June 3, 2007

2009 BMW 1-Series Preview-part 1

Is there really room for the 1er -- or for its riders?

The grass, they say, is always greener on the other side. I'm sure every car manufacturer would like to be in the same position as Mercedes, Porsche, and BMW, building cars that really don't cost that much more to design and engineer than basic fodder, but which can be sold at a premium price… and to a seemingly endless line of willing buyers.

It's so lucrative, in fact, that Mercedes was able to "merge" with Chrysler, Porsche is currently "merging" with VW and BMW remains the only totally autonomous carmaker in the world, even if it has started using Peugeot/Citroƫ n engines to power the MINI.

You'd think they'd be happy with their lot, but no, these companies are constantly expanding into new segments. Porsche, for example, will soon be making more sedans and SUVs than sports cars. Mercedes, meanwhile, is downsizing, with not one but two models smaller than the C-Class in Europe (excluding smart). Audi has scaled down to the A3 (though it canned the slow-selling A2).

BMW, not content with the MINI, also decided to offer the 1-Series to prestige-hungry Europeans.
The reason they do this, of course, is not to increase volume or bolster their coffers -- if anything, they're running the risk of diluting the brand and hurting the bottom line with these lower-margin cars. Instead, these compact and sub-compact premium cars are designed to lure buyers into the showroom at a younger age, allowing the carmakers to woo them early and instill in them a strong loyalty to the brand, thereby ensuring a lifetime of valuable repeat business. MORE--

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