BMW dubs new urban mobility concept "Project i"

By Christiaan Hetzner

MUNICH (Reuters) - BMW (BMWG.DE) dubbed its plan to design an entirely new vehicle for the world's megacities "Project i" and pledged on Tuesday to decide on at least the basic structure of the innovative car this year.

"This project is fully independent and even free to act beyond BMW structures if necessary," Chief Executive Norbert Reithofer told a news conference.

The task was to provide specifics by the first half of the next decade with the focus on a wide range of options including a vehicle purely powered by electricity -- a major departure for a company renowned for high-powered combustion engines.

"Whether this will require a fourth brand or not will be decided at a later date," the BMW CEO explained.

Friedrich Eichiner will head the project at management board level. Ulrich Kranz, who helped develop the Mini, will lead a development team that will grow from less than 50 now to less than 100.

Responsible for corporate and brand development, Eichiner refrained from concentrating on one particular concept other than to say it would position itself as a premium vehicle with annual sales of at least 100,000 units.

"It could be a two-wheel concept, too," he said.

This would possibly be an answer from Germany's luxury carmakers to the Tata Nano minicar, the cheapest car in the world that is priced at about $2,500 and primarily designed to be a main form of mobility for emerging markets.