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      05-05-2020, 08:24 AM   #92
JCZ5's Avatar

Drives: M2 Competition / BMW X5 (G05)
Join Date: Mar 2019
Location: Virginia

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Originally Posted by F32Fleet View Post
Originally Posted by JCZ5 View Post
At the end of the day, BMW needs to satisfy its shareholders, that is priority #1 and is case for all businesses. I'm not saying BMW does not care about enthusiasts, but if it was a choice between the two, shareholders edges out.

Shareholders are a fickle bunch, especially institutional shareholders. If BMW does not see earnings aka sales improve year over year, shareholders may as well take their funding elsewhere. And with limited funding, good luck making any cars geared towards us.

The whole point I'm trying to make is yes, the old days are gone if you factor in keeping the cost accessible for all. But that does not mean BMW are not trying and producing fun vehicles within their guard rails.

There are three main dimensions and you can only choose 2:
1. Old school BMW feel
2. Accessible cost
3. BMW making revenue (paramount in a business)
There is a caveat to this. Institutional shareholders are not always concerned with profits but "social and environmental responsibility". For some investors these other issues are a priority over profits.

The easiest example is Tesla.
Sure, that makes sense. But the point of the argument still holds true and maybe even more so. Socially responsible and environmentally conscious investors will probably steer clear of internal combustion high performance vehicles.
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