It looks like the numbers being crunched up by the accountants in Munich are not really adding up to much. According to a new report from Automobile Magazine, several BMW models will be getting axed in the future, to make sure the company remains profitable on the long run. The report says the financial side of things is not exactly smooth and that certain cuts are necessary in order to make sure the BMW brand remains relevant in 10 years time.
Even though right now BMW is profitable, things are changing and the resources needed to develop new solutions are going to eat away at the profitability of the company. The stocks have already suffered quite a hit in the last four years, prices dropping from $137 to $73 right now, a 47 percent decrease. That’s huge and things are going to look even worse if the looming trade war between the US and the rest of the world actually kicks off.
Thus, according to Automobile Magazine, some tough decisions have been made. Apart from the already announced departures of the 2 Series Convertible, 3 Series GT and 2 Series Gran Tourer models, BMW is rumored to cut models other models such as: the Z4, standard 7 Series (not the long wheelbase one) and both 2-door 8 Series versions (Coupe and Convertible). Out of these models mentioned, we’re inclined to agree with the Z4 and 7 Series LWB assessments, but remain reserved on the 8 Series prediction. The rumor mill around Munich churned out recently that BMW was even looking at potential electric 8 Series down the road and a coupe EV will always be quite attractive for the high-end segment.
Automobile Mag further adds that only the 8 Series Gran Coupe is to survive the model cuts.
With the 8 Series just hitting the market, we’re still far away from a final decision, especially considering that a new CEO will take the reins next month.
There are more changes coming too, as the X8 has apparently been green lit but not as a Coupe version of the X7. According to the same report, the X8 will be available only in M Performance and M guises and will have a hybrid powertrain in the X8 M version with an electric range of up to 60 miles. That’s very interesting news and a hint at what could come next for upcoming M cars.
“This is not your grandfathers BMW….”
The article is spot on with some of the criticism of recent BMW’s (fake vents, etc.).
I want to see the roadmap which clears up the whole naming convention because it doesn’t makes any sense. Keep the 6 (aka 5GT), get rid of the 8CP (sure to return as a 6) and keep the 8GC and i8? What’s an “I” car if the whole line is going electric?
Finally, somebody has stated the real issue! The proliferation of too many models and sub models with ambiguous naming. MB might be accused of this also. Not about EV v gas and not about performance v societal green shifts. It’s about too many niche models with low identity and/or sales impact. EVs are still infinitely smaller in sales volume which will slowly grow but they are not yet forcing gas models out. The small volume niche gas models are being weeded for the same reason they’ve always been weeded out … low sales. BTW …. record setting EVs on the Nurburgring won’t be far off. I’d watch the Porsche Taycan.
BMW’s autonomy & independence are based on being a niche manufacturer – 2002 tii vs. American pony & muscle cars, rwd. I6 3 Series (what manufacturer isn’t selling a wannabe 3?), X model tall awd. crossover wagons. “Ambiguous naming” became necessary not only because of expanding range, but from every other manufacturer ripping off the simplicity of ’70’s 3/5/6/7 model (Audi 1, 2, 4, 5, 6, 7, 8, Mazda 2, 3, 5, 6, M3 is NOT a Tesla, Daimler, Acura, Infiniti all went alphanumeric). Ironically, it’s BMW’s niche model proliferation that has allowed them to become #1 premium volume, now we witness that transition to BEV, PHEV, hydrogen.
Somewhere in the dark recesses of my youth I do seem to recall that BMW invented with great success the concept of a sports sedan. That was then. Fords also come in colors other than black now too! All the German car companies have had that down for decades. BMW generally but not always owns that segment. But my point, and I did have one, is that the multiplicity of models is watering down the entire product line to the point the model differences are minor and the niche in niche models produce too little volume for efficient sales continuation. Tighten up the model lines, enhance a few variations of those fewer model lines, and then work longer term on some EVs for the real world. That way BMW maintains a clearer presence and may continue domination in their traditional sports sedan segment of the world car market. Right now, they are all over the place with less effective cost allocations and a blurred customer focus that demands revisiions.
