The goal of every business is to make A PROFIT. That's why people invest their capital in. To get out a profit, not loss.
And of course more profit is better than less profit.
Yes, a company can produce a sports car that makes a loss - making it a marketing investment / expense. An image-building / image-boosting product.
I'm not familiar with Audi numbers, nor eg. Nissan or Ford ones regarding their sports cars (R8, GT-R, GT) ... But I guess they make a loss with those products - just selling them to boost the brand image.
Right now BMW do not need an image boost ...
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Also: R&D departments of Ford, Nissan, VW / Audi, Daimler etc are much bigger than BMW R&D department: so limited human resources are also a problem for BMW. OK, eg. Porsche R&D dept. is even smaller - but they deal with much less models & they can focus more. And to be still able to do that they bought VW - to get the access to the economy of scales. Something BMW & MB can only dream of - since their marriages with Rover & Chrysler failed.
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Regarding CS: yes, I was also sad to hear the project is canned. I was told months ago such a product is welcome to boost BMW luxury image: in typical BMW manner - being sporty & luxurious. And it made sense - since BMW already have sporty image, yet they need a luxury image boost to rival MB more. And also Lexus etc.
You'll call me crazy but BMW suffers from too much sporty image. Many people think BMW is too sporty-performance, and are therefore not interested in such a brand.
Therefore BMW are introducing "less BMW-ish" models (eg. crossovers & SAVs etc) which are trendy right now ... To also lure in some non-BMW customers. To convince them BMW is not only sporty-performance but also practical cars with some BMW (sporty-performance) spirit.
CS: as I told you ... the project will emerge as a variant of baby RR (same platform) yet the profits will be much higher - since the car will be sold for 250k Euros, while under BMW brand 150k limit was already almost too high.
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Conventional segments are already overcrowded ... therefore new niches have to be filled. With cars that sell well. Not cars that sold less than 10k units per year.
Is BMW a "Toyota"? No, but it isn't a Porsche or Jaguar either.
With more than 1 million units sold per year BMW & MB are hardly an exclusive brands anymore. Get a Jag or Porsche instead.
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Do I care about BMW launching more & more SAVs & crossovers - even in M disguise? Not really. Till they keep core models & core Ms fit, and make the new niche models typical BMW dynamic.
For me core BMW product is 3er ... And when / if 3er is f....d up then I'll stop believing in BMW. Other products are just supplements. To spice up the BMW brand. Being that a 7er, X5, X1, PAS, CS etc
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Regarding diluted brand image ...
An SUV (Cayenne) didn't hurt Porsche brand at all. As well the (mini)vans (A, B, R) didn't hurt MB.
BMW is a set of values & spirits not a certain shape or technology.
So, even an electric bus can be a real BMW after all.
