Fred Crawley looks
at how leasing of the new ‘Mini E’ has led to PR gains for BMW
Financial Services
The announcement of a high-profile
leasing scheme for BMW’s new ‘Mini E’ electric car prototype
signifies not only another step towards widespread consumer uptake
of electric cars, but a bold example of the part that captive
finance and good brand management have to play in this process.
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By leasing 20 vehicles (along with chargers) to
consumers on a six-month, £330 per calendar month deal, BMW will
gain a useful testing ground for electric vehicle leasing: drivers
will commit to driving at least 300 miles per month, while motoring
and charging habits will be monitored by ‘smart’ meters.
Staff at Oxford Brookes University’s Sustainable
Vehicle Engineering Centre (SVEC) will then analyse information
from the vehicles, which will “help BMW evaluate the technical and
social aspects of living with an electric vehicle in a real world
environment”, the centre said.
As well as providing information on consumer use
habits, SVEC will analyse data from a further 20 Mini Es, which
will be in use with the fleets of the university and the city
council. This, no doubt, will be of great interest to BMW FS’s
fleet specialists.
Joe Pattinson, general manager for marketing at BMW
Financial Services, said that the programme had come about through
a useful piece of serendipity within the group.
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By GlobalData“We were approached by the team at Mini, who were
looking for a way to carry out customer trials while keeping title
on the rare prototype vehicles, and a leasing scheme was the
natural solution,” Pattinson said.
“From our point of view at BMW FS, this is
something we are really excited to be involved in. With the work
being done at Oxford Brookes, the scheme should reveal a lot about
how the vehicles run and fit into people’s lifestyles, and that
will have an impact on our leasing strategy for electric vehicles,”
he added.
But what shape is that strategy taking? Pattinson
is straightforward
He said: “BMW FS exists to make it possible for
drivers to get behind the wheels of vehicles, and finding a way to
do so with electric vehicles is crucial. When finance products for
EVs become commonplace, there will be differences from what exists
at present.
“This scheme, for example, has highlighted some
possible benefits of a shorter lease.”
Double benefits
But this is more than just a learning
experience for BMW FS – it is a shrewd bit of marketing.
Although the scheme will at first involve only 20
vehicles available to the public, this exclusivity will work
together with public affection for both the Mini brand and the zero
emissions movement to brew a considerable amount of demand for the
Mini E.
Despite no rear seats due to battery size, and the
eerie silence that has become well-known among drivers of EVs, the
vehicle has enjoyed the full benefits of the Mini brand, and has
thus avoided the public disinterest in the peculiar and the unknown
that often surrounds a new electric launch.
What Prius achieved through celebrity endorsement,
and Tesla accomplished through sheer engineering, BMW has managed
through exploiting the universal perception of Minis as fun to
drive.
Test drive reviews published so far have gushed
about the pleasure of driving the Mini E, with plenty of comments
made about the “feelgood” factor of driving both a Mini and an EV
at the same time. In terms of brand extension, this is a very happy
marriage.
The real victory for BMW FS, however, has been the
media focus on the relative cheapness of the programme. The phrase
“a penny a mile” has come up often, referencing the 150 miles the
Mini E can run on an off-peak charge costing £1.50.
Meanwhile, much has been made of the £330 pcm lease
rental – as one commentator put it, “six months of motoring for
£1,800 sounds like a very good deal indeed.” With fuel costs being
virtually absent, the cost efficiency of the Mini E lease has been
thrown into sharp focus. And despite the fact that the Mini E’s
monthly price tag would be £550 without government subsidy, the
point is moot. What is important is that reviewers, journalists and
excited would-be consumers are thinking with a leasing mindset.
While on the surface the Mini E programme seems to
be a question of a captive finance company helping its parent with
a bit of research, the truth of the matter may be that Mini has
just scored a colossal PR win for BMW FS.
