F54 Clubman | 2015 - 2024 F55 Four-Door Hardtop F56 Two-Door Hardtop F57 Convertible F60 Countryman | 2016 - 2024 Opinion
Why BMW is Moving MINI Further Upscale (And Why We’re Not Worried)
Premium does not equal high cost. Nor does a move further upscale mean MINI will turn its back on the style and performance that has made the brand such a success over the years. Now with that out let’s get to the why, how and when.
BMW held onto MINI after the Rover debacle for a few reasons. The ability to lower corporate MPG numbers was certainly one. Another was about placing a smart bet that dipping its corporate toe in a front wheel drive small car brand would be a good idea for the future. And what better brand to do that with than the one that invented the segment.
Fast forward 15 years later and MINI has been full integrated into the BMW family. Not only every generation but every year since that 2001 R50 launch, MINIs have become more integrated into the BMW family. Some would say they’ve become small BMWs. Or you could look at it as BMW has allowed MINI to make better MINIs. Either way the level of refinement and sophistication (not to mention performance and efficiency) has risen dramatically.
The Why
But there’s a problem. MINI isn’t making enough money for BMW. The cars are small front wheel drive BMWs being sold for $20,000 USD. Profits are razor thin on moderately specced cars and likely non-existent on stripped down base models. BMW has had two three choices over the past few years. Partner with another automaker (which they’ve tried), abandon the brand (which some have recommended), or simply double down and go it alone.
That’s exactly what they’ve done. BMW has doubled down in its investment of the brand and its products with the UKL platform and an entirely independent strategy that cut out PSA (its former engine partner) from future products. They did this by introducing something many of us never expected to see: front wheel drive BMWs. This strategy has allowed BMW and MINI to remain independent in a shrinking pool of massive global automakers.
The UKL based front wheel drive BMW family will grow from the current two models (The 2 Series Active Tourer and 2 Series) to five over the next few years including a four door sedan that is likely the closest we’ll every see to a MINI four door. Combine that with MINI and BMW will have at least 10 front wheel drive models spread across every small car category you can imagine (except a city car).
This move has allowed BMW to pour much more time and cash into the development of the UKL cars than anything they’ve ever devoted to MINI in the past. The outcome are cars that are much more advanced and (dare we say it) premium as compared to past MINIs.
How
The problem is that MINI has to be very careful with how they evolve MINI into a premium brand. It starts with a premium product assault – the new F56 MINI and the rest of the UKL based MINI range being the beginning. But pricing is key as MINI doesn’t want to walk away from the $20k price point on the base Cooper. Frankly we don’t expect them to. But if MINI has their way average transaction prices will rise with more emphasis on premium options and packages that tempt would be owners further up the ladder.
Now that product is living up to the idea of premium, MINI can turn to sales and service. This is where MINI and MINI USA specifically see opportunity. From digital tools and a more concierge type of sales and service experience, MINI intends to make ownership even more special. As always the execution is critical here.
What premium doesn’t mean is that the brand becoming less enthusiast oriented or even less value oriented. In talking with MINI USA execs over the last year it’s been clear to us that those aspects of the brand are critical to them. They need to tell in volume more than ever before. The F55 four door and the new F55 Clubman should help there. As should the larger more consumer friendly Countryman. But MINI recognizes that they must nail the feel of these products. In other words they have to drive like a MINI. That’s where BMW’s cash comes in. The amount of investment made in MINI thanks to BMW’s front wheel drive strategy is the key ingredient to selling more, appealing to a broader segment while delivering the typical performance that MotoringFile readers love.
When
Now. It started with the F56. But in effect that car has laid the ground work for MINI to reinvent the line-up. Next up will be the Clubman which will bring more space and comfort to the MINI range despite being only a hair larger than the Countryman. From there MINI will turn its attention the Countryman, a vehicle that the brand has very high hopes for. Slightly larger and riding on a platform (like the Clubman) capable of hybridization, the Countryman will offer a huge range of sophisticated drivetrain options worldwide. In fact both of these larger MINIs have been rumored to be recipients of the high output 2.0L turbo that the BMW has been working on for the past several years. Add a plugin hybrid variant and perhaps even a full electric model and suddenly you have something truly different from the range.
