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      10-22-2014, 06:20 AM   #59
Matski
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Quote:
Originally Posted by Jai 302 View Post
I agree. We've all heard it a million times by now. BMW needs more low end models to survive etc because Audi has VW and BMW has nothing to compete with VW models. If BMW's competition is now VW then I suggest anyone interested in buying a 'premium' car should switch to a real premium brand such as Porsche or Mercedes. Before anyone says Mercedes is also making lower end cars such as the CLA and GlA, they're also making cars like the V12 AMG's and Pullmans at the top of the range to offset the image created by cheaper cars. But of course BMW has the excuse that they can't compete with Rolls Royce. RR starts at nearly $300k so where's the $200k BMW?! Resting on its laurels for too long is going to cost BMW big time in the near future. I can safely say that I've bought my last BMW if things continue the way they are right now. Of course BMW couldn't care less about losing one customer but something tells me there's a lot more people who share my point of view.
I think you entirely misunderstand the situation with VW. BMW's competition at every level comes from VW Group products. Be it Mini, BMW or Rolls Royce, they have competition from VW, Skoda, Seat, Audi, Porsche or Bentley (not forgetting that VW also directly/indirectly own Lamboghini and Bugatti, as well as MAN and Scania for further revenue). The problem isn't so much that BMW's products do/do not compete with VW badged products it's that VW can do pretty much anything they want within their group of companies, and target whoever and whatever they want. BMW is bookended by two relatively niche brands, to increase core sales BMW Group has to introduce more models with it's BMW brand, it does not have the choice or flexibility that VW do, and they cannot do it as profitably, because they do not get the economies of scale that VW group does.

And so you could say it's not all about sales or profit. That's a great ideal to have, but thanks to its share structure I believe* around half the company is basically up for sale at any one time. If they don't generate profits, shareholders sell, if shareholders sell, what's to stop VW/Porsche or any of it's main investors or holding companies buying them up. Think it won't happen? Maybe, maybe not, but BMW nearly once ended up being swallowed up by Daimler-Benz, and even in this era, BMW current sharegholders had to block a move by VW to buy into SGL Carbon (pretty crucial for BMW). This isn't so much an issue for the likes of Audi, because they have no public shareholders at all, they report only (99.5%) to VW. And VW themselves have never had so much of a problem in the past because of protected "state of lower Saxony" shares in VW meaning historically it was never worth anyone else trying to take control of them. Just look at the VW vs. Porsche ownership debacle.

Like it or not, BMW has to react to the market, and it has to do so in a way that some people don't like. It simply cannot behave like it's competitors because it's not big enough and it's group structure just isn't comparable.

... and BMW does seem to be addressing the issue with the range at the top now, with talk of the '9' series (Vision Future Luxury), and associated body styles (a coupe - Gran Lusso), as well as the X7. Perhaps it doesn't happen as fast as you like, but they can't just simply magic these things up over night, the low end models are required to fund the bigger models, it simply can't happen any quicker the other way around.

No doubt some will argue that BMW-i was a waste of money that could have been spent elsewhere, but the fact is, even if they discontinued the i3 and i8 after one generation, they research and development, the techniques, the equipment and the facilities can be carried over into every single other car they make.

As for Mercedes, I can only assume that also selling trucks and buses, along with decades of selling compact FWD hatchbacks, along with platform and engine sharing with likes of Chrysler gave them enough of a leg-up to keep producing so many top-end cars, whilst at the same time loosing in the sales race to both Audi and BMW.

So, guess what.. BMW forms a partnership with Toyota to enable them to do a similar thing... and what happens... you lot Bitch and Bleat about it constantly.

Maybe some people here think we just live in an ideal world, or perhaps I'm being to generous... maybe they're just short-sighted and narrow-minded.

Enjoy your next car, whatever it may be. The Mercedes S class Coupe looks great... it's probably either that, or a VW Group product.
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