[Artemis]

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A Dutch article of December 24, 2015 (see here) mentioned that the M2 requires more production time compared to other BMW models. It speaks about briefly taking the M2 out of the production line to prevent production delays for other BMW models (separate treatment off the common production line):

BMW has to take the M2 out of the production line during its production, if it wants to prevent delaying the production of the other models. Producing the M2 requires more work than the production of a 2er Coupé.
Frank van Meel, BMW M GmbH boss, indicated that the M2 has an extra wide body, hosting modified M3 underpinnings. Because of these specific components the M2 production requires more time compared to the standard 2-Series Coupé. In order to prevent that the M2 slows down the production line featuring all other models, BMW briefly removes the sports coupé from the other models [on the production line].

A Belgian who ordered his M2 shortly after the October launch, reported yesterday about status code 111 with M2 delivery expected for September 2016 (instead of earlier as initially assumed). No information whether he's first on the dealer list or not + the precise order date.

I did not inquire yet about the approximate delivery period of mine. No stress.

EDIT 1: EVO magazine confirmed likewise on January 6, 2016 in this article reporting about their time with the M2 (kudos to forum fellow ///Jason for the heads-up on this one):

With regular 2-series produced at BMW's Leipzig facility, and no dedicated line for the M2, M division will convert cars at a separate workshop. This means numbers will be limited, and BMW UK says it'll be 'lucky to get 400-500'.

EDIT 2: Also two other Belgian forum fellows reported on January 6, 2016 about September/October 2016 deliveries instead of April 2016 deliveries regarding their October 2015 orders. One of them got the info in writing that for MY2016 130 M2s were allocated to Belgium and it seems that all were spoken for very quickly (see here).

Rebus sic stantibus, mine is expected to go into production in April 2016.

[fuddman]

Very interesting insight to the priorities in the assembly line process.
To me, what this means is the M2, from a BMW corporate perspective (as opposed to an M Division perspective), is not expected to be a big profit maker. Otherwise, they would be scheduling the 2 series coupe production around the M2.
Also, it may mean the M2 is on a kind of 3 or 4 year probation.

[cole3488]

Originally Posted by fuddman

Very interesting insight to the priorities in the assembly line process.
To me, what this means is the M2, from a BMW corporate perspective (as opposed to an M Division perspective), is not expected to be a big profit maker. Otherwise, they would be scheduling the 2 series coupe production around the M2.
Also, it may mean the M2 is on a kind of 3 or 4 year probation.

I read somewhere on here that the production of the m2 coralates with how many 2 series are sold/produced. No clue if that is true but it makes sense that they have sell a certain amount of 2 series to make more m2s

[fuddman]

Originally Posted by cole3488

.... they have [to] sell a certain amount of 2 series to make more m2s

I'm not sure it works that way.
I'm not privy to inside information; but, my guess is the M Division has to fight for a share of the assembly line time. They are, after all, only a "Division" within the BMW corporate structure (a profit center, maybe). Other "Divisions" also want a share of that Leipzig assembly line time. Like the I Division, for example. Which produces the I8 and I3 there. To me, it sounds as if all the divisions using the Leipzig plant need to show a profit and so, compete with each other for line time. Under that kind of scenario, it seems reasonable the car expected to produce the highest return to the corporation would get the most assembly line time.
So, if they can produce and expect to sell, say, two 2 series cars for every one M2 and with that combination achieve a higher profit, then, obviously, that's what they'll do. Throw the I3 and I8 into the mix, and the maximum profit angle quickly gets a lot more complex.
From what the article says, the M2 production is not being allocated lots of line time. That's why I conclude the M2 is not expected by the corporation (not the M division) to produce bokoo $$$$. Which, if true (a big if), suggests the M2 is going to live in a "let's put it on the street and see what happens" life cycle. And if it doesn't "happen," then, sayonara M2.
Note: pure speculation on my part.

