BMW concept will give i subbrand a boost

FRANKFURT -- BMW is about to send a volley Tesla's way.

The German luxury brand's i Vision Dynamics concept, introduced Tuesday at the Frankfurt auto show, previews an upcoming third model for the i low-emissions subbrand that will be a rival to the Tesla Model 3.

The concept showcases a "dynamic," coupe-styled four-door car positioned between the i3 city hatchback and i8 plug-in hybrid sports car, BMW CEO Harald Krueger told journalists.

It has a range of 373 miles and a top speed of more than 120 mph, BMW said in a statement. The car can accelerate from 0 to 62 mph in four seconds.

The production model is to go on sale by 2021, giving a boost to the stalled i subbrand. Consumer demand for the i3, which BMW launched in 2013, has been sluggish because of concerns about its limited driving range and high price.

U.S. sales of the i3 peaked at 11,024 in 2015 and have slumped 24 percent to 4,097 this year through August. At the same time, Tesla has received more than 300,000 orders for the just-launched Model 3.

BMW did not reveal the product name for the i Vision Dynamics but reports say it's likely to be called the i5.

The i subbrand is "the innovation driver for the BMW Group," development chief Klaus Froehlich said. It "also acts as a spearhead of innovation" for other group brands, he said.

BMW last week said it will offer 25 electrified vehicles, including 12 EVs, by 2025. BMW plans to start production of the iNext, a full-electric flagship for the i subbrand, in 2021.

The company is also using the Frankfurt show to present a full-electric car for Mini. That car is to go on sale in 2019. BMW also plans to launch a full-electric X3 in 2020.

Bloomberg contributed to this report.