http://autoweek.com/cat_content.mv?p..._code=04433375

From autoweek.com

"BMW's new 1 Series will be priced in the mid-$20,000 range when it goes on sale in 2005, a price point that will put it in the heart of the volume-sedan segment dominated by the Honda Accord and Toyota Camry.

Tom Purves, CEO of BMW of North America LLC, said the U.S. market will get only one body style of the 1 Series - not a hatchback - and two engines, most likely six cylinder.
"

 

It's been said many times before, but it bears repeating: BMW and Mercedes are killing their brand images by introducing all these econocars. Especially when their stickers are less than many Hyundais. Sure it pumps up the volume in the short term, but you can only trade down on your reputation for so long before you bottom out.

What Bangle doesn't screw up for BMW, misguided marketing strategies eventually will.

 

True - but at least SOMEBODY is making low cost RWD cars.

 

The few pics/sketches Ive seen of the 1 series look like a moodifed Honda Insight.

 

I don't see how, they made econo cars in europe for awhile now they just never brought them over here.

 

in germany they use Mercs for taxies and cop cars. but somehow that company's still surviving... oh wait, they bought out chrysler. hey i guess they're not doing that bad after all.

 

Yeah, it's kind of weird hopping into an E-class taxi....with cheap trim, cloth seats, manual windows and a 5 speed manual.

 

Rental fleets in Germany are filled with low-end C- and E-class M-Bs. They've got "low-end" trim, but are excellent cars (except for some courseness in the drivetrain department).

I sure wish I could get a $22K C-class over here, because the majority of M-B's recent problems seem to lie with the more-complex options, not their basic underlining platform.

 

heres a pic i found, is this going to be it?
http://www.imakenews.com/autospies/e...e000160714.cfm

 

The above article says "not a hatchback" so that's not the 1-series variant we will see. I'm sure we'll get a sedan.

Funny how their new styling is ruining what in the past would have been a desirable car. Oh well, maybe the "2-series" will be an improvement.

 

That's because BMW and MB can get away with selling economy cars in europe. Here in america, they couldn't really do that before because it would water down the luxury image. They have to be a complete car lineup in europe. They just have to sell really expensive luxury cars here.

 

they don't really have to do anything in europe. they choose to because its free raign for them. little foreign competition. the bottom line is they're dominant because they're all good cars. people have come to expect that from them. whether its the bottom end service vehicle or a luxury liner or a performance model. each is built well for the purpose. just because Bimmer will have a smaller car here doesn't mean that their other already respected cars will become any less appreciated for what they are if they continue on their path of progress.

 

In Europe, BMW & Mercedes aren't known as exclusively a luxury brand as they are here.

I see them going the same way here as Toyota and Nissan are in Japan. In Japan, Infinity & Lexus don't exist, and it's cars are sold under Nissan & Toyota names. I don't feel the rest of the brand will be cheapened with lower cost models as long as the quality of those high priced models continue.

But there is a point of diminishing returns. A showroom with $15,000 BMWs alonside $100,000 ones is pretty extreme.

Chevrolet sells $40,000 Silverado SSs, $43,000 SSRs, & $55,000 Z06s, alongside $12,000 Cavaliers, and Ford with the exception of a few years sold relatively stratospherically priced Thunderbirds next to bargin basement Pintos, Falcons, Escorts, and Focus, and in a way, that's what BMW & Mercedes are like in Europe. I guess that's what they are aiming to do here.

 

The distinction, as noted above, is that Chevy, Ford, Toyota, and Nissan are all mainstream, bread-and-butter brands in the markets you mention, and their models extension are aiming higher, not lower.

In North America BMW and Merc trade on their upscale brand image, an image that gets increasingly difficult to maintain when a high school kid living at home and working weekends at McDonalds can afford your cheapest models.

Remember how we've talked in other threads about how BMW and Mercedes stress the brand image as opposed to the individual models? Well, what happens when your brand also represents econoboxes?

 

ok, well the same can be said about Dodge (for example). you can get a Neon for 14k. does that hurt the Viper sales?

besides this isn't the first time BMW and Merc tried to sell small "cheap" cars here. there was the 3-series hatch for the BMW and Merc has that C hatch right now that could be had for 25k.

what will likely happen, again, is that people shopping in that range will look right past the BMW and the Merc. they're "cheap" compared to their other models but they're not "cheap" compared to what can be had elsewhere. especially in the used car market. and soon enough those models will be discontinued here as they have been with previous attempts because of poor sales.