Quote:
Originally Posted by Ibiza
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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I agree with everything you said, but I feel a slightly longer term issue with this might be people considering the move to other brands, then never coming back and BMW losing their reputation as a manufacturer that is different to all of the others - eventually leaving them as another Acura or Infiniti.