Cheaper Mini on its Way?

Sections: In the Press | R56 (Coupe) May 31st, 2004 27 Comments

As some long time MotoringFile readers may know MINI's next generation car (the R56) is due to be introduced in the next 2-3 years. There have been rumors in the past that this next MINI will be a car designed to cost BMW less and in turn make more money as opposed to the current car which by most accounts is over engineered considering the price range it occupies. In fact we covered some of this very speculation over a year ago. Of course the extent of the cost savings is unknown and it may simply be components that we can't see or feel that have no bearing on overall quality of the car. We probably won't know details until the cars make their way out of the plant and into our hands.

The Irish Examiner has some further info about the next generation car in a recent article. While the article is vague in nature, what it hints at is interesting. Here's an excerpt:

German car giant BMW is planning to replace its successful British-built Mini with a new, cheaper-to-make model.

The company, which makes the Mini at Cowley near Oxford, has drawn up plans for a version of the car with a less ambitious design, according to a report.

The Munich-based car maker has decided the high specification of the Mini and its relatively low market price has limited its profitability, the report in the Sunday Times said.

The new model, which will not be available for at least three to four years, will have cheaper components and will be offered with a wider range of body types including a five-door estate.

BMW’s Mini, based on Austin’s original classic, has had significant success since the company launched it just under three years ago.

The company sold 176,000 of the cars last year 22% up on 2002 and expects to sell about 180,000 this year. The Mini is sold in 73 countries, with prices ranging from just over $10,000 ($14,982) to more than $14,000 ($20,974).

BMW declined to give profit figures for the Mini, but a spokeswoman said the company expected the current range to make a ‘positive contribution to the group’s bottom line’.

She confirmed that the group plans to build a new range, which is likely to be available in different styles.

There may be a limited amount of extra investment at Cowley, which employs 4,500, to handle extra volumes, she said.

But the spokeswoman said it was too early to give further details on the new car, adding: ‘We’re still some years away from going into production.’

Analysis:

I think BMW is walking down a risky path if it is indeed planning to use cheaper materials and components for the next MINI. When you talk about what sets the MINI apart from other small sports cars the conversation inevitably leads to the amazing chassis. Sure the current MINI shouldn't have been made so well. Sure it's over engineered for even a $30,000 car. But it's resulted in a rare situation in automobiles and marketing where something not only lives up to it's branding and enthusiast hype – but surpasses it. BMW needs to only look at the current VW Beetle to see what happens when a high-end small car with no real engineering prowess starts to age… sales fall flat.

Of course many of us have heard this rumor before. BMW basically gave up on this generation of the MINI in terms of making a profit. They figured a car so spectacular would help build a brand and a loyal following. They were 100% correct with that assumption. It's one thing to cheapen the car by component costs but to mess with the wonderful chassis or the z-link rear suspension BMW/MINI could potentially lose more than a predetermined percent of the customers. They could lose the respect of many core auto enthusiasts … and that will be hard to gain back.

Written By: MF Staff

27 Comments

Gabe May 31st, 2004 Link

Garo/Rollin – thanks for the heads up!

Shawn May 31st, 2004 Link

Gabe, I totally agree with your analysis. This is an enthusiast's car no matter which aspect mattered most to the the car buyer. They bought it for it's fun factor and you don't get that with cheaper materials. Seriously, would anyone have bought it if someone besides BMW (and all that BMW stands for) had built it? Cheapening the car will run counter to the brand image.

Ken May 31st, 2004 Link

I don't like the sound of CHeaper Material between related to our MINI ! .. ahaha …

weslim May 31st, 2004 Link

It's a bad idea to introduce a cheaper Mini. What they should be doing is to concentrate on the current models making them standing out from each other. As for now the One and the Cooper are close to each other in terms of performens (or simply to modify to match) while the real gap is to the Cooper S. By introducing a cheaper model it will only lead more sales for the current models as people will want the “real” thing and not the cheap thing just to own a Mini.

