Latest auto updates: BMW plans to streamline model lineup

Aug 07, 2019 | Same topic: Auto industry: Latest updates
With a new chairman of the Board of Management, BMW has decided to drop several of their models especially those that do not sell that well.

1. BMW: A very bloated model line-up

Let’s get one thing straight off the bat first; BMW, even here in the Philippines automotive market, has a lot of models under their belt even in comparison to the top three market leaders in the industry which are Toyota, Mitsubishi, and Nissan. BMW’s got the Series 1,2,3,4,5,6,7.

The X1, X2, X3, X4, X5, X6, X7  and the M series which currently has the M3, M2, M4, and the M5. They also recently released the newest generation of the BMW Z4. In other foreign automotive markets, they even have more models like more variants for the numerically designated models and of course, the i-series of electric vehicles.

Now don’t get us wrong, all of these are a great luxury, high-performance vehicles and from all of those choices, there’s going to be the right one for you if you can afford it.

In the past though, it was simpler. There was the 3 series, the 5 series, 7 Series, the X5, a Z sports coupe, and M trim. This is a stark contrast to the smorgasbord of models, variants, and trims we have today which had only helped to add complexity in their manufacturing and marketing, and confusion in the park of consumers.

BMW on road

BMW: A very bloated model line-up

And get this, some of these models are actually known to be low performers in relation to sales and are even considered too “niche” to become a wide success. In short, BMW has been bleeding money because of this.

Also, the production of these niche and underperforming models use up resources which the German company could’ve been using to further develop emerging car technologies like electric vehicles and self-driving tech.

In order to solve this problem, the incoming Board of Management Chairman; Oliver Zipse will be streamlining some of these models when he takes up his position officially sometime this month.  According to a reliable automotive news source, BMW will be canceling the convertible variant of the 2 series, the X2, the next-gen of the Z4, and others.

BMW series

BMW will be canceling the convertible variant of the 2 series, the X2, the next-gen of the Z4, and others

It has even been revealed that both variants of the powerful Grand Tourer 8 Series have been experiencing reductions in its price tag most notably in Australia probably as an effort to move their remaining stocks of the said vehicle before when BMW officially cancels the said vehicle.

Now while these are not surprising at all because convertible and sports cars for any car manufacturer the world over has been on a decline, there are some models to be dropped that’s quite surprising to many people especially BMW fans.

Take for example the X2 subcompact luxury SUV which is reported to have been doing well in the two of the world’s largest auto markets; China and the US.

A picture of a BMW X2

The X2 actually sold rather well in the US and in China, so many are surprised by the news

As for the Z4 and the 8 series in general, they will probably be available in their current generation models for around eight more years as they are relatively new to BMW’s portfolio. Regardless though, it is very unusual for any car maker to even hint at canceling future generation models.

>>> Check out the latest BMW car price in the Philippines.

2. BMW: The reasons behind model cancellations

While some of you might think that this is quite risqué especially in the eyes of investors, BMW, specifically, the in-coming chairman Oliver Zipse has pretty good reasons as to why they will drop out a few models.

As you might already know, hybrid-powered crossovers and SUVs are all the rage nowadays and BMW has recently approved the development of a large, flagship SUV called the X8. It is rumored to be high-performance all the while being much more premium than the X7.

The said model will also have a plug-in hybrid as an option. Also, there’s will be an M variant of the X8 which to us seems to follow the trend that other automotive companies are raking in profits from right now like Toyota’s TRD Pro and of course, the Ford Ranger Raptor.

>>> Curious about Ford Ranger Raptor? Check out the 2019 Ford Ranger Raptor Philippines review.

A picture of the new BMW X8 SUV in camoflage

Here's the soon to be released X8 SUV which is still in its testing phases.

Another reason is that BMW recognizes the market growth of electric vehicles in the global market. As such, they also have the goal of making 25 of their models electric powered by 2023 which is actually two years in advance of the previously announced goal of 2025.

And in addition, BMW also partnered up with Daimler to develop autonomous driving technologies which they have figured out to have profitable returns by the year 2030.

So to summarize, BMW will drop niche, redundant, and unprofitable models in order to develop emerging automotive technologies like electric-powered vehicles, autonomous driving, and of course to get a slice of the large SUV/crossover pie which has been going on strong for years now in the United States.

BMW cars

BMW will drop niche, redundant, and unprofitable models in order to develop emerging automotive technologies

So what do you think? Will this streamlining and re-focusing help BMW in the long run? For more automotive news and the latest car reviews, please keep reading here on Philkotse.com.

Source: Cesar Guiderone Miguel