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      02-07-2013, 07:03 PM   #1
baba louey
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What is BMW`s (the factory) Profit on the M3?

I think we all know the approximate dealer mark-up but what does the BMW company make on a M3 sale to the dealership (without any incentives)? Percentage or absolute? Or is this a closely guarded secret?
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      02-07-2013, 07:15 PM   #2
averrec6262
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I was always curious about this too.
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      02-07-2013, 07:16 PM   #3
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I got this from Wikipedia under "Germany". Volkswagen owns Audi, Bentley, Bugatti, Lamborghini and Porsche. I've seen videos with BMW representatives saying that M3 is one of their most profitable cars.

Rank Name Headquarters Revenue Profit Employees
(mil euros) (mil euros) (worldwide)
1 Volkswagen AG Wolfsburg 108,897 4,120 329,305
2 Daimler AG Stuttgart 99,399 3,985 272,382
3 Siemens AG Munich/Berlin 72,488 3,806 398,200
4 E.ON AG Düsseldorf 68,731 7,204 87,815
5 Metro AG Düsseldorf 64,337 825 242,378
6 Deutsche Post AG Bonn 63,512 1,389 475,100
7 Deutsche Telekom Bonn 62,516 569 241,426
8 BASF SE Ludwigshafen 57,951 4,065 95,175
9 BMW AG Munich 56,018 3,126 107,539
10 ThyssenKrupp AG Essen/Duisburg 51,723 2,102 191,350

So Volkswagen revenue at 109,000 million euros with 4100 million in profits. BMW with revenue at 56,000 million with 3,100 million in profits.

Last edited by AshyLarryMP; 02-07-2013 at 11:08 PM.
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      02-07-2013, 07:22 PM   #4
Vic311
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You can get general market info from publicly disclosed financials..I doubt you will be able to find the margins on a specific vehicle.
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      02-07-2013, 07:32 PM   #5
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Most low margin/low cost cars like the average Corollas and Accords have low margins. They sell a lot to make up for it.

I do believe the premium segment cars have very large margins to make up for lower sales volumes. And all the "options" that people add are sold at extremely marked up prices.
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      02-07-2013, 07:46 PM   #6
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Would be interested to see this as well. Contribution margin of each car sold will be high by definition (and due to options which individually have high margins), but return on the capital/R&D invested is probably poor given the high bespoke engine content of the prior gen M3/M5 and the M3 didn't achieve initial production targets largely due to the recession/financial crisis. In their investor presentations, BMW has regularly stated that engine sharing across platforms, including the M cars is a way to reduce costs going forward--That's the main reason why we've seen BMW move to FI for the M vehicles (in addition to help meet emissions/pollution regs for fleet averages).
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      02-07-2013, 10:32 PM   #7
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I got my 2013 M3 vert loaded for $68k drive out through Mil sales of Germany...started at $58k.....and somehow I am DAYUM sure they made more than just accessories cost off the deal and they did not sale it that cheap out of the goodness of their hearts. This was the ONLY way to go for me in case I like the next vert....won't be hurt as bad in the trade-in.
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      02-07-2013, 11:39 PM   #8
baba louey
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I always thought that high-end cars made more money for the manufacturers but I don't have a good feel for how much R&D figures into the picture. I wouldn't be surprised if it can be a big profit eater, especially if payout requires a large sales volume. Also, my perception is that certain cutting edge cars are used as loss leaders sometimes. The Prius comes to mind. I find the technology ones gets in that car is amazing for the price.

Then again we have pickup trucks in N.America with super high profit margins and super low technology. Go figure!
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