Tuesday, February 24, 2004

The Trouble with BMW

Autoweek has a very well thought out article concerning BMW, and flooding the market. BMW is going to have four new releases in the next few months, the X3, the Six series, the Five Series, and Six series convertible. BMW hasn't done their homework on several fronts.

1. America is a recession. The more expensive the vehicle, the smaller the market. The less rich people in America, the less BMW buyers.

2. Their new cars are ugly to some. I personally don't think they're that bad, but many others do. No one can argue with the fact that the new look is controversial though.

3. Many people who buy BMWs, will only buy one BMW. They don't care what it is, they just want to own a Bimmer. The X3 competes in price with the 3 series, the six series with the five series. BMW thinks that the X3 will hit a different market niche. It might, but not to the extent they think it will. Many people who were going to buy 3-series, will now buy an X3. Not all car buyers are as car crazy as I am, and buy cars on the basis of status alone many times, not which is sporty or can go offroad.

BMW has to realize that it's not Ford or GM. In fact it should look at those companies, and what can go wrong when you expand too fast. They should also take a look at their cousin Mercedes, for what happens when you go on a model making binge.

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