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      05-16-2020, 07:32 PM   #485
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Originally Posted by JCZ5 View Post
So basically, it would be very easy for BMW to add blind spot monitoring to the M2. From my understanding, most of the hardware components are in place. It may be lacking one or two extra radar thingy.

Keep in mind, the M2C already has radar built into the back number for reversing. So again, the core hardwire is already in line. Just charge an extra $500 and call it a day. We all know there may also be a price increase for the '21 anyways...(or at least with automotive trends, that is usually the case).

///AVM, for now all 2 series are assembled in Leipzig, including the new 2 series gran coupe, of which there are more color choices. However, I believe '21 may be the last year all 2 series will be made in Germany. Some will move to the new plant in Germany. However, I think I read somewhere the next gen M2 will still be made in Germany.

Gentlemen,

If I could interject, I would like to introduce a concept that I think will significantly clarify what is really going on: PRICE DISCRIMINATION. Price discrimination is the practice of using different methods to FORCE consumers to reveal to you (the company) your true willingness to pay. In the absence of price discrimination, you, as a producer, are forced to compete on price and always end up competing away your margins. Then you go bankrupt. And all your employees lose their jobs. And all your shareholders lose their shareholder value. And suddenly, your mom and your dad can no longer afford to retire (after all, their stock portfolio went to $0), and end up in debtors prisons. But, with price discrimination, you can figure out what consumers are really willing to pay, and then charge them that amount, and be profitable, happy, fat, virtuous, and godly. And the corporation sustains its stock price, and your mom and your dad get to retire in Boca Raton, Florida, as opposed to serving as slaves in Abu Dhabi to pay off credit card debt.

From the consumer side of the equation, we always say, "I don't get why Supplier X just doesn't include feature Y! I mean, all the components are already in place to offer up feature Y. I can see the wiring! I can see the actual hardware there. All they have to do is flip a switch in the software, and I would get the surface to air missile. Why in the world don't they just let me have the surface to air missile???"

The answer? 2 simple words: Price Discrimination.

Yes, Producer X could give you the surface to air missile. The rocket is there. The rocket fuel is there. The warhead is there. It would cost them literally NOTHING to code the "fire the surface to air missile" button to activate the feature. But, even though it's all there, they don't! And, it's because they would be IDIOTS to give you the surface to air missile feature! You can't have the surface to air missile feature in the M2! Why? Because if you want the surface to air missile feature, you can only have it in the 7-series, which BMW will be happy to charge you $50k more than the M2.

When it comes to maximizing profit, cost ain't got nothing to do with it. However, we're somehow hard-wired to believe, "Oh, the producer's cost is $10, so they should charge me $11 for that thing." Nope. If the producer is smart, they will charge "maximum willingness to pay" and completely ignore cost. Take Starbucks, for example. The difference in cost to Starbucks between a tall latte and a venti half-caff, mocha frappuccino with 3 pumps of vanilla extract, made from free trade beans is ~1 penny. But, the delta in the price they charge you is ~$3. They're geniuses. Starbucks knows that if you order a tall latte, you're a cheap bastard, and you're only willing to pay the bare minimum. Meanwhile, they know that if you order the frou-frou-frou drink with whipped cream, you're practically SCREAMING, "Please take every penny out of my wallet, I don't care about money!"

On this forum, I'm a clown. But, in real life, I charge really high consulting fees to big corporations to put in place strategic pricing programs. And one of the key things I put in place in companies is price discrimination.

You know why Microsoft used to charge you $99 for Microsoft Student Edition, and $999 for Microsoft Enterprise Edition? Price discrimination. You know why Denny's has a senior discount? Price discrimination. ("Senior discount" could otherwise be called, "Let's charge everyone who isn't a senior more money.")

Corporations, in a capitalist society, as set up to maximize profits. One of the key ways to maximize profit is to charge customers their maximum willingness to pay. The issue is that no consumer is going to reveal their actual maximum willingness to pay. So, you gotta trick them into revealing that information to you.

