BMW plans to price i3 near 3 series

BMW's i3 electric car will be priced at about $40,000, or roughly the same as a well-equipped 3-series sedan, says Ludwig Willisch, CEO of BMW of North America.

The price of the five-door compact will be set closer to the launch of the vehicle late this year.

The i3 will have an optional two-cylinder, 0.65-liter gasoline motorcycle engine and an auxiliary generator that charges the battery. Willisch did not indicate what the price might be for that version of the car.

The i3 likely will qualify for a $7,500 federal tax credit, although a BMW spokesman said the company has not completed discussions with the federal government. BMW also is waiting to hear whether buyers of the range-extender version can get the full $7,500 credit.

In an interview, Willisch said BMW will establish a program that allows i3 owners to borrow a conventional gasoline or diesel vehicle for a longer trip. Details haven't been worked out, but the service will be offered "as an additional mobility package," he said.

Willisch said the i3 won't be a volume car because the EV market is still small. Only 57,000 electric vehicles were sold in the United States last year.

Most of BMW's 338 U.S. dealers are expected to sell the i3 and the i8 hybrid sports car that goes on sale next spring. Dealers have until June to decline the option, he said.

Although so far no dealer has taken that option, Willisch said perhaps a "fairly small dealer," or one in a rural area may decide that selling the new BMW EVs isn't worth the investment in tools or training.