One of the main perks when buying from a luxury car brand is the wide array of customization options available at the customer’s disposal. From the color of the brake caliper or upholstery stitching to the plastic or carbon fiber engine cover, the possibilities are virtually endless in the upper segment of the market. BMW is a prime example as it provides an extended list of options, not just for its most expensive models but also for the lesser ones. After all, you can now get a 1 Series hatchback or a 2 Series Gran Coupe with an Individual color.
However, that won’t be the case much longer as the German premium brand will cut down on the number of available personalization options as a measure to cut costs and use the money elsewhere. Specifically, funding its ambitious electric agenda. In an interview with Financial Times held in Frankfurt, chief financial officer Nicolas Peter admitted that “certain combinations make no sense at all, and are never chosen.”
Consequently, BMW is getting rid of those and will be keeping the more popular ones going forward: “We will especially reduce the number of available combinations.” The company is confident that doing so won’t negatively impact customer demand.
Peter went on to say reducing the number of available alloy wheels from 10 to only 5 won’t harm sales at all. He argues those who would’ve wanted a specific type of body color or alloy wheel design will likely pick something else rather than head to the competition.
Online sales portals will serve as the source from where BMW will get the necessary data to figure out what stays and what goes. It won’t be a drastic cut in terms of available customization choices as the target is to fall somewhere in the middle compared to other marques.
The growing importance of over-the-air updates will allow BMW to create a new revenue stream by giving customers the possibility to acquire features even after purchasing the car. Other rival brands are doing the same, with owners spending money after taking delivery to unlock features either permanently or temporarily.
Source: Financial Times