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      06-17-2019, 10:03 PM   #420
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Drives: 22 G83 comp & 2024 X5 M60
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Quote:
Originally Posted by mxchris727 View Post
I don't believe this is entirely true. The EV R&D is being offset by the CLAR architecture and other production consolidations. As true with any company, strategy, customer loyalty, and branding are of upmost importance when it comes to an increasingly competitive market.
Total M vehicle production was around 100,000 units in 2018 where as BMW AG manufactured 2.49 million units world wide. M division represents 4% of total sales, as the 6MT take rate has been 50% for the US market M2, but below 30% for the F80/82/83. The M5, 6MGC, X5M and X6M were all 8AT production in 2018. I agree 110% regarding a successful business needs strategy and customer retention, but M vehicle 6MT is probably less than 1% of all BMW AG world wide sales. From a ROI analysis, there is no financial justification to continue 6MT R&D with your OEM part suppliers. This is a text book case from Harvard Business Review, as the 6MT R&D cost is too high even when the higher M vehicle profit margin is factored in-- figure 50% of the current 6MT customers will purchase a 8AT and the remaining vocal 6MT will leave for other brands as the cost of enthusiast 6MT customer retention is too high for BMW AG.
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