[Artemis]

Originally Posted by chuckthis

There were thoughts of an extreme 1M, Scott mentioned it but they couldn't because the 1ers were due to be changed to the 2 series. There wouldn't have been enough time to recoup the investment involved in developing the model.

Well, there was the 1M MotoGP, no ?

But I know what you mean. The idea of a hardcore 1M (1M GTS or 1M CSL) must have crossed their minds at some point in time. However, back in 2010/2011 there were time and budget constraints. Something along the lines of "Not now. Let's speak about that again once we get our hands on the next gen model". Likely @Scott26 referred to that in the past. He's an insider - I'm not. Don't forget that there was initially uncertainty about how the 1M would be perceived by the market. From a commercial point of view, the 1M exceeded all expectations. It also made the ///M colors shine to the max again. Must have been one of the best return-on-investment projects for BMW: not only the sales figures of the 1M were spectacular, but also in the prestige department it got BMW some extra points ("Look what we're capable of - folks, it was just a quick fun project").

Undoubtedly, the competition was/is pretty envious about it. For example, in October 2012 AMG R&D chief Tobias Moers referred to the 1M as benchmark within its league: "But I soon realized that this [the project of developing the Merc A45 AMG] was a unique opportunity to rewrite the rules, to set new standards and eclipse the competition. From day one, I wanted this car to better the BMW 1-series M Coupe." (http://www.automobilemag.com/reviews...amg_prototype/). And you know what: we know by now that he spoke too fast because the AMG failed to top the 1M's success. The aspired "eclipse" didn't happen: despite all preparation, care and marketing drum rolls, the egg didn't hatch. Good car, no doubt about that, but it won't go down into car history books as a game changer. The 1M on the contrary - though no longer for sale - is still king of its category, it got its claim to fame.

For the 1M itself, we do know that the race from conception to birth was a rushed one (allow me to rub some extra salt in the Merc A45 AMG wound again: "AMG has secretly worked on the new hatchback for four years" - http://www.carsguide.com.au/car-news...-bmw-1-m-21160). There wasn't even time and money for lavish marketing campaigns. Actually, from hindsight, the successful marketing videos (2010 teasers + 2011 ads) weren't key for its success. No, the real key to the 1M's success ...was the car itself: res ipsa loquitur. Those who got the chance to behold it IRL and drive it, will advocate it.

Originally Posted by chuckthis

It's a tough pill to swallow. Were they selling it at a big markup when it was introduced? Or are they just keeping the trophy in the showroom?

No, it's just an example of a tough economic law + changed market circumstances: if the price-point is/remains higher than the meeting point of supply and demand, than that E90 CRT M3 will stay on the lot. Let's face it, with those ball park figures, potential buyers look into other options (think Porsche, etc.). If there is something to swallow, then it should be the pride to offer the car at MSRP or close to it.

That's also why IMHO the M2 has lots of potential to be successful: its price-point will remain within 'affordable' territory for quite some family budgets compared to the one required for getting a new M3/M4. I hear that comment here and there: "Looking into getting a new M3/M4 but the wife says «no»".

Definitely, BMW should *not* underestimate this factor: convincing your significant other in getting yourself an M2 will be less challenging than getting her/him onto your side to getting you a decently optioned M3/M4. Although only few information is known to date about the M2, we can be pretty sure that BMW M will arrange that the M2 will be nothing less than the best alternative to an M3/M4 and, by extension, to most of the competition: you will get the best value for money package. In ///M we trust: the ///M badges and premium price will live up to their expectations.

Okay, it will not step all over M3/M4 toes: the 0-62mph and quarter mile times as well as V-Max of the M2 will be kept - on purpose - under those of M3/M4, but at a whisper only. However, in real world driving you will not experience the difference, except if you're really experienced and/or a track aficionado. It's a bit like the megapixel battle of cameras: can you spot the difference between 16 and 20 megapixels ? For the rest the M2 might not feature all the M3/M4 technology, gems, gizmos and gimmicks, but a fair part of it, nevertheless.

Will the M2 'canibalize' M3/M4 sales ? I guess only to a lesser extent. For quite some the M3/M4 is no realistic option - you think more than twice before a "splash the cash". The M2 will have a more convenient price and size for most (not sure whether the 'bigger size' argument is actually a benefit for the M3/M4 - for me it's rather a hazard: too 'bloated' for my taste, but maybe I change my mind in the future). Upon trying to understand the car market, you'll see that the M2 will 'pigeonhole' the complementary market segment on which the 1M has royally capitalized: affordable pocket-rocket excellence featuring an eye-appealing muscular stance.

Nowadays, it's all about the hunt for brand fidelity: getting the customer drive your brand and aspire that (s)he will get more of your products and/or promote these to family, friends and acquaintances. BMW: keep the price-point for the M2 'affordable' and its ownership might have the potential of a being a 'stepping stone' for selling other cars (not necessary ///M cars) in the future to the same customer or people (s)he knows.

I said it before and I say it again: with the M2, BMW M has gold on/in its hands. If they pull it off smartly, it will be a cash cow for BMW and a joy for the enthusiasts. Exciting times are ahead. Let the competition start to get nervous about the coming of the new kid in town: the highly anticipated M2.