Detroit News - BMW business model crunches gears as models expand, profit falls

[EnI]

Dear Marcus,

do not forget BMW also has 6er / M6 - not exactly a mid-engine semi-supercar like R8, but definitely a successful car in terms of sale s & profit. And sporty enough to contribute to BMW brand image.

8er - as I said many times - was intended to enhance BMW sporty-luxury image, with emphasis on luxury - a new flagship that would move BMW even higher on luxury scale. Something to fight CL, or high-end Panamera (which is also Porsche's take on luxury more than sport - since they already dominate sport with 911). R8 is also there to boost Audi's sporty image - so is the "LF-A" by Lexus. Since both brands try to enhance sporty image. Same can be said about MB - with upcoming new Gullwing & a bunch of AMG BS variants.

BMW is still perceived as sportiest brand among above mentioned group ... And nothing's gonna change. BMW reputation is based on sporty vehicles across the line - with M's being cherry on a top. Supercar / supercoupe & CSL models are welcome, but not necessary at any price.


*****

Regarding X1: when you see the car you'll see it's hardly a conventional SUV. It's only 1.5m tall. Same height as eg. Dodge Caliber. More a crossover than SUV.


*****

Regarding X2 & X4: nothing official word from BMW. Only insider info.
As said: not having internal info on MB & Audi future products doesn't equals they do not exist.

Yes, I can confirm BMW had the following models on the table: new 1er sedan, more sporty 1er 3dr ShootingBrake, X2 SAC, Z2 roadster, 3er 5dr ShootingBrake (PAC), X4 SAS, PAS, X7, CS 4dr GT (new 8er), CS 4dr cabrio, new Z8 roadster, M9/M10 - Z8 based exclusive M model coupe. Including: M1, M3 CSL, Z4 M CSL, M6 CSL, M7.
And many more crazy ideas like SAV cabrio, car-bike hybrid, etc.

Many projects have been canned. But BMW have been thinking about them. Not saying anything officially.

And I'm sure MB & Audi also adjusting future product plans (mind. eg. MB's CLC, future A & B platform, future R-class reconceptualization etc.).

And since you don't know about them, and being cancelled - it seems they have never existed. But that's not the case. They existed, but you have no clue about them. And that's quite similar to BMW case - although you've had knowledge about upcoming products.

The only officially announced but cancelled project by BMW was the CS GT. M3 CSL & X7 have been never announced, but just confirmed by BMW the models wouldnt be developed / produced. All the other info is unofficial insider info.

Also, i may be wrong but i think BMW has the worst profit/vehicle sale of the three. Not sure though but Eni do you have any info on that?

I was talking about value added per car, not profit margin per car. Meaning BMW is able to cheaply produce a car, and sell it for high price. Yet other costs deboost the profit.

Regarding profit margins: IMO total profit (absolute value) is way more important than profit margin - which is only important to shareholder who expect great indexes & growth non-stop. You can have a total profit of €1 billion, with profit margin 3%, or €100 million profit with profit margin 18%. What's better for the (long-term) shareholders? A dividen of X units (profit 100 miliion), or a dividend of 10X units (profit 1 billion). Get it?

Yet short-term investors trade on growth indexes, not absolute values. Since only the growth index can assure them higher price of the share - so they can sell the shares at higher price than the buying price was. Therefore for the investment & hedge funds it's important company's profit significantly increases constantly over the years. They are more obsses with growth per se, not the absolute profit value. Since they trade expectations ...

 

[justanthony]

I was talking about value added per car, not profit margin per car. Meaning BMW is able to cheaply produce a car, and sell it for high price. Yet other costs deboost the profit.

Regarding profit margins: IMO total profit (absolute value) is way more important than profit margin - which is only important to shareholder who expect great indexes & growth non-stop. You can have a total profit of €1 billion, with profit margin 3%, or €100 million profit with profit margin 18%. What's better for the (long-term) shareholders? A dividen of X units (profit 100 miliion), or a dividend of 10X units (profit 1 billion). Get it?

