Although BMW’s sales were up 1 percent in August, the German automaker is expecting a 40 percent drop in profits this year. BMW attributes most of that decline to falling sales in its traditional segments, a problem BMW plans to remedy by introducing more niche models.
According to Automotive News, BMW will follow up its X6 utility vehicle with a niche vehicle based on the company’s 3-series. No word on exactly what form the new model will take, but the company’s new “Progressive Activity Sedan” design style is the most likely candidate.
“We are investigating whether we can successfully occupy more niches across all existing model lines,” a BMW spokesperson told Automotive News.
Although the niche model wouldn’t tally as many sales as the regular 3-series, it would help BMW’s 3-series factory run closer to capacity, therefore allowing the plant to run more profitably. According the plant’s manager, the facility could be retooled to produce the new vehicle in as little as three months.
BMW will continue its march into niche vehicle segments after the 3-series-based model debuts, with a similar scheme planned for the company’s 5-series.



09/10, 1:22 PM
posted by:
johnnycanuck
Hey, here’s a niche. How about you toast Bangle and make some vehicles that aren’t ugly?
09/10, 1:40 PM
posted by:
howsmydriving
How about a niche for people who don’t like to be taken to the cleaners?
09/10, 1:45 PM
posted by:
peacemf
how about making a car/suv that is economical and DOESNT BREAK DOWN so often?!!
09/10, 2:31 PM
posted by:
macabre
Instead of attributing a 40% drop in profit to lack of product selection perhaps they should just attribute it to the global financial meltdown like everyone else. The whole automotive sector is down not just BMW.
09/10, 3:11 PM
posted by:
F3INT))AP3X
I think that in light of these hard times there are some who believe that to save money and not be ripped off by these gas prices you must buy a small fuel efficient car, hybrid, EV, etc. Now the ones who refuse to allow the gas prices to dominate the type of car they purchase are also forced to save but since they will not compromise on the car size and power they must find good deals within the regular spectrum of autos. My point is that people are starting to realize BMW for what it is; yes they make wonderful cars and even more wonderful engines, but they are prone to breaking down and they cost an arm and a leg. I think BMW wants to turn to niche market cars because the usual 3,5, and 7 series are not cutting it when companies like Infiniti are offering most of the same options fully loaded almost off the floor. BMW is a premium brand for premium buyers and the country is losing money faster than making it so obviously in a time like this nobody wants to pay 10 or 20 grand more for something very similar.
09/11, 7:34 AM
posted by:
nkay
I love BMW. I’ll always give them the benefit of the doubt on a showroom as they make good looking, great performing cars. Where they fail is in their handling of their late model or out of warranty vehicles. Everyone knows not to hang on to one, you gotta get rid of that thing before it has to go back to the shop and costs you an arm and a leg to fix. Its such a shame that European marquees generally build cars that end up costing huge chunks of money. It doesnt matter how you look at it. Premuim or not, Its a product at the end of the day and as such it should serve a function, not a financial death sentence.
09/11, 12:02 PM
posted by:
02WRXPSM
I see 335is all the time around here (you know, the poor man/woman M3 with the twin-turbo mill) and I have notices something disturbing — the right exhaust pipe is black with soot, and the left one is shiny chrome. I saw three in a single day, and all had this situation. Now, why a post-catalytic converter exhaust outlet in a gasoline (not diesel) car is covered in soot, that’s a problem, but even worse when only one of the two exhausts isn’t showing the same soot. Either the dual exhaust is fake, or the backpressure (perhaps header length issues?) is wildly unequal coming out of the motor.
09/11, 12:25 PM
posted by:
Need more oil for GM
Cadillac is killing BMW in the mainstream market so BMW thinks that “niche products” are going to save their sorry asses? They should just save the money for when they convert their business to motorcycles only.