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Originally Posted by GrussGott
Maybe, but "competitor" is only one of many product management factors, and I really hope BMW isn't leading from behind.
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BMW still leads in lightweight chassis design. They (along with Cadillac) have also kept the manual transmission alive in this class.
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For example, BMW has DCTs, AMG never has yet AMG sales have grown and BMW isn't pressured to follow suit (until now?)
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Until now indeed. The goal to drive down costs will almost surely claim the DCT after the end of the current generation. It doesn't have to be a bad thing either - the most cost effective solution that gets the job done is the right choice. There was a time when a DCT had the clear performance advantage with shift times that yielded measurably faster acceleration (and other driving experience advantages) when compared to a planetary box, but it is no longer the case.
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So their customers are similar, but they're not the same, and follow-the-other guy isn't always the right choice. Maybe with a big decision like drive systems, I dunno.
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The C class (including the AMG) comes later than the 3 Series (including the M). If the business case is there and BMW has taken the lead to package protect the G20-based M3/M4 for AWD without instigation, then Mercedes will simply follow in turn with the W206. It's highly unlikely that it will come as a same-generation differentiator for BMW.