Yet short-term investors trade on growth indexes, not absolute values. Since only the growth index can assure them higher price of the share - so they can sell the shares at higher price than the buying price was. Therefore for the investment & hedge funds it's important company's profit significantly increases constantly over the years. They are more obsses with growth per se, not the absolute profit value. Since they trade expectations ...

Yes i wasnt relating that to their business structure, merely trying to find out cost/ profitability ratio per car and how much of that is a consequence of its financial leasing policy

 

[Merc1]

Dear Marcus,

do not forget BMW also has 6er / M6 - not exactly a mid-engine semi-supercar like R8, but definitely a successful car in terms of sale s & profit. And sporty enough to contribute to BMW brand image.

You're kidding right? The 6-Series and the M6 does absolutely nothing for the BMW brand image compared to an R8 or SL65 Black Series or SLR. Nothing. It isn't comparable. That is like saying the E63 does something for the MB brand image compared to the R8.

8er - as I said many times - was intended to enhance BMW sporty-luxury image, with emphasis on luxury - a new flagship that would move BMW even higher on luxury scale. Something to fight CL, or high-end Panamera (which is also Porsche's take on luxury more than sport - since they already dominate sport with 911). R8 is also there to boost Audi's sporty image - so is the "LF-A" by Lexus. Since both brands try to enhance sporty image. Same can be said about MB - with upcoming new Gullwing & a bunch of AMG BS variants.

We all know this Eni, which is why it should have been built. I don't get why you're restating this here, this is the clearly obvious.

BMW is still perceived as sportiest brand among above mentioned group ... And nothing's gonna change. BMW reputation is based on sporty vehicles across the line - with M's being cherry on a top. Supercar / supercoupe & CSL models are welcome, but not necessary at any price.

Yeah for now they are. Wait until all the crossovers hit the market and there are no "special" cars to carry the BMW name. Making a sporty van or suv isn't the same thing as a sporty car or sports car. Certain cars like M3 Convertible, M6 Convertible, proposed X6 M and X5 M don't really further the image IMO, they dilute it to a degree IMO. They are, arguably not true to the M core values to some.

Regarding X1: when you see the car you'll see it's hardly a conventional SUV. It's only 1.5m tall. Same height as eg. Dodge Caliber. More a crossover than SUV.

Still isn't a car. I don't know why you're constantly trying to spin this. Dodge Caliber-like isn't a car. Its hybrid car-truck-suv-van thingy, not a regular car.

Many projects have been canned. But BMW have been thinking about them. Not saying anything officially.

And I'm sure MB & Audi also adjusting future product plans (mind. eg. MB's CLC, future A & B platform, future R-class reconceptualization etc.).

And since you don't know about them, and being cancelled - it seems they have never existed. But that's not the case. They existed, but you have no clue about them. And that's quite similar to BMW case - although you've had knowledge about upcoming products.

The only officially announced but cancelled project by BMW was the CS GT. M3 CSL & X7 have been never announced, but just confirmed by BMW the models wouldnt be developed / produced. All the other info is unofficial insider info.

What difference does it make? My point all along is that BMW has signaled their intentions with the X1 and PAS, much clearer than either MB or Audi's plans to produce yet another SUV/Crossover, non-car-like vehicle. BMW is still plugging niches while the others have seemingly re-thought this. Now when MB or Audi shows another concept or announces yet another suv/crossover then then point goes away, until then it stands.


M

 

[klier]

You're kidding right? The 6-Series and the M6 does absolutely nothing for the BMW brand image compared to an R8 or SL65 Black Series or SLR. Nothing. It isn't comparable. That is like saying the E63 does something for the MB brand image compared to the R8.

YOU'RE kidding, right???
MAYBE the 4-door CLS SEDAN, but compare a freaking taxi to the sleek 6er coupé? Sure Bravo!!!
Anyways, I know a lot of people who find the 6er an absolute beauty, and it is a pretty exotic (exotic as in not seen much) big coupé. Very good for the BMW image.

Audi will have A7 4 door coupe, same with MB and the CSL, Porsche has Panamera where only God knows what it is and BMW will have a beautiful true coupé with less controversial styling.

 

[LaArtist]

Lol nice touch there.. calling the 6er exotic beacuse ppl dont appriciate it..

