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      08-30-2012, 05:32 PM   #136
Matski
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Quote:
Originally Posted by Red Bread View Post
So you buy the hype? Count me as one that doesn't. BMW may increase their sales over the short term, but I strongly suspect that they will start to see (if they haven't already) a decline in customer retention.
It's not about hype - I wasn't referring to whether or not the GT will be a sales success. But, I believe you are totally missing some key points when judging the costs and profitability of developing these new models, and I think you totally under-estimate BMW's ability to manage these costs and exploit potential savings, not least in economies of scale/spreading fixed costs.

Quote:
Porsche is a fantastic example (if you ignore their epic fail of trying to buy VW) of how to expand your product lines while keeping focused on your core product. Few will argue that the 991 and 981 aren't better than the one or two generations before them, while they've added trucks and sedans to their product line. They kept their core customers happy and brought in new ones with new product.
Yes, Porsche are also a great example of how people over-react - thinking the world will end when their beloved brand diversifies,.. and then it all turns out fine! And also how lower volume vehicles can still be highly profitable.

Quote:
BMW did this with MINI and start of the X line, but appears to think they can duplicate this trend by making fwd BMW's, which I think will likely go down in history as a tragically poor decision, as will the continued fragmentation of the core product line at the expense of the core product.
Only time will tell if FWD work out or not, and I agree it's a massive risk, and also.. of all their new models over the last 40 years, it's the one I find least desirable.

It's not BMW diversifying and adding to it's core range that it is the risk at all as far as I'm concerned, it's when they meddle with existing products that causes the problem, IMO. (edit ~ I can totally understand why Americans feel that withdrawing the Touring, and offering the GT instead IS meddling with existing products, but you have to understand, this ONLY relates to the US market - (and that's a situation triggered by an obvious statistical dislike of Tourings by Americans) - and it doesn't actually impact on the validity of the GT as a model that people may or may not want to buy).

When the 3er becomes FWD only, I'll join you all in the riots outside the Four Cylinder building. Until then, I'll be enjoying the choices.

Last edited by Matski; 08-30-2012 at 05:39 PM..
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