BMW considers environmental brand

BMW has announced the creation of a new unit - Project i - specifically set up to investigate the development of a new, environmentally friendly car.

The vehicle would be designed for driving in cities and be released within the next seven years.

Norbert Reithofer, chairman of BMW, said the project was fully independent and "free to act beyond BMW structures if necessary".

"The task of the Project i team is to present specific solutions in the first half of the next decade. Whether this will require a fourth brand or not, will be decided at a later date."

Mr Reithofer stated it was not yet clear what alternative drive system or technology the new car would use.

Project i would therefore focus on a wide range of technological options.

"An electric motor is an option we are looking into," he continued.

"It does not only work at zero-emission level. The technology is now sophisticated enough to offer driving pleasure. This is one of the reasons why we evaluating the option of launching a battery-powered car."