Has BMW Lost The Secret Sauce That Made It The Ultimate Driving Machine?

Maybe BMW is smarter than we all think. When it comes to driving, their non-M cars are no longer the Ultimate. However, look at the cars that many are touting as the "new Ultimates" at the entry level: Lexus IS and Cadillac ATS. Neither of these cars can hold a candle to the 3 Series when it comes to sales. The same can be said for the GS/CTS against the 5 Series.
On the flip side, maybe BMW isn't as smart as they think they are. While the driving experience of the non-M cars seems a bit more luxurious, the execution of their interior design has been easily left in the dust by Mercedes whose C is consistently outselling the 3, and whose (old) E and S are outselling the 5 and 7.

In some ways, BMW now represents a contradiction in execution and they need to resolve this identity crisis. The reality is that they CAN execute Ultimate driving cars, as evidenced by the M235i, M2, M3, and M4. It's just a matter of deciding if they WANT to, and what they want their overall package to say.

Agreed, not all BMWs are "Ultimate Driving Machines" - whatever that really entails is fuzzy at best.
That said, the demographic which really needs and or wants a true Ultimate Driving Machine is much smaller than the overall BMW target market, so if they only serviced that demographic, they'd be niche vehicle manufacturer.
The good news is that a subset of their product line do have the handling and performance which makes them fun to drive.

BMW has certainly lost its way! I used to be a huge BMW fan. I am still convinced that the 1984 to 1991 E30 3-series is the best all-around vehicle and a timeless wonder. I lament the day I sold my 1990 325iS and bought a 2007 328i (since traded away, inclusive of its Takata airbag). The guy I sold the 325 to, still lives in my town and I see my old car from time to time. Just sad.

Its so bad that Jackie Jouret, the editor in chief of 'Bimmer' Magazine - www.bimmer-mag.com - wrote an editorial in this month's issue about how disappointing the new 750i is - non-intuitive controls, kind of warmed-over luxury, all sizzle but no steak.

I was going to get at 750i to replace my 2012 S550 but I've since lost my enthusiasm and will just get another Merc.

"Ultimate" means the highest, or best. Has BMW ever been the "best" car? Better than Ferrari? Lombo? Porsche? That's debatable. The company slogan "The Ultimate Driving Machine" has always been, and is still today, a slogan rather than an assertion of fact.

That aside, BMW has softened over the past decade or more to deliver a softer, less sporting, more easily enjoyable and accessible driving experience in many of their cars. Even so, they are still noteworthy.

FWIW, I've owned 4 BMW over the past 2 decades, and I've loved them all. I'm now driving an Audi, but I like some Mercedes models as well.

BMW is in a clear identity crisis. The brand's slogan of "Ultimate Driving Machine" was due to the fact that it was a sports car first with a decent amount of luxury added in. Whereas Porsche was an all out sports car manufacturer (remember this was before the Cayenne) and Mercedes-Benz was a luxury car first and foremost, BMW was the only brand that combined its sporting ability with a decent dose of luxury.

Now the driving dynamics are no longer as sporty as they once were and the luxury aspect has failed to match Mercedes-Benz and Audi. As a result, the brand's sales are falling in the United States (-8.0% YTD) whereas its competitors are basically flat (Mercedes-Benz is at -0.7% YTD) or increasing (Audi is up 2.5% YTD).

The reason for this is customers have decided to stop paying premium prices for vehicles that no longer drive much sportier than the competition (and in many cases less sportier) and fail to provide the luxurious interiors found in competitor's models.

BMW's exterior design is also little changed from generation to generation so buyers find no reason to buy a newer model when their existing model looks just like the new one (Apple is facing the same problem with its iPhone).

When you charge as much or more than the competition and fail to provide a better driving experience, provide less luxury (real and/or perceived) and make the newer models look just like the older models, you will see your customers go to competition and that is exactly what is happening.

Although globally BMW's sales are up 5.6% YTD, that is less than half Mercedes-Benz's 12.1% global sales growth YTD.

In 2016 BMW will lose both its U.S. and global sales crowns to Mercedes-Benz and see its global sales lead over Audi shrink to less than 50,000 units.

There are numerous ways of looking at this and sales isn't the only parameter to consider.

Stylistically, BMW never really found its groove after the hideous Bangle years and now the safe boredom of the post-Bangle years has stagnated into stylistic stasis.

The Alfa Giulia is more interesting to look at than a 3 Series and the Giulia simply isn't that special.

For sure, would be interesting to know the profit margins. I would hazard a guess that Audi is the leader of the big 3 German near premium/premium cars due to fact that they are able to spread development costs for 80+% of their engines and platforms with VW. BMW is trying to do that with the X1, 2 touring and Mini, but Audi can do this across most of their line of sedans and SUVs.

We're still waiting for the Toyota acquisition of BMW and until that happens, your strategy won't happen.

RARELY do I agree with you, but BMW is simply too small to go it alone for another decade and a BMW/Toyota merger or Toyota acquiring BMW is an obvious outcome.

Toyota does not need to acquire BMW, but BMW will need to be acquired because they are simply too small to stand alone for another decade.

BMW will be owned by Toyota in one way or another whereas Mercedes is likely to own the Renault/Nissan/Mitsubishi turd pile in one way or another.

Once an enjoyable simple driving machine that brought joy to every trip short or long is no more. BMW is a mass marketer now chasing sales wherever whenever it can. Trying to be all things to all people may have increased its size but at the cost of its soul. The current conservative take no risks approach will only take it so far and no more. They haven't even taken the disguise off the new 5 series coming soon and we all already know what it looks like...more of the same,ho hum. Familiarity breeds contempt and I for one hate what they are doing ( and not doing) o my long lost love, The Ultimate Driving Machine.

BMW is simply nothing more than a large corporation whose job is not to make cars - it is to make money for its shareholders. Mercedes polled its "customers" and found that they actually preferred more Luxury - and their move toward the actual customer preference (Give the CUSTOMERS what they want) has resulted in record sales - and BMW has to respond to the cars that Mercedes produces. Noting that BMW styling has also gone stagnant - they have a problem and have to address it to keep PROFITS up.

I believe eventually - just as Mercedes did - BMW will separate its higher end sports product to "M" just as Mercedes has done with "AMG".

I do not agree that BMW will eventually be bought By Toyota though. The corporate structure of these to are completely different - and they are in different markets as well. Toyota already has a Luxury Division - and that will keep BMW away too. Frankly - I could see FORD and BMW combine - they are much closer in many things.

Don't think they lost their sauce, but their recipe got stolen. So many other automakers are using tech they developed over decades

I moved from BMW to Porsche. No regrets, to say the least. Had an opportunity to rent a new 3 series on vacation. It was just terrible. Steering feel was non-existent.

BMW simply will not be able to remain independent. With the huge advances in technology we've seen recently, other companies such as Audi and Mercedes-Benz are much better positioned to bring that technology to customers.

BMW is in the business of selling cars in order to increase revenue and ultimately profitability for its shareholders. If the car sales decline or fail to keep up with the competition as they are doing, BMW's revenue will grow slower than the competition's and ultimately its profits will fail to keep pace. That is exactly what is happening.

The longer BMW's identity crisis goes, the further it will fall behind. Shareholders will reach a point where they will press the BMW Board of Directors to search for a buyer or strategic tie up in order to boost returns.

The writing is on the wall for BMW and it says an acquisition or partnership is absolutely necessary. BMW won't be the acquiring company, but rather the target.

Isn't BMW still over 50% owned by one family? The Quants or something like that I think.