Expanded BMW always reminded me of glory days Detroit, where they put as many vehicles out as on many platforms with colours, drivetrains & options as possible. Think I read recently Porsche seldom sell the same car twice, Rolls-Royce Bespoke have a wait list & are hiring staff. BMW have always done this, regardless of size or $$$ – V8 sedans became 507, 503, Isetta led to motorcycle-engined rear-engine 700. Single 1500 sedan built for over a decade, became 1600, 1800, 2000, 2002, Touring, Cabriolet. The refocus now is bringing BEV to volume globally, whole new challenge, iNext already looks like we may see new, unprecedented product as a result (& I don’t mean the ungainly Concept, which I actually like). They were never so much sports sedans as sedans that drove better than the competition, how sporty is any sedan? Well, until M5 & turbo 335i.
Trust me. Sedans not only weren’t sporty in the 50s-early 70s but they were built for obsolescence not quality. BMW developing a sedan that felt drum tight, would steer where you pointed it, would brake with authority, and shift smoothly was a game changer for auto enthusiasts and actually increased the number of people who became auto enthusiasts. So, don’t underestimate the early impact of the 2002s, etc. It was huge deal. As you grew up or as you had a family, you now could trade in your TR3 for a sporty sedan from BMW. Gamechanger. Look, as far as naming goes, I miss naming autos after animals of prey. Not sophisticated but it was fun. Hey, combining two animals was even better like Mustang Cobra. It was more fun then in some ways!
EVs will be fun in a different way. Less polluting, easier cheaper normal maintenance, and electric motors are at 100% torque immediately. Will miss the sounds of the ICE however. Living in very interesting and challenging times in the automotive world as it transits into a new era.
Mustang Cobra became rebodied Pinto driven by Farrah in Charlie’s Angels.
The Mustang II (Ugh) 73-78 was a fast and sloppy response to the first Arab Oil Embargo in the early 70s. The point I was making about Mustang Cobras had to do with fun brand identification. I’m confused by your comments. You state with assumed authority that nobody traded from a TR3 to a BMW 2002. Then you ask what a TR3 is. Hmm. It is a 2 seat Triumph roadster. The point was as folks w/o families started families giving up the sports car for a family car was a depressing event until mfrs like BMW brought out sedans with some fun performance. Capeche? You seem too literal and more prone to arguing for it’s own sake than enjoying viewpoints about the cars and the enjoyment of cars overall. So be it.
Why am I not surprised?
No 8 and no Z4 will at the least make these collector cars compared to BMW’s upcoming toaster cars.
Sadly makes sense, industry is changing & halo going electric, Lucy & M Next make clear BMW electric are not going to be toasters. Or toast.
Get rid of the Gran Coupes. And come up with an electric vehicle that doesn’t look like a 21st century Isetta.
Not gonna happen. They already dropped the standard wheelbase 7 in the US, but with the Z4 and 8 series just hitting the market, they’re not gonna kill them for at least a 6 year model cycle. To think otherwise is stupid. The r&d wasn’t free, and they need the whole cycle to pay for it on these lower volume cars. I wouldn’t even be surprised to see LCI versions of both in 3 or 4 years.
I can’t understand why the 5GT lives on as a 6 – it has never sold well, dealers hate it and it occupies an entire architecture/assembly by itself. All the GT cars only poach sales from their more conventional siblings, they don’t draw in buyers from other marques – people either want a car or a SUV, not the worst of both.
If the 8 goes, I see it losing some of the luxury and premium materials and returning as a 6 (assuming ICE isn’t banned altogether).
Read Dan Neil’s review in WSJ, he gets it even if you don’t. Among other typical BMW virtues, it’s a tall, roomy hatchback for those who want versatile space without driving a SUV. Aren’t they popular in China? Used as luxury hotel airport shuttles in my market. And no unique architecture, 3/4/5/6/7/8 CLAR.
The segment leader of either performance sedan, which BMW used to own, or electric vehicle is now Tesla. BMW not only is not able to compete now it will not be able to compete in the future either. Pretty grim situation if you ask me.
Laughably delusional. What’s a Tesla Nurburgring laptime? Longest Autobahn high speed run? Endurance runs? Formula E victories? No one asked you because you have NO credibility, you haven’t even seen BMW’s future product, let alone know its competitiveness.
Being emotional aside it’s pretty clear you have no idea what BMW is up against. We can argue to death about everything but in the end people vote with their checkbooks. That’s the only thing that counts.