There's a famous HP printer case of price discrimination. There used to be a low-priced HP inkjet printer that could print out 8 pages per minute. The high priced printer could do 20 pages per minute. When we looked at the cost to produce the high priced versus the low priced printer, turns out the low priced printer was more expensive to manufacture. Why? It had an extra chip in it. What was the purpose of that extra chip? It SLOWED the printer down to 8 pages per minute, when the default setting was 20 pages per minute. There was literally ZERO difference between the 2 printers, other than this "slow everything down to 8 pages/minute" chip!

HP could give you feature Y for free. In fact, to prevent you from getting feature Y, HP had to spend extra money! And they're geniuses for it. THAT is how you properly price discriminate, and force rich consumers to cough up money to get that 20 pages/minute printing speed.

So, yes, all the pieces are in place for blind spot monitoring. But, BMW, being virtuous and godly, are doing Jesus H. Christ's work here on earth, and they're doing their darnedest to increase shareholder value via price discrimination, by not giving you blind spot monitoring. They're saying, "You want blind spot monitoring so bad? Go buy a more expensive, higher margin car from us, like the 7-series."

God bless BMW!
This.
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      05-16-2020, 07:36 PM   #486
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Originally Posted by JCZ5 View Post
cptobvious - thank you for the excellent write up, it makes a lot of sense and your examples are very valid.

However, I would like to offer a counterpoint to your argument and as a whole, the industry is moving away from what you so call price discrimination in certain segments.

Let's continue with the car example. In the past, all advanced and luxury features were only available on a brand's halo vehicle. take a look at the S-class and 911 turbo of the past to name a few. These halo vehicles were always the first to go to market with the most advanced safety features or even the first to introduce a brand's new design language.

This is drastically changing nowadays and consumers prefer choices and customizations. Models within a brand are not necessary held to a certain price point anymore. Porsche does this perfectly where you can spec any vehicle with a whole slew of features that are available across their model lineup. You can spec an "entry" model (718/Macan) with the features seen on their higher up trims/models. In fact, the a la carte model is a very effective way to generate more revenue.

I would argue BMW is doing the same, see the new 2 series gran coupe, the new 3 series, new X5 and compare it with the highest trims of the 8 series of X5M. Most of all (read: not all) of the luxury features are readily available for that "entry" models. The "entry model can be speced way above their marketed target demographic.

In the case of the M2 and 7 series, they serve two completely different consumer base. However, I as a consumer, I would want the option to pay for the "upgrade" options, and will be winning to spend above its initial price point. Case in point, take a look at the M2CS. Many forum members have groaned at its outrageous price tag. After all, members say it is still a 2 series. However, the additional carbon fiber additions, merino leather seats, alcantra are basically added-on upgrades. And as you can see, there is a very lively market for the CS. Also, no longer are model lines primarily viewed as stepping stones e.g. first start with 2 series and graduate up to 7 series. BMW is focused on customer segmentation and using each model to fully develop its products to span multiple types of buyers. The only reason to go from one model line to another is if your use cases have changed.

One last point I would like to make is regarding introduction of completely new model cycles. Again, in the past, new model designs were always introduced with the brand's higher echelon models. However, this most recent case of BMW with their new design language/tech, it was their most popular models that received the updates first: X5 and 3 series. The new design language of the 7 series came a little later.

The consumer market is changing rapidly and the focus is on customer segmentation and options. Going back to my initial point, I would gladly pay to play on the various options in a 2 series, as this fits my use case.
Good points. But about being able to spec a base 2 series with a bunch of extras, what you do is put the price of that 2 series in 3 or even 5 series territory, which then invites the thought process to the consumer to just get the better more expensive car (which will have higher margins).

Think of how many posts said "why spend that on a M2CS when I can get an M4CS for not that much more"
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      05-16-2020, 07:47 PM   #487
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Quote:
Originally Posted by Thescout13 View Post
Quote:
Originally Posted by JCZ5 View Post
cptobvious - thank you for the excellent write up, it makes a lot of sense and your examples are very valid.