Otherwise it would sell..

I love word play..

 

[Merc1]

YOU'RE kidding, right???
MAYBE the 4-door CLS SEDAN, but compare a freaking taxi to the sleek 6er coupé? Sure Bravo!!!
Anyways, I know a lot of people who find the 6er an absolute beauty, and it is a pretty exotic (exotic as in not seen much) big coupé. Very good for the BMW image.

Audi will have A7 4 door coupe, same with MB and the CSL, Porsche has Panamera where only God knows what it is and BMW will have a beautiful true coupé with less controversial styling.

Whether or not someone thinks the 6-Series is a beauty is matterless. It is the most ridiculous thing I've heard this week to try and pretend the 6-Series is some type of exotic.

AGAIN, read the post klier. Is said that saying the M6 is exotic or to be compared to the R8 or somehow enhances the BMW brand like the R8 does for Aud, is like me saying that a E63 somehow elevates the MB brand like the R8 does Audi.

In short the neither the M6 nor the CLS or E63 have the effect on their respective brands like the R8 does for Audi.

No one compared the M6 to the E63. Period. Really desperate, and grasping at straws to try and put the M6 over as some type of exotic on the level of the R8. Most people can't pick out the M6 from a 650i on the road. Pluhease.


M

 

[modena_360stradale]

You're kidding right? The 6-Series and the M6 does absolutely nothing for the BMW brand image compared to an R8 or SL65 Black Series or SLR. Nothing. It isn't comparable. That is like saying the E63 does something for the MB brand image compared to the R8.

Exactly right. The SL-BS, R8, etc. enhance the image of Mercedes and Audi because they showcase their technological achievements and the extent of their engineering capabilities. Compared to the SLR, etc. the 6-series is just another coupe, and the M6 is just another coupe with a big engine.

Well said, Merc1.

 

[Sunny]

BMW never really had an image car (neither M1 not Z8 did anything for its image) and yet it is considered the sportiest of the trio. I wonder why?

 

[Merc1]

Because they consistantly deliver the goods in the entry-level and mid-level market segments: some of, if not the sportiest cars in their respective segments.

This is also why BMW can't command or get the prices at the top end like Mercedes can.

This complimentry relationship between BMW and MB is why IMO Audi has never been able to gain any serious ground in the U.S. market. Not as sporty as BMW, not as luxurious/comfortable as a Mercedes across the board, RS and other exceptions noted.


M

 

[EnI]

Because they consistantly deliver the goods in the entry-level and mid-level market segments: some of, if not the sportiest cars in their respective segments.

This is also why BMW can't command or get the prices at the top end like Mercedes can.

This complimentry relationship between BMW and MB is why IMO Audi has never been able to gain any serious ground in the U.S. market. Not as sporty as BMW, not as luxurious/comfortable as a Mercedes across the board, RS and other exceptions noted.


M

WOW!






You're an extremely smart guy, and I knew you would be able to finally get it someday.



So, now you get it, it's time to please stop talking about BMW supercars & sports cars ... since that's not the case. As you nicely said it: BMW brand has a sporty image due different reasons (sporty base / core line), not due some special sports car.

M's are just further image boosters.

Mind BMW are not Porsche. BMW reputation is built on sporty sedans, sedanish coupes, wagons, shooting brakes. Not on sports cars like in the Porsche case. That's why BMW don't necessarily need lots of special cars (like super coupes, or supercars, or large roadsters) to retain sporty image. All they need to do is to cater sporty cars across the whole line - no matter of the shape & type of the vehicle (incl. SUVs & crossovers!!!). And all resources have to concentrated there - because if BMW loses the base line battle to another premium manufacturer, then the BMW sporty image is endangered.

And as you recognized the issue correctly: BMW do not have the luxury image MB have. Therefore BMW wanted to launch CS GT, but in this recession times that's not a good idea since the car won't meet its objectives (boost BMW luxury image). But when this crisis is over in some years (and if BMW survived) be sure CS GT will be revived instantly.

 

[justanthony]

I have to say i agree with some of Eni's above post. Traditionally, BMW have never had a 'halo' car priced in 'stratosphere' range. They've always just done what they do, well, rather very well i have to say i.e sporty sedans that are fun to drive. AND lets be fair, with each new model that has replaced an older version, you have to say that tradition has continued.

