Car Chat General discussion about Lexus, other auto manufacturers and automotive news.

BMW Luxury Lead Threatened by Lexus, Stagnant Margins (Bloomberg)

Thread Tools
 
Search this Thread
 
Old 05-07-07, 09:24 AM
  #31  
doug_999
Lexus Champion
 
doug_999's Avatar
 
Join Date: Dec 2002
Location: IL
Posts: 2,854
Likes: 0
Received 0 Likes on 0 Posts
Default

Couple of facts here (correct me if I'm wrong...)

First off for the BMW haters on the thread (and yea, there are three of you on page#1 who are all "condescending and arrogant towards any brand other than Toyota/Lexus").....Porsche charges for metalic paint on the $72K 911. BMW charges for Metalic on the 3-series and X3 only - so drop it ok?
(to be clear, the OP is not a BMW hater).

Now, isn't BMW still one of the more profitable car companies when measured in profit per car? Did they fall of the list? If so, I missed it...

Next, yes, I hate to tell ya, but the 5-series was a direct competitor to the old LS - at least in terms of cost. Speaking of cost, as I've pointed out, BMWs tend to be darn expensive and therefore the lease money factors are often subsidized (that's where the $4K comes form kids).

While this is ClubLexus, I have to tell you, I've never been on a board where there were some people so bent on seeing BMW fall. Can I ask why people hate this brand so much?
doug_999 is offline  
Old 05-07-07, 09:44 AM
  #32  
AzNMpower
Lead Lap
 
AzNMpower's Avatar
 
Join Date: Aug 2006
Location: VA
Posts: 513
Likes: 0
Received 1 Like on 1 Post
Default

Originally Posted by doug_999
While this is ClubLexus, I have to tell you, I've never been on a board where there were some people so bent on seeing BMW fall. Can I ask why people hate this brand so much?
Actually I've seen worse. Car and Driver forums was a mess. You couldn't post anything about BMW without some hater responding within 2 minutes. CL is okay.

It does bring up a good point though. Um, why doesn't anyone hate on Mercedes?
AzNMpower is offline  
Old 05-07-07, 09:51 AM
  #33  
-J-P-L-
Lexus Fanatic
 
-J-P-L-'s Avatar
 
Join Date: May 2003
Location: Massachusetts
Posts: 7,864
Likes: 0
Received 0 Likes on 0 Posts
Default

Originally Posted by doug_999
........
Next, yes, I hate to tell ya, but the 5-series was a direct competitor to the old LS - at least in terms of cost. Speaking of cost, as I've pointed out, BMWs tend to be darn expensive and therefore the lease money factors are often subsidized (that's where the $4K comes form kids).

While this is ClubLexus, I have to tell you, I've never been on a board where there were some people so bent on seeing BMW fall. Can I ask why people hate this brand so much?
The old LS may have been at the price points of the 5-series but it competed more with the 7 and S-class. Lexus just gave way more car for the money.
Because remember, the GS was there to compete with the 5-series.


As for the "BMW haters", I'm sure we have some people that dislike BMW over here. But go to a BMW forum and look at how Lexus is talked about.

BMW people still have nothing better to say about Lexus other than it being a "fancy Toyota". I think people here are more against the arrogance and superiorty complex behind BMW.
-J-P-L- is offline  
Old 05-07-07, 10:35 AM
  #34  
OC 335d
Lexus Test Driver
 
OC 335d's Avatar
 
Join Date: Oct 2006
Location: CA
Posts: 1,378
Likes: 0
Received 1 Like on 1 Post
Default

Originally Posted by JLSC4

As for the "BMW haters", I'm sure we have some people that dislike BMW over here. But go to a BMW forum and look at how Lexus is talked about.