David Bunting May 31st, 2004 Link

If the next MINI can't be made competitive at the national level SCCA, I think MINI looses a lot of potential enthusiast interst.

Whether or not people are competitive in the SCCA or not, they at least want to know that the car has the potential to be a great handler. Mini built it's reputation on it, and now it's up the MINI (BMW) to uphold that.

Tim May 31st, 2004 Link

I think that this cost cutting has started already. A bunch of us from Cork went to the Motor show in Birmingham, UK to see the new colours and spec.

We were disapointed at the tackiness of some components on the facelifted model, particularly the headlight clusters, (both types). The interior lights that displaced the clock were also very cheap looking and when I pushed the on/off switch, the whole mechanism receeded into the roof headlining.

The dash, just inside the windscreen looked very 'plasticy' too.

Frank May 31st, 2004 Link

I think the article is pretty vague….cheapening the car how? By the number of welds it receives during assembly? By the number of screws it gets? By the quality of the interior plastics?

There are millions of ways to cut costs on a car, yet without affecting much of it in the way it feels and looks.

Prime examples of this…the Toyota Camry and Honda Accord. 2 of the best selling family vanilla sedans in the market that get cheapened to produce and market on each new generation. These cars still sell briskly in the American market and yet they have cheaper less complex parts to assemble in comparison to previous models and yet look and feel the same.

If you look at the interior of a 1989 Honda Accord and a 2004 Honda Accord, you'll be surprised as to how much more nicer the interior assembly quality and materials used in the old car versus the new one, but yet these difference may be subtle for the great majority of customers to notice.

I think everyone is taking this article way out of context (If it is true). Don't worry our MINis will not be turned into Pintos or Yugos!

Gabe May 31st, 2004 Link

I hope you're right Frank.

Evan May 31st, 2004 Link

There are definite ways to cut costs on building cars without “cheapening” them. I believe BMW is smart enough to not ruin what is has established with the MINI. With an increase in model variety and production numbers, the costs will come down. Also keep in mind that this initial iteration required the establishment of a dealer network- even if it is based off of BMW's existing plan. That huge investment has already been made.

As it is, the current generation does have its cost-cutting evident in some of the plastics and quality of the interior bits. But, and this is why none of that matters, they spent the money in all of the right places- the chassis and structure are excellent along with safety and overall build.

We just have to trust BMW. Even if they drop some now standard equipment, they will keep the core of the car alive and well.

Or I at least have the best model year so far (2004) and will keep it forever.

Gabe May 31st, 2004 Link

Evan and Frank – you both bring up good points. I think one good example of a recent cost cutting measure done right is the new three-piece dash. They've reduced the complexity, cost and hopefully rattles without any cheapening of the interior.

Steven Diver May 31st, 2004 Link

Frank & Evan… You both bring up good points, and there are definitely ways of designing and producing a MINI that is cheaper for BMW to produce, without sacrificing overall quality. As Gabe said, a redesigned dash may be cheaper for BMW to produce, while still retaining the same look as the old, and perhaps even providing improvements over the older more complex and expensive design.

This is something that is always happening in the manufacturing world. You have a design, and you want to find a way to make it cheaper to produce, but keep the same level of quality. I think you can be sure of one thing though, that BMW will not want to tarnish its name by producing an inferior product.

I think we will just have to wait and see on this one. The article probably sounds scarier, than what will actually happen.

Randolph Lee Jun 1st, 2004 Link

Just Pray that they do not let Chris Bangle or some one like him near the MINI

The mess he makes of any car he designs is breathtaking… Why BMW is still folowing this pied piper of bad design is beyond me.

I recall reading somewhere that if not for the paint shop bottleneck the plant could build almost 300,000 a year… but like anything you read in a paper or on the net these days I do notknow how true it was/is.

