BMW's profit lead may evaporate as 3 series eats into earnings

BMW's profit lead may evaporate as 3 series eats into earnings
Volkswagen AG's Audi is on track to replace BMW as the profitability leader as sales of the new 3-Series model are slowing and the costs for developing the model have been rising. Analysts estimate that in the third quarter, BMW's operating margin could drop to 9.5% -- lower than Audi's
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JRobUSCJRobUSC - 11/3/2011 5:43:16 PM
+3 Boost
Or, not.

http://www.bmwblog.com/2011/11/03/q3-2011-best-third-quarter-in-bmw-group's-history/


Yonder7Yonder7 - 11/3/2011 6:08:33 PM
-1 Boost
Also the car does not looks as good as the outgoing model. The peolpe will tell the story, for me the car is a losser in design, but I am sure that the performace will be BMW "ultimate drivng machine" (cause all BMWs, lately, are too heavy). But most of the buyers of the 3 buy it for appeareance than for performance... Let's see how it works when they start to sale it.


bmwcsbmwcs - 11/3/2011 6:51:48 PM
+3 Boost
BMW just posted Q3 profits and they were above analysts predictions, which is very impressive considering the 1 and 3 series(which are BMW's big volume sellers) are at the end of their life cycles, and in the process of being replaced in early 2012.


SteveSteve - 11/3/2011 7:11:56 PM
+1 Boost
Does anyone who buys a BMW care about BMW's profit margins? They buy a BMW for whatever reasons are important to them, like stuff such as ride, handling, styling, image...*ANYTHING* but corporate profit margin.

In my opinion, BMW has some superb management. They have been consistently profitable, even during recessions. They make products that have massive appeal, even when the 2002 onward Bangle styling polarized the masses. I speculate BMW will continue to be a success.

Disclaimer: I am not a fan of BMW's current vehicles, primarily due to their styling direction. Still, I have no problem giving credit where credit is due.


mini22mini22 - 11/3/2011 9:06:34 PM
+1 Boost
The new style of the 3 series is an improvement over the previous design. However the sharp edged styling of the 90's really was the best on the 3 series. It had been going down hill for quite some time.As for it's engineering. Unfortunately to be the best riding and best handling out there among all it's rivals costs R&D money. Also the qwest for lighter platforms also costs even more money. There is not much BMW can do about it other then to eventually raise prices. The tougher fuel economy standards also will end up costing more in R&D. This is just a fact of life.


Yonder7Yonder7 - 11/4/2011 9:07:54 AM
+1 Boost
I am a consumer and as consumer I AM INTERESTED in the profit of a company cause that tells me how long I will enjoy their products and for how long they will backup their products.


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