SUV's or not, BMW sporty image isnt going anywhere anytime soon

 

[Merc1]

WOW!






You're an extremely smart guy, and I knew you would be able to finally get it someday.



So, now you get it, it's time to please stop talking about BMW supercars & sports cars ... since that's not the case. As you nicely said it: BMW brand has a sporty image due different reasons (sporty base / core line), not due some special sports car.

M's are just further image boosters.

Mind BMW are not Porsche. BMW reputation is built on sporty sedans, sedanish coupes, wagons, shooting brakes. Not on sports cars like in the Porsche case. That's why BMW don't necessarily need lots of special cars (like super coupes, or supercars, or large roadsters) to retain sporty image. All they need to do is to cater sporty cars across the whole line - no matter of the shape & type of the vehicle (incl. SUVs & crossovers!!!). And all resources have to concentrated there - because if BMW loses the base line battle to another premium manufacturer, then the BMW sporty image is endangered.

And as you recognized the issue correctly: BMW do not have the luxury image MB have. Therefore BMW wanted to launch CS GT, but in this recession times that's not a good idea since the car won't meet its objectives (boost BMW luxury image). But when this crisis is over in some years (and if BMW survived) be sure CS GT will be revived instantly.

I don't know if my chain is being yanked here or not. But anyway, EnI none of this is because BMW "needs" a halo car. From my perspective I'd just for once would like to see what BMW can do with a clean sheet of paper and a sports car brief. Thats all. They don't need a supercar, who does in the luxury segment? No one. BMW has a sporty image true, but if they wanted to reach the prestige/status and the ability to command true high-end prices of say Mercedes-Benz they need something besides sedans/wagons/crossovers/regular coupes, IMO. At the head of the table they stick out because they don't have a halo car, to some. There is nothing wrong with wanting BMW to build a sports car just like you think there is nothing wrong with yet another crossovers/SUV.


M

 

[coolraoul]

BMW reputation is built on sporty sedans, sedanish coupes, wagons, shooting brakes. Not on sports cars like in the Porsche case. That's why BMW don't necessarily need lots of special cars (like super coupes, or supercars, or large roadsters) to retain sporty image. All they need to do is to cater sporty cars across the whole line - no matter of the shape & type of the vehicle (incl. SUVs & crossovers!!!). And all resources have to concentrated there - because if BMW loses the base line battle to another premium manufacturer, then the BMW sporty image is endangered.

Here I disagree. While I fully understand that BMW's image is not based on supercars, but on "making ordinary cars sporty", this very thing is just not possible with a SUV. When you see a 3er, it does not only feel sporty to drive. It also looks young and dynamic, it looks sporty. When you see a 3er, you can see it's a kinda sporty sedan. Same with the 5er (even if much less with the e60) and the 7er (bar the hideous fatty e65).
So BMW was not only driving more sporty, it also looked more sporty. But now, if half of the Beemers you see are fat SUVs or crossovers, this won't be the case any more. When you compare an e46 to a W203 and B6/7, well, one is obviously sportier and looks that way. It's not so obvious anymore with B8, e90 and W204. Furthermore, if you keep seeing sporty-looking Audi sedans, while the Beemers are in majority SUVs, guess who'll take the sporty role?

You know, people are not car-experts, and looks are a big part of the deal. They see the cars in the street or ads, and go check it, or they want this specific brand because of the image. BMW, by selling that much SUVs compared to the others, will look un-sporty compared to Audi, imo, and "loose" the image-battle.

BMW did not need halo-cars, because their only competitor was rusty-unreliable Alfa Romeo. Now this time is over, so BMW cannot do if it wasn't the case.

Of course it's only my opinion and I am no expert.

And as you recognized the issue correctly: BMW do not have the luxury image MB have. Therefore BMW wanted to launch CS GT, but in this recession times that's not a good idea since the car won't meet its objectives (boost BMW luxury image). But when this crisis is over in some years (and if BMW survived) be sure CS GT will be revived instantly.

