Quote:
Originally Posted by M2Cmtl
My buddy has 10-12 dealerships from a few brands and this is exactly what he is saying. Everyone is making more money selling less cars. He would make 200$ on some F150 sales now it’s thousands.
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Yeah so basically the Ferrari/Rolex model toward sales.
What I find odd though, and maybe somebody can explain, is that the car business is generally very volume-driven. Smaller more niche brands like Ferrari, Porsche, etc. can produce fewer cars and sell at massive margins. However, at least pre-pandemic; BMW, Mercedes, Toyota, Ford etc. were volume driven in order to keep their business afloat.
So my question is, how much is BMW purposely holding back production and what is the end game? I don't take it this model is sustainable. Automakers are making a lot of money with the way things are, but eventually won't they have to return to chasing volume?
I would love for BMW to become a smaller, more focused automaker that isn't obsessed with trying to be all things for all people. But that's just a pipe dream.