[hyperzulu]

Originally Posted by fuddman

I'm not sure it works that way.
I'm not privy to inside information; but, my guess is the M Division has to fight for a share of the assembly line time. They are, after all, only a "Division" within the BMW corporate structure (a profit center, maybe). Other "Divisions" also want a share of that Leipzig assembly line time. Like the I Division, for example. Which produces the I8 and I3 there. To me, it sounds as if all the divisions using the Leipzig plant need to show a profit and so, compete with each other for line time. Under that kind of scenario, it seems reasonable the car expected to produce the highest return to the corporation would get the most assembly line time.
So, if they can produce and expect to sell, say, two 2 series cars for every one M2 and with that combination achieve a higher profit, then, obviously, that's what they'll do. Throw the I3 and I8 into the mix, and the maximum profit angle quickly gets a lot more complex.
From what the article says, the M2 production is not being allocated lots of line time. That's why I conclude the M2 is not expected by the corporation (not the M division) to produce bokoo $$$$. Which, if true (a big if), suggests the M2 is going to live in a "let's put it on the street and see what happens" life cycle. And if it doesn't "happen," then, sayonara M2.
Note: pure speculation on my part.

The overwhelming success of the 1M set the stage for the M2. It will sell. There is no question.

[M3 Adjuster]

Originally Posted by fuddman

Very interesting insight to the priorities in the assembly line process.
To me, what this means is the M2, from a BMW corporate perspective (as opposed to an M Division perspective), is not expected to be a big profit maker. Otherwise, they would be scheduling the 2 series coupe production around the M2.
Also, it may mean the M2 is on a kind of 3 or 4 year probation.

Hmmmmm , I think I've been saying this for awhile now..

The M2 *is* the niche car and the volume car is the 2 series ... And of course the 2 series is produced in amounts five to ten times fewer than the 3/4 series. The Leipzig plant also is producing other models on its line at the same time.

This should be of no surprise to anyone. The 1M was also produced in batches during the production of the regular line models.

From a manufacturing perspective, Just like the 1M was mated with rear subframe/suspension from the M3 on the M2, the usage of the M3/M4 subframe assemblies will require additional time to install , and of course those assemblies also have to be brought in as batches as they will be produced offsite.

It sounds like the M2 will be produced in short batches , likely produced regionally , and will surely be less available than the M3/M4.

[SW19]

Originally Posted by M3 Adjuster

Hmmmmm , I think I've been saying this for awhile now..

The M2 *is* the niche car and the volume car is the 2 series ... And of course the 2 series is produced in amounts five to ten times fewer than the 3/4 series. The Leipzig plant also is producing other models on its line at the same time.

This should be of no surprise to anyone. The 1M was also produced in batches during the production of the regular line models.

From a manufacturing perspective, Just like the 1M was mated with rear subframe/suspension from the M3 on the M2, the usage of the M3/M4 subframe assemblies will require additional time to install , and of course those assemblies also have to be brought in as batches as they will be produced offsite.

It sounds like the M2 will be produced in short batches , likely produced regionally , and will surely be less available than the M3/M4.

It will definitely be interesting to see how many production slots the dealers in the US and Canada get for 2016 and 2017.

[///Jason]

Originally Posted by Nantucket

It will definitely be interesting to see how many production slots the dealers in the US and Canada get for 2016 and 2017.

Agreed, UK Slots are already looking sparse, it will be interesting to see what you guys get on the other side of the world.

I think there may also be another reason too - the M2 will be practically as quick as a M4. You don't want to cannibalise all those sales with a cheaper model.

Back to production though; It does seem that the factory can only make so many cars & this info makes the M2 seemingly more difficult to make. So would it be even possible for them to ramp up production after a few years?? I'm not so sure. It's a given that the M2 won't be as rare as the 1 M Coupé - but as my dealer has been telling me all along - they are on limited build slots with this car.

[PatrickPH]

Why is the M2 being made together with the 2 series? Is this just an initial starup to get orders delivered ASAP?

My understanding was M models were produced separately? Or so it said in my M3 brochure back in the day.

[M3 Adjuster]

Originally Posted by PatrickPH

Why is the M2 being made together with the 2 series? Is this just an initial starup to get orders delivered ASAP?

My understanding was M models were produced separately? Or so it said in my M3 brochure back in the day.

Many moons ago, M cars were made at specific BMW plants, motors were all hand assembled etc.

The M2 will be built on the same line as the 2 series, and that same line will also produce the X1,x2 and probably other 1 series models for Europe.

