BMW i Flexible Mobility Program Launches in the US

This picture, captured from BMW's website shows an i3 owner using the Flexible Mobility program and borrowing a gasoline BMW, presumably for a long distance family trip.

Nearly two years ago, BMW announced they would be offering gasoline loaner cars to i3 customers for the occasional long trip they may need to take. These long trips of perhaps hundreds of miles would be difficult or impossible to negotiate with their limited range i3, which has an EPA range rating of 81 miles per charge.

While this sounded like a great idea, many people wondered how it would be implemented in the US. There are strict laws here in the US that prohibit manufacturers from demanding the independently owned dealerships from offering services that they don't want to. Of course, if BMW of North America wanted to subsidize the whole program, then most all dealers would probably join in and offer the loaner vehicles; but that being highly unlikely since it would be very expensive. It was assumed that BMW and the dealerships would share expenses of the program, but until now there has been no information on how that would play out. The i3 has been available in the US for about six months, and there hasn't been any official word about the program which has caused i3 customers to ask a lot of questions about it:  Will there be a charge for this service? Will the customer have a choice of vehicles for different kinds of road trips? What would be the limit of days allowed per year? Would the customer be guaranteed a BMW loaner vehicle? And most importantly: When will it start?

Well in case you missed it, the BMW i Flexible Mobility program launched in October - it's just that nobody noticed, and there are two main reasons for that. First, BMW of North America didn't make any big announcement about it, like they did when the idea was first conceived back in 2013. Secondly, many BMW dealers do not like the terms of the program that BMW NA is using, saying it's to onerous on them, so they are simply not participating. I do not know the percentage of dealers that are participating, but one BMW dealership contact told me he doesn't expect many dealers to agree to offer the service unless they are extremely high volume locations with many i3 customers.

One of the problems is the subsidy structure includes a minimum of 10 days of loaner service per month per vehicle or BMW will not reimburse the dealership the $600 per month for the vehicle. Therefore, if not enough i3 customers call for use of the loaner cars, the dealership gets no monthly reimbursement.  Additionally, these vehicles cannot be used as a regular service loaner car. They have to be kept separate from the dealers' loaner fleet and only used only for i3 customers who need the Flexible Mobility Program. The vehicles must be new and can only be in service for one year, at which time they must be replaced with another new vehicle. If each vehicle doesn't have at least ten days of service in a calendar month the dealer gets no reimbursement for that month and extra days in service cannot be carried over to the next month. Dealers can receive the $600 per month subsidy for a maximum of five dedicated vehicles in their fleet reserved for the Flexible Mobility program.

Customers can use this program at any BMW i dealership that is participating, they don't have to use the dealership where they purchased the vehicle. Since dealerships are only reimbursed if the vehicles are in service for at least ten days, it makes sense that any participating dealership would welcome all BMW i3 owners who want to use the service at their dealership, as it would help them hit their minimum of ten days of loaner service.

Another requirement is the dealership must also participate in the i3 extended test drive program. This really doesn't have anything to do with the Flexible Mobility service, it's just another way for BMW to try to get all of their dealers to offer the extended test drive. BMW recommends that the dealers offer the service to i3 owners for a maximum of fourteen days per year, but they are leaving it up to the dealers to make that decision. My guess is that until there are a lot of i3s on the road, many of the participating dealers will basically allow i3 owners to use the vehicles as much as they want to, since it will help them hit their ten day minimum and collect the $600 monthly subsidy.

Judging from the feedback I have gotten from a few local dealers, I don't think the take rate is going to be very high on this program, at least not until there are a lot more i3s on the roads whose owners may need to use this service. So what happens if there aren't any BMW dealers in your area that agree to participate? BMW evidently realized that may be a problem, so they have a plan B which is still in the final phases of planning and will be available very soon. BMW is penning a deal with a national car rental company which will allow i3 owners to rent cars at special discounted rates. Not free, not a BMW and not exactly what was promised I'm afraid.

So if you currently own an i3 and could possibly have a need for the service, call your dealer and ask if they are participating in the Flexible Mobility Program for i3 owners. If they aren't, call around to other local dealers and you may find one that is. At this time BMW isn't publishing a list of participating dealerships, but hopefully in time that will be available. If you are thinking about buying an i3 and this service is important to you, make sure you ask your dealer if they are offering it before you buy.

EV Owners Shun ICE Loaners

Hopefully more dealers will understand that their EV customers want an EV loaner when their car is in for service and add them to their loaner fleet.

I've been lucky enough to own some nice cars in my life. Like most people, bringing my car in for service was never something I looked forward to. However one thing that I did like was when I got an interesting car as the service loaner. I remember one time when my Mercedes ML430 was being worked on I got a black E430 4matic and I liked it so much I almost told the dealer to keep my car and trade it for the loaner.

Today, many dealers have only a small fleet of in-house loaners and use rental car agencies for the overflow of cars that they need. They do it to save money, and I'm sure it does, but they do miss out on the opportunity to show off the other cars that they sell. I still don't fully understand why a BMW dealer for instance would want to put their customer in a car from another brand while they are getting service, it just seems wrong.

I tried plugging in the 135i loaner I had a when my ActiveE was being serviced. That didn't work too well.

