BMW Is Planning On Turning The Letter M Into A Cash Cow

M Performance

As in an even bigger cash cow than it already was.

The good news is that BMW is planning more M models. The kind of bad news is that they may not be full-on M cars. That’s the takeaway from BMW chairman Harald Kruger, who spoke recently at the company’s annual accounts press conference. Kruger said that he “would close any gaps in the M portfolio.” Yes, closing gaps means making new models but said new models are easier to make when they are M Performance cars. The difference between M and M Performance is the difference between the M2 and the M235i.

Building a full-fledged M car can’t be cheap, despite the high demand for such vehicles. A nice compromise is the M Performance line which lets buyers up the capabilities of their cars without shelling out a ton of extra cash. The aforementioned M235i has an MSRP of $44,150 which is over $10,000 more than the normal 2 Series (MSRP $32,850). Yeah, the M2 has a base price of $51,700 which is not a sizable gap over the M235i, but from the standard 2 Series it’s massive. Basic pricing aside, M cars aren’t made in as much abundance as M Performance models, meaning they can’t be trusted to be cash cows. Offering too many full M cars would dilute the models' appeal.

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Kruger knows that BMW’s crazier cars aren’t cheap which is why he’s aiming to milk the most profitable letter in the alphabet for all he can get. “The evolution [of high-margin segments] will continue to fund the revolution,” he said.

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