BMW Brings Carbon Fiber to Masses With i3 Model

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Nov. 15 (Bloomberg) -- Bloomberg News’ Chris Reiter examines BMW’s new strategy in using mass-produced carbon fiber for its new i3 model. He speaks on Bloomberg Television’s “The Pulse.”

Long-term strategy.

They are not doing it just for the i3. they're going mass production with carbon fiber, which has never been done before.

It is a long-term strategy that is aimed at making their cars more efficient in the long run.

Commission regulations -- emissions regulations are getting tighter.

The only way to meet those regulations is to make lighter cars that need less fuel to drive.

That is the long-term strategy behind it.

It will probably be decades before they get a payoff.

This is high tech stuff.

How much will it cost?

Is material is so expensive.

-- this material is so expensive.

There is no specific figure about how much is costing bmw, but it is more expensive than aluminum.

Aluminum is the metal of choice for high-end sports cars.

It is the direction that jaguar, rolls-royce are going.

Aluminum is more expensive.

The goal is to get carbon fiber down to the price of aluminum.

The estimates we get for carbon fiber is about $20 per kilogram.

You have to pay about one dollar -- $1 for a kilogram of steel.

It is going to be hard to judge how much is going to cost them.

Bmw says the i3 per vehicle will make money.

It will payments -- it will pan itself out over the next coming years.

What happens to the industry if this fails?

For bmw, it will be a slap in the face of the carbon fiber strategy does not work.

They have gone it alone in other areas.

They went hydrogen combustion a few years ago.

The industry did not follow.

Their liquid hydrogen combustion project stalled.

If carbon fiber does not work, it is a slap in the face for bmw.

Maybe their innovation didn't pan out.

We will have to see how this plays out in the long run.

It is certainly a huge deal for the industry as a whole.

I give for your time.

Coming up, a final read on eu inflation.

Was mario draghi right to slash interest rates?

?

This text has been automatically generated. It may not be 100% accurate.

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