Quote:
Originally Posted by ASAP
You mean other than the most important metric of all for any public company in this world? - Revenue? lol gtfo w that... we are all enthusiasts and we all want good cars but these are companies and they function to make a profit, believe it or not.
Also, someone here is confused if they think BMW is a private company... It's majorly publicly owned w 2 private individuals holding the lower portion.
Also, what short term growth are you all talking about?
They are investing billions of dollars into state of the art cfrp manufacturing plants and investing more money into hybrid technology than any other luxury manufacturer in its class... this will pay massive dividends in 10-15-20 years.
|
First off, being #1 in sales is not necessarily analogous with generating the most revenue. Selling 1,000 items with 1% profit margin pales compared to selling half that with 10% profit margin. See Porsche.
Disregarding that, of course a company has to turn a profit. I don't think anyone here is suggesting BMW to NOT be profitable. But they are investing a lot of money into cars that are very niche and stray very far from the brand's roots, while failing to deliver compelling products in other segments that would still be profitable to them, as well as make enthusiasts happy.
But touching back on the original point, every car maker that has openly come out and gunned for the sales leader position has paid serious consequences. Whether it be cost-cutting that results in subpar product, complacency that allows competitors to catch and surpass you, or needless gambles on vehicles that end up being sales failures, so far nobody has been immune. BMW would be wise to keep this in mind.