Here I cannot agree. Why would the CS fail to boost BMW's luxury-image because of the crisis? It's especially in times of crisis, when such things as expensive cars are way harder to get than usual, that people dream the more about them. If you see the fabulous CS, you'll dream about it, crisis or not crisis. of course, it will get less clients so the project will loose money, but it sure would boost BMW's image.

The CS has been cancelled for money-reasons only. IMO. I can understand that, even if I think it's sad to see BMW that shy.

 

[EnI]

I don't know if my chain is being yanked here or not. But anyway, EnI none of this is because BMW "needs" a halo car. From my perspective I'd just for once would like to see what BMW can do with a clean sheet of paper and a sports car brief. Thats all. They don't need a supercar, who does in the luxury segment? No one. BMW has a sporty image true, but if they wanted to reach the prestige/status and the ability to command true high-end prices of say Mercedes-Benz they need something besides sedans/wagons/crossovers/regular coupes, IMO. At the head of the table they stick out because they don't have a halo car, to some. There is nothing wrong with wanting BMW to build a sports car just like you think there is nothing wrong with yet another crossovers/SUV.


M

As said many times: BMW decided to honor their F1 success with a true sports car. When it happens. And of course since F! is going somewhat green, and the whole industry as well - the new BMW sports car will be green as well.

Another reason when sports car can be launched is decreasing sporty image of BMW brand - which is not happening (yet). And if it happened, BMW would introduce another sports car of some sort.

Not sure what what's going to happen if the crisis continues ... Who knows.


@coolraoul (and Marcus as well)

Crossovers are in right now. Still. And offering sportiest models in the segment contributes to BMW image. If I want a sporty crossover I can get it from BMW - and this will increase BMW's sporty image in my eyes. Since eg. don't care about coupes, roadsters or sedans. Sporty crossover is all what I care about. And to retain sporty image BMW has an obligation to fill every emerging popular new segment with a sporty model. Mind the X5 ... New crossovers are no different.

Also: mind BMW has much less revenues than eg. Daimler or Audi or Lexus (supported by VW & Toyota). Therefore they have to prioritize more carefully. Core lines are most important. And so are the new emerging segments - enabling future growth. And so are the M icons: M3 & M5.

All the other projects are not a priority. And btw :when sports cars & roadster will be "in"again, believe me BMW will be the first to launch a bunch of such cars. But now still crossovers are in ... and in the next move micro-cars will be "THE" right models to launch.


Also mind that M GmbH is in very different position than AMG or Quattro. M GmbH produces & sells zillion times more cars than AMG & Quattro combined. AMG & RS cars are much more exclusive. Therefore they still run as boutique manufacturers, while M is much more mass manufacturer. And is considered as business, and not as hobby.

I wonder if AMG & Quttaro are profitable at all ... Or core companies consider these divisions as "marketing expenses" ...

 

[coolraoul]

It's always interesting to discuss with you EnI... Even if we rarely agree...
Concerning the SUV/crossovers thing, I think that BMW (like all others) had big hopes for them as these vehicles were selling like hot cakes... So they decided to produce them when they were completely in.

Now they are not any more (or still are but soon won't, depending on the market), but these projects were just finished, so no way they could be cancelled. Therefore the SUV/Crossover offensive now, at BMW...

Daimler did not release that much SUVs because they were fighting with other problems, so GLk very late and nothing more in advanced stage. Also, BMW is smaller and more reactive sometimes, so they jumped in the SUV wagon very quickly while Daimler was not so fast.

Concerning Audi, well they are usually ten years behind all the others to enter a nich market, so no wonder here.

However, given 1) the crisis and 2) lower than expected sales previsions for all the SUV/Crossover, and 3) high lease rate, so risks in the future, BMW decided to play it safe: cancel the non-core products, focus on green techs, and too bad for the "passion".

Daimler is less exposed to the lease-risk, and has a bigger financial surface, less SUVs prone to see the sales fall, thus are less shy. Audi, well, with VWAG and Porsche behind them...

I find it very sad, but quite logical. However as a car-fan, I strongly regreat tha BMW doesn't "dream" any more, and is very much "business-focussed". it's a company driven by its financial arm, like many others, while it was driven by empassionated engineers before.