More delusion, now with avoidance & deflection. Checkbooks? Tesla sell a fraction of BMW, only the latter are solvent. If Tesla are the performance & BEV leader, why has NO other manufacturer taken them up on their offer of free patents? BMW are actually about to announce their 5th gen. BEV, it’s you who have no idea what you’re up against.
https://www.caranddriver.com/news/g25741172/best-selling-luxury-cars-suv-2018/
Selective editing=further obfuscation. Models S & 3 have NO BEV competition,
OF COURSE they are segment leaders because they are not only the only vehicles in their segment, they CREATED those segments & the demand & wait lists for them. BMW Group are #1 global premium (even the article you cite acknowledges BMW’s sales increase in U.S. on X crossovers). Tesla are a small, limited volume, expensive niche boutique regional manufacturer who are competition in aspiration & assumed wannabe nomenclature only. Tesla M3 (sic & sick) is no more competitive with decades old BMW M3 than Pontiac GTO was competitive with Ferrari GTO half a century ago. Tesla need @ least another decade to demonstrate they can compete vs. upcoming new BMW BEV, all comparisons in the interim are desperate pathetic attempts @ a false equivalency. As cleantechnica’s sales graph showed, BMW are actually European volume electric seller based on volume & variety of models.
Careful, the denial is strong with this one. He’ll spew more excuses and dish out disjointed logic in a fit of emotional mouth-frothing. If that doesn’t work, you’ll be told to get out of the playground if you keep poking his BMW comfort bubble with your pointy stick of reality.
Not @ all. I come here to learn about a smart brand, obviously nothing 2 do wit u (witless u. 1/2 witless?).
At least BMW are keeping options regarding powertrains. EVs will sell only as long as governments are willing to either subsidise the price difference, or ban petrol cars. It would be a brave CEO to count on those things happening as resistance to paying more and more for AGW policies increases around the world. Not to mention that in Munich a diesel costs less to run than charging an EV due to their electricity prices.
The good thing about having all these various models like the GTs, the GCs, i models etc, is that we get to see a lot of variety in design. without these, design could become stale very quickly. Loosing any model would be a great pity, from that point of view, but, he who doesn’t change with time, will not be here next time. Long may we have BMWs to look at and enjoy!
With the announced 2 dozen impending electric models, I think we will see models replaced, rather than outright disappear.
Mercedes is doing the same excercise right now. Both companies get a new CEO right now. Both had a dip in their numbers.
Bean counters at full erection eh?
The move from oil driven internal combustion to electric and hybrids as well as possibly hydrogen/solar will shake out the worldwide auto industry. Some marques automakers and badges will not be around in 30/50 years time as the new auto revolution takes hold. The next 15 years will be critical for existing players from all angles including the shareholders.
Get rid of the pointless Gran Turismo models and 2 Series Active/Gran Tourer. 6 Series GT needs to die as well.
Please, please keep the best looking BMW ever, the 8 Series. I absolutely love that car and it deserves to be a flagship. Z4 is also a really good car.
Make some fully electric vehicles, ditch MPVs and GT models, keep the 8er and Z4 and everyone will be happy.
They’ll have to get rid of Z4, unfortunately. Arrival of new Corvette C8 has attracted a great percentage of buyers in that segment. Cars like M4, even M8, might get affected. There’s loads of YT videos of people pulling their deposits on Mustangs (300, 350, 500), Porsches (Cayman, 911) etc before marching to Corvette dealerships for C8 purchases.
Porsche and the Mustangs will still have their customers. It’s more of an emotional purchase. Those cars are still fun and can be had with a manual. Driving experience > full power any day. Hell, the C7 even offers a better experience. Z4, M4, and M8 will also have their buyers as well.
Not in America though, which is where I’m referencing. Buyers there are making market shift.
Z4 M40i (front engine, 3L in-line 6 cyl., 382hp, 0-60 in 3.9 secs) = $63,000.
New Corvette C8 Stingray (mid engine, 6.2L V8, 495hp, 0-60 in 3 secs or less, looks like a supercar) = under $60,000. It’s also America’s dream sportscar.
Even Z4 s30i is only $10k less than C8. Lots of Mustang buyers are pulling their deposits and heading to Chevy dealerships, see YT. Cayman, Z4, M4 are vulnerable and 8er to some extent.
C8 Z06 will make 911, M8, AMG GT vulnerable.
“Not in America though, which is where I’m referencing. Buyers there are making market shift.”