Also look for options to increasingly grow and along with improved sales centers and service touch-points.
While we expect entry level pricing to increase modestly (on par with previous increases), MINI believes these new products and the overall strategy will work hard to entice you into higher levels of specification and ultimately price points.
Will it work? Bookmark this and come back in five years. We should have an answer.
<p>Quite a bit of the above point to why I finally bought a F55 after eyeing Minis from the beginning. Having owned a E46 and spent time in quite a few recent BMWs, the ‘BMW-ness’ that finally got put in the F5x is pretty clear. Getting a ’15 F60 loaner recently really drove that point home; it’s hard to believe it and my F55 were made by the same company within weeks of each other. We’ll see what BMW does going forward.</p>
<p>Do you mean “R60”?</p>
<p>I think its perfectly fine for them to have some premium $$ models like the Clubman as long as they keep the barrier to entry farily low like it is.</p>
<p>btw fix your header images img.alignnone {height:auto}</p>
<p>I’d be happy if the new barrier to entry was called Rocketman/Minor.</p>
<p>“Premium does not equal high cost.”</p>
<p>Twas ever thus, right? Didn’t BMW frame MINI as a value play within the premium sub-compact category from the get-go?</p>
<p>A lot of S and JCW owners might be upset with the fact that power and 0-100 times of the F56 have basically remained flat vs their R56 brethren (it’s a bit better, but not in every respect). I say it doesn’t matter because BMW spent most of thier money this round developing the car that mattered most, the Justacooper.</p>
<p>The new base Cooper is almost as quick and nimble (with the sport suspension) as the old R53 while offering s similar steering feel and that means BMW/MINI actually listened to the criticisms enthusiasts had of the R56. Without even taking inflation into account the new Justa is cheaper than the old ones and offers performance akin to it’s $26,000 “S” brethren from 2002. Add the fact that the Justa outsells the S and JCW by 11:1 and 38:1 respectively and the move makes complete and total sense.</p>
<p>The new Justa also now has access to all of the same options as the “S” and a fully loaded Cooper will set you back $30,750 vs $32,950 for the same equipment on a Cooper S. This makes up-selling easier and the dealers in Toronto are ordering more Cooper S models as a result.</p>
<p>No matter what brand you’re talking you will always have die-hard Luddites who hate progress and change in favour of sitting in the caves and banging rocks together. I say, let them bang thier rocks together to thier hearts content while the rest of us go out and motor.</p>
<p>Amen to your last paragraph. My ’15 F56S is my third MINI and by far the best.</p>
<p>“Best” is in the eye of the beholder. I’m not a rock-banging die-hard luddite, but I do think the F56 is more insulated/luxurious interior trimmings are by far better. Faster? Sure. Handles better? Maybe.</p>
<p>The ’07 R56 w/LSD and sport suspension was way more involving than the F56 I drove that’s for sure. Also better than my R58 JCW out of the box. After installing the JCW suspension, and non RFT tires the R58 now has surpassed my old R56. I have one last change I need to make which is to install a quaife LSD. Then it will be complete.</p>
<p>I suppose I need to keep my mouth shut and drive an F56 with sport suspension, but I challenge you all to find me one on a dealer lot I can test drive. If I didn’t just buy the R58 I would be very interested in testing the F56 JCW. We’ll see I guess.</p>
<p>My ’08 R56S had limlted slip and the sports suspension with 17 inch wheels. The car hopped over every bump in the road and was a real challenge on the freeway corners with expansion joints. The torque steer was horrible. Maybe it could possibly have been better in an autocross or a track with a perfect surface, but otherwise, not so much. Modern cars do not have to ride like an unloaded Kenworth in order to handle well.</p>
<p>I never had that hoppy feeling in my old car. It hooked up just fine. I did change out the RFTs however.</p>
<p>I felt the torque steer was a lot of fun, and actually easily managed once you got used to it. It honestly felt strange for me to drive the R58 without torque steer.</p>
<p>I can appreciate people having different opinions, but liking torque steer makes me a little suspicious. REALLY?</p>