However dealers that are beginning to sell electric cars are now finding they have another problem to deal with. Their EV customers don't want to drive a gas car while their car is in for service, regardless of the make or model. I wrote a blog post about this over two years ago when I was driving my ActiveE and now that the i3 has launched I'm watching many i3 owners say the same thing.  One person recently posted this in the i3 Facebook group:

"Most people would love to drive a new BMW 3-Series for a few days as a loaner. Not me. It vibrates, burns gas, I have to use the brake pedal, makes noise and is slow. All this found during the 2.1 mile drive home. Very much so ?#?firstworldproblems?. Think I'm going to bribe my wife for a ride to and from work."

A 2014 BMW 328i loaner? No thanks.

 Imagine that. The BMW 3-Series is considered one of the best cars on the road. In fact, it has was recently awarded Car & Drivers coveted "Ten Best Cars" distinction for the 23rd consecutive year. One would think just about anyone would love to have a new one for a few days while their car was in for service. That's not so if your car is an i3. After driving an electric car for a while, ICE vehicles seem antiquated. You feel the engine vibrations right up through the steering wheel, you hear the engine noise when you accelerate, gear shifts feel clunky and jerky. Yep, once you get back in an ICE vehicle after driving electric you realize what you've left behind and you don't miss it. You've evolved now, and you don't want to go back to the dark ages of the ICE.

Some BMW dealers have already realized this and are including i3 loaners into their in house fleet. This is a great idea for a couple of reasons. First, they can keep their i3 customers happy while their car is in for service, and secondly they can expose some of their other clients to the electric driving experience. Any electric car owner can tell you, getting people to try electric drive is the hardest part. Once they experience the smooth linear acceleration, the quiet vibration-less cabin and the excitement of the instant torque of an electric motor they too will be thinking about going electric. I'm happy to report my dealer (JMK BMW in Springfield, NJ) - perhaps with the help of some encouragement from me ;)  has decided to include an i3 to their stable of loaners. I think this is a great move and will pay dividends for them in the long run.

Like your Model S loaner? Just keep it!

However this certainly isn't just a BMW issue. I've seen Nissan LEAF and Chevy Volt owners lament the fact that they get an ICE loaner car and wish they had an electric option available. Tesla only sells electric cars so they only have electric loaners. In fact, not only do you get a Tesla loaner, but all Tesla loaners are the top of the line P85 Model S. Plus, if you really like the loaner, Tesla allows you to keep it. Of course you have to pay the difference in your car's value and the P85 loaners that you want, but it's a simple process where you just tell them your keeping that car and they tell you how much you owe them for the difference. That's another example of how Tesla is bringing new ideas and improved customer service to the industry.

I am sure that the savvy dealers who provide electric loaners for their EV customers will definitely benefit. The electric vehicle community is pretty close-knit and does communicate amongst themselves. It doesn't take long for a specific dealer to be labeled a "bad" dealer for not being very "EV friendly". Conversely, the dealers who have provided good service to their EV customers have benefited from a high number of referrals. The dealers who train their staff to understand these new cars, provide free on-site charging, and offer electric loaners are the ones who are really going to succeed in the new electric frontier.

BMW Slowly Undressing the i3

The most recent spy shots of the BMW i3 show more of the car than ever before, continuing the trend BMW has set of slowly exposing more and more of the car as we approach its official unveiling at the 2013 Frankfurt Motor Show in September.

A production-looking nose is spotted

When the very first spy shots were captured two years ago, the car looked very boxy and was completely covered in the blue and white swirly camouflage. It was also clear that BMW had even added fake panels under the "camo" to further obfuscate the real look. As time progressed the fake body panels were slowly dropped and now we are seeing what looks to be pre-production i3's during testing with parts of the body exposed as some of the camouflage has been removed. There was even one picture of what looks like the nose of a full production version i3 which was taken during a photo shoot in California recently.

BMW is still holding back on releasing much information on the car but we have learned a few things recently:

1) BMW will offer gas loaners for customers who need to drive further than their i3 will conveniently take them. The full details haven't been released like how many times per year you are offered the loaner or if there is any fee, time or mileage restriction. Can you take the loaner for a two week vacation on a 1,000 mile trip? Answers to these important questions are still unknown.

2) The optional range extender will not operate like Chevy Volt, allowing the driver to continue driving for hundreds of miles after the battery is exhausted without any noticeable difference. The details are still very unclear, but BMW had said the i3 will have reduced performance when in range extender mode. While BMW is quick to say the car will not be in any kind of "limp home" mode while utilizing the REx, it is not meant to extend your range on a daily basis. In fact Herbert Diess BMW�s global R&D chief was quoted saying �The range extender is not intended for daily use. It�s for situations when the driver needs to extend the range of the vehicle to reach the next charging station,� said Diess. �Therefore, the i3 probably won�t be the choice for customers with a need for an extended range.�

3) The i3 will first go on sale in Europe (November 16th has been rumored to be the launch date) and come to the US in late December. The first batch of i3's that do make it to the US will have the range extender option, as BMW expects the majority of the initial sales to have the option included. Although some i3's will arrive in late December, the speculation is that the official US launch will occur in early January when the car becomes widely available.