The financial pressure from electrification cannot be underscored. In the latest sign of a recalibration of spend comes via the Financial Times as BMW and MINI look to reduce the number of combinations. Before the pitchforks comes out, BMW’s goal seems to be solely to limit the options or combinations that are “never chosen” according to BMW CFO Nicolas Peter.
According to FT, the plan is to increase profit margin between 8 and 10% despite transitioning into electrification. “We will especially reduce the number of available customization, because certain combinations make no sense at all, and are never chosen,” Peter said.
The customers who choose a particularly niche option would “probably would have bought something else”, if that choice was not available, Peter said, adding that the group would use data from online sales portals when deciding which choices to eliminate according to the Financial Times.
Concerned? We are as customization has been core to the brand since it’s relaunch in 2001. But we also know MINI is well aware of the value that customization has for the brand and it’s owners.
Look for these customization changes to coincide with the new generation of MINIs starting in 2023.
Source: Financial Times