However, I would like to offer a counterpoint to your argument and as a whole, the industry is moving away from what you so call price discrimination in certain segments.

Let's continue with the car example. In the past, all advanced and luxury features were only available on a brand's halo vehicle. take a look at the S-class and 911 turbo of the past to name a few. These halo vehicles were always the first to go to market with the most advanced safety features or even the first to introduce a brand's new design language.

This is drastically changing nowadays and consumers prefer choices and customizations. Models within a brand are not necessary held to a certain price point anymore. Porsche does this perfectly where you can spec any vehicle with a whole slew of features that are available across their model lineup. You can spec an "entry" model (718/Macan) with the features seen on their higher up trims/models. In fact, the a la carte model is a very effective way to generate more revenue.

I would argue BMW is doing the same, see the new 2 series gran coupe, the new 3 series, new X5 and compare it with the highest trims of the 8 series of X5M. Most of all (read: not all) of the luxury features are readily available for that "entry" models. The "entry model can be speced way above their marketed target demographic.

In the case of the M2 and 7 series, they serve two completely different consumer base. However, I as a consumer, I would want the option to pay for the "upgrade" options, and will be winning to spend above its initial price point. Case in point, take a look at the M2CS. Many forum members have groaned at its outrageous price tag. After all, members say it is still a 2 series. However, the additional carbon fiber additions, merino leather seats, alcantra are basically added-on upgrades. And as you can see, there is a very lively market for the CS. Also, no longer are model lines primarily viewed as stepping stones e.g. first start with 2 series and graduate up to 7 series. BMW is focused on customer segmentation and using each model to fully develop its products to span multiple types of buyers. The only reason to go from one model line to another is if your use cases have changed.

One last point I would like to make is regarding introduction of completely new model cycles. Again, in the past, new model designs were always introduced with the brand's higher echelon models. However, this most recent case of BMW with their new design language/tech, it was their most popular models that received the updates first: X5 and 3 series. The new design language of the 7 series came a little later.

The consumer market is changing rapidly and the focus is on customer segmentation and options. Going back to my initial point, I would gladly pay to play on the various options in a 2 series, as this fits my use case.
Good points. But about being able to spec a base 2 series with a bunch of extras, what you do is put the price of that 2 series in 3 or even 5 series territory, which then invites the thought process to the consumer to just get the better more expensive car (which will have higher margins).

Think of how many posts said "why spend that on a M2CS when I can get an M4CS for not that much more"
Again this goes back to your specific use case. I should have clarified that there will still be a gap in terms of pricing between the two models.

However, if equivalently equipped, I would still offer that some people will chose the M2 as opposed to the M4 in terms of driving dynamics and agility. And in those two examples, there would still be a price gap that is not inconsequential.

I keep going back to Porsche because I previously spent so much time on their configurator. You can easily spec a S over the price of a GTS or turbo. However, some may still prefer the S for a variety of reasons.
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      05-16-2020, 07:51 PM   #488
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Quote:
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Originally Posted by Thescout13 View Post
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Originally Posted by JCZ5 View Post
cptobvious - thank you for the excellent write up, it makes a lot of sense and your examples are very valid.

However, I would like to offer a counterpoint to your argument and as a whole, the industry is moving away from what you so call price discrimination in certain segments.

Let's continue with the car example. In the past, all advanced and luxury features were only available on a brand's halo vehicle. take a look at the S-class and 911 turbo of the past to name a few. These halo vehicles were always the first to go to market with the most advanced safety features or even the first to introduce a brand's new design language.

This is drastically changing nowadays and consumers prefer choices and customizations. Models within a brand are not necessary held to a certain price point anymore. Porsche does this perfectly where you can spec any vehicle with a whole slew of features that are available across their model lineup. You can spec an "entry" model (718/Macan) with the features seen on their higher up trims/models. In fact, the a la carte model is a very effective way to generate more revenue.

