Electric Luxury: Wolfgang Buechel & May Wong

The checkered flag has dropped and the automotive industry is once again off to the races. The big players weave in and out of slipstreams as they vie for the top spot in what is perhaps the most important dead heat scramble in the sector’s history.

The prize? Pole position in the ever more lucrative electric vehicle (EV) market. In the eyes of many, the stakes have never been higher.

"Electrification has driven one of the biggest changes in the industry since the creation of the automobile more than a century ago," says Wolfgang Buechel, CEO of BMW Group Australia.

"Things are moving quickly, whether from a regulatory standpoint or due to market shifts, with new brands entering the market and lowering the price of entry."

Although the climb is steep, both Buechel and his colleague May Wong, CEO of BMW Financial Services Australia, are keen to tell The CEO Magazine that being in charge at the dawn of a new era is, so to speak, electrifying.

"The results are showing. BMW brand sales volume to the end of July in Australia was up 9.4 per cent, meaning we are outperforming the market and the premium segment," Buechel says.

"More significantly, our fully electric volume was up 229 per cent, which put us in third place overall of manufacturers selling EVs in the Australian market. All of this proves that electric is driving the growth of our business."

Shifting gears

A veteran of the brand, Buechel joined BMW’s Munich headquarters in 1995. After several years with MINI Germany, Buechel took on the top job at BMW Group Australia in January 2021.

His career-long association with the company has given Buechel an understanding of both its cultural cache and longtime commitment to being an important part of the electric revolution.

"The BMW 1602e of 1972 was used as a technology showpiece for the Summer Olympic Games in Munich and did not make it to production," he says of the carmaker’s first attempt at an EV.

"It does, however, have an important role in our history in showing the depth of knowledge of, and our time working on, electric drive systems."

In 2013, the manufacturer introduced its first ever full production EV, the BMW i3, a pioneering city car featuring radical construction techniques.

"There’s extensive use of carbon fiber in the chassis construction, an unmistakable look that remains modern and distinctive today, use of recycled materials and a high level of practicality," Buechel says of the i3.

Not long after this, BMW launched its groundbreaking BMW i8 plug-in hybrid supercar, a statement of intent that let the market know the brand was serious about electrified vehicles.

"This period in our history lined the path to an electric future, and cutting-edge cars – such as the i3 and i8 – set the foundations, providing the knowledge to develop the models we offer today and what will come next," Buechel adds.

Electric avenue

Now on the doorstep of that future, BMW has a new range of electric cars on track for the Australian market.

"We currently offer 15 fully electric BMWs across seven model lines. This includes the variants priced below the luxury car tax [LCT], and by later this year this number will grow to 16," he says.

"We are proud to offer the largest range of fully electric vehicles of any manufacturer in the market, which underlines our commitment to electromobility."

BMW is committed to highlighting that BMW EVs are more attainable than ever and now more accessible to a wider number of Australians. Fully cognizant of BMW’s status as a luxury car brand, Buechel and his team have worked closely with Wong and her team at BMW Financial Services Australia to ensure customers have options when it comes to going green.

"EVs reduce ongoing costs because they can be more economical to run than conventionally powered vehicles," Wong explains.

The price of mobility

Putting a price on the next generation of mobility is just another challenge for Buechel and his contemporaries, but it’s one he takes very seriously.

"We need only to look at the volumes to see the potential," he says. "There’s a need to be proactive with product and market planning, and then we must adapt quickly and be reactive to constant change."

One significant change came in 2022, when the federal government introduced its Electric Car Discount Bill. This legislation aimed to increase EV affordability, thereby increasing uptake of low and zero emissions vehicles.

"That was an important development for the market, alongside the government’s annual increase of the LCT threshold for fuel efficient cars," Buechel says.

"The Electric Car Discount Bill represented new territory for BMW. The sub-LCT price segment for fully electric cars has been dominated by volume brands, but we knew two things: that new models would soon be available to us, and that we had the option and ability to position other electric models to ensure they could be priced within the threshold."

