WSJ Article - BMW 1 Series will damage BMW image?

Kirby

Kirby

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Today's Wall Street Journal has an article about new European cars due out, and talks about the BMW 1 Series. $28K price point for entry level buyers to compete with Audi's S3 and Saab 9-2 (based on the Subaru WRX - what does that do to the Saab blood line!!) also due out next year.

The article says that some BMW owners will be pi$$ed because it represents a "Cheapening" of the BMW exclusivity.

Agree?

Disagree?


PS - If you look at today's issue the back page has a very nice full page spread showing all of the 5 series generations since family was introduced. Last week the same shot was in color on a double spread.
 
carcus

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I thought the 1 series...I kinda like it...was going to be alot cheaper than 28K....that is 3 series price level. I would actually like BMW to make the BMW affordable to more people. Even though the BMW hatchback failed, was a nice effort but Mercedes is offering a hatch as well. Just my 2 cents.









Reminds me of the Mercedes 190....baby Benz. I like it though, but prefer the 3 series.
 
Kirby

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I thought they would be lower than $28,000 too. But that makes it $2K higher than the Audi, and the article quoted a BMW rep as saying that their studies have shown that most buyers would pay the premium for the BMW over the Audi.

It also said that since hatchbacks are "out" in the US, we will get the sedan and/or coupe only.
 
carcus

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Hatchback BMW and Mercedes do not tend to sell well in the US like they do in Europe. I still kinda like it, would rather have a 3 series. Just my 2 cents. I do not think the 1 series will be a POS....think it will do well, if it keep the price around 20K. Was supposed to be the target price if I remember. Look at the design though...the 3 series is going there soon, love it or hate it....smoother headlights, the new look is coming. Makes my E36 look dated....although the interior is dated on my E36 compared to the smoother E46. Small changes, baby steps.....love it or hate it....changes are coming.
 
carcus

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Kirby said:
I thought they would be lower than $28,000 too. But that makes it $2K higher than the Audi, and the article quoted a BMW rep as saying that their studies have shown that most buyers would pay the premium for the BMW over the Audi.

It also said that since hatchbacks are "out" in the US, we will get the sedan and/or coupe only.
Click to expand...
By the way Kirby...that icon with the Pumpkin puking.....makes me want to carve a pumpkin like that for Halloween. I like that. Crack me up everytime I see it.[thumb]
 
Kirby

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I don't have a problem with the 1 series. There will be more BMWs on the road, but doesn't that just reinforce the brand image even if it shifts the "average" down? Their goal is to bring younger buyers in and keep them in the BMW family as their earnings grow. A price point at $20K would be a hot seller! I agree with you - I would still have bought a 3 series even if the 1 series was here. And if I were buying a second car in the next 5 years, it would likely be either an M3 or a Z4.
 
andreyiv

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The 1 series doesn't look too bad as a separate car but I would not like that to happen to the 3. At first I did think that it would make BMW cheaper but just now I realised something. Don't jump to conclusions and yell at me, hear me out first. Well, it will make someone fell worse when they worked hard to get their non 1 series car and then when they get it, an ignorant person comes and doesn't respect you because the 1 series is there and he/she has no idea about the other ones since he/she was never interested in BMW and knows about the 1 series only because they saw it on the news. The new BMW owner would feel bad since the other person doesn't have any respect for him/her that they should have deserved. Now comes the question, did you buy the car to show off, get respect, because it's a BMW or did you buy the car because of how it handles the road, how comfortable it is and how much fun you are getting from driving it. If you follow my theory you will realise that the BMW was bought only for respect and showing off and not because of it's engine and suspension. Let them think you have a cheap car and just enjoy your drive. Sometimes it's not worth it to esplain the whole thing to someone just to put them on the right path, some people just don't deserve it. Don't get me wrong here, probably almost every BMW owner would be at least a little insulted by that guys ignorant comment (I know I would be for some little degree), if you only bought the car for it's qualities then you would not be insulted but I would think that many people had a thought about how cool the BMW would make them, maybe it's just a little short thought but it was there and it did leave a mark. After all this I realised that I should not show off the car, let the person see it and admire it or hate it, I don't really care because it makes me feel good when I drive it.

