By William Boston
BERLIN-- BMW AG is taking a bold step that could redefine what
it means to own a car, by linking its customers with the company's
global DriveNow car-sharing service.
Customers who buy BMW's new Mini Clubman, which the German auto
giant launched Wednesday in Berlin, will be able to offer their
cars to DriveNow's fleet while they are at work or on vacation. The
option could help them earn money from car-sharing fees at times
when their vehicle would otherwise sit idle.
DriveNow is a joint venture between BMW and rental firm Sixt,
providing car-sharing services in several European cities and North
America. Customers pay a registration fee, a basic usage fee and
per minute rates. Smartphone apps allow users to locate and reserve
vehicles.
The move demonstrates how the auto industry is trying to find
new business models to ensure car ownership retains its value. Many
young consumers now prefer to access cars through sharing services
rather than owning their own vehicle.
"When you don't need it, your car can work for you and you can
make money," said Peter Schwarzenbauer, a BMW executive board
member in charge of the Mini brand.
Separately, Ford Motor Co. also unveiled plans for car-sharing
projects in selected cities in the U.S. and in London.
David McClelland, Vice President of Marketing at Ford Credit,
said in a statement the company is responding to customers who have
asked for a service that allows them to share the costs of owning a
car with others through rentals.
"This program will help us understand how much this wish is
shared by customers that finance their Ford," he said.
BMW's Mini is a tiny, sporty, car that became a British icon in
its original 1960s form and was featured in the popular film The
Italian Job. BMW's car-sharing fleet consists of Minis and other
car series. New Mini models sold to retail customers will include
the same technology that allows DriveNow vehicles to be accessed
with a smartphone by paying customers.
"We are the first company that will offer a car-sharing option
that each customer will be able to offer with their private car,"
Mr. Schwarzenbauer told reporters.
BMW will first offer its new car-sharing option in the U.S.,
where DriveNow is one of the largest car-sharing services and
competes against rivals such as Car2Go and Zipcar. Car rental
agencies such as Enterprise, Hertz and Avis have also launched
their own car-sharing brands. BMW's plan will be available in China
and Europe later.
Ford's financial services company in the U.S., Ford Motor Credit
Company, is cooperating in a pilot project called Peer-2-Peer Car
Sharing with the American online car-sharing service Getaround and
in London with the U.K.'s easyCar Club, a car-sharing social
network.
Peer-2-Peer services will be available in six U.S. cities
including San Francisco, Chicago and Washington, D.C., and in
London, Ford said in a statement.
BMW made its announcement as part of a broader overhaul of the
Mini brand and the launch of the new Mini Clubman, the largest of
the five Mini models. The new Clubman will be built on the same
platform as the BMW 2-Series compact. BMW aims to move the Mini up
into the luxury compact segment, a fast-growing niche
world-wide.
Citing market studies, BMW says the global premium compact
segment is expected to grow 4% a year and will account for more
than 27% of the total global premium passenger car market by
2020.
Write to William Boston at william.boston@wsj.com
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