The bottom line is often the most important and BMW has seen a decline in the amount of money that makes its way to the bottom line.
It’s no surprise that every company is in business to make money. This means the luxury brand that brings us a slew of choices when we want to have a vehicle that’s perfectly built for the driving we want to do will soon change and offer us fewer choices. If you’ve been thinking of driving a new BMW, now is the time to choose your model before the changes take place.
What’s Causing These Changes for BMW?
With new factories being placed closer to the sales market, electrification requirements and research costs, tariff wars that seem to never end, and the added cost of making vehicles, the bottom line of profits for BMW have taken a huge hit. The earning have fallen and share prices have tumbled over the past several years to make it necessary for the company to take a hard look at what needs to take place to increase profits and allow the company to be strong enough to be flexible in the research of future automotive technology.
The Plan
A recent report has surfaced that BMW is planning to save $14.5 billion by making some of the changes to the market that will cut models and speed up the R& D to give us a futuristic look to the brand. This means fewer engines, equipment variations, and fewer models. The models that will be cut reflect the cuts we’ve seen from some of our domestic brands with the small car segment being where most of the changes will take place for BMW.
The Effect on the BMW Lineup
The cut in the lineup of BMW has been announced that cars that cost less than 40,000 euros will be gone from the market in the near future. This means you’ll see a BMW lineup that no longer has the 1 Series, 2 Series, or the base model of the 3 Series. The 2 Series Gran Tourer, Convertible, and 3 Series GT will be on the chopping block after the initial cuts are made. Other models that will see the ax will be the short-wheelbase 7 Series, the next-generation model of the Z4, and the two-door 8 Series models. This trimmed lineup leaves us with some good choices to still enjoy an excellent drive in a BMW car.
Will New Models be Added?
The plan, going forward, is to have vehicles that will offer a higher profit margin than those that we currently see in the market. In addition to these higher profit models, we’ll also see a lineup of new i models that will be built more like crossover SUV to fit into our lifestyles better than the previous outgoing models. This means the new i models should sell better and make more money for the BMW brand. These changes should make it possible for the BMW brand to have a much healthier bottom line.
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