The result is that BMW gained the ability to provide premium electric mobility solutions for a new segment and have an opportunity with an entirely new customer set.

Entry level

In late 2023, BMW announced four entry level versions of its newer electric vehicles. Priced below the A$89,332 LCT threshold (now A$91,387 for the 2024/25 Financial Year) and the fringe benefits tax (FBT) exemption cut-off, the sporty four-door Gran Coupe i4 eDrive 35, the midsize Sports Activity Vehicle iX3 M Sport, the iX2 Sports Activity Coupe and the crossover SAV iX1 are a critical part of BMW’s plan to have the broadest EV range.

"Regardless of the body style, they all have individual character and style, they integrate the latest technology – including safety systems – and offer an array of equipment features," Buechel says.

"The variety in the line-up is part of our aim to offer something for different lifestyles, applications and fleets. We understand that for some, electric does not yet suit their individual needs, and we will continue to meet customers’ diverse preferences and requirements."

In addition to BMW’s 15 fully electric vehicles, the carmaker offers a broad line-up of models powered by the latest internal combustion engines (ICE).

"New generation ICEs have never been more efficient, or cleaner. An increasing number of them in our portfolio are also electrified, incorporating a mild hybrid system that stores energy and saves fuel," Buechel explains.

Pathway to ownership

By working within the various governmental vehicle sales boundaries and bills, BMW has made its aim clear.

"We want to make BMW luxury EVs more affordable not only for the personal user but also business owners and fleet operators via the FBT exemption on cars priced below the LCT," Buechel says.

Furthering this cause is the constant work done by BMW Financial Services Australia to make luxury EV ownership a reality for more Australians.

"The role of finance in the journey of the prospective vehicle customer is an increasingly prominent one," Wong says. "Across the world, we finance one in two of every new BMW sold, which underlines our significance."

With so many taking up BMW’s offer, the company strives to develop innovative products and solutions for its customers.

"A key aspect of our offering is that we guarantee the future value of our new vehicles and our BMW Premium Certified pre-owned vehicles," she says.

"We see this as a way of providing certainty and peace of mind for our customers while at the same time providing the freedom of choice for customers at the end of their finance contract."

With flexible and innovative products, BMW Financial Services Australia provides customers with personalized financing solutions. The market shift caused by the advent of EVs means greater opportunities to talk to customers about different financial solutions, ranging from loans through to novated leases.

"We have developed novated leasing products for the BMW models priced below the threshold," Wong says. "With the variety of vehicle models we offer, and the matching finance offers, we are changing the perception of car ownership."

BMW’s efforts in this regard act as a challenge to buyers on the fence: switch to EVs, and BMW products in particular.

"We also guarantee the future value of our electric models via the Full Circle product offering and tailor the solution for our customers depending on their requirements," Wong says.

"We stand by all our products, in particular our electric vehicle range, and our finance product goes hand in hand with this."

A lot of luxury

The luxury car market of tomorrow is a far cry from yesterday’s. According to Buechel, it’s only set to expand further. "Growth has been rapid in recent years, across the world but particularly in regions like China," he says.

Australia also continues to grow in this area. "The entry to luxury is now more accessible than it was before, and there is far greater choice – a factor that helps to drive growth," he adds.

Another factor is the constant evolution and enhancement of technology.

"We’ve seen much greater interaction between your car and your devices," Buechel says. "This can be anything from checking your EV charge status or pre-conditioning your car via your smartphone before departure, or even parking the car remotely."

Many of these features are available on BMW’s range of cars already, even on entry level models, and more innovations are on the horizon. Wong says the manufacturer has tailored its products to suit individual requirements while addressing customer hesitation about the switch to electric vehicles.

"We’ve created an immersive online and digital experience that details information about the vehicles and the clarity of our financial offers up front," she says.

"Customers are incredibly well informed about their purchase before they walk through the door of a dealership."

