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      08-22-2019, 10:15 AM   #104

Drives: 05 M3, 04 M3iT , 01 M5, 17 i3
Join Date: Apr 2008
Location: West Chester, PA

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Garage List
2017 BMW i3  [0.00]
2005 BMW M3 Coupe  [0.00]
2004 BMW M3 Wagon  [0.00]
2001 BMW M5  [0.00]
Originally Posted by clee1982 View Post
or make a "proper" i8 that would be a real M1 replacement
A CF monocoque sport sedan is a far more interesting proposition to me than an M1 replacement. Lots of cars in the supercar sea, but nothing like a CF monocoque sport sedan.

Originally Posted by vitaly View Post
But we're talking about strictly Porsche's financial performance, not VAG as a whole. Obviously having VAG as parent helps with a larger balance sheet, access to (presumably) cheaper financing, and so on. But Porsche itself is thriving. Every car they make they knock it out of the park. Let's see how the Taycan does, which is relatively new ground for them. I predict demand will outpace supply and they'll have a similar margin on that car as well.

Porsche is more expensive than BMW. We can argue about features, tech, build quality and so on differences but the bottom line is customers are willing to pay for it. Reputation is king in this (and other) businesses. If the customer believes they're getting a premium product, they'll pay for it again and again even if objectively it's not as premium as one perceives. But of course they need to deliver as well, and they do. It's a very slim margin for error. If you tarnish it, it'll take a long time to rebuild, if ever.
BMW's current strategy is one that leads to lower and lower prices. Commodity goods without differentiation compete on price.