BMW investing 400 million Euros by 2013 as electric car investment

Last Friday, BMW said that the firm will invest 400 million Euros by 2013 to produce an electric car as German manufacturers try to catch up with global rivals which lacking behind competitors in Asia and the United States in the field of electric autos.

BMW has begun to extend its plant in the eastern city of Leipzig in a project launched by German Chancellor Angela Merkel to produce a series model auto it has dubbed Megacity.

Norbert Reithofer, head of BMW, said in a statement that the car would be “the first production model with a carbon fibre passenger compartment.”

BMW had joint venture last year with SGL Carbon, a German specialist in the material that is mostly used at present in sports cars owing to its strong resistance, light weight, and high cost. The first two qualities are well suited to the kind of electric vehicles now under development.