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      06-06-2009, 07:00 AM   #6
YYdoodle
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Drives: E92 M3 fanatic
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And this:


BUSINESS PERSPECTIVE


Guys, traditional segments are becoming over-saturated. Newcomers are coming, the old-guard is getting narrower profits from the deals.

Therefore to survive new segments are need to be opened. And since people are familiar with traditional shapes & segments, the segments are mainly about cross-over vehicles. Sedan+coupe, sedan+cabrio, van+SUV, SUV+coupe, SUV+sedan, etc.

The point is not many carmakers own brands so strong being able to pioneer the new segments. That's why eg. car like 5er GT will work, and why Renault Vel Satis didn't. That's why X6 works, and Ssangyong Action doesn't etc. That's why Suzuki ??? didn't work, while BMW Y will.

That's the advantage of the premium brands - to push boundaries further. And with an image of a innovator, design leader & a pioneer BMW see a great opportunity to introduce new funky cars - unconventional crossovers with typical BMW appeal.

The relatively high-volume selling niches are rare - eg. small premium SUV niche (X1). But there is much more opportunities in small, low-volume selling niches. And to make them relevant, they have to be filled. The more the better. A sum of all niches = high-volume sale comparable to numbers of one core series selling numbers (eg. 5er sedan, or 1er hatch etc). With one significant difference: niche vehicles are extremely profitable. Due to their relative low R&D etc costs, and higher-than-normal price tag.

So, don't expect niche vehicles to sell in big numbers. Since their aim is not to boost sales but to boost profits.

Will such new vehicles dilute BMW brand? No. All the introduced cars will ooze typical BMW spirit: sheer driving pleasure. Nothing is changed here. The essence & core brand value is still there. Also with the post 2000 designs BMW proved to be an avant-garde, and über-modern brand. A leader & a pioneer - therefore today they can afford to bring out "weird" vehicles more easily than 10 years ago. That hurdle had been already cleared years ago.
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