BMW M division asks "What downturn?"

[darb800]

http://www.autoblog.com/2008/12/13/b...what-downturn/


I guess an amazing product will still thrive even in a terrible economy!

[FStop7]

1. Repost.

2. It's spin. There wasn't an M3 last year.

[darb800]

I apologize, it was put on autoblog today so I assumed it was legit...i should have done my research

[kbk_75]

Originally Posted by FStop7

2. It's spin. There wasn't an M3 last year.

Oh yes there was, maybe you couldn't buy one in the USA, but some of us could!

[Voltigeur]

-

It's B/S. Sales are off - globally.

[TLud]

Originally Posted by Voltigeur

-

It's B/S. Sales are off - globally.

I'm sure the sales numbers are legitimate, but they only tell half the story. I'm sure despite selling more cars, their profit is down severely due to invoice sales and financing incentives. Any stats or data can be twisted to tell whatever story you want.

[J08M3]

Originally Posted by FStop7

2. It's spin. There wasn't an M3 last year.

Yep good point. No matter how many M3's were sold here this year it's more than last years zero. But BMW certainly didn't reach the amount of cars they were planning to sell. Look at all the leftover '08 M3's. Sure they may have sold more M's than in previous years but their growth was not where they intended it to be.

good point by Tlud too. Didn't take long before they fell from list price to almost anything to get them off the lot.

[Voltigeur]

Originally Posted by TLud

I'm sure the sales numbers are legitimate, but they only tell half the story. I'm sure despite selling more cars, their profit is down severely due to invoice sales and financing incentives. Any stats or data can be twisted to tell whatever story you want.

Sure.

Last research I saw indicated both sales were off (more generally) and, yes, margins [EBIT] will be compressed. I agree that the financing is a big issue (Baa spreads at record wides since the 1930s; ABS under pressure) and here I see some potential improvement.

BMW FS could actually make more profit if (1) spreads narrowed, and then (2) they could write more loans at lower rates.

Last, I posted this in 'BMW discussion' but likely worth referencing here: The
M3 is profitable (no surprise):

[southlight]

Originally Posted by J08M3

Yep good point. No matter how many M3's were sold here this year it's more than last years zero. But BMW certainly didn't reach the amount of cars they were planning to sell. Look at all the leftover '08 M3's. Sure they may have sold more M's than in previous years but their growth was not where they intended it to be.

A different reference: They sold almost twice as many M3s as they did in the first production year of the E46 M3.

Originally Posted by TLud

I'm sure the sales numbers are legitimate, but they only tell half the story. I'm sure despite selling more cars, their profit is down severely due to invoice sales and financing incentives. Any stats or data can be twisted to tell whatever story you want.

+1


Best regards, south

[Voltigeur]

Originally Posted by southlight

A different reference: They sold almost twice as many M3s as they did in the first production year of the E46 M3.

Yes, volume over margin will work: until it doesn't. This is the case w/ Detroit.

BMW, Merc etc really need the high-margin products to be viable. That's not a negative statement. If you don't have products like an M3, 911 etc they make virtually no margin turning out dross.

A reasonable margin undrgirds R&D and other expenses that we require, as afficianados, to progress the marque.

If we don't (buy) then ... welcome to Detroit! (not a as if BMW makes its cars without high labor input)

[V1.47fan]

Originally Posted by southlight

A different reference: They sold almost twice as many M3s as they did in the first production year of the E46 M3.


+1


Best regards, south

Didn't BMW sell more E9X 3 series this year than they did in the first production year of the E46 3 series?