BMW people still have nothing better to say about Lexus other than it being a "fancy Toyota". I think people here are more against the arrogance and superiorty complex behind BMW.
Perhaps, however, I think ClubLexus' Car Chat is held to a higher standard. There is much more moderation here and in general, the moderators do a good job of keeping the forum civilized. JLS, there's plenty of us on the BMW forums that defend Lexus and say they are great cars as well. I think this is due to the fact that people cross shop the two and many BMW owners own Lexus and vice versa. There does seem to be more leeway when people say negative things about BMW owners but I guess that comes with the territory.
OC 335d is offline  
Old 05-07-07, 04:53 PM
  #35  
TRDFantasy
Lexus Fanatic
 
TRDFantasy's Avatar
 
Join Date: Jan 2005
Location: A better place
Posts: 7,285
Likes: 0
Received 0 Likes on 0 Posts
Default

Originally Posted by doug_999
OMG - I think you are serious.....

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.....
I am comparing it to other companies. Would you like me to compare BMW's profits to both Mercedes and to Lexus? Because compared to either brand, BMW's profits don't look so hot. Or would you rather compare the profit margins of Mercedes-Benz and Lexus to that of BMW?
TRDFantasy is offline  
Old 05-07-07, 09:52 PM
  #36  
TRDFantasy
Lexus Fanatic
 
TRDFantasy's Avatar
 
Join Date: Jan 2005
Location: A better place
Posts: 7,285
Likes: 0
Received 0 Likes on 0 Posts
Default

Originally Posted by doug_999
Couple of facts here (correct me if I'm wrong...)

First off for the BMW haters on the thread (and yea, there are three of you on page#1 who are all "condescending and arrogant towards any brand other than Toyota/Lexus").....Porsche charges for metalic paint on the $72K 911. BMW charges for Metalic on the 3-series and X3 only - so drop it ok?
(to be clear, the OP is not a BMW hater).

Now, isn't BMW still one of the more profitable car companies when measured in profit per car? Did they fall of the list? If so, I missed it...

Next, yes, I hate to tell ya, but the 5-series was a direct competitor to the old LS - at least in terms of cost. Speaking of cost, as I've pointed out, BMWs tend to be darn expensive and therefore the lease money factors are often subsidized (that's where the $4K comes form kids).

While this is ClubLexus, I have to tell you, I've never been on a board where there were some people so bent on seeing BMW fall. Can I ask why people hate this brand so much?
Profit per car is not as important as overall profit.

The universe has a way of balancing itself out ... after many years of arrogance and condenscending attitude from BMW execs and owners towards a lot of the competition ... now the criticism is being launced at BMW. And why not? Lexus is not immune to criticism, far from it. Lexus is not perfect, and neither is BMW. Why should BMW be spared criticism?
TRDFantasy is offline  
Old 05-08-07, 12:04 AM
  #37  
Mr. Jones
Lexus Test Driver
 
Mr. Jones's Avatar
 
Join Date: Aug 2006
Location: tx
Posts: 1,015
Likes: 0
Received 0 Likes on 0 Posts
Default

Originally Posted by doug_999
Porsche charges for metalic paint on the $72K 911. BMW charges for Metalic on the 3-series and X3 only - so drop it ok?
(to be clear, the OP is not a BMW hater).
i'm far from crazy about Porsche

Originally Posted by doug_999
While this is ClubLexus, I have to tell you, I've never been on a board where there were some people so bent on seeing BMW fall. Can I ask why people hate this brand so much?
you have quite an imagination, nobody said anything about BMW failing. And Toyota hasn't reported their earnings yet.
Mr. Jones is offline  
Old 05-08-07, 04:26 AM
  #38  
geko29
Super Moderator

 
geko29's Avatar
 
Join Date: Feb 2007
Location: IL
Posts: 7,894
Received 300 Likes on 230 Posts
Default

Originally Posted by TRDFantasy
Profit per car is not as important as overall profit.
Why not? If car manufacturer A sells 20,000 cars a year and makes $4,000 per car, while company B sells 1,000,000 cars per year but only makes $500 apiece, which one is in better financial position? Company B has 6 times the overall profit, but in all likelyhood, it's a 30-40x bigger company. Personally I put more stock in company A's future.
geko29 is online now  
Old 05-08-07, 07:22 AM
  #39  
Tekknikal
Lead Lap
 