[Artemis]

Originally Posted by ///Jason

It's a given that the M2 won't be as rare as the 1 M Coupé - but as my dealer has been telling me all along - they are on limited build slots with this car.

As commented before about the M2 base version: no limited production, but production in limited quantities.

[MR.]

Originally Posted by Artemis

As commented before about the M2 base version: no limited production, but production in limited quantities.

Similarly to the GT4...

MR

[fuddman]

Originally Posted by hyperzulu

The overwhelming success of the 1M set the stage for the M2.

I'd put the 1M in the M2 picture in a slightly different way - 1M sales probably helped the M Division convince a skeptical BMW corporate body the M2 was going to be a profit maker. (You gotta love those guys in the M Division - aggressive, devotees of fast cars)

Originally Posted by hyperzulu

It will sell. There is no question.

Selling is not the issue with BMW. Profit is the issue. If you sell all your inventory (which is easy to do) but don't show a profit ... well, you know what'll happen.

[hyperzulu]

Originally Posted by fuddman

Selling is not the issue with BMW. Profit is the issue. If you sell all your inventory (which is easy to do) but don't show a profit ... well, you know what'll happen.

It would be tough to convince me that BMW has not already figured out what profit they will make with this car. There are entire divisions of people dedicated to determining the projected sales for each model. Whether a car will be profitable is not a surprise for almost every car company.

[fuddman]

Originally Posted by hyperzulu

It would be tough to convince me that BMW has not already figured out what profit they will make with this car.

I agree with you. BMW has figured out what profit they expect out of the M2. And it ain't that much.
Sure, they'll sell every one they make; but, in spite of that, IMO, their planned profit margin on an M2 is low. Which is why, I think, M2 Leipzig production priority is lower than other cars produced there - each of which, I would guess, has a higher expected profit margin.

[M3 Adjuster]

Originally Posted by fuddman

I agree with you. BMW has figured out what profit they expect out of the M2. And it ain't that much.
Sure, they'll sell every one they make; but, in spite of that, IMO, their planned profit margin on an M2 is low. Which is why, I think, M2 Leipzig production priority is lower than other cars produced there - each of which, I would guess, has a higher expected profit margin.

Actually more than likely, the other cars coming out of Leipzig likely have less margin per vehicle , but volume is king.

Even if they sold every M2 they could make, let's assume they can make/sell 10,000 a year and each one clears 10k.

What happens if you roll/make/sell 100,000 X1s off the line and they make $7,000 off of each X1. Clearly it wouldn't be worth stopping the line to make an M2 for much longer than it takes to make more than a single X1.

And since the world likely won't buy 100,000 M2 but the world will buy 100,000 or more X1 jn a year , it's a pretty simple to understand that if demand is higher than expected for the X1 then each delay to set up the line to make M2 actually begin to cost the company money.

Finally, factor in how increased demand and higher than expected production will usually result in lower costs per unit as production continues and it becomes pretty clear why the M2 will be produced in small batches.

As stated , selling is not the issue and profit is. The X1 and any other model coming out of Leipzig will be more profitable overall than the M2 because of volume. It's also why the M3/M4 will be more available as that car is much more profitable and will also sell more.

BMW also ensures the M3/M4 by producing more, allowing more options, installing higher level equipment (cf roof, better seats for example ) , by giving it more power and performance (of course !) and by also selling them at a price point where the M3/M4 become a better value overall.

Just for grins, note the Calendar year and X1 production and you can see how many X1 came out of the factor while the 1M was produced. One can also see how production would have been even harder in 2011, 2012 and 2013 as BMW NA began selling More and more

2009 8,499
2010 99,990
2011 126,429
2012 147,776
2013 161,353
2014 156,471

Volume is king.

[fuddman]

Originally Posted by M3 Adjuster

.....each delay to set up the line to make M2 actually begin to cost the company money.

...... The X1 and any other model coming out of Leipzig will be more profitable overall than the M2 because of volume.

I agree with both of these conclusions.
But the conclusions bring up another question: If "overall" profit from M2 sales doesn't maximize profit for the corporation as a whole (as you seem to suggest), then why does BMW, knowing that, allow the M Division to build the M2? Why not, for example, junk the M2 and build more X1s?
Any ideas?
Something to think about during the remaining dull NFL football games.