Through BMW’s digital platforms and customer call centers, the carmaker aims to provide customers with transparency and comprehensive information before making the switch, and constantly improves this offering knowing how important knowledge is in the customer purchase experience.

Knowledge is power

When it comes to informed opinions regarding electric vehicles, BMW is something of an authority. History aside, BMW has worked hard to raise awareness not just of EVs, but of shorter pathways to ownership.

"We outline offers and detail the ins and outs of our sub-LCT line-up on a variety of different channels, including social media platforms," Buechel says. "We also take part in events, such as the Everything Electric Australia event in Sydney earlier this year, to inform the public and tell a wider story."

Buechel understands the importance of immersing existing customers in new products as early as possible.

"We work with our valued dealer partners across the country to showcase these new cars to customers very early on, sometimes just after the car has had its world premiere, by bringing early production examples for presentations and display at dealerships," he says.

"Our PR team also holds media launches and offers EVs to journalists for independent review, which we see as important in providing a credible, third-party endorsement."

BMW has also not shied away from making its views known to the federal government about improving the regulatory pathway for EVs. This includes the submission of its position regarding the New Vehicle Efficiency Standard.

"Australia is on the verge of a major change, thanks to the introduction of this standard, which will require manufacturers to achieve an average C02 figure across their fleet," he says.

"We see this as a positive move in broadening the choice of models for customers while helping to reduce greenhouse gas emissions. This aligns with our company’s focus on sustainability and creating a cleaner future for all."

This is all in aid of building the groundwork for the next wave of EVs BMW is set to create in the coming years. Chief among these is what is known as the Neue Klasse, an entirely new, next-gen line-up of cars that are designed, developed and produced in an entirely different way to what’s come before.

Even the term itself evokes an earlier era of reinvention for BMW: the beginning of the 1960s, which saw the introduction of the 1500 model.

"That model signaled a new era for BMW, just as 2025’s Neue Klasse models will," Buechel says.

Neue Klasse will integrate revolutionary electric drive and battery systems, platforms, technology, design and sustainability elements, including a higher than ever use of recycled materials.

"We can’t share a whole lot of detail at the moment, but I can say we have some incredibly exciting times ahead."

The ownership experience

That’s not to say the old has entirely made way for the new. At the heart of every new BMW model is the company’s thorough understanding of and commitment to excellent driving mechanics, a common theme at the carmaker for decades.

"It’s been a hallmark of BMW for as long as the company has existed," Buechel says.

"Our long-running slogan is ‘Sheer Driving Pleasure’, which is rooted in our high-performance BMW M cars and motorsport activities. We’re delighted that these new generation electric cars live up to that mantra."

While BMW insists its cars are well-styled, luxurious, comfortable and offer a high level of technology, the company believes they must also be a lot of fun to drive into the bargain.

"We are committed to ensuring that owning a BMW is memorable," Buechel says. "This begins with the first steps in the sales process, including researching and configuring online, to delivery at the dealership."

There’s still a sense both in the company and among its customers that BMW ownership brings with it a certain sense of pride.

"From the moment an owner approaches their car to unlock it to when they’re behind the wheel to when they park it and walk away, the ownership experience should be special," he says.

"They should look forward to repeating the process day after day. We work hard on this. No matter the drive system, all should create a great feeling."

"The feeling of being behind the wheel of a BMW remains, regardless of the drivetrain," Wong agrees.

"Quality and innovation have been embedded in our cars for as long as BMW has produced them, but we are delighted that more people than ever before have access to our product thanks to our competitively priced electric models and our novated leasing products."

Genuine support

But it’s not all about that moment of purchase and the associated new car smell. Buechel says that long-term maintenance is a crucial part of BMW ownership, and the company has taken great measures to ensure its customers are looked after.

"The influx of new electric vehicles in the market has raised the question about how to maintain them, longer-term," he says.