I would argue BMW is doing the same, see the new 2 series gran coupe, the new 3 series, new X5 and compare it with the highest trims of the 8 series of X5M. Most of all (read: not all) of the luxury features are readily available for that "entry" models. The "entry model can be speced way above their marketed target demographic.

In the case of the M2 and 7 series, they serve two completely different consumer base. However, I as a consumer, I would want the option to pay for the "upgrade" options, and will be winning to spend above its initial price point. Case in point, take a look at the M2CS. Many forum members have groaned at its outrageous price tag. After all, members say it is still a 2 series. However, the additional carbon fiber additions, merino leather seats, alcantra are basically added-on upgrades. And as you can see, there is a very lively market for the CS. Also, no longer are model lines primarily viewed as stepping stones e.g. first start with 2 series and graduate up to 7 series. BMW is focused on customer segmentation and using each model to fully develop its products to span multiple types of buyers. The only reason to go from one model line to another is if your use cases have changed.

One last point I would like to make is regarding introduction of completely new model cycles. Again, in the past, new model designs were always introduced with the brand's higher echelon models. However, this most recent case of BMW with their new design language/tech, it was their most popular models that received the updates first: X5 and 3 series. The new design language of the 7 series came a little later.

The consumer market is changing rapidly and the focus is on customer segmentation and options. Going back to my initial point, I would gladly pay to play on the various options in a 2 series, as this fits my use case.
Good points. But about being able to spec a base 2 series with a bunch of extras, what you do is put the price of that 2 series in 3 or even 5 series territory, which then invites the thought process to the consumer to just get the better more expensive car (which will have higher margins).

Think of how many posts said "why spend that on a M2CS when I can get an M4CS for not that much more"
Again this goes back to your specific use case. I should have clarified that there will still be a gap in terms of pricing between the two models.

However, if equivalently equipped, I would still offer that some people will chose the M2 as opposed to the M4 in terms of driving dynamics and agility. And in those two examples, there would still be a price gap that is not inconsequential.

I keep going back to Porsche because I previously spent so much time on their configurator. You can easily spec a S over the price of a GTS or turbo. However, some may still prefer the S for a variety of reasons.
Of course, nothing is black and white and ppl will nevertheless buy the 2 series. But if you can get a 10% lift from consumers to go to the next model up bc of the pricing strategy, then that's additional profit that you didn't have otherwise. I don't think I or @cptobvious are saying it's an absolute.
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      05-16-2020, 07:57 PM   #489
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Blind spot monitoring seems more like cost cutting rather than price discrimination. I can’t imagine anyone who is considering an M2 is going to spring for an M4 just to get the blind spot monitoring. They might as well get a 330i for a lot cheaper if that’s the feature that drives their purchase decision. Not to mention the fact that said consumer may skip the brand altogether if they can’t get the feature they want. This was probably deemed low risk given the M2 demographic, so IMO, it was really about cost cutting.

The pricing of the M2CS, however, seems to be a prime example of price discrimination. It costs BMW about the same to produce a CS, but it’s a mechanism to give people who are willing to pay more exactly that opportunity. It’s the whole reason behind introducing the Base, Competition, CS, CSL hierarchy. The improvements are often marginal, but it’s a great way for BMW to squeeze as much money as possible out of each and every buyer, without much risk of the consumer taking their business to another brand. Bravo, BMW, bravo!!
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      05-16-2020, 08:03 PM   #490
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@Thescout13 I am not taking either of your comments in absolute terms, but maybe I'm having some trouble articulating my thoughts.

Regardless, I think it was an informative discussion. Still pains me to have to wait for '21 to be available for order and then delivery.

As some of you may know, my car journey started back in January with many close calls. Can't believe it will take me ~9+ months to finally get into my car.

In the meantime, I hope the lucky MY19/20 owners will continue to tease us future owners with their incredible stories and driving adventures. Summer driving season is practically here!
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      05-16-2020, 09:17 PM   #491
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Think of how many posts said "why spend that on a M2CS when I can get an M4CS for not that much more"
Scout

That makes sense, but as just one car enthusiast who might represent an outlier in terms of the consumer mindset . . . my thoughts have been, 'why get an M2CS when I can get the M2C for so much less?'