– That is a great point. America is the biggest market for luxury products and whatnot. C8 is a huge game-changer, price wise. Though, what I was going to say was, even if the Europeans do face a fight with the C8, which they will, they’re still going to gain profits and sales in other markets too.
“Even Z4 s30i is only $10k less than C8. Lots of Mustang buyers are pulling their deposits and heading to Chevy dealerships, see YT. Cayman, Z4, M4 are vulnerable and 8er to some extent.
C8 Z06 will make 911, M8, AMG GT vulnerable. Even i8 will face severe decline in sales.”
– Cayman, I’ll agree has to step up its power game, but still a brilliant sports car, looks and all-out driving experience wise. The Z4 is a sports convertible, so I’m willing to bet that there are customers who’ll still shop for the Z4 as a summer car. M8 is more of a sports GT that still appeals to the GT side of the market; more so to those who want a sporty daily. The 911 still has breathing space, seeing as customers will still shop Porsche and buy another 911 again due to the all-out driving experience, overall comfort, and a practical, livable daily. As for the Mustang, people will still shop it because of the performance for the buck. Mustang and C8 aren’t considered direct rivals, seeing as one is simply a pony car, whereas the C8 is an upmarket mid-engined sports car costing 60k, sure you get close to 500 hp, but it’s still all about the practicality and performance. The C8 won’t affect the i8 due to the I8 not getting another model year, meaning it’ll be axed. The Corvette’s strong suit has always been the price and there’s just no denying that. Personally, I feel that just because the C8’s entry price will be around 60k, doesn’t mean that it’s game over for other sports cars, more so the Porsches. There’ll always be more customers will still shop for what they desire, even if the market shift goes in the C8’s favor.
Mercedes SL & Stingray have competed for half a century. No one is cross-shopping turbo i6 German roadster & American normally aspirated mid-engine lump.
I read the article. Seems a big negative in tone. Jaguar Land Rover and BMW partnership was for the reasons outlined. Automotive industry is going through a period where large transformation is taking place due to technological changes. Global economy is also weakening. Partnerships may be the way forward.
The question is larger. Future buyer structure, revenue structure, eco-societal framework, etc. Individual buyer? Corporate buyers? Sharing economy? Focus on urban? Or still long range? Familes? Individual? … And how does the product “automobile” fit in? These are questions not only BMW has to ponder.
Re the current lineup: The big blocks (U.S. – EU – China – with India, SEA, and Africa as also-rans) have so different preferences now that it’s difficult to shape the portfolio. In any case it would be a pity if the 2-series cabriolet would be axed. Making the 7-series a modern day Lincoln Town Car (or Cadillac 75) is ok; same goes for S-class and Audi 8. They are no drivers cars anyway, so lets reposition them as classical chauffeur driven limos. The 8 is a flagship and should remain. The new Z4 seems a bit of a dog not fish nor flesh, possibly even more so than the previous hard-top version (note: I have not driven it yet, but that’s my feeling from what I heard) so kill it already.
BMW has the ability to build great cars, but they just need to ditch the internal combustion engine. The Tesla Model 3 is eating BMW’s, Audi’s and Mercedes lunch. Tehre should be zero hesitation as to what BMW does. Doing Hydrogen is a waste of effort. They need to build a battery factory, invest in infrastructure for charging stations battery tech and get moving. Tesla has blazed the path that BMW had an early start on. Right now, who in the USA, in their right mind, with $50K-$60K to spend would buy an ICE car?
OMG, you must have bought a lot of Tesla stock while being drunk or so..the world is big. You havent been to other places than California or why do you claim such a bs? ICE cars will live at least for antoher 20years..if you switch completely NOW you will be dead in 5 years, because the market is still so small and many many people are not adopting it. Even in CN, the biggest EV market so many people still buy ICE cars, and will keep on doing so…
But who are you? Luckily not a CEO of any big established car maker who has money to earn and people to feed…
We’ll see. Like I wrote, the Model 3 outsold the A4, 3 series and C class in Q2 in the US if not the world.
If Tesla doesn’t screw up the Model Y, I’m pretty sure it will kill the X3, Audi Q5 and GLC.
Porsche will have an electric Macan by 2022.
Personally, I’d much rather have an electric BMW, Audi or Porsche as long as it was competitive or had better range and performance than Tesla.