I too expect to see a traveler version in the future but I think that the SUV craze will be a fading one by the time that MINI might be thinking of doing it, hence we may be saved from that travisty except fot the ones that come out of the custom shops…

BMW has positioned the MINI as a premium brand and I do not see them risking this hard won identity with an intentional cheapening of the brand… that said of course they will look, like any builder of any product will, for ways to improve their profit margin… but not in ways that would impact the perceived quality of the product. That would be Just stupid.

njpaguy Jun 1st, 2004 Link

There are many ways to realize savings in design and production, but current BMW thinking does tend to make one pause. Take for example the new 5. Subjective comments about design aside, look at the uproar over their choice of interior materials. A simple miscalculation or Bavarian arrogance? (You'll learn to like it…just like iDrive). As I've mentioned before, Dr Panke may be a nuclear physicist, but he's no rocket scientist. Not a doomsayer here; just an observation.

R Jun 1st, 2004 Link

Lock & load, aim at foot, fire!

Let's hope that when I buy my next MINI it still is a MINI and not a mainland Chinese version…R

napster Jun 1st, 2004 Link

I hope they know better than to mess with the current car's suspension setup in a negative way. Everybody remember what Nissan did to the 95/99 Maxima's rear suspension setup. They changed over to a cheaper solid beam setup in lieu of the previous generations setup. The result was a disaster for road handling.

James Jun 1st, 2004 Link

Oh well…nothing we can do about it anyway. I guess that just means that the existing model will be more valuable in the long run!

andrew Jun 1st, 2004 Link

Randolph. Unless i am mistaken, Chris Bangle is the current head of design for all of BMWs brands… BMW, Rolls-Royce and MINI.

Frank Jun 1st, 2004 Link

Folks, I think everyone has raised very good points but in my opinion most seem to be jumping the gun way ahead of time. The article is pretty vague and has a clear sensasionalistic tone to it. BMW has gone thru incredible efforts to nurture and preserve the essence of the MINI brand and product alike. MINI has been a resounding success for the marque and if previous history serves as evidence of future strategies I doubt very much BMW will radically change or delute what the MINI is all about in the name of profits and reduced production costs. BMW is what it is because they understand the markets where they sell thier products extremely well and they have earned their reputation based on keeping that core market satisfied with world class products. other manufacturers have loads of trouble understanding this, but it would be short of suicidal to transform the R50 MINI into a Hyundai and like I said that ain't gonna happen.

The cut throat automotive market demands decreased production costs and yet while retaining high quality and product appeal for the customer…that's quite a hefty challenge and most of us understand it one-dimensionally but it is so much more than cheapening a car for the heck of it. All manufacturers in operation today are always seeking to cut costs to keep thier products and profits competitve. as for BMW it doesn't seem to me that they will be willing to jeopardize thier must successful franchise ever. My prediction is that when the R56 comes out in a few years the car will be a hit and it will look higher quality too, perhaps in the interior and materials used, yet they would have cut costs in areas that you will never see/touch or hear. probably the R56 will make use of more integrated modules, use less welds, cheaper dashboard modules that will still look and feel MINI all the way.

Us MINI owners are very passionate about our cars and jump to conclusions without even getting all the facts together and seeing the finish product in person. People complained last year when MINi announced the softening of the suspension, yet today no one complaints as the handling was not affected and the ride quality was improved dramatically. So the R56 will be the same thing, so let's all relax enjoy our cars and let BMW do thier job. 3 years is an eternity in the car business and anything can happen from here til then.

Rocketboy Jun 1st, 2004 Link

I too doubt that BMW will start making 'disposable' MINIs. If BMW wanted to use the MINI to increase image, why would they degrade the quailty of it? The only 'major' changes that I could see them doing is making the MINI One cheaper, and less like the Cooper, or maybe a MINI .5 that will be even more budget minded than the One.

I just can't see them Dawoo-ifying the current lineup..

KE3VP Jun 1st, 2004 Link

Hope for the best, but prepare for the worst… With some of the trends I've seen in manufacturing and worldwide corporate mindsets, I can't help but think the way “R” does. The bottom line seems to always be more important than quality. The MINI is my first experience with BMW, and I have been very impressed. I don't remember EVER being so excited about an automobile. I'm looking forward to purchasing another MINI about 2007. If I see a major negative deviation from the current quality/performance benchmark, I'll back off in a heartbeat. A phrase that comes to my mind is “…if it's not broken, don't fix it…”. I hope BMW is listening !!?!?? I guess we'll have to just wait and see.

