BMW 7 Series car to supply most parts in lower-priced new 5 Series

Featured Posts, News | February 17th, 2010 by 28
p00518561 750x500

A recent report by BusinessWeek confirms our previous suppositions: the new 2011 BMW 5 Series takes advantage of some high-end parts found in the 7 …

A recent report by BusinessWeek confirms our previous suppositions: the new 2011 BMW 5 Series takes advantage of some high-end parts found in the 7 Series flagship.

According to the magazine, due to component-sharing strategy for saving money, BMW is equipping the new 5 Series with technology and components found in the 7 Series models, parts that account for as much as 70%.

The new BMW 5 Series will cost approximately $20,000 less than the entry 7 Series model, 740i. At such significant price difference and sharing similar parts, BMW needs to ensure that the consumers and owners of the 7 Series won’t perceive this as an economic value dilution of their higher-end models.

p00518561 655x491

“The concern is that, if I can get most of the bells and whistles on a 5, does that cannibalize the 7?”, said Michael Tyndall, an automotive industry specialist at Nomura Securities in London for BusinessWeek.

Perfectly valid point, but at the same time, the two sedans appeal to different demographics. The 7 Series tends to do well among customers that are older than BMW’s overall average demographic, while the new 5 Series goes after the customer looking for a sportier, but yet luxurious sedan.

In 2007, BMW CEO, Norbert Reithofer approved a program to reduce material costs by $5.4 billion by using joint components in some models.

Although not confirmed by BMW, BusinessWeek claims that the new 2011 F10 5 Series is BMW’s first car developed wholly on a parts-sharing basis and will be a “major contributor” to profit goals, as BMW CFO, Friedrich Eichiner stated recently.

He continues by confirming that BMW’s goals continue to be around the differentiation between  its models.

As we reported yesterday, the new 2011 BMW 5 Series’ interior cabin is a huge step forward in terms of quality and design, and along with the latest gadgetry available, can compete with its “bigger brother”, the 7 Series.

[Source: BusinessWeek ]

28 responses to “BMW 7 Series car to supply most parts in lower-priced new 5 Series”

  1. Josh B says:

    Discusting! Im sorry but this shouldn’t be encouraged at all. Look at the above picture….sure looks like a 7s interior to me, yet its the 5ers. Seriously BMW i am so disapointed and shocked that to my regret i wont be buying another 7 knowing very well i can buy a 5 for half the price and very simuler technology and interior decor. 70% the same! Thats just mind blowing! First negative comment iv posted on this site but im just so pissed off! Sorry BMW but as a loyal 7 series customer youv let me down. Youv done all the current 7series customers very very wrong. Looks like ill have to find an alternative which i will and i feel thats what BMW deserves. :(

    • Ted Spahr says:

      If your trying to make us believe that you own a 7, at least use proper punctuation and grammar. It’s “disgusting” by btw.

    • v1p3r says:

      That interior picture is from the 7-series Individual photo set.

    • Adnan says:

      Thats the 7 series interior you moron

    • RA729 says:

      It’s not a pic of the 5er, it’s the 7er! Your emotions have ruined your spelling and grammar, calm down! And if the part sharing program bothers you so much that you would, “find an alternative..” I don’t think that you qualify as a loyal 7 series customer.

    • Simba says:

      Josh, that is the interior of the 7 Series. I understand your disappointmnt. However, it must be noted that it is note that it is not the 7 that has been degraded, but it is the 5 that has pushed the bar higher. There could be a possibility that a customer, after noting this information may rather buy a 5 but they are clearly different vehicles for different purposes. The status of the 7, the shape, dimensions and characteristics are completely different. Although parts may be shared, which is ecpected, they are two cars with different character and looks and you certainly will not confuse the one with the other. It is completely different t the situation where Audi is using VW stuff

    • nick says:

      the seven still has the better quality stuff, u know, and only a few stuuf is being directly “taken”- the vents, the steering wheel, a few knobs….
      Seven buyers still would get the benchmark, just the 5 moves closer to it. Nothing to complain about for a 7 owner. Only a thing for a 5 owner to rejoice about.

  2. Giom says:

    I see nothing wrong with this. What I see is a company surviving an economic downturn, yet everybody win (except Josh B here). If it was the other way around, sure, that would have been unacceptable. But as I see it, the 7 owner doesn’t loose anything in terms of quality and design. The 5 owner wins – is that a bad thing.

    Btw, the picture above is the Seven series, not the Five. And by golly, it looks way more upperclass than the new 5. And so it should.

