Car enthusiasts like compact premium cars like the BMW 1/2 Series, Mercedes-Benz A-Class and the Audi A3. They allow younger enthusiasts to afford and drive interesting and exciting cars, while also allowing people in cramped European cities modes of efficient, yet luxurious, transportation. So they make a ton of sense. However, the market for such cars is slowly diminishing, as compact luxury car sales dropped in 2017 and will continue to do so and it’s mostly the fault of small, premium SUVs, such as the BMW X2.
According to Automotive News, the compact luxury car segment sold over one million cars in Europe in 2016. That’s a lot. However, it dipped in 2017 and will struggle to hit 900,000 sales in 2018. So in two years, the segment will have dropped almost 10 percent and it will continue to drop as time goes one. The biggest reason for this is the introduction of compact SUVs from the same premium brands. These small crossovers offer almost identical performance but with more cargo space, practicality and the image of an active lifestyle for barely any more money.
The BMW X2 is one such car. It’s not that much more expensive than a BMW 2 Series Coupe but it offers much more interior and cargo space while also being more stylish. That’s something any younger customer is going to jump all over. And when you consider that these small SUVs aren’t any more difficult to park, aren’t really much less fuel efficient and aren’t that much more money, they seem like no-brainers.
On paper, the BMW X2 seems like the much better deal than just the standard 2 Series. Enthusiasts would much rather have the little 2 Series coupe, but the X2 is far more attractive to almost all normal buyers. It’s also seemingly the better value, as you’re getting an all-wheel drive crossover for not much more than a coupe.
But it’s not just the BMW X2. The Audi Q2, Mercedes-Benz GLA-Class and the all-new Jaguar E-Pace are all tiny little SUVs that drive customers wild. They’re also all pretty new, whereas most of their small, compact car alternatives are older. The only new car in the compact luxury car segment is the Mercedes-Benz A-Class, so it has a chance to pull customers away from its SUV competition. However, the X2, Q2 and E-Pace are all so new and stylish that it would be hard for most customers to overlook them for smaller hatchbacks, sedans or coupes.
[Source: AutoNews Europe]
If a “car enthusiast” can be convinced to drop a 2 series to pick up a FWD tall X2 SUV, they really aren’t enthusiasts at all. Normal ppl won’t pay more money for high quality sports tuned suspension, adaptive dampers, coilovers. They don’t know anything about that. So BMW will cater to these normal ppl and dull down the brand. We all knew it was coming with a soft F30, a AWD “M” car, and a stubby “sporty” i3. It’s time for the true enthusiasts to move on over to porsche.
It’s a shame you say that. M2, M3, M4, M5, upcoming M8, Z4, and all future M cars. Those are all cars that satisfy enthusiasts. “Porsche enthusiasts” also level accusations of “dulling down” at Porsche with Cayenne, Macan, and first gen Panamera being used for scapegoats. There’ll be more silly accusations when expected coupe versions for Cayenne and Macan and smaller version of Panamera are released, because “enthusiasts” choose to forget that the core cars (911, Cayman/Boxster) are still available and better than they’ve ever been. It’s the same for BMW, the core cars (M3, M5) are still available and have been, or will be, joined by other strong offerings (M2, M4, M8, and future replacement for M6), and possible halo supercar coming, all enough to satisfy enthusiasts but it seems you guys would rather BMW lose money and face collapse rather than engineer cars that a lot of younger, modern buyers actually want.
I’d agree that Porsche SUVs are a compromise to the core brand but at least they did a hell of a job with them. I don’t think any person who owns a Porsche SUV without a true sports car can call themselves an enthusiast.
The article is talking about cars like the X2 stealing away from the 2 series. Now if Macan and Cayenne were FWD sedans that supplanted the 718, I’d agree with you. Just look at the 1 series out of China and 2 series GC. Why couldn’t BMW build off their CLAR platform and keep it RWD. It’s BMW accounting building off cheap FWD platforms to chase volume against Audi and Merc. M cars are great but so much of it is becoming a compromise due to the base design. The M3/M4 still suffer from lack of feel that’s plagued the F3x. If BMW keeps going the direction they’re going now, it’s going to cars built by engineers for the accounting and marketing dept with crap base suspensions (like in all xDrive), cheap plastics abound (cracking charge pipes, interior trim), and technology for the sake of technology focused (twirling fingers in the air).
