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      08-21-2019, 01:06 PM   #72
vitaly
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IMO BMW made the following missteps:
1) Brand dilution. There are too many BMW models in the lineup, and lots of them on the road. That's a fine strategy in terms of raw volume, but it kills off a lot of the premium or cache attached to it.
2) With that many vehicles, it's hard to be focused. It's economies of scale all the way, and an attempt to cut costs down per unit and drive up margin. The result, however, is mostly cookie cutter vehicles - modulo some gimmicks, the cars are very similar inside and out.
3) M Division has likewise been diluted. They make stellar cars still (certainly at the top of each class they compete in), but there are now M badges on too many vehicles. These M packages don't make the real M cars feel as special.
4) It's a lease-mostly brand. Still the best lease programs among competitors (at least in the US), and that works well to get customers into a new car every 3 years. But it kills resale/used market with a constant flood of vehicles coming off leases. The low resale likely influences customers' perception of the brand.
5) Straight up mistakes on certain vehicles that they have to unwind, but committed (likely) large sums of $. eg i8, M3/4 CS. These cars were overproduced and/or overpriced. Perhaps in an aim to increase volume they miscalculated on those.

If one considers Porsche, I don't think they care an ounce about being highest volume seller. They make bank per unit sold, and manage to pump out class leading vehicles despite being latecomers to some of them. They pretty much force you to finance/buy as their lease programs are awful. Resale, modulo perhaps the Panamera, is pretty good; 911 resale is particularly great. They don't have a ton of vehicles so can stay more focused and lean/agile (I suspect).

If one goes strictly after volume, what you end up with is precisely where BMW is today. It's going to be difficult to unwind after many years of that strategy.
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