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As the first article states, the concept of BMW (the goose) killing the golden egg (M division) is the core issue. Without reinvesting in the halo brand to make it differentiated, special, and far ahead of the competition, BMW may be relegated to being seen as a generic substitute for any German or Japanese car manufacturer. BMW’s explicit (and stated to public shareholders) goal of cutting M division costs to platform/engine/component share as much as possible is unlikely to result in the world’s best drivers' cars. Cost cutting and using M brand equity to improve profitability on quasi-performance vehicles could result in the value of the M brand (and eventually BMW brand as a whole) to diminish over time. Porsche offers an excellent example of reinvesting (and perfecting) the core/halo brand (911) while also pursuing the development of class leaders in sedans, SUVs, roadsters, etc. Porsche has achieved record (and higher than BMW) margins without sacrificing the core. BMW’s profitability is improving, but is it at the expense of the core?
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