BMW invokes fear factor to rally troops around e-cars

MUNICH: Inside a bright auditorium at an abandoned airfield near Munich, rows of men and women gaze at images flashing by on a giant screen: a Mercedes sedan; Porsche and Jaguar SUVs; the face of Elon Musk. “We’re in the midst of an electric assault,” the presenter intones as the Tesla Inc chief’s photo pops up. “This must be taken very seriously.”

The audience is composed of BMW AG employees flown in for a combination pep rally/horror film intended to make them afraid—very afraid—about the future of the industry. The takeaway: The market is shifting in ways that were unimaginable just a few years ago, and BMW must adapt. The subtext is a recognition that the company has gone from leader to laggard.

For years, BMW set the benchmark in luxury, but it needs to hit the accelerator to fend off resurgent rivals such as Mercedes-Benz and new competitors like Tesla. “BMW is falling behind in electrics,” says Ingo Speich, a fund manager at Union Investment, which owns almost 1% of the company.

Since January, the carmaker has cycled 14,000 engineers, marketers, and factory managers—about 10% of its workforce—through day-long events to prepare them for a time when customers may order a robotaxi by app instead of buying a car. In a temporary building at a BMW test track, they participate in workshops and discussions of car—sharing apps, laser sensors, and batteries.

In the corners, BMW shows off the vehicles it sees as key to its future: a self-driving iNext with a retractable steering wheel; a Rolls-Royce whose roof and sides swing open to allow a comfortable exit; a Mini designed for sharing that changes colors to suit the driver’s mood.