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      08-20-2019, 10:09 PM   #60
LogicalApex
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Drives: 2020 BMW 530xe
Join Date: Jul 2019
Location: Farmington, NY

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2020 BMW 530xe  [0.00]
Life is going to get increasingly hard for all luxury car makers as it is getting harder and harder to compete with non-luxury brands and this won't be letting up anytime soon. Tesla is also a testimate to reality that many customers are willing to pay luxury prices for non-luxury when it comes to EVs; meaning they value the electric drive train above all else.

For starters, a luxury brand today has to pivot and make after sales service as pleasant and smooth as possible. As that is on area non-luxury brands will find it harder to compete in the near term. Meaning, pleasant service visits from dealerships that care about customer long-term relationships which is a tricky shift as dealers are independent.

Additionally, they need to expand their electric and tech offerings to appeal to the younger buying segment who are aging up and can't see why they should jump from their Toyota over to a BMW or a Mercedes. Tech is one area I do think BMW is executing well in and I think only Tesla is ahead of them. Toyota, Honda, and others are already including a ton of advanced driving safety features as standard and there is a very small gap between luxury and non-luxury with regards to in-car technology. This is the double edged curse of the heavy R&D cost of these systems. They have to be built by venders who can sell to everyone...

So you have a Toyota Corolla with Radar Assisted Cruise Control, Automatic Steering, Car Play, SpeedL Limit Sign Cameras, Lane Tracking, etc... All standard...

Of course, building great cars that last is important too. Especially since younger buyers are keeping cars far longer and often preferring to start buying used. I tend to own my cars for 5-7 years and currently BMW prefers the 3 year lease customer. They'll need to find a way to balance those two realities.
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