I have always said, BMW does not decide what is special, consumers decide what is special. However, that comes from the perspective of a car enthusiast, not someone looking to be an 'exclusive' owner of something BMW stamps as a 'limited edition.'

I really do not think I am an outlier in this M2C vs M2CS debate, rather, the M2C is simply something quite special.

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      05-17-2020, 09:48 AM   #492
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Quote:
Originally Posted by Fenerbahce View Post
Blind spot monitoring seems more like cost cutting rather than price discrimination. I can’t imagine anyone who is considering an M2 is going to spring for an M4 just to get the blind spot monitoring. They might as well get a 330i for a lot cheaper if that’s the feature that drives their purchase decision. Not to mention the fact that said consumer may skip the brand altogether if they can’t get the feature they want. This was probably deemed low risk given the M2 demographic, so IMO, it was really about cost cutting.

The pricing of the M2CS, however, seems to be a prime example of price discrimination. It costs BMW about the same to produce a CS, but it’s a mechanism to give people who are willing to pay more exactly that opportunity. It’s the whole reason behind introducing the Base, Competition, CS, CSL hierarchy. The improvements are often marginal, but it’s a great way for BMW to squeeze as much money as possible out of each and every buyer, without much risk of the consumer taking their business to another brand. Bravo, BMW, bravo!!
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      05-17-2020, 01:38 PM   #493
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Always bums me out to see people insulting the geniuses as I am one. . .
Mr O

I truly did not set out to insult the Genius that assisted me, nor you or any Genius. I was simply trying to rectify an inconsistency in information provided to me regarding blind spot monitoring.

While it does seems reasonable to expect a designated BMW Genius knows more about a vehicle than the new/prospective owner, it is really hard to keep up with enthusiasts on this forum.

Also, to be fair, even among the enthusiasts, focus and corresponding knowledge is often placed with one, or two models - whereas the Genius responsible for the entire BMW lineup.

I have zero ill-regard for the Genius who assisted me. In fact, she was very helpful. She simply did not know - or forgot - the lights on the M2C side mirrors were non-functional with regard to blind spot monitoring found on the M3/4.

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      05-17-2020, 04:29 PM   #494
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I'm sure there are some enthusiast geniuses who know a lot about the cars, but I have to think the majority are sales reps asked to pass the time. I was told I'd have a genius contact me within a week of purchase and set up an appointment. No one did. Now I've driven/owned many BMWs so there ain't a lot you could teach me.

Anyway I called and got in touch with one at my dealer who was more than eager to set up an appointment, but after talking to him for a few minutes on the phone, I figured it would be a massive waste of time. I could tell he knew nothing more that I did about the M2, perhaps less. Also, this genius hardly sounded eager, or like a genius, so I couldn't fathom wasting time with him in my car, so I passed.
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      05-17-2020, 04:37 PM   #495
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I'm sure there are some enthusiast geniuses who know a lot about the cars, but I have to think the majority are sales reps asked to pass the time. I was told I'd have a genius contact me within a week of purchase and set up an appointment. No one did. Now I've driven/owned many BMWs so there ain't a lot you could teach me.

Anyway I called and got in touch with one at my dealer who was more than eager to set up an appointment, but after talking to him for a few minutes on the phone, I figured it would be a massive waste of time. I could tell he knew nothing more that I did about the M2, perhaps less. Also, this genius hardly sounded eager, or like a genius, so I couldn't fathom wasting time with him in my car, so I passed.
Kutta

I hear you . . . for enthusiasts such as yourself who frequent this forum, I would expect very little by way of enlightenment from the assigned Genius. This forum is like a graduate class in all things BMW. I cannot imagine a better information resource exists anywhere on the topics we love to discuss.

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      05-18-2020, 12:30 AM   #496
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I cannot tell you for certain, but I believe it's a custom paint color.