Do you think the poorest places in the world are buying a lot of new entry level performance luxury cars? I don’t think so. And, for these areas, sure, keep making the ICE vehicle. Porsche will do this with the Macan.
At the moment, electric cars are expensive. Lets keep the comparison to the first world nations or the nations that have the resources to address climate change.
If I did run BMW or any premium carmaker, I just wouldn’t put my R and D dollars in ICE (or Grand Coupe anything).
Funny, I’ve never once seen a Tesla model 3.
Not the world, not available in most of the world. How many Tesla “sales” are actually just belatedly filling yrs. old wait list? And claiming sales victory in a monopoly market with no direct BEV competition is also fraudulent.
Wow.
This is precisely what manufacturers of “feature phones” (e.g. Nokia, Sony Ericsson, Motorola and RIM) said regarding the touch interface only Apple iPhone.
They claimed that the market is massive for the incumbents and that a niche product from an inexperienced phone maker is just internet hype. Apparently all of the non-first world, emerging markets will buy only flip phones and a $500 smartphone going to market will only show how retarded Steve Jobs is.
Within 24 months, the CEO of Nokia was shown crying publicly to media proclaiming that they “did nothing wrong”.
So phones=cars in ur world. ‘splains a lot.
Most modern consumers match their purchasing preferences for cars identical to their laptops and smartphones. Actually, millenials don’t even want cars at all.
Just because you’re an ostrich and can’t see the world when your head is buried in the sand doesn’t mean the world outside disappears.
The fact that BMW has publicly proclaimed itself a technology company and no longer a car manufacturer must really make you feel like you’ve been hung out to dry.
millenials dont want cars ? whahahaha yeah right …only one with head in the sand is you …you made me laugh now
Uber, Lyft, Didi, etc. (mobility as a service) is being driven by millenial and Gen Z demand. These aren’t driving enthusiasts that frequent a car blog, these unfortunately, are representative of far greater consumer numbers in the shifting paradigm of transportation.
What do you think is pushing the automotive world (BMW included) to pour hundreds of billions of dollars into developing autonomous tech? It’s not just the US/silicon valley, it’s China, Japan, all of East Asia, all of EU (incl. UK), Israel. But at the end of the day, it’s okay to ignore the speed at which technology forces change. Otherwise who else would start the conversation with “well, back in my day…”?
Wrong. Again. BMW CEO joined Microsoft board decades ago, of course a century old German aviation engineering firm will be leading the way on tech., they became #1 global premium on leadership. Rather than unrelated birds or phones, I am fully aware that their 1st earnings earnings in yrs. is largely on new tech., BEV, ride sharing autonomy. Rather than name calling & typing false tropes & accusations, why don’t you go educate yourself? BMW are a smart brand, u r not.
Eat their lunch?! Tesla don’t even sell in most markets BMW ICE do.
I am not fan of the GT series, Z4, and 8. I am more into 3 series, 5 series, and X5, so I am good with that.
The other elephant in the room for the legacy/ existing/ old manufacturers is the dealer network that are owned by separate companies. Tesla sells direct to consumer, they keep their margin (or try to) so there’s not another mouth to feed in the food chain. For the legacy makers, will their larger buying power allow them to still feed the dealers margin while maintaining their own margins? Or should they start buying their dealerships , or start new brands, sans the franchise, and keep their higher margin to themselves?
The elephant is Tesla are not available globally on a planet where millions of BEV are being legislated into existence. Regardless of dealers they cannot compete in huge markets where they have no access, they also cannot produce volume @ the competitive price these burgeoning markets will require.
Wait, what? So, Tesla competing in the USA, their biggest market, can’t compete where they outsold all their direct competitors?
They’re. Also doing well in Scandinavia and China.
$50K electric cars will not be everywhere to start; they will be in the wealthiest nations first.
I will give you this, if BMW made a car competitive in range, performance, tech and price and it looked reasonable , I am sure BMW would kill Tesla.
And that’s my point, stop hesitating and start building better than Tesla BEVs. Don’t build cars like the ix3 as a rear wheel drive,150 mile range SUV. It’s dead on arrival as the model Y will beat it it on performance and range.
Be careful what you ask for, you haven’t even seen BMW ‘s 5th gen. BEV yet.
Tesla isnt even available in my country…im sure its an awesome car but from what ive heard it doesnt have the same build quality as its german counter parts