urns out that it’s not easy making money off of small cars. Even if those small cars aren’t really all that cheap. And with a new boss in town, BMW needs to make more money from its vehicles. Which means, according to a new report, that many of BMW’s smaller cars are getting the ax.
New factories around the world, electrification, tariff wars, they all put a dent in BMW’s profitability. Enough that earnings have fallen and share prices have tumbled. It’s time to start the cuts.
A new report from Automobile says that BMW CFO Nicolas Peter is planning to save $14.5 billion by speeding up R&D, cutting the number of engine and equipment variations, and but cutting cars that cost less than 40,000 euros.
The report says that means a big cut in the lineup. Cars like the rear-drive 1 Series, the 2 Series, and the base-spec 3s don’t add much to the bottom line. But the 2 Series Gran Tourer, convertible, and 3 Series GT on the not long for this world list. Some other surprises on the Automobile DOA list include the short-wheelbase 7, the next Z4, and the two-door 8 Series models.
Instead, we’ll get lots of i models. Which won’t be much bigger, but will probably be more crossovery. Which means they’ll somehow sell better and make more money.