[JCZ5]

I offer my take on the MY21 discussion based on some recent posts.

Historically, the last 1-2 years of a model year runout never provided any additional packages. In fact, it normally just consolidated packages or made them standard. If you're lucky, you may receive some new external or internal color choices. Therefore, a MY20 being similar or same to MY21 is expected even without this crisis. If anything, they would have just included the executive package as standard.

Now, to go against the grain, I don't think BMW would stop production of the M2C early, especially when EOP was suppose to be next June.

Reason 1: Amortized cost.
At this point of the lifecycle, the initial cost is close to, if not already paid off. And the cost of producing these vehicles are low enough that the sell of each vehicle adds to the profit margin for the 2 series. Before somebody mentioned how the M2 is a slow seller, let's not forget the profit margin fits into the overall 2 series bucket as a whole. So the development cost is only a fraction of the 2 series since the M version is only an upgrade to what was the cost of the M specific components and tuning in top of the 2 series (aka relatively smaller cost)

Reason 2: No reason to accelerate future product pipeline.
As we all know, the car market in the next few months to a year will be extremely poor due to the recession. We still do not know the severity of the recession, but that can obviously impact the car market.

So I disagree with people saying they will move up the new generation M2 timetable. If anything, BMW is trying to delay release as long as possible as they know new releases will not have the sale momentum.

As such, no reason to restructure the production lines, which are timely and costly. Instead, it's much more cost effective to continue producing the current M2's with the amortized costs already done. BMW will use this time to minimize costs, while retaining their employees and keeping their operations running by producing a well known vehicle.

So to be even more of a contrarian, BMW could delay their EOP for their M2 and wait for the economy to recover before producing their next highly anticipated M2. Also keep in mind the new M3/M4 will be announced and released end of this year and early next year. One new M model in this current economy is enough instead of risking two new M models.