German Car Zone

This expansion of the model lineup and the income being spent on all the different iniatives costs BMW money. BMW are currently working towards the profit point on this investiment and then we will start to see some major profits. You can't expect BMW to pursue the major changes that have been underatken in the past decade and have immediate financial results. BMW have invested into the future and they will be very healthy for it...

The old saying, " Have have to spend money to make money."

Audi has one big advantage. It is called Volkswagen AG.

R&D (eg. TDI engines, DSG gearboxes etc), purchasing, production etc. all can be cheaper due the Group synergies.

BMW AG is a relatively small independent company, and that has its price. EG. Porsche who was in a similar position did a better job - making alliance with VAG - to get some benefits from the synergy.

BMW have been too independant for their own good. The only joint-venture programs were the MINI engines (first Chrysler & Toyota, now PSA Peugeot), and the Hybrid JV with DCX & GM (and later with Daimler). All the other stuff are developed, purchased, produced, marketed alone by BMW. And that costs.

Zaha Hadid's Leipzig plant wasn't cheap either. Nor was BMW Welt. F1 involvement is costly. So it is the sailing team. Marketing expenses are huge.

And the weak dollar. C'mon - US are the biggest BMW market. With bargain prices. If there wasn't an uber-successful leasing & used-cars program s (where BMW make HUGE money) US division would be deep in the red numbers.

The future is not so gloomy ... not now when the recession is knocking on our doors ... since it can make all the invested money producing worse output than planned.