Is a Bigger BMW Better?

Biggerbmws
General Motors once vowed, "A vehicle for every purse and pocket."

Of course, creating so many divisions and models got GM into financial trouble when the number of its competitors grew so much as well and people dipped into pocket and purse to buy Toyotas and Hondas.

Now BMW, which sells about 300,000 BMW, Mini and Rolls-Royce vehicles annually, appears to want to benchmark GM: It's saying it will add six new models in the U.S. within the next few years in order to have products in segments in which it doesn't now compete.

Automotive News says BMW, which already has a small 1 Series on the way and just unveiled an X6 coupe crossover concept in Frankfurt, plans a small BMW crossover and two sedans, one priced above the current 7 Series; a Mini crossover; and two Rolls-Royce models. What, no pickup or minivan?

Both GM and Ford are criticized for having too many brands and models, yet BMW decides to expand?

Volkswagen is forecasting that its sales are going to explode to 1 million units annually soon, and both Audi and Hyundai say sales are going to skyrocket as well. And that doesn't take Toyota and Honda growth plans into account. So where are all these buyers coming from? Is a population explosion coming that only they know about?

Are buyers going to be those who GM or Ford have already lost? Doubt it.

"The industry already has too many mouths to feed," said Jim Hossack, vice president of AutoPacific, a research and marketing firm. "BMW add a model higher-priced than the 7 Series? Why? Mercedes-Benz added a Maybach and it didn't make any money. A small BMW crossover? Mercedes is adding a Smart, but it won't make money. If it isn't going to make a profit, why add more models? It's easy to add a new model, it's not so easy keeping it going for several years and making a profit at it."

GM, Ford and Chrysler found that out the hard way.

By Jim Mateja | October 2, 2007 | Comments (9)
Tags: BMW, Mini

Comments 

sulli

I totally agree with this, in fact I was recently talking to a friend who is a die hard BMW fan and he was complaining that he doesn't feel all that special or unique anymore because other BMW's are everywhere. Instead of getting a third X-5, he is considering an infiniti or Audi because they are not as common as BMW's are here in Houston. It almost seems like I see more 3 series than Camry's, but I guess that could just be my area of town.

Scott J.

Of all the manuacturers out there, I thought BMW would have the restraint to stick to its core offering and not overextend their brand. While their expansion appears to be less willy-nilly than M-B's (i.e. the R-Class) or Jeep (The Compass), they are heading down that same slippery slope.

Adam

I totally agree as well. BMW's are already far too popular as far as I am concerned. BMW needs to slow down. I see more 3 series than Civics around San Diego. If you are going to spend that much on a car, you shouldn't feel like a common Camry driver. I'll stick with Audi, they are better looking anyway in my humble opinion.

SAM

I am a BMW fan (from the car and the company)and i am very happy with their success. They are doing very well now, and they will be even better in the future.

Tom L

BMW does not need more models, they need fewer. Well, mainly, they don't need the X6, but thats it. If they try and go after lower priced markets they will not only hit stiff competition but a cultural barrier: BMW still has a "yuppie" image and few outside the professionals crowd want something with "BMW" on the nose. They just think the brand is arrogant. Truth is this probably has more to do with people who were once or still are loyal American brand owners that think there are real differences between an '00 Trans-am and a '00 Camaro, but oh well.

Also, BMW already has a car above the 7 series: Rolls Royce. Rolls Royce needs to adopt a few cues (but not all) from Maybach, like in-seat massagers and small refrigerators, not to mention reclining seats. But other than that Rolls Royce can stay the same. I would say it needs a powerplant upgrade though.

And between the 7 series and Rolls Royce there is the 7 series Individual, which would benefit from a new engine to compete with the Mercedes S600, but otherwise the Individual just needs better marketing and it will compete.

As for Mini, the brand works so well because Mini is just the original Mini. If I am driving a car from Mini, its the Mini. But if you start adding a Clubman and a SUV, then the car has names: I am not driving a Mini, its a Mini Clubman. Or a Mini Suv. "Mini" becomes a brand name when right now its all about the car.

JM

The new 1 Series is going to fly off the dealers lots. Everybody wants a little chunk of status, and since the new 1 is going to be lower prices than the 3, it will allow more people to purcahse a BMW. Plus, its got alot of the same technologies (iDrive, etc.) as the 3 series (and up). What BMW should have done is instead of putting the same engine in the 1 as in the 3 and 5, create an entirley new engine, perhaps a 4 or 5 cylinder, that will get great gas milage and make the vehicle less costly. They couldve even brough a V4 over here to the US.

Instead of the coupe-like, curvy SUV X6, they shouldve made a version of the X5 that was huge, and would compete with Mercedes' GL-Class.

I also think that Audis are better looking...they are a bit chaper too. The entry level A3 starts much lower than the (right now) 3 series. Even then, the A4 starts at less than the 3 series. The quality of the interiors is just about the same.

bowrider

I see a trend here. Cars are getting bigger and ironically, BMW is introducing the 1 Series that probably isn't much bigger than the 3 Series of the 90's. Correct me if I'm wrong.

Now the Accord is considered a full size sedan and you can get an Accord with more features than a 328 for thousands less. Toyota had to introduce the Yaris and Honda, the Fit, to satisfy a market that they eliminated by making the Civic and the future Corolla bigger. Subsequently, more models are being introduced and the market is saturated; consumers are confused. Auto retailers are making less money. But, I still don't know who is better off. I do know that Americans will continue to spend beyond their means.

Infosaur

Once upon a time,,,,

American car companies ruled over all.

"What are you gonna do? Buy a imported car? Har har har"

I think all of the "new crop" of "big" manufacturers seem poised to go over the same cliff.

Might be interesting to watch.

Jordan

Everyone complains about brands adding models but it seems that you all have a really short memory. Porsche and BMW and other manufacturers have all been at the brink of bankruptcy in the past and were unable to properly fund research and development for new high tech cars. With the addition of the Cayenne or X5 or Lexus RX350 or any car that didn't seem "Brand Loyal", these companies were able to profit tremendously and thus fund research on other cars like the 3 series or cayman or LS600. If you don't like what a brand is doing, don't buy their cars but don't complain when everyone else is having a great time enjoying their amazing cars.

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