<p>Dude it’s fun. The car feels lively. You get in the groove with the car. It feels alive. Weird maybe, but not completely crazy.</p>
<p>Wow. Very well put. Thank you.</p>
<p>Okay, this all makes sense but doesn’t contain a mention of Mini dropping the snarky marketing or making MAs wear suits as mentioned in the sales meeting post.</p>
<p>It’s those things that worry me.</p>
<p>I trust BMW enough to deliver on a good car that’s fun to drive.</p>
<p>No, sir, I don’t buy it.</p>
<p>BMW sells more and more and more MINIs as time goes on. Each month seems to break the records from the previous year, and there are more MINIs flying off lots than ever before. No, if BMW isn’t making money on these cars, then they’re not trying very hard.</p>
<p>Gabe,</p>
<p>What would get you back into a MINI? It seems you’ve gone over to the BMW side of things, and aren’t interested in MINI anymore beyond running this site, and the loaners you get from MINI corporate. Do all the MF contributors own MINIs?</p>
<p>After I sold my R56 I missed it so much I ended up picking up an R58 JCW. I will likely be very interested in a GP3 (depending on price/options) or possibly an F56 JCW.</p>
<p>Also I recently tracked my R58 JCW, and it was <em>AWESOME</em> on the track. I didn’t feel that the tail was stepping out on me any more than my old R56 did. Also from memory I would say the car felt way better controlled. Likely a function of the JCW suspension I had installed. It’s a shame MINI’s stance with the LSD because I would order one on every car.</p>
<p>Also the EDLC just isn’t enough. When heading into the corkscrew I still got a ton of wheel spin on the inside wheel even though I could feel the brake based system trying to reign it in. I’ll likely be installing the Quaife soon.</p>
<p>Anyway just wondering your opinion. (Long time reader/mini owner from the R53 days)</p>
<p>What would get me back in a MINI?</p>
<p>For those who don’t know I founded MF and ran it day to day for many years. I’ve owned three MINIs over the years but have been in long term loaners for the past several years courtesy to MINIUSA who have been incredible in not just in giving us access to the latest products but welcoming us into fold so to speak. It doesn’t mean we’re too close that we can’t be critical (see earlier this week) but it means we have incredible access to the brand.
So to the question. The honest answer is that I’d likely own a MINI now if MINIUSA wasn’t so gracious in giving is new products. That MINI would likely be a fairly loaded F56 Cooper given that I get other thrills with my 1M or perhaps an R55 JCW.
FWIW I’ve owned used BMWs since I was 16 and some of my first memories as a child were of helping my dad working on his ’76 BMW 2002. My interest in MINI was born from that passion.</p>
<p>Try spell and grammar check before writing a lengthy piece.</p>
<p>I didn’t know you had 3! I remember the R53 and the R56 that you had. Both great cars.</p>
<p>I really envy your position, I’d love MINIUSA press cars! I’ll take an F56 JCW please!</p>
<p>My first was a 2002 R50.</p>
<p>I was very excited when the U.S. MINI renaissance began. I thought the cars were exciting and distinctive just as they were when celebs like McQueen celebrated his passion for the brand. After the R53 my enthusiasm and desire to own a MINI have diminished. From my perspective MINI has lost its magic. The scale and simplicity that once distinguished Mini is gone … and so is my passion.</p>
<p>Maybe someone needs to buy the brand off BMW and liberate it to be truly what Mini is supposed to be an not an ugly black sheep causing burden to a parent company.</p>
<p>Nobody would want it and BMW could not sell it because it shares so much intellectual property with the parent brand now.</p>
<p>MINI is at a tough place in the market and truly never reached full economies of scale. When you see the 2AT from BMW you see many parts that are shared or only cosmetically different- it is all badge engineering and differences in drive character but the bits are the same.</p>
<p>BMWNA is not taking the 2 AT as was once planned for a multitude of reasons but the impact on MINI stateside is one of them.</p>
<p>I’ve had an R53 and we have an R55 still and while I have loved the drive character and quirkiness the value has always been somewhat lacking, with BMW sharing development and parts now there is more value , greater options and the cars are much more upscale and deserve the asking price. The three banger is a hoot!</p>