Peter Jun 1st, 2004 Link

well, really i think this sucks alot. i am 15 years old and my brother bought a 2003 MINI cooper s. i have to say that i love this car, and by the time it will take for me to be able to afford one, this cheaper model will be out.i think this is really bad, and the only thing that bmw is turning the great MINI into is just a SCION or an AVEO. If BMW changes the model to a cheaper version, i think that ill just have to settle with a RABBIT GTI. I hate saying, this becuase the MINI is my favorite car, and is a very fun driver.

Frank Jun 1st, 2004 Link

Peter, did you read all 20 comments before yours????

dgszweda1 Jun 1st, 2004 Link

I think the general trend throughout industry at least in the last decade, has been the thinking that to increase profits you must increase your margins. Sell for more but produce for cheaper. Unfortunately the cheaper usually comes at the expense of the quality of the product. And as time goes and the pressure builds to continue to increase profits, the push to decrease costs at the expense of quality begins to build. Whatever happen to building a better product. I have always been willinging to spend more for a superior product. I think in general quality and customer service are on the decline. One example to make the case the people are willing to spend for quality.

Bill Lawrence Jun 3rd, 2004 Link

When I was working my way through college, I worked on the assembly line of a major commercial truck manufacturer.

They introduced a new model that was cheaper to build. One of the things they did to cut costs was to make a one piece floor pan, rather than one that came in 8 pieces. This made it so there were 2 people working on the floor assembly, rather than 8. In the process, the body was stiffer and there was less rooom for error in it's build. Not only was the truck cheaper to build, but the customer got a superior product.

BMW will probably take the same approach with the MINI.

Frank Jun 3rd, 2004 Link

I agree Bill. Thanks for your perspective.

Stuart Jun 4th, 2004 Link

Just a quick comment, I think the word 'cheap' is the wrong word, it implies low quality and tackiness, I think the article got it wrong, and any remarks were taken out of context. What should be read into this is that the current MINI design maybe difficult and expensive to produce, a new version, though having the same dynamics and looks, would be easier to build right thru the process, thus costing less in overheads, time, and materials. The quality of the car will be further improved I would imagine. So forget the 'cheap' and think “more cost effectively produced”, but with at least as good customer perceived quality and styling, thats the idea for all business enterprises surely?.

Gabe Jun 4th, 2004 Link

Okay – I offiially feel better now Stuart! Thanks :)

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Cheaper Mini on its Way?

Sections: In the Press | R56 (Coupe) May 31st, 2004 27 Comments

Written By: MF Staff

27 Comments

Gabe May 31st, 2004 Link

Shawn May 31st, 2004 Link

Ken May 31st, 2004 Link

weslim May 31st, 2004 Link

David Bunting May 31st, 2004 Link

Tim May 31st, 2004 Link

Frank May 31st, 2004 Link

Gabe May 31st, 2004 Link

Evan May 31st, 2004 Link

Gabe May 31st, 2004 Link

Steven Diver May 31st, 2004 Link

Randolph Lee Jun 1st, 2004 Link

njpaguy Jun 1st, 2004 Link

R Jun 1st, 2004 Link

napster Jun 1st, 2004 Link

James Jun 1st, 2004 Link

andrew Jun 1st, 2004 Link

Frank Jun 1st, 2004 Link

Rocketboy Jun 1st, 2004 Link

KE3VP Jun 1st, 2004 Link

Peter Jun 1st, 2004 Link

Frank Jun 1st, 2004 Link

dgszweda1 Jun 1st, 2004 Link

Bill Lawrence Jun 3rd, 2004 Link

Frank Jun 3rd, 2004 Link

Stuart Jun 4th, 2004 Link

Gabe Jun 4th, 2004 Link

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