PARIS AUTO SHOW

BMW is working on 2 small crossovers

PARIS — BMW is reacting to the sagging economy and rising fuel prices with two small crossovers, the BMW X1 and Mini Crossover Concept, says CEO Norbert Reithofer.

He said the old product plan, which included the now discontinued X7 SUV, would not have generated sufficient growth through 2013.

A production version of the four-seat Crossover Concept is expected to go on sale in 2010.

The X1, based on the 1-series car, is expected to go on sale in the United States by 2010 or 2011. Reithofer said the X1 will be a volume vehicle rather than a niche car such as the larger X6 crossover.

And later this year, BMW will launch a diesel-powered 3 series and X5. Reithofer declined to disclose the premium that BMW will charge for its diesels. Mercedes-Benz charges about $1,500 more for its 50-state clean diesels, which went on sale this month.

Although BMW has not sold diesels in the United States, they could account for about 15 percent of sales in the coming years, Reithofer said at the Paris auto show.

BMW is also working on Project i, what Reithofer calls a "mega city car." The company has not approved production of the car, possibly an electric. Also uncertain is the car's brand.

Reithofer said the first fruits of Project i will be 500 electric Mini cars to be given to "special customers" at the end of 2008 and beginning of 2009 in New York, New Jersey and California for a one-year trial. 



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ENLARGE
The four-seat Mini Crossover Concept is expected to go on sale in 2010.

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