[///Jason]

Originally Posted by fuddman

I agree with both of these conclusions.
But the conclusions bring up another question: If "overall" profit from M2 sales doesn't maximize profit for the corporation as a whole (as you seem to suggest), then why does BMW, knowing that, allow the M Division to build the M2? Why not, for example, junk the M2 and build more X1s?
Any ideas?
Something to think about during the remaining dull NFL football games.

Simple. Marketing.

M2's are more Sexy. Cars like this build excitement for the brand.

You need cars that will be talked about in the press to elevate your brand & keep it current. For example:

http://www.topgear.com/car-news/best...forward-2016#2

Heck in that list it's next to the new Bugatti, a task the X1 cannot do. The X1 can't stir the imagination like what an M2 can. If you were a kid again would you rather have a poster of a X1 or M2 on your bedroom wall? I know what I would have.

Theres also another reason. This car is designed a drivers car - a nod to the E30 M3. It's supposed to be BMW M at it's roots again - to show even though 3 series are your staple business you can still produce exciting sports cars. Once again elevating the BMW & M brand / reputation.

Many people who see / read about the M2 will not buy it. But it may make them consider buying a BMW as their next car.

I'm not sure what the NFL is, I'm from England sorry, but hopefully that will give you something to think about

[Benzima]

I hope this is not big news for BMW that the BMW M2 takes more time to produce than regular 2er coupe!

[Artemis]

Originally Posted by fuddman

I agree with both of these conclusions.
But the conclusions bring up another question: If "overall" profit from M2 sales doesn't maximize profit for the corporation as a whole (as you seem to suggest), then why does BMW, knowing that, allow the M Division to build the M2? Why not, for example, junk the M2 and build more X1s?
Any ideas?
Something to think about during the remaining dull NFL football games.

Originally Posted by ///Jason

Simple. Marketing.
M2's are more Sexy. Cars like this build excitement for the brand.
You need cars that will be talked about in the press to elevate your brand & keep it current. For example:
http://www.topgear.com/car-news/best...forward-2016#2
Heck in that list it's next to the new Bugatti, a task the X1 cannot do. The X1 can't stir the imagination like what an M2 can. If you were a kid again would you rather have a poster of a X1 or M2 on your bedroom wall? I know what I would have.
Theres also another reason. This car is designed a drivers car - a nod to the E30 M3. It's supposed to be BMW M at it's roots again - to show even though 3 series are your staple business you can still produce exciting sports cars. Once again elevating the BMW & M brand / reputation.
Many people who see / read about the M2 will not buy it. But it may make them consider buying a BMW as their next car.
I'm not sure what the NFL is, I'm from England sorry, but hopefully that will give you something to think about

Subscribe to that.

In one word: "Image".

Same goes for the Cayman GT4. The Cayman GTS filled the shoes back in 2014. But in 2015 the GT4 ran away with all the attention and hype (and for all the right reasons). Boosted the Cayman brand, and by extension, the Porsche brand. Mind you: only 1600 scheduled initially (increased in the meantime).

[M3 Adjuster]

Originally Posted by fuddman

I agree with both of these conclusions.
But the conclusions bring up another question: If "overall" profit from M2 sales doesn't maximize profit for the corporation as a whole (as you seem to suggest), then why does BMW, knowing that, allow the M Division to build the M2? Why not, for example, junk the M2 and build more X1s?
Any ideas?
Something to think about during the remaining dull NFL football games.

Believe me they will make every X1 they can.

2 series buyers that dont want to wait will often times become 3/4 series buyers. It's also one of the main reasons that Bmw has been afraid of making a 2 series sedan.

The reason for not having a 2 series sedan is to sell more 3 series.

The same reason that Porsche makes a Cayman and their main bread and butter is the 911.

[M3 Adjuster]

Originally Posted by Artemis

Subscribe to that.

In one word: "Image".

Same goes for the Cayman GT4. The Cayman GTS filled the shoes back in 2014. But in 2015 the GT4 ran away with all the attention and hype (and for all the right reasons). Boosted the Cayman brand, and by extension, the Porsche brand. Mind you: only 1600 scheduled initially (increased in the meantime).

And buyers that don't get a Cayman will often times still go for the 911, the car they really want to sell !