Tekknikal's Avatar
 
Join Date: Nov 2002
Location: VI
Posts: 517
Likes: 0
Received 0 Likes on 0 Posts
Default

imo MB has to worry about lexus much more than BMW.
Tekknikal is offline  
Old 05-08-07, 09:46 AM
  #40  
STIG
Lexus Test Driver
 
STIG's Avatar
 
Join Date: Jan 2004
Location: SF
Posts: 6,467
Likes: 0
Received 0 Likes on 0 Posts
Default

Yup, BMW sucks. I hope they bankrupt after they deliver my E90 //M.
STIG is offline  
Old 05-08-07, 09:52 AM
  #41  
spwolf
Lexus Champion
 
spwolf's Avatar
 
Join Date: Jan 2005
Posts: 19,923
Received 161 Likes on 119 Posts
Default

Originally Posted by bitkahuna
Great article. .

$4k discounts in US go in line with recent report in German media how BMW sells 70% of their cars to fleets in Germany (same goes to MB), and that average discount for 3 series is 30% (!!!)...
spwolf is offline  
Old 05-08-07, 09:58 AM
  #42  
LexFather
Guest
 
Posts: n/a
Default

Originally Posted by Tekknikal
imo MB has to worry about lexus much more than BMW.
Lexus is gearing towards more BMW oriented cars as of late. I am not saying BMW like cars or even BMW beating cars. Lexus cars are getting more styling, faster and sportier.
Mercedes is the past, BMW is the future.

This is not a BMW bash thread and no one should interpret it as such and no one should be bashing BMW. BMW is in great shape and clearly a lot of car makers take their cues.

If you are that upset, I suggest writing an e-mail to the WRITER of the article.
 
Old 05-08-07, 10:02 AM
  #43  
spwolf
Lexus Champion
 
spwolf's Avatar
 
Join Date: Jan 2005
Posts: 19,923
Received 161 Likes on 119 Posts
Default

Originally Posted by TRDFantasy
I am comparing it to other companies. Would you like me to compare BMW's profits to both Mercedes and to Lexus? Because compared to either brand, BMW's profits don't look so hot. Or would you rather compare the profit margins of Mercedes-Benz and Lexus to that of BMW?
to be fair, we dont know what Lexus profits are... we do know that Toyota has around 8% margin per car and that Porsche has 11%-13%... So while 5.xx of BMW is great compared to GM and PSA, it is not that good compared to Toyota and Porsche...
spwolf is offline  
Old 05-08-07, 10:04 AM
  #44  
LexFather
Guest
 
Posts: n/a
Default

I dunno guys, they fell only one quarter, far from the end of the world. They are still very profitable. I think its Porsche, BMW, Nissan then Toyota for profit the last couple years.

BMWs are very very profitable.
 
Old 05-08-07, 10:24 AM
  #45  
TRDFantasy
Lexus Fanatic
 
TRDFantasy's Avatar
 
Join Date: Jan 2005
Location: A better place
Posts: 7,285
Likes: 0
Received 0 Likes on 0 Posts
Default

Originally Posted by geko29
Why not? If car manufacturer A sells 20,000 cars a year and makes $4,000 per car, while company B sells 1,000,000 cars per year but only makes $500 apiece, which one is in better financial position? Company B has 6 times the overall profit, but in all likelyhood, it's a 30-40x bigger company. Personally I put more stock in company A's future.
Exactly my point. Without knowing overall volumes of each company, profit per car is pointless. Porsche and BMW make a very nice profit per car, more than Toyota on average. But keep in mind Porsche and BMW are niche automakers, they are not major automakers. Does Porsche and BMW make more profit per car than Lexus? That's another story. And looking at overall profits we all know that even with the nice profit-per-car that Porsche and BMW enjoy their overall profits do not match Toyota.
TRDFantasy is offline  


Quick Reply: BMW Luxury Lead Threatened by Lexus, Stagnant Margins (Bloomberg)



All times are GMT -7. The time now is 04:56 AM.