View Single Post
      07-21-2013, 03:49 PM   #133
swamp2
Lieutenant General
swamp2's Avatar
United_States
465
Rep
10,408
Posts

Drives: E92 M3
Join Date: Sep 2006
Location: San Diego, CA USA

iTrader: (3)

Quote:
Originally Posted by fuddman View Post
Your certainty about this intrigues me. Do you know how much money BMW makes on an M3 they sell the dealer?
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 View Post
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.
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.
__________________
E92 M3 | Space Gray on Fox Red | M-DCT | CF Roof | RAC RG63 Wheels | Brembo 380mm BBK |
| Vorsteiner Ti Exhaust | Matte Black Grilles/Side Gills/Rear Emblem/Mirrors |
| Alekshop Back up Camera | GP Thunders | BMW Aluminum Pedals | Elite Angels |
| XPEL Full Front Wrap | Hardwired V1 | Interior Xenon Light Kit |