BMW to tighten model portfolio for the niche market

With the goal of improving their line up for the niche market, BMW is looking to tighten their model portfolio. Cars like the BMW X4 M40i cater to very specific consumer bases and this creates a good diversity among the BMW family.

This is timely because Merc is also expanding their line up for the same reason. With their Mercedes-AMG GLC43 Coupe catering to the niche market, they want to add more units that serve the same purpose. “If we talk about individual body shapes, we are sitting at about 33 or 34 now in our portfolio, and we have laid a clear path up to 2020 to go to about 40,” said Ola Kaellenius, Head of Product Development at Mercedes-Benz. But the three-pointed star doesn’t feel that these new vehicles will just be odd niches. “There are still segments we feel we could capture, and I’m not just talking about niches of niches, I’m also talking about segments with very relevant volumes.”

However, BMW’s strategy is a bit different because they will tighten the model range instead of expanding it. “The checkerboard is getting quite full. There are not many more concepts. And I think we are reaching the phase where we will start to take some out — it’s too complicated, and there are too many. And there are products whose market has dropped and not recovered.” said BMW’s own Ian Robertson. “The areas where recovery didn’t happen were places like roadsters and convertibles, so most manufacturers are extending the life span of those types of products or looking for joint venture partners.”

BMW will not discontinue models in the process, they will just refine what they already have. It is not in BMW’s plans to have around 40 cars in their portfolio, which they believe will result to better cars in the life up.