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its python green. launch color for gts 4.0
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      05-18-2020, 09:16 PM   #497
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its python green. launch color for gts 4.0
Thank you Karussell

Paint colors are always hard to distinguish online, as lighting has a tremendous impact on appearance.

At any rate, the python green looks awesome on the 718 in any lighting I have yet to observe it online.

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      05-20-2020, 06:09 PM   #498
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Fender Extension confirmed

Confirmed that euro models manufactured from 1st march have the plastic fender extensions





Last edited by Mito21; 05-20-2020 at 06:14 PM..
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      05-20-2020, 06:16 PM   #499
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Confirmed that euro models manufactured from 1st march have the plastic fender extensions

Mito

Thank you for the updated information.

I know others have expressed their dislike for the fender flares.

Personally, I do not find the flares obtrusive, but question the utility with where they are placed on the fender.

Overall, their presence would not bother me.

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      05-20-2020, 06:27 PM   #500
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Originally Posted by ///AVM View Post
Mito

Thank you for the updated information.

I know others have expressed their dislike for the fender flares.

Personally, I do not find the flares obtrusive, but question the utility with where they are placed on the fender.

Overall, their presence would not bother me.

///AVM

i am asking myself if it would become better if painted
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      05-20-2020, 06:39 PM   #501
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i am asking myself if it would become better if painted
Mito

My opinion is NO WAY.

Just out of curiosity, if one found the flares obtrusive, would it not be possible to simply undo a couple screws and remove them?

///AVM
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      05-20-2020, 06:47 PM   #502
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Quote:
Originally Posted by ///AVM View Post
Quote:
Originally Posted by Mito21 View Post
i am asking myself if it would become better if painted
Mito

My opinion is NO WAY.

Just out of curiosity, if one found the flares obtrusive, would it not be possible to simply undo a couple screws and remove them?

///AVM
I bet you it's removable
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      05-20-2020, 06:52 PM   #503
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Quote:
Originally Posted by ///AVM View Post
Mito

My opinion is NO WAY.

Just out of curiosity, if one found the flares obtrusive, would it not be possible to simply undo a couple screws and remove them?

///AVM
Gosh, those dont look right. I'm sure easily removable
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      05-20-2020, 07:06 PM   #504
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Quote:
Originally Posted by ///AVM View Post
The following might make sense, but not be the reality of how things play out . . .

I think it has been pretty well established that BMW is not taking any more builds for the 20' M2C. They will complete pre-Covid build orders for the 20' model, then convert to the 21' model builds.

If BMW had nothing different planned for the 21' M2C, then it would be a simple matter of them converting the '2020' to '2021' on the build site. Since this has not occurred, it suggests to me that at least SOME MODEST change or new option(s) will be available on the 21' builds?

///AVM
Let's play this game, what are some reasonable changes for '21?

Will there be new color choices? I understand the Leipzig plant is unable to do individual, but since the CS will be coming out with Misiano Blue, I assume other 2 series colors may be available? Looking at the 2 series gran coupe line, the only color that would be interesting for me is Melbourne Red metallic.

Theoretically, the only additional changes/features the competition can add are items that are already on the M4. I wonder which surplus are available in the M4 parts bin. Would love the inclusion of blind spot monitoring.
I would like a 437 wheel option to be honest
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      05-20-2020, 07:23 PM   #505
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Quote:
Originally Posted by BigKutta View Post
Quote:
Originally Posted by ///AVM View Post
Mito

My opinion is NO WAY.

Just out of curiosity, if one found the flares obtrusive, would it not be possible to simply undo a couple screws and remove them?

///AVM
Gosh, those dont look right. I'm sure easily removable
It will probably take removing 10 different bolts and a few hidden clips, for good measure; the BMW way but it will come off, like any other inner fender attachments.
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      05-20-2020, 07:36 PM   #506
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Quote:
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Confirmed that euro models manufactured from 1st march have the plastic fender extensions




Is there a function for these?
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