Should there be fear in Munich?

I posted the following comments on Autoweek's site in response to the question "Do you think BMW fears anyone in the Luxo/Performance segment?" The names mentioned as possibly causing fear in Munich were Infiniti, Audi, Cadillac, Mercedes-Benz, Saab, and Lexus, etc.

I just thought I would see what you guys think of this question and my analysis.

-----------------------------------------------------------------------

I am sure that BMW fears all of them. The makers you mention are all very competent and in some cases like Lexus/Toyota, they are well financed.

BMW used to be a small carmaker that catered to a select group of enthusiasts but the company has continually been rewarded with good reviews of their products in the press and this has elevated their esteem in the marketplace and led to increased sales among a wider, more diverse audience. Some of these buyers honestly have no business driving a BMW since they can't appreciate its virtues but they bought it anyway and that's what the competitors see.

As a result of their success, every carmaker out there wants to mimic them and at no time in their history have so many competitors been chasing after the niche they created. That niche being the sport sedan or a vehicle that places an emphasis on the driving experience. So, the market they essentially created and had to themselves for a long time is now being contested by virtually every other carmaker....many of them have abandoned their heritage and traditional values to be more BMW-like. For instance, Cadillac's have historically been luxurious, smooth riding and quiet and for 15 years Lexus has focused on similar virtues but not anymore. Now they both want to imitate the cars that wear a Roundel on the hood.

BMW has become the target. It seems every carmaker has them in their sights. They face unprecedented competition and yes, they should be worried. It's hard to dodge the arrows of so many other carmakers at once. The funny thing is all BMW is trying to be is themselves and that may be their biggest strength and the one thing that can't be copied.

Reply » Should there be fear in Munich?

Quote:

Should there be fear in Munich?

No! All the others are still pretenders.

Close maybe - but still pretenders........................

Reply » Should there be fear in Munich?

Quote:

The funny thing is all BMW is trying to be is themselves and that may be their biggest strength and the one thing that can't be copied.

Agreed.

So many people complain about the horsepower numbers BMW puts out, particularly with the 330 being at the bottom of its class for the last 5 years or so. And yet, you go drive it and you don't care, cause it has the right feel, the balance. In the latest issue of Car & Driver, they conduct an 8-car luxury sports sedan shoot-out, and the IS-350 beat out the 330i in pretty much every objective test, and yet, the overall winner of subjective tests (steering and handling feel, transmission feel, confidence inspiration, etc.) gave the E90 the win.

Reply » Should there be fear in Munich?

Quote:

Well, what objective tests are you talking about? If cars can beat the BMW in HP, and lateral G's, and slalom times, 0-100MPH-0 times, then who cares about subjective tests?

If BMW can only beat these cars on subjective tests, and can't on objective tests, then it tells me that drivers like it just cause it's a bimmer. the BMW is just living off it's reputation which is -if you are right- vapid. If' that's the case, yeah, BMW has a lot to fear.

Reply » Should there be fear in Munich?

Quote:

In thta case why bother instilling your cars with any character at all? In fact, why are people's characters so important?

BMW has had a lot to "fear" from the objective performance of its rivals since pretty much the beginning. Many times in the past all it's had to offer has been "feel". As other manufacturers are slowly establishing alternative imprints for their own cars, then BMW should consider how to move things to the next level. Not all of us are obsessed by 0-60 and skidpan numbers. And if the feel of a BMW doesn't do anything for you, fine, move on to a different product.

Reply » Should there be fear in Munich?

BMW does fear the competition. Just look at their response over the past few years due to increased competition: More standard features, more technical wizardry, more dramatic styling, more offerings (SUVs, roadsters, etc), aggressive marketing and they've held onto the maintenance program. Granted, BMW has inched along with their standard features, but they're creeping in there (3-series now includes center arm rest and wood trim to name a few - woot).

Compare this to the initial reaction of American mfgs in the face of increased Japanese competition. . . Oh wait, it had nothing to do with building cars people would buy, it had everything to do with putting up protectionist barriers.

BMW is putting up a good fight. Debate their strategy and execution, but no doubt the gloves are off.

I wonder though how much market share Infiniti, Lexus, Acura are taking from the Germans, versus how much they've actually expanded the entire market. My theory is they first expanded the market by selling to luxo/performance buyers who normally wouldn't spend all the $ for a German auto, and now they're aiming straight for the German mfgs.

Page 1 of 4