Does anyone get what I'm saying or did I drift away from reality while thinking about something I should not really be thinking about? [?|] [hihi]
 
xLibelle

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personally, i dont think it makes BMW "cheaper" in any way.

Mercedes did it with the c230 and i dont see it having degraded anything about their lineup.
BMW actually was under controversy when they introduced the 318 hatchback. Do you see a problem with that car and BMW holding a reputation?

I think BMW's reputation stands in their quality and engineering aspects. Their choice in models shouldn't have anything to do with the consumer's opinion of BMW.

Forget about what media have to say about BMW's exclusivity. Look at the X5 - exclusivity? Just forget about the media all together. They are the culprits at hand here!!! Putting this false thought in front of our faces just to get good ratings.
 
Kirby

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andreyiv -

I followed your post and yes, your post makes sense. I think that's one of the issues the article was trying suggest. Some people will feel that way, others will just ignore it and drive away with a smile on their face!!
 
andreyiv

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Kirby said:
andreyiv -

I followed your post and yes, your post makes sense. I think that's one of the issues the article was trying suggest. Some people will feel that way, others will just ignore it and drive away with a smile on their face!!
Click to expand...
Interesting, I didn't even see the artickle, maybe I should go into journalism and try to get a job at WSJ, lol.
 
B

Bryan330i

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I agree 100% with the WSJ. BMW is taking a brand with premium status which is extremely difficult to attain and extremely valuable and sacrificing it. If they had a lot of goodwill on their balance sheet, anyone would be hard pressed to say that this move would not impair that value. BMW is an established "premium" brand. Why screw it up. [???1]
 
B

Bryan330i

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Check this out. How concerned are they about premium brand strategy? .[???1]


" What goals is the BMW Group pursuing with its premium brand strategy?
The BMW Group concentrates on selected premium segments in the automobile market. This means that it is the only multibrand automobile manufacturer in the world that is not active in the mass market, i.e. the volume segments of the automobile market. Note the unmistakeable brand profile.

The aim of the premium brand strategy is to achieve higher revenues per vehicle, on the basis of a high-value product substance and an unmistakeable brand profile. The BMW Group pursues this premium brand strategy with the BMW and MINI brands, and, since 1st January 2003, with Rolls-Royce. This means that it will cover the premium segments from the small car to the absolute luxury category.

The premium brand is thus creating the preconditions for further profitable growth for the BMW Group. The Company expects that in the next ten years, the premium segments of the automobile market will grow worldwide by around 50%. In contrast, the mass volume segments will increase by "just" 25% or so during the same period. The BMW Group is aiming to achieve profitable growth in the future too, and in that order of priority - "profitable" followed by "growth". "

Quote from BMW Group Web Site

http://www.bmwgroup.com/e/nav/index...r_relations/2_1_aktien/2_1_3_faq/29.shtml?3_1
 
CosmosBlack

CosmosBlack

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I say set those 1series loose on the roads mann. A lot of people who dream of owning a BMW would be able to afford a new one.

And...everytime I pass one, I'd look over and smile..."hehehe, you can't come close to your big brother." [fake]
 
codex57

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$28K? Is that right? I think the WSJ made a mistake in the pricing. How could it dilute the brand at that price when the current 3 series costs taht much? I heard it was in the low $20K range like the E36 hatchback was. That might cause some problems, but I doubt it'll hurt that much. Mercedes has a pretty cheap hatchback. Yeah it's not that low, but since you always get E and C class cars for under invoice, it gets in the low $20K's. I don't think Mercedes' image has been hurt that much b/c of that car. Their image is hurt cuz of the crappy quality. As long as BMW doesn't start cheapening the materials they use like MB did, they should be ok.
 
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