It's not a supercar-time right now, and BMW missed the opportunity when they were still on the right track. Now with the crisis, we'll have to wait a bit to see new passion-cars emerge...

 

[warot]

I have to say i agree with some of Eni's above post. Traditionally, BMW have never had a 'halo' car priced in 'stratosphere' range. They've always just done what they do, well, rather very well i have to say i.e sporty sedans that are fun to drive. AND lets be fair, with each new model that has replaced an older version, you have to say that tradition has continued.

SUV's or not, BMW sporty image isnt going anywhere anytime soon

They did actually have a few halo cars so to say... they were called the M1 and 8 series. How successful were they?

While the R8 did good things to Audi (especially during superbowl last year), I personally think that BMW's sporty image is still extremely positive everywhere. Cars like the 135i, the M3 and the 335i, not to mention possible tii versions are doing plenty of talking by themselves.

I mean this might sound fanboyish, but the fact that the M3 has been pretty much cleansweeping every comparison test creates tons of discussion. Imo, you can dream about owning an R8 all day (and I'm sad to break this news to you, you probably won't in your life time), but the M3 is much more attainable... making it a more important car. My 2 cents.

Oh and coolraul... I dare you to go to the ///M headquarters and tell them they are impassionate engineers...

 

[LaArtist]

^That just made me think about something

M1
8 series
Z8

Thats the halo cars from BMW so far.. I dont remember the M1..but arent all of these failures ?
I wonder why?

Cause here at the board.. almost everyone loves those 3 cars..
Especially me..

I wonder why expensive BMW´s dont go down well with ppl...hmmm

 

[coolraoul]

Oh and coolraul... I dare you to go to the ///M headquarters and tell them they are impassionate engineers...

I'd love to enter //M's headquarters!!

However, I'm sure that people @ M dream of something else than an X5M, and I KNOW that they would do anything to convince BMW to build an M3 CSL... So in fact, I'd love to see more M engineers at decision stake in BMW .

It's more the other BMW people that I would have to convince, than M people, imo.

 

[EnI]

^That just made me think about something

M1
8 series
Z8

Thats the halo cars from BMW so far.. I dont remember the M1..but arent all of these failures ?
I wonder why?

Cause here at the board.. almost everyone loves those 3 cars..
Especially me..

I wonder why expensive BMW´s dont go down well with ppl...hmmm

Exactly. All the BMW's halo cars were (business) failures ... And I'm sure it's the same case with similar cars by other brands. Such cars are a marketing investments (into image boost).

M1 was available in the middle of economic crisis in the 70s ... Not a good time for a supercar, don't you think?

8er was not sporty enough - it was a pricey & heavy V12 coupe with driving dynamics not worthy of BMW badge. All these characteristics led to failure. Also: BMW image wasn't linked to luxury at that times, so 8er was not considered seriously.

Z8 ... too retro, too disconnected to BMW design, not sporty enough, too expensive for a BMW.

Mind BMW brand is more linked to "civil" sporty vehicles like (mainly) sedans (4dr & 2dr). Not about special sporty cars. Therefore any BMW roadster & GT coupe is considered a bit exotic for contemporary BMW.

Wagons in the 80s, hatchcbacks, SUVs & crossovers in recent years are just an attempt to expand the business. Eg. If roadster of any sizes were popular, BMW would build roadsters insted.

It's always interesting to discuss with you EnI... Even if we rarely agree...
Concerning the SUV/crossovers thing, I think that BMW (like all others) had big hopes for them as these vehicles were selling like hot cakes... So they decided to produce them when they were completely in.

Now they are not any more (or still are but soon won't, depending on the market), but these projects were just finished, so no way they could be cancelled. Therefore the SUV/Crossover offensive now, at BMW...

Daimler did not release that much SUVs because they were fighting with other problems, so GLk very late and nothing more in advanced stage. Also, BMW is smaller and more reactive sometimes, so they jumped in the SUV wagon very quickly while Daimler was not so fast.

Concerning Audi, well they are usually ten years behind all the others to enter a nich market, so no wonder here.

