Investors Less Than Impressed As BMW Stock Slide With New Focus On Electric Vehicles

Investors Less Than Impressed As BMW Stock Slide With New Focus On Electric Vehicles
BMW’s stock fell as much as 4.8 percent today to 79.56 euros, as the company forecast weaker profitability in the fourth quarter due to investments in new models, including the i3 electric car. It’s unfortunate that an investment in electric cars is bearing the burden of the lower stock price, but on a broader level, it signals the important of the electric “i” brand for BMW.

BMW’s investment represents a much-needed infusion of new blood into the EV space—as we approach the third anniversary of the introduction of the Nissan LEAF and Chevy Volt. The EV story so far has been dominated by American and Japanese automakers. Don’t look now, but it appears the Europeans—led by BMW, with Volkswagen not too far behind—are about to start making waves.

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LexSucksLexSucks - 11/7/2013 11:15:47 AM
-2 Boost
Yes... That's what they get for trying to be Lexus. BMW's legendary steering feel is gone, they are softer and much less dynamic than before. They completely forgotten about the enthusiast. Took away the oil measuring dipstick and turned their cars into German Lexuses. "Who needs to look at a dipstick?". The very thing that got them to where they are at they seem to be abandoning.


GermanNutGermanNut - 11/7/2013 1:59:39 PM
-1 Boost
I agree, LexSucks. BMW is a brand that has lost its identity and can't figure out exactly what it wants to be, which is surprising for a car company who's slogan is "Ultimate Driving Machine."

Yes, once upon a time (about 8 years ago) BMWs were considered the "Ultimate Driving Machine" and provided engaging, connected and dynamic driving experiences few, if any competitors could match except Porsche.

Fast forward to 2013 and present day BMWs are missing that engaging, connected and dynamic driving experiences which were once head and shoulders above the competition. BMWs are less engaging, connected and dynamic than they used to be. Many reviews by some of the world's most respected automobile magazines have reached this conclusion.

Adding to the problem is the fact that BMW is coming up a slew of models with very little differentiation and sometimes unattractive designs. The 5-Series GT, 3-Series GT, 6-Series Gran Coupe and upcoming 4-Series Gran Coupe are all very similar to other products already in BMW's lineup and some are very ugly looking. BMW creates niches for which very few buyers exist.

This has driven BMW's production costs through the roof even before the hugely expensive electric "i" initiative is factored in. Once the "i" vehicles are added, the costs increase substantially more.

A lack of engaging, connected and dynamic driving experiences which are the core of the brand, an increase in the number of models which have low demand, are not very different from existing models and/or ugly, and soaring production costs make it pretty clear why investors are unhappy with BMW and are driving down its stock price.





DTMFanDTMFan - 11/8/2013 7:00:43 AM
+2 Boost
I can only assume GermanNut, that you've never looked at BMW's stock charts. You say "driving down its stock price", where as actually BMW's stock is pretty much at a 10 year high at the moment.

http://finance.yahoo.com/echarts?s=BMW.DE+Interactive

You seem to make a lot of statements about BMW's production costs going "through the roof", and assumptions about the BMW-i brand, I doubt you have much to back that up with.


CaliCali - 11/11/2013 4:07:19 PM
+1 Boost
Speaking of dipstick...look who's crawled out from under their bridge.


GermanNutGermanNut - 11/8/2013 4:53:11 PM
+1 Boost
The stock price decline was on the day of BMW's 3Q 2013 earnings release which missed analyst's expectations and drove the sock price down, hence the comment about the stock price drop.


2nynbak2nynbak - 11/13/2013 9:41:51 AM
+1 Boost
Looking at the picture of the BMW electric car is saddening. Ultimate Driving Machine is going to be harder to believe. BMW's have been getting heavier, pricier, and have just lost that certain feeling they once had. I bought a 740IL new in 1998 and I remember that when you hit the steering wheel with your hand it had a ringing vibrating resonance that helped it transmit everything the tires touched on the road. A lexus driver might think it was too stiff to steer but me and other BMW owners liked it. By the time I ordered my 2007 3 series convertible that feeling in the steering was on its way out but now gone altogether. The brakes were still great but the 3 Series felt almost as heavy as the 4600 lb. 7 Series. Now confronted with replacing the 3 Series with the new convertible 4 Series all I see is headrests that look really awkward, a silly bit of chrome on the front fenders, a four cyl. engine that want to shut off at the hundred red light I encounter daily. It really make me wonder what happened to this company.

Then I remember what all public companies lust after, growth. In the auto business it's done through endless marginal vehicles. Crossovers, coupes, slantbacks, convertibles, eco and high performance variants, all to grow share and have bragging rights. As a brand does this at first there is good growth at the expense of weaker competitors but eventually the brand is weakened and difused and the customer moves on to other products. This I believe is beginning to happen to this once well defined company.


VoranaVorana - 11/13/2013 7:58:35 PM
+1 Boost
BMW - take note. The day Audi's & now Lexus IS eats your 3 series cake, the writing is on the wall.



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