[FCX5]

https://www.bmwblog.com/2021/06/22/b...vehicle-by-25/

[Vivek.]

Well, the value of my cars just went up.

[heavyD^2]

This probably means that future interiors will be touch screen everything and less individual options.

[frchdragon]

25% less cost = 25% more rattle
Will it mean a cheaper car for the buyer?

Already my F30 is rattling more than my E34 ever did...

[Vivek.]

Originally Posted by frchdragon

25% less cost = 25% more rattle
Will it mean a cheaper car for the buyer?

Already my F30 is rattling more than my E34 ever did...

I just got another e34 last week. Some guy bought it brand new in 1990 and garaged it til he died semi-recently, was passed to a family friend of his early 2020 and now I bought it.

Anyways my roommate was all bitching and moaning that I'm buying 'another old BMW' 'for no good reason'....til he rode in it and all but admitted its nicer than his tesla.

31 years 145k miles and not one single rattle.

Edit: I have the original window sticker and it's MSRP is the equivalent of $88k today (no options). 2021 540i starts under 60k

[TAZ007]

Originally Posted by frchdragon

25% less cost = 25% more rattle
Will it mean a cheaper car for the buyer?

Already my F30 is rattling more than my E34 ever did...

Not necessarily. A 25% production cost cut may mean a 12-15% EBITDA increase. Factoring in warranty holdbacks, it could mean a 2-3% take home profit.

It all depends on whether sales and repeat buyers are impacted.

[cfm56d7b]

Originally Posted by frchdragon

25% less cost = 25% more rattle
Will it mean a cheaper car for the buyer?

Already my F30 is rattling more than my E34 ever did...

This is an alarming trend. 25% more rattle might be a conservative estimate. Everything old is new again.

In 2002, GM began to decontent its vehicles.

https://www.autoweek.com/news/a21072...-low-end-cars/

Decontenting means removing parts / features which the customer is unlikely to use or even see. Fewer parts means fewer suppliers, lower production cost, less time spent on the assembly line.

When decontenting goes too deeply and affects important items a car buyer can't see, that's where one ought to be concerned.

https://www.thetruthaboutcars.com/20...-decontenting/

[pz619]

I’m sure BMW will be passing on the savings to us, the consumer. Just you count on it.

[chassis]

25% cost reduction is 99% attributable to electric mobility.

BMW has tipped their hand. All automakers are drooling all over themselves to move to EVs because of the very large cost reduction opportunity for them. I’m not expecting much, or any, of the cost reduction to benefit consumers.

[Mani59]

I would love to know what the 25% production cut cost would have on quality.

[Mach550]

Originally Posted by cfm56d7b

This is an alarming trend. 25% more rattle might be a conservative estimate. Everything old is new again.

In 2002, GM began to decontent its vehicles.

https://www.autoweek.com/news/a21072...-low-end-cars/

Decontenting means removing parts / features which the customer is unlikely to use or even see. Fewer parts means fewer suppliers, lower production cost, less time spent on the assembly line.

When decontenting goes too deeply and affects important items a car buyer can't see, that's where one ought to be concerned.

https://www.thetruthaboutcars.com/20...-decontenting/

When I was changing my rear bumper out I saw quite a bit of reinforcement framework that probably gives BMW the solid feel. I bet this is one of the things that will be dropped that won't be noticeable until you get in an accident.

[TAZ007]

Originally Posted by Mani59

I would love to know what the 25% production cut cost would have on quality.

Ask Toyota in the 90's.

[Mavus]

Originally Posted by Mani59

I would love to know what the 25% production cut cost would have on quality.

this is probably related to robotic assembly, painting etc and reduction in unique parts per model that may result in more boring mass produced vehicles. One example would be no more dct vs zf auto copy paste. Another big item is the material cost. Quality and reliability may be fine.

[briguy80]

An example of cutting costs was what Volvo did with their engines, by going to a single set of engines across all lines.

[omasou]

I'm guessing they are reducing costs by moving production to less costly locations, e.g. Mexico and by building cars with all options that are turned on and off. The later though it costs more in materials will reduce parts inventories and production line customizations.

My big question is the same as Mani59 ; will we the consumer see a financial benefit from these changes?

[Mavus]

Originally Posted by omasou

I'm guessing they are reducing costs by moving production to less costly locations, e.g. Mexico and by building cars with all options that are turned on and off. The later though it costs more in materials will reduce parts inventories and production line customizations.

My big question is the same as Mani59 ; will we the consumer see a financial benefit from these changes?

maybe but it depends more on supply and demand and market competition. each model line has projected margins. of course the main goal here is to increase profits while being able to produce competitve models at a desired price

[chassis]

Folks the net change from ICE to EV is what’s driving the cost reduction.

In: batteries and electric motors and electronics to control it.


Out: pistons, crankshafts, engine blocks, traditional transmissions and axles, and much more. And the expensive labor that is associated with it. And the foundries, machining centers and large factories. This is at the component and system level.

At the vehicle assembly level, EVs require less assembly labor.

EVs are a boon to automakers. They are a bane to many consumers at the present stage of technology.

[Vivek.]

Originally Posted by omasou

My big question is the same as Mani59 ; will we the consumer see a financial benefit from these changes?

The consumer already does see a financial benefit:

Originally Posted by Vivek.

I have the original window sticker [1990 535i] and it's MSRP is the equivalent of $88k today (no options). 2021 540i starts under 60k

[Humdizzle]

yup.. its because of EVs.

the cost cutting is already going on if you look for it. 10 years ago the M cars had the S85 V10 and its derivative the S65 V8. These motors weren't put into other cars (ok yeah there was the weismann but thats a rare example). Now you have N55/S55 or B58/S58 across a host of platforms paired with the ZF8 found in every BMW from a base 2-series to an M8.

[Germanauto]

Tesla really has, unfortunately to the chagrin of many enthusiasts, revolutionized the entire industry. I used to work there in 2012 and noticed three cost saving measures:

-EV powertrain. Pretty self-explanatory
-Besides steering wheel stalks and window switches, no other physical controls. Everything was on the screen
-Retail sales model. Not having to build dealerships, stock thousands of cars on site, cater to dealership unions, etc. Employees are paid retail wages instead of the higher salaries that dealership sales entails.

It's all pretty genius really. As an enthusiast I hate it, but I have to give credit where due.

[chassis]

Digital screen controls vs buttons and knobs are OK with me.

Extinguishing the ugly traditional dealer culture, replaced by a standard retail model would be cathartic.

I do, however, enjoy ICE engines. The sound, vibration and driving experience are enjoyable to me.

[Germanauto]

Originally Posted by chassis

Digital screen controls vs buttons and knobs are OK with me.

Extinguishing the ugly traditional dealer culture, replaced by a standard retail model would be cathartic.

I do, however, enjoy ICE engines. The sound, vibration and driving experience are enjoyable to me.

Agreed. But I do want buttons for basic things like HVAC, heated/cooled seats.

The only instance I could see myself in an EV is if they are able to make them significantly lighter and add some fake exhaust-type noise. Throwing in some fake paddle shifters to mimic ICE shifting would be a bonus. Sure my demands sound silly, but anything can be programmed into fruition.

I definitely would not missing standing in Costco gas line and shelling out $50 each week.