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Originally Posted by swamp2
It's (BMW) profit margin WILL be higher than the E92 M3.
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Your certainty about this intrigues me. Do you know how much money BMW makes on an M3 they sell the dealer?
Quote:
Originally Posted by swamp2
For instance from 1998 to 2007 BMW roughly doubled the number of vehicles they sold whereas their net income went up nearly 600%. That trend is continuing. How and why - one major factor is LESS EXPENSE PUT INTO THEIR CARS.
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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.