Quote:
Originally Posted by Coi
It will cost BMW extra to install the hardware for all these features on every car. Each "base model" they sell under this subscription model will be costing them hundreds if not thousands more than it did before. That means BMW will not only have to recoup these costs from us consumers but will be looking to make a profit too. They will probably have to raise prices as well as charging the subscriptions. This is a big deal.
Also it's easy to put $5000+ in options on an M550i that could all be put behind subscriptions. Driving Assistant Plus (adaptive cruise), head up display, heated steering wheel, ventilated seats, massage seats, heated rear seats, and Integral Active Steering (rear wheel steering) are all features they could lock you out of with software if they wanted to. If they were really evil they could even disable adaptive dampers or limit performance unless you subscribe.
|
I actually wouldn't be surprised if it's actually cheaper for bmw to just install all options on every car. The optimization to their supply chain would be immense and potentially offset the added cost of extra equipment. There's multiple avenues for cost mitigation when you maximize your sourcing. Volume based discounting, transportation optimization, inventory optimization, smoother demand/supply planning, etc. You're streamlining a process which typically puts a huge damper to your supply chain and overall manufacturing. Forecasting also becomes much easier using this model.
As an example to how much of an impact supply chain efficiency has on cost - An individual paint, which might be offered for free on one model, can easily cost someone $5,000 on a model it's not typically offered on. Why? It's not because the paint is more expensive than other paints. It's because of the disruption to the supply chain. You as a customer are paying BMW $5,000 because of the disruption you're causing to their supply chain by ordering a non-standardized color for your model.