Is a Bigger BMW Better?

Of course, creating so many divisions and models got GM into financial trouble when the number of its competitors grew so much as well and people dipped into pocket and purse to buy Toyotas and Hondas.

Now BMW, which sells about 300,000 BMW, Mini and Rolls-Royce vehicles annually, appears to want to benchmark GM: It’s saying it will add six new models in the U.S. within the next few years in order to have products in segments in which it doesn’t now compete.

Automotive News says BMW, which already has a small 1 Series on the way and just unveiled an X6 coupe crossover concept in Frankfurt, plans a small BMW crossover and two sedans, one priced above the current 7 Series; a Mini crossover; and two Rolls-Royce models. What, no pickup or minivan?

Both GM and Ford are criticized for having too many brands and models, yet BMW decides to expand?

Volkswagen is forecasting that its sales are going to explode to 1 million units annually soon, and both Audi and Hyundai say sales are going to skyrocket as well. And that doesn’t take Toyota and Honda growth plans into account. So where are all these buyers coming from? Is a population explosion coming that only they know about?

Are buyers going to be those who GM or Ford have already lost? Doubt it.

“The industry already has too many mouths to feed,” said Jim Hossack, vice president of AutoPacific, a research and marketing firm. “BMW add a model higher-priced than the 7 Series? Why? Mercedes-Benz added a Maybach and it didn’t make any money. A small BMW crossover? Mercedes is adding a Smart, but it won’t make money. If it isn’t going to make a profit, why add more models? It’s easy to add a new model, it’s not so easy keeping it going for several years and making a profit at it.”

GM, Ford and Chrysler found that out the hard way.