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BMW CFO says group still considering fourth brand

This is a discussion on BMW CFO says group still considering fourth brand within the The BMW Lounge forums, part of the BMW category; ^True ....but Saab has far more international marketability....

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Old 05-13-2008, 02:02 PM   #11
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Re: BMW CFO says group still considering fourth brand

^True ....but Saab has far more international marketability.
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Old 05-13-2008, 02:12 PM   #12
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Re: BMW CFO says group still considering fourth brand

I think that adding Aston Martin to the portolio would have been totally fantastic.

But BMW need something that can bring in more cash and AM caters to a smaller group of people. Imo, if BMW can somehow buy Volvo, I think that would be a home run. The brand is already recognizable (much more so than Saab).

Can you imagine: BMW, Mini, Rolls Royce, Aston Martin, Volvo?

That could easily take on the gargantuan that is Porsche+VAG. The world could end and that would still be a powerful company.
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Old 05-13-2008, 02:41 PM   #13
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Re: BMW CFO says group still considering fourth brand

Fourth brand - if getting a green light - will be used for "urban mobility solution" only.


3 alternatives are in the game:

1.) buying an existing brand (eg. Tesla)
2.) using one of the brand names BMW own (Isetta, Riley, Triumph)
3.) inventing completely new brand from scratch (aka smart, scion etc)


No Aston, no Volvo, no Saab.

High-end sports cars will be produced under BMW (large 2-seater roadster & coupe, 4dr large GT) badge, and Rolls-Royce brand (large & smaller coupe: one based on Phantom, one on Silver Ghost platform; even supercar & 4dr coupe coupe are considered).
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Old 05-13-2008, 02:47 PM   #14
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Re: BMW CFO says group still considering fourth brand

How do they plan to survive without another big volume brand ? R&D costs will gets higer & higher and there's a limit to cost savings programms.
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Old 05-13-2008, 02:56 PM   #15
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Re: BMW CFO says group still considering fourth brand

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Originally Posted by shonguiz View Post
How do they plan to survive without another big volume brand ? R&D costs will gets higer & higher and there's a limit to cost savings programms.

Joint-ventures & cooperations - parts sharing, purchasing sharing, production capacities sharing etc.

Even more inter-model parts & platform sharing (more modular approach), yet more individualization options (trims, colors, upholstery etc).

Stronger US dollar can also help a lot.

Less marketing expenses with better output (marketing innovations) ...

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Old 05-13-2008, 03:10 PM   #16
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Re: BMW CFO says group still considering fourth brand

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Originally Posted by EnI View Post
Less marketing expenses with better output (marketing innovations) ...
poor scott
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Old 05-13-2008, 03:35 PM   #17
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Re: BMW CFO says group still considering fourth brand

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poor scott

Yeah ... He will have to work twice as hard for the same money.
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Old 05-13-2008, 03:42 PM   #18
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Re: BMW CFO says group still considering fourth brand

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Originally Posted by EnI View Post
Yeah ... He will have to work twice as hard for the same money.
and they will cancle any shootings abroad - the farest he is going to get, is Müchner Allianz Arena
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Old 05-13-2008, 03:48 PM   #19
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Re: BMW CFO says group still considering fourth brand

Quote:
Originally Posted by EnI View Post
Fourth brand - if getting a green light - will be used for "urban mobility solution" only.


3 alternatives are in the game:

1.) buying an existing brand (eg. Tesla)
2.) using one of the brand names BMW own (Isetta, Riley, Triumph)
3.) inventing completely new brand from scratch (aka smart, scion etc)


No Aston, no Volvo, no Saab.

High-end sports cars will be produced under BMW (large 2-seater roadster & coupe, 4dr large GT) badge, and Rolls-Royce brand (large & smaller coupe: one based on Phantom, one on Silver Ghost platform; even supercar & 4dr coupe coupe are considered).
I agree with EnI.
I believe having a fourth brand under BMW will not be Lotus nor Volvo or a Saab.

As good as it sounds, a Lotus with a BMW engine.
It would be of not much of a use for BMW in order to increase revenues and cut costs as Lotus is just a small volume car.
And besides, it would hurt the image and sales for BMW M cars as the ultimate driving car. BMW M (CSL) will be the only benchmark for sportscars within BMW group.

Notice that the current brand portfolio within BMW group doesn't contain any cannibalism. RR is too high end to compete with BMW. Mini is kinda a niche and also the product portfolio is too limited to compete with BMW.
Saab and Volvo sounds good at first but either brands have a large core product overlap with BMW which could be a problem if you share too many components and technology.
It wouldn't really help to increase revenues, a possibility of cannibalism would exist within BMW group which could lead to a scale balancing effect. In example less sales in BMW in favour of sales for Volvo or Saab and vice versa.
But it'd help to cut costs in a way.

BMW 1 series vs Volvo C30
BMW 3 series vs Saab 9-3 vs Volvo S40/S60/C70
BMW 5 series vs Saab 9-5 vs Volvo S70/S80
BMW X5 series vs Saab 9-7 vs Volvo XC90

As green and clean is the new trend within automotive industry, it'd be probably a small, mobile carbrand with a reasonable sales volume like EnI pointed out.
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Old 05-13-2008, 04:05 PM   #20
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Re: BMW CFO says group still considering fourth brand

Quote:
Originally Posted by jack View Post
and they will cancle any shootings abroad - the farest he is going to get, is Müchner Allianz Arena

I guess he will be limited to BMW Welt, BMW Museum & BMW Studio. And to the vivid streets of Munich.
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