BMW’s CEO has effectively put to bed rumours the German firm will abandon the compact car segment, predicting such models will become the “core” of the business in future…

Back in May 2022, a report out of Europe suggested the future of BMW’s compact front-wheel-drive models – such as the 1 Series and 2 Series Gran Coupé – was hanging in the balance. However, BMW CEO Oliver Zipse has now confirmed the company has no plans to leave what he terms the “lower market segment”.

“We are not leaving the lower market segment. Even if you consider yourself a premium manufacturer, it is wrong to leave the lower market segment – that will be the core of your business in the future,” Zipse said at an event in Berlin, according to Reuters.

Of course, rival German automaker Mercedes-Benz seemingly disagrees, having confirmed earlier this year it plans to renew its focus on the high-end luxury segments, while reducing its number of compact entry-level models. In fact, rumours suggest the A-Class badge will be retired at the end of the W177 hatchback and V117 sedan models’ lifecycles in 2025, with no direct successors planned.

Have compact BMW models such as the 2 Series Gran Coupé been given a lifeline?

Zipse’s latest comments suggest we will indeed see a next-generation version of the current F40 1 Series (which debuted in 2019), though it’s not yet clear what sort of powertrain such a model would employ nor which platform it would be built on (with the current UKL architecture seemingly not well suited to housing hybrid components).

The Munich-based automaker is, of course, investing heavily in electric vehicles and is in the midst of what it calls a “transformation towards e-mobility”. If BMW does also plan on offering next-generation combustion-engined versions of its compact models, it remains to be seen how it would deal with meeting ever-tightening emissions regulations in key markets such as Europe.

For instance, Audi has already confirmed its current A1 Sportback and Q2 crossover will be discontinued at the end of their respective lifecycles, proving just how difficult it is to build compact premium electrified (never mind fully electric) vehicles with low enough price tags and large enough margins…

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