However, given 1) the crisis and 2) lower than expected sales previsions for all the SUV/Crossover, and 3) high lease rate, so risks in the future, BMW decided to play it safe: cancel the non-core products, focus on green techs, and too bad for the "passion".

Daimler is less exposed to the lease-risk, and has a bigger financial surface, less SUVs prone to see the sales fall, thus are less shy. Audi, well, with VWAG and Porsche behind them...

I find it very sad, but quite logical. However as a car-fan, I strongly regreat tha BMW doesn't "dream" any more, and is very much "business-focussed". it's a company driven by its financial arm, like many others, while it was driven by empassionated engineers before.

It's not a supercar-time right now, and BMW missed the opportunity when they were still on the right track. Now with the crisis, we'll have to wait a bit to see new passion-cars emerge...

Yes, it's not the right time for either supercar nor a completely new flagship. Both need a lot of resources, which are now desperately needed in other places.

Perhaps some core base (which is in minority!!!!) feels a bit disappointed & inferior due all the sporty cars coming from the direct competitors, while BMW are standing still. BUT catching up with BMW has been present for a while now. After M also AMG & RS appeared, now also F by Lexus etc Generally more sporty core cars as well - following BMW formula. And BMW still manages to be the sportiest brand in the segment. And will continue to be so ... until some brand outdoes the core BMW line like 3er, 5er. 7er. E60 7er proved it can be beaten (eg. by A8). So did some Japanese models come closer to 5er & 3er.

Therefore it's more important to enhance the core models - and not let the rivals to endanger BMW primacy in sportiness.

Regarding SUVs & crossovers ... Yes, today they seem a completely illogical move ... but they weren't few years ago when the projects got green light.
Also: nothing is lost yet. These cars has more value added (and are more profitable) than core lines. And if these cars are paired with efficient engines & hybrid drives soon enough, I'm sure they will sell like hot cakes.

Yes, I'm sure large cars will be less popular than smaller ones, but large cars will still be available, and will sell. But in lower volumes. So, small is beatuful will be the new motto - in any shape (incl crossovers & SUVs). Huge SUVs are more problematic though - since they are mainly US phenomenon.

And I also doubt people will stop liking crossovers- since many of them are sick of sedans, and find classic SUVs & MPVs too big & too dorky.

The crucial point is to offer clean & efficient drives in as many models as possible. And BMW is doing right that ... Redirecting all resources into EfficientDynamics - to offer cleaner & more efficient drives sooner than initially planned. And they are already head of Audi, Lexus & MB - which only offer limited & special EfficientSomething models.

Mind the hybrid solutions BMW (and MB) developed are modular - meaning they can be placed in any model. And all the new models coming are designed to incorporated the hybrid tech. And the SCR tech for diesels as well.

BMW product placement is just OK, the only problematic thing is the money. Revenues are falling sharply - and so is the profit. New money (loans) is not available, so the business can be hurt deeply. But that's everybody's case not just BMW's.

Regarding product placement ... I'm more concerned about Audi. Which will in a year or two have 7 sedans of different lenghts & roof shapes in the product portfolio.

A4, A5 Sportback, A6, A6 LWB (in China only), A7 Sportback, A8, A8 LWB.

All being long between 4.5m and 5.2m. And of very similar design / styling.

At least BMW SUVs / crossovers won't be as similar.
X1 vs X3 vs X5 vs X6 vs PAS.



*******

Btw, Germany officially announced earlier today their economy is in recession. And so is the Eurozone.
And it was said automotive industry would be hurt the most - especially the companies exporting heavily in US and Far East. Hint: mainly BMW & Daimler / MB.

 

[justanthony]

All this is getting tedious. BMW SUVs are NOT dampening their sporty image AT ALL. Infact they make some of the best handling SUVs on the market, as far as sporty trucks actually go. Also the rivals who are so-called waiting to nick the 'sporty crown' are releasing SUVs of their own arent they?

If BMW were neglecting their core principles in their principal market segments, then maybe there would be something to worry about. They arent! Infact, if im to be honest its getting 'better'. And its these core values that have bestowed the image BMW has today, and is maintaining. Canceled CS concept, SUVs or not