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The BMW brand is a world market seller and makes it's money on selling luxury vehicles that sell. The M Performance division is just a way to make them standout in the sporting car world. And they do a very good job in just that. What true BMW does is sell a car for the masses that appeals both in visual cues and desire to have. What's more, like in the USA, they have a strong financial service that allows medium income people/families to own a BMW vehicle. It is far easier to lease a BMW then some other luxury brands when compared to other companies residual values.
As far as the M division of BMW is concerned. They must take the corporate vehicle strategy and use that as their base platform. The M division uses it's history as a sports car leader to help sell BMW, and the reason why you can get M Performance designation on just about every line of vehicle they sell today. Personally, the M has loss it's true sports car mystic as a track killer over last decade or so. If the corporate office keeps increasing sales (as seen recently in the US market) they will keep building cars the way they are. Purest of the M brand take a backseat to the success of the company and it's revenue.
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