market is...
by - March 24, 2017
Porsche is laying aside any plans of pushing another hybrid hypercar into their line-up -- at least not at this time. Oliver Blume, Porsche Global Chief confirmed in a recent...
by - March 24, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries