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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: Does anyone else think there was a time when BMW built a unique type of car that no one else built but now everyone else wants to build cars like BMW.
I think the original Lexus and Infiniti models weren't trying to copy BMW and the old Cadillacs or Volvos or Mecedes products never tried to be great handling cars. They had other virtues at their core but now everyone has migrated to BMW's playbook and they all seem to be gunning for the same niche. I guess that's good for driving enthusiasts but it makes it tough for BMW. | This very point has been made by the older generation of motoring journos in various magazines and newspapers, and will probably shortly be made by me . Not for nothing did the motoring writers in Brit GQ declare that "luxury is the new sporty"! The trend towards "sportiness" means that even a VW - once a master at comfortable, well-damped ride and zippy handling - is now lumpen and uncomfortable. Today's Audi A4 shares practically zero DNA with, say a late '70s or early '80s Audi 100. The fashion for huge alloys - for there is no dynamic argument for them on "regular" cars - makes things worse. BMW seems to have struck the ride/handling compo better than most, but perhaps it's only a matter of time before others find the winning formula. Having said, that I took a ride in a sports-suspended Volvo S60 a while ago and it was pretty terrible. So there's nothing to fear from *them* just yet 
| | Reply » Should there be fear in Munich? | I am a first time BMW owner, and a long time Lexus owner. What I think BMW should fear depends on what market/brand they want to play in. Seems that they want the performance, luxury, premimum market segment.
The problem I think, is that people only remember the "Ultimate Driving Machine" motto until they have issues. Issues with the dealer in service levels, issues with the car itself, or issues with feature sets.
Look at Caddie. They used to own the American market. Actually look at MB. When quality of experience suffers-then all the marketing and marqee cache' is worthless.
I love my B. I fear, though, the experience of dealing with my dealership-and even more dealing with or getting support from BMW NA. That is what I think BMW should fear. When the "daily" experience becomes too painful-or better somewhere else, then they will lose market share, and need to depend on their core following-many of which it seems are miffed at the change in focus on the vehicles. For example, the last two reviews I have read, one being the one here, the review talks about problems with the test vehicle. When did we last see that on a Lexus or Acura review?
Lastly, a quick comparison; When I walk into my Lexus dealer for service, they roll out the "Lexus Experience", reliable, quick, easy service. Its almost an experience in itself. BMW dealership service? Cramped, long waits, etc. Any discussion with BMWNA turns into either "We'll call you back"-and they don't or a "Each dealership is independently owned...nothing we can do..." Guess what each Lexus dealership is independently owned as well-yet they somehow seem to be able to get things done.
End of rant.
| | Reply » Should there be fear in Munich? | What Munich should fear, is that they are not making cars true to their own success.
The new cars interiors to "open up the cockpit for better commuications with tthe passenger" (quote from Z4 designer). And how does this work into the Utimate DRIVING Machine. Or is it now the Ultimate TALKNG Machine. 
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