  3. Josh b says:

    Hahaha well thanks for that Teddy. I don’t need to make anyone believe anything because I’m 16 and in fact and it’s my dad who owns both the current gen 6 & 7 series. I’m just fortunate enough to have a father who genuanly listens to my advice on cars. when I post on the blog I “represent” my father. No matter, my spelling shall improve and hopefully one day I’ll end up with the same luxury my dad has of being able to afford most desireables. Judging from your evident jelousy something you sadly can’t do. But yes Teddy your comment did make me smile

  4. Josh b says:

    Btw sorry i thought it was the 5ers interior, go’s to show how close they are. And Giom brings up a very valid point. Yes the 5 gains but from the perspective of someone who has paid for a 7 series you would expect to get BMWs bench mark, exclusivity. The previous gen 7 stood out on both looks and interior. Nothing looked anything like it. It’s interior was unique to the car. Now the new gen 7 doesn’t have an unique interior but rather one very close to that of the 5GT and the 5.

    • Simba says:

      I am happy that BMW has improved its interior – much better than the old 7 and definitely much better than the plastic old 5 (interior)

  5. John Brooks says:

    Josh B,is just another dreamer.I bet he drives a ford pick up

  6. John Brooks says:

    Josh,don’t forget that the current 7 was there first,so the 5 and 5GT are just a scaled down version of the 7.Most smart manufacturers will look to keep costs down in this current climate.
    when do your driving lessons start?

    • Josh b says:

      I started 6 months ago and I live in Australia so we don’t drive ford pick up trucks. Amazing how many people have the need to make malicious comments about what i “drive” and how I spell. Really does prove that I’m not the dreamer John but rather you are if you really feel the need to attack me. Rather then countering my point with valid responses such as Giom, BMW Driver and Simba you and some select others who I have no doubt don’t drive anything with a high end price tag and rezent the people that do honastly need to “get a life”

  7. Theo says:

    The 70% figure does mean nothing, zilch… It only becomes significant when you know which parts are shared: all the grommets, vents, bolts, piping and other ‘under-the-bonnet’ parts only will save BMW and you money and increase reliability and such.
    It is in the visible parts and user interface where the difference should be made in quality and atmosphere. And that’s easy to do within a 30% margin…

    Haven’t been in an actual F10 yet, suffice to say that I don’t believe the same atmosphere of sheer luxury and top-end high tech the F01 has will be there, we’ll see though…

  8. Jorge says:

    Back in 1995 BMW came out with the E38 7-series model for which it also most of the interior materials and design was carried over into the E39 5-series. Sure the parts where not the exact same design between both body styles but they did resemble each other very closely that the average consumer would have thought the interior was the same. When the E65/66 and the E60 came out the interiors design and materials vastly departed from each other. Seems like BMW is going back to its routs being very similar in design and feel like it was on the E38 7-series and E39 5-series. I like it!!!

  9. Artmic says:

    I don’t mind them sharing the same components, i’d never buy a 7 series, cause i think it is too big, and not my cup of tea, but i’d sure buy a 5. No big deal.

    • Bryce says:

      I completely agree. This is BMW Blog, not 7-Series Blog! I’ve owned two five series’ and my father has owned a three series and a 7 series. The 7 series was just too big and slow, even with a V12. I think BMW should strive to put the absolute best design into every one of their cars; if it means the 5-series interior looks like the 7-series interior then kudos to the designers who designed the 7’s interior. I hate this idea of ‘I own a 7 series so my car should be nicer than your 5 series.’ You paid for the size, the legroom, and the look; and if they look the same then it’s because the design was good enough to be carried into other models! Way to go 7-series designers, your interior was nice enough that the company’s going to use it in other models. Awesome!

  10. BMW Driver says:

    It’s about time. If it can be done, then it is good news because BMW will be profitable and we as consumers will get better products.
    The Japanese have figured out how to do this and it is one of the reasons why they can offer a comparable product at a cheaper price.

  11. BMW fan and driver says:

    Regardless of the parts they share, they are totally different vechicles appealing to different people. I drive a 5 series. Regardless of the price difference, I personally feel the 5 series fits me better. It somehow “reflects” who I am, not so much the question of money. I’m not an executive of a successful business man. If I were, I’d feel more comfortable in a 7 series. Sure, if I suddenly win big in the lottery, it would probably change my perspective.

  12. XC says:

    Come on, is no big deal. Audi shares anything with VW, Seat, skoda et al, and we are making this such an scandal. Besides if manufacturersdisclosed everything they share among their lineups…

  13. Ford trucks says:

    BMW 7 is also good automotive.BMW has change it’s interior, much better than the old 7.

  14. BMW is a very big brand to all over the world. so they have to challenge our self to maintain our we are congratulate to the management to maintain success continue. we all are with you…

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.