BMW Luxury Lead Threatened by Lexus, Stagnant Margins (Bloomberg)
05-06-07, 04:02 PM
#17
I've seen BMW change over the last 8 or 9 years, and actually, the prices haven't gone up as much as I'd expected. I remember back 4 or 5 years ago when I was building a 325i on their website, the MSRP was around $27k. You added on foglights, automatic headilghts, moonroof, and wood trim. Did I care? no. With the redesign of the E90, I remember telling my friend "I think it'll start around $35k". Boy was I shocked when the MY 2006 325i came out listing for $30 and a half, along with all the extra goodies like dual zone climate control, automatic headlight control, moonroof, and no-cost interior trim choices, and all the additional safety features. I thought "Wow BMW is playing the value game!"
Honestly, I could do without all the fancy features. I don't need 6 brake-related features (brake drying, hill hold assist, etc etc). I don't mind single-zone auto climate or manual temperature controls for that matter. I like a moonroof, but that really is a feature that few people use often. Charge 'em extra for aluminum or wood trim like they do in Europe. No need for power seats either, and the leatherette feels fine. Give me sport package, adaptive xenons, and maybe the Logic7 if I have the cash. That's it.
BMW charges for options a la carte in Europe and the base prices are higher. But they get far more choices in terms of options (like High Beam assist or a sliding front armrest for starters) and colors. I wouldn't mind more choices; I'll pay for them in fact.
05-06-07, 05:59 PM
#18
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This is true for all brands. These kind of fans and dealers exist everywhere, not just BMW.
05-06-07, 06:16 PM
#19
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Isn't that asking a lot?
Next, you'll be asking for visors!
Anyway, BMW states that they are focusing on overcoming Lexus sales with new offerings. They should realize how difficult it will be to hit a fast moving target.
05-06-07, 06:24 PM
#20
Well, you have a few posters who always say something negative about BMW judging by the history of their posts. It's more likely that a BMW owner will want leatherette and manual seats than a Lexus owner. Lexus packages everything in large packages where you pay for somethings you don't want. BMW allows you to pick exactly what you want.
05-06-07, 08:27 PM
#22
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Written as a BMW fan (I LOVE my 3-series!):
WTF?? How does the 5-series compete with the LS? They're COMPLETELY different cars! I can comprehend someone cross-shopping the LS with the 750iL. Then it's a matter of whether you want a bit more luxury or a bit more sport. But the 5 is a LOT smaller, a LOT sportier, and a LOT less luxurious than the LS. They might as well compare a Ford Focus to the Audi S6.
WTF?? How does the 5-series compete with the LS? They're COMPLETELY different cars! I can comprehend someone cross-shopping the LS with the 750iL. Then it's a matter of whether you want a bit more luxury or a bit more sport. But the 5 is a LOT smaller, a LOT sportier, and a LOT less luxurious than the LS. They might as well compare a Ford Focus to the Audi S6.
05-06-07, 08:45 PM
#24
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Written as a BMW fan (I LOVE my 3-series!):
WTF?? How does the 5-series compete with the LS? They're COMPLETELY different cars! I can comprehend someone cross-shopping the LS with the 750iL. Then it's a matter of whether you want a bit more luxury or a bit more sport. But the 5 is a LOT smaller, a LOT sportier, and a LOT less luxurious than the LS. They might as well compare a Ford Focus to the Audi S6.
WTF?? How does the 5-series compete with the LS? They're COMPLETELY different cars! I can comprehend someone cross-shopping the LS with the 750iL. Then it's a matter of whether you want a bit more luxury or a bit more sport. But the 5 is a LOT smaller, a LOT sportier, and a LOT less luxurious than the LS. They might as well compare a Ford Focus to the Audi S6.
They later mention the new LS in an appropriate context.
?
05-07-07, 07:34 AM
#28
M3, yes. The SMG in the M5 really cannot be tolerated in daily traffic. Then again, there's the 3 pedal manual for the US so I guess that's no excuse.
05-07-07, 09:05 AM
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... compared to the estimated net profit of over 13 Billion USD that Toyota will announce in a few days. Less profit means less freedom in terms of devoting resources to R & D.
Yeah, 4.12 Billion Euro in pre-tax profit sure sounds like a lot ... and then you look at their net profit which was $800 million USD for the first quarter. Extrapolated, that's a 2.4 Billion USD annual net profit, a far cry from the misleading figure of the pre-tax profit.
Dropping profits are a warning sign that tells a company they should be cautious and look carefully at their operations and competition. Let's hope BMW doesn't still possess an ignorant mentality and that they take this profit drop seriously.
Yeah, 4.12 Billion Euro in pre-tax profit sure sounds like a lot ... and then you look at their net profit which was $800 million USD for the first quarter. Extrapolated, that's a 2.4 Billion USD annual net profit, a far cry from the misleading figure of the pre-tax profit.
Dropping profits are a warning sign that tells a company they should be cautious and look carefully at their operations and competition. Let's hope BMW doesn't still possess an ignorant mentality and that they take this profit drop seriously.
Look at the reasons for the shortfall - they are valid. Now look again at the profit and compare it to other car companies - in fact, compare it per car sold if you want.....
Last edited by doug_999; 05-07-07 at 09:13 AM.