BMW Surges Ahead

[Kirby]

Reuters

All those car companies complaining about difficult trading conditions and high European labour costs have had their excuses undermined by BMW. The German company has just announced record results with a profit margin of 8.5% - about three times the industry average (at least the average for those car companies that still make a profit). Interestingly, BMW has also committed itself to expansion in Germany, the highest cost country of all. BMW says Germany offers such quality advantages in terms of both the workforce and the suppliers, that cost issues can be overcome. Although people tend to associate BMW with image and great build quality, one of its big secrets is production technology. With the 3 Series, BMW can handle more product variety in terms of engines, body styles and options than any other company. Despite the fact that it makes hundreds of thousands of 3 Series every year, BMW claims that almost every one is unique in its specification.

Next time a car company says they are being crippled by European costs, they should remember that both BMW and Porsche are making record profits.

 

[Chesty Bonds]

Yeah I recently read a big survey in the Economist magazine which explained that Toyota and BMW are the only large car manufacturers making big profits. Kirby, this article seems to reinforce that.

 

[aNoodle]

I guess GM can't blame the unions?

 

[epj3]

I guess GM can't blame the unions?

They high-up's blame the smaller workers, not their own crappy decisions.

 

[Bmw 325i 7803]

So that article I read several years ago which ranked Toyota as the #1 automobile company in the world and BMW as #2 were correct all along...

 

[bmw046series]

Well I wouldn't put Toyota as number one because of the fact that I feel they lack ingenuity, such as new technologies, production innovations, and product varieties, (aka, the Lexus GS is the same car as the Corolla); they steal techology from everyone else - BMWs turning headlamps, oh well the Ugly-RX has it now! Bottom line I don’t think they are creative enough to earn that award.


AND MOST IMPORTANT - Their cars have no..... SOUL! They are just refrigerators, computers, and washing machines!

 

[Bmw 325i 7803]

That's why BMW is number one for employees, innovation, customer enthusiasm, and technology. Toyota on the other hand is more global, and sells more cars with excellent quality which explains their #1 position.

 

[Chesty Bonds]

Well I wouldn't put Toyota as number one because of the fact that I feel they lack ingenuity, such as new technologies, production innovations, and product varieties, (aka, the Lexus GS is the same car as the Corolla); they steal techology from everyone else - BMWs turning headlamps, oh well the Ugly-RX has it now! Bottom line I don’t think they are creative enough to earn that award.


AND MOST IMPORTANT - Their cars have no..... SOUL! They are just refrigerators, computers, and washing machines!

But that has nothing to do with the company's performance. They're the number one carmaker in terms of profit margin, productivity, etc etc.

I will say that you're right about BMW being more creative but Toyota isn't really in the same market with all of its models.

 

[bmw046series]

Four major key points verus Two?

Toyota had to create companies like Lexus just to compete.

 

[bmw046series]

I was just going to make that comment, like comparing KIA to Aston Martin, That news article I read today about GM & Nissan and quality is still boiling on my mind.

 

[bmw046series]

I was just going to make that comment, like comparing KIA to Aston Martin, That news article I read today about GM & Nissan and quality is still boiling on my mind. Actually I don't think it has anything to do with Profit Margin, as 7803 said it was several years ago-- that was a different playing field, GM at least had a margin.