Quote:
Originally Posted by fuddman
Your certainty about this intrigues me. Do you know how much money BMW makes on an M3 they sell the dealer?
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Understand your skepticism (if I read that right). No I don't have numbers. However, the engine price on the 335i is about $10k lower than the S65 V8.
Quote:
Originally Posted by fuddman
I don't think BMW regards cost cutting as a major factor for growing their company. I'm not saying it's unimportant; but, if you put there profit making strategy on a scale of 1 to 10, I'd guess BMW might put cost cutting in the 2-3 range. Selling more cars and convincing customers to load them up with performance gizmos and options has, to me, way more impact on the bottom line.
I don't think the BMW move from V-8 to I-6 was meant as a cost cutting move. Somebody else has mentioned this - It's a return to their roots. The V-8 M3 thing appears to me to have been a venture into the muscle car arena. BMW has been more about nimbleness and agility and, evidently, they want to go back there.
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I, perhaps obviously, completely disagree. Doubling sales volume while increase net income by a FACTOR of 6 is a truly astounding feat. A massive and intense effort across the entire organization is the only way to accomplish this. Also, after a dip due to the global recession, their net income figures have continued to absolutely soar (i.e. past the dates mentioned in my little factoid).
Shall I post up the BMW presentation to investors which focuses on part commonality, material cost savings? I've posted it a couple times in the past.
Yes options are a key part of profits/profitability.
The roots of BMW M has never specifically been about weight and they have very actively criticized turbo charging. Their roots has been with high revving, race inspired motors, not one particular engine configuration.