Photo: BMW
BMW’s 1 Series Sedan stirred up many rumors regarding the possibility of it being sold in Europe, but it looks like it will not happen, at least for the time being.
While some people were interested in buying a 1 Series Sedan, similar to the one offered for China, a representative of the BMW brand has told the Brits at Autocar that they do not aim to sell the car in other countries. Instead, the sedan made by Brilliance, BMW’s partner in The Middle Kingdom, will only be available in China.
Apparently, selling the 1 Series Sedan in Europe would not have been a problem in itself, but it may have affected the results of its bigger brother, the 3 Series Sedan.
The latter is the company’s best-seller in many markets, and introducing a more affordable alternative could have brought higher volumes.
While it may appear like a good plan to sell more cars, it does not always work like that in the automotive industry, as BMW obtains higher profit margins for the bigger model.
In the case of comparable sales figures for two models like these, the 3 Series Sedan would bring a higher profit for the German automaker than its smaller brother.
Unfortunately for anyone who wanted a three-box 1 Series, the Bavarian automaker has other setbacks that will make a potential launch impossible to justify from an economic standpoint.
One of them involves the promotional costs of introducing a new automobile on the market, which include advertising, along with crash tests, homologations, and other procedures and expenses.
Without well-documented estimates that would prove that the carmaker would earn a profit from the new model, anyoner would probably go against the decision to launch an automobile that may not bring a profit.
If you take that into thought, along with the possibility of reducing the sales of a more expensive model, it is clear that the blue-and-white roundel brand will not launch the 1 Series Sedan in Europe, the USA, or even other markets anytime soon.
Apparently, selling the 1 Series Sedan in Europe would not have been a problem in itself, but it may have affected the results of its bigger brother, the 3 Series Sedan.
The latter is the company’s best-seller in many markets, and introducing a more affordable alternative could have brought higher volumes.
While it may appear like a good plan to sell more cars, it does not always work like that in the automotive industry, as BMW obtains higher profit margins for the bigger model.
In the case of comparable sales figures for two models like these, the 3 Series Sedan would bring a higher profit for the German automaker than its smaller brother.
Unfortunately for anyone who wanted a three-box 1 Series, the Bavarian automaker has other setbacks that will make a potential launch impossible to justify from an economic standpoint.
One of them involves the promotional costs of introducing a new automobile on the market, which include advertising, along with crash tests, homologations, and other procedures and expenses.
Without well-documented estimates that would prove that the carmaker would earn a profit from the new model, anyoner would probably go against the decision to launch an automobile that may not bring a profit.
If you take that into thought, along with the possibility of reducing the sales of a more expensive model, it is clear that the blue-and-white roundel brand will not launch the 1 Series Sedan in Europe, the USA, or even other markets anytime soon.
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