"Electric vehicles have specific after-sales care needs, including how to handle high voltage systems."

This kind of work requires special training that goes beyond general mechanic skills, so BMW Group Australia has partnered with recruitment platform NextGen Jobs to create a three-year BMW Light Vehicle #NextTech apprenticeship program.

"This gives apprentices the opportunity to earn a BMW high voltage certification, a vital aspect in the maintenance and repair of zero and low emission vehicles," Buechel says.

The company’s Service Inclusive contracts are another key part of the post-sale experience.

"We take a holistic approach to developing our products and aim to address all elements throughout the customer journey," Wong says.

"The level of sophistication in modern vehicles, and electric models in particular, demands a higher level of skill and expert care," she adds.

"Our products are backed by the quality and service excellence that BMW customers expect. Genuine BMW parts are custom-developed and manufactured for our vehicles to improve safety, reliability and durability. BMW Service Inclusive products can be accessed online by customers directly, or through the customer’s preferred BMW dealership. BMW dealers are there to take care of our customers, no matter the type of drive system in their vehicle."

Sustainability drive

As Australia’s adoption of electric vehicles continues, it’s expected that the market will grow annually by at least 17 percent. By 2028, the Australian EV market could be worth US$6.2 billion.

For that growth to continue, however, it’s up to the car manufacturers to continue to inform the public and provide a variety of entryways to ownership. To this end, Buechel feels BMW Group Australia has done its part.

"I’m proud of the work done to bring departments within our business closer together and create the platform for BMW to make a strong and lasting impression on the Australian market," he says.

"Clear aims and core values form our business strategy. At the top of the corporate tree are the topics of Brand, Product and People. Within this three-tier framework, we aim to create the most attractive and desirable brand, complementing a product that is both innovative and sustainable, and then bring it to life together, as a team, with our people."

It’s a strategy that’s worked. Last year, BMW retook the lead as the highest selling luxury German marque. But Buechel says the work is never-ending, and that applies to every facet of the business.

"There is no premium without sustainability," he emphasizes.

"This focus on sustainability means we also play a key role as a responsible corporate citizen, and we achieve this in multiple ways. It begins with education, via our partnerships with the Royal Melbourne Institute of Technology and the University of Melbourne, and through arts and culture with events such as BMW Opera for All.

"It is also brought to life through sport with golf. This includes close collaborations with Golf Australia and the WPGA Tour of Australia, and our recently announced title partnership with the Australian PGA Championship."

Top of mind of all these initiatives and partnerships is, he adds, the fostering of talent and supporting local communities.

"We want to help Australia perform at its best," Buechel adds.

The people business

It’s an interesting time for automotive decision-makers. There’s much to consider and, in the absence of psychic ability, an uncertain future to ponder.

"There are intriguing challenges," Buechel says. "What models best suit this market? How do we price them in the context of the industry compared with our conventionally powered cars? Will they resonate with our customers and prospects?"

While the answers to these questions remain to be seen and are ever-changing, BMW Group has poured its all into learning them.

"From the head office to the regional market level such as ours, we adopt a multi-faceted strategy to answer these questions," Buechel notes.

"My executive team and I combine local market knowledge and our work with colleagues at the head office in Germany on ways to provide compelling offers to market and respond rapidly to market shifts."

Wong says that as EVs continue to gain market traction, purchase and ownership considerations among customers will evolve.

"As these changes roll through, it’s important as a captive financier that we continue to provide customers with the confidence in our product and the underlying technology," she acknowledges.

"Guaranteed future value products are becoming more prominent in providing confidence in the market. With the comprehensive range of electric vehicles that we have on offer, we really want to encourage customers to explore their options and join the electric revolution."

This interpersonal aspect makes quite a difference in reaching the finish line in the best possible way. It is, says Buechel, a team effort.

"Ultimately, what we do comes down to the relationships with all our stakeholders – our head office staff, our dealers and our customers," he says.

"After all, the luxury car business is a people business."