Now if selling out your brand’s core value of “The Ultimate Driving Machine” is part of selling to younger, modern buyers, it’s a high risk of losing brand value like Coach and Michael Kors. To me, that’s what they’re losing to the true enthusiast that care more about the car’s handling than m badges and body kits.
As Top Gear’s review of the diesel makes clear, this isn’t a “tall…SUV”, that’s the X1. Since 2 Series are small (only coupe & cab. sold here), what is wrong with what is effectively a small hot hatch? BMW were doing the 2000 Touring DECADES ago, this takes the same spot in the lineup. Since this is a fraction of the price, what does “porsche” have to do with anything? The existence of this model doesn’t mean they’ve stop stopped making M2. Like saying the maker of the Corvette can’t make Corvair. Wrong.
Chevy doesn’t call itself the “Ultimate Driving Machine”. Chevy is more like Acura, Nissan, and Lexus with a halo car at the top but nothing else close down the line. I’m saying BMW should go down that path of mediocre core products.
You are quoting a 1970’s American ad campaign. They are also no longer “Bavarian Cream”, from the same era. They are in fact an expanding global full range German engineering, tech. & vehicle manufacturer. Chevy are one brand of a corporation that used to promote cradle to the grave marketing, i.e., something to appeal to every demographic. BMW are in fact moving upmarket, as new 8er & X7 attest. Why do you think Porsche are selling sedans & SUVs? BMW are the only brand I have followed since 1970, I have watched them go from 1 4 cyl. sedan to global #1 premium in this century. Pls. shoot me in the head if I ever try to give a nickel to VAG. And as far as brand value? MINI now worth $5 billion and wait list for Rolls Royce bespoke. Come back if & when you have some credibility, rather than a meritless unsubstantiated opinion and an ultimate typing machine.
You might want to wake up BMW USA if you’re thinking “Ultimate Driving Machine” is a 1970’s American ad campaign. And since I’m the ultimate typing machine, here’s the URL: https://www.bmwusa.com/ . X7 is to compete against Q7 (they’re missing a 3 row SUV) and 8 fills the 6 void. Need higher market to charge more for low anticipated volume.
You might want to stop quoting marketing as a credible source. BMW actually pursuing #1 in China. Still America’s biggest exporter, even in advance of X7.
Marketing does go through the CEO and is supposed to channel what the brand aspires to. Well, since that isn’t a “credible source”, why don’t you tell me what BMW now stands for? “Pursuit of perfection”, “A luxury car for everyone”, or some other soft luxury car company’s slogan?
Yes, that’s where BMW is putting out lame ducks like the FWD 1 series and 2 series GC. If they made it on the CLAR platform, i wouldn’t be so critical.
I go by the ride.
Not the ad copy.
BMW are a full range manufacturer.
So implicitly more than 1 platform.
They are expanding, doing record volume, margins, still manufacturing CLAR so your criticism seems irrelevant to me. I look forward to their GTI & welcome the return of smaller BMWs.
The GTI is a great car for the MSRP price. So is the Civic Type R. But at $38K+ USD for a ~3662lbs X2, a FWD platform starts to run out of steam with heavy weight and overloaded front wheels. It’ll need some kind of torque vectoring to push the rear into position like the S4 and Acura. Or at least a LSD. BMW isn’t one to provide those to mainstream vehicles. I’m not saying BMW shouldn’t make the X2 but retaining the driving dynamics from the E84 goes a long way to keeping the brand heritage
Things like record volume and margins isn’t what makes a great car. Toyota does volume. Toyota makes great cars like the 86 but they also make the Yaris. The 2 series is like the 86 while the new low end X series… well…. glad your butt likes the handling of these cars for the mainstream luxury buyer.
I’m afraid to say most people who buy BMW 1/2 Series, Mercedes-Benz A-Class and the Audi A3 are not car enthusiasts bur rather 1/ rich people who want small, well equipped cars 2/ poor people who buy base models but want badge prestige and brag about their “luxury German car” which is less luxurious than similarly priced equivalent models by not-premium car manufacturers (such as Opel, Peugeot, Citroen, Renault, Ford, Toyota, etc)
And so, without these new cars, BMW would’ve earned less revenue, diminished in size vs Merc and Audi and eventually becoming extinct. Honestly, I’ll rather have a BMW company that is a automotive pioneer than a small little sports car manufacturer struggling to survive.
I find no fault with an AWD M car – that was inevitable… but there’s a huge gap left open by a car that should be called M1.
And look out for Hyundai with its new CUV, which has a stronger 2l petrol engine than X2.
And Camrys that handle better than a 3 series :P