Blog: Dave LeggettBMW: 'Doing a Porsche'?

Dave Leggett | 28 September 2007

Interesting to note that as part of the strategy to become more profitable BMW is also addressing a need to lower its corporate CO2 g/km. That's a toughie to square. 'Efficient dynamics' costs money, especially early on when the investments have yet to be amortised and volume is being ramped up.

Also, small cars tend to be less profitable than the bigger ones. More Mini variants are a no-brainer perhaps, but can only take the group corporate average so far. Is there room for a low-emissions small BMW? Er, that's the 1 Series and it's hard to see something with a BMW badge sitting underneath that, though someone in Munich will probably be keen to put the case ('it will be a premium City Car, BMW DNA, hybrid tech and a contender to the new small Audi - we need to try and do it, at least, for the sake of our corporate emissions CO2 average').

Had to smile at the idea of BMW acquiring another brand though. There's a radical thought! BMW used to have a volume brand that might actually have been helpful if it had hung on to it and not presided over such a neglected mess that it had to be sold off in a panic when investors realised the extent of the losses being incurred. It could have been BMW's Skoda and would have been helpfully lowering BMW's corporate CO2 g/km. What might have been...

Is the idea of BMW taking on Volvo Cars really a dead duck? There are some small Volvos and Volvo also makes money doesn't it? RWD and FWD technologies coming together might not be as daft as it sounds, either (Minis are FWD).

GERMANY: BMW targets profit, growth and efficiency rises


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