exgman
Active member
I receive a brief emailed magazine called "Moto-E-Mag." Today's most recent edition (I think it's maybe weekly), posted an interesting criticism of BMW Motorrad's change in philosophy over the years.
Here is the photo preceding the text:
...and here is the text:
BMW ODs on "Kool-Aid"
If you've kept up with my writings you'd know that I consider BMW among the most highly motivated automotive brands, in reference to sales and incentives. This brand has a very unique talent for constant push for larger volumes, lower overhead and greater profit margins. For example, in 2020, the Munich-based company shipped about 2.3 million autos worldwide. That constant eagerness for expansion used to be limited to the car division as their tiny motorcycle legacy brand wasn't pressured too hard to contribute to the overall revenue. However, all that changed when BMW Group transformed their motorcycle division to become highly relevant and competitive about 17 years ago.
Up until now they have successfully maintained a coherent and consistent vision for their motorcycle division. A vision that is in keeping with the desires and expectations of the elite riders worldwide, specially for their premium models, such as the boxer (R) and the K bikes. The K1600 for example is pure BMW, even though it was a new direction for them with the 1600cc I6. No one raised an eyebrow when BMW released the massive luxo-tourer K1200LT in 1998, because everything about that bike projected BMW DNA but in a larger package.
All cheered when BMW released a totally conventional sport bike, the S1000RR, and even made it a best seller (for a while) in that segment. No one questioned that decision, because it seemed like an authentic execution, even though it had none of the usual features we expect from top bikes at BMW.
What do all these hot and successful models have in common: K1200RS, K1200LT, R1200GS/A, K1600GT/L, K1300S, S1000RR? They were designed by Mr. BMW, David Robb. Robb understood BMW design DNA and the importance of consistently of vision for a premium brand.
Back in 2012, the famed former BMW designer David Robb suddenly quit the brand. Robb was with BMW for about 20 years and he was one of the motivators for turning the motorcycle dept to be more like their cars, a performance oriented product. (I wrote about this in the last issue.) Robb also had a highly coveted VP status with this major global brand and of course was on his way to a healthy pension with perks. As a reference, the head of US motorcycles also carries a VP status. Why would Robb just give the finger and walk out? The official reason has always been that "he had an argument with a colleague." I think he left because he was unable to prevent BMW from making the replacement for the old R1200C cruiser, a giant boxer. He knew it wouldn't fly. They didn't listen and being a passionate person that he is, I am assuming that he wanted nothing to do with it. This of course is only my assumption and I could be wrong about Robb's departure, however, building a new American style cruiser has been on BMW's list for more than 10 years.
This recent widely panned misstep by BMW proves that the brand will do anything just to sell a few bikes. That's a new development and it's highly unsettling. With the touring variations on the R18, they unintentionally signal that Harley-Davidson has been right all along.
What options did BMW have to tackle this very specific wholly Harley-owned market segment? The answer is so easy it might shock you. Learn from S1000RR. Let me explain.
S1000RR - A PRODUCT OF HUMILITY
I've written about this topic numerous times, BMW won with the RR because they offered the market exactly what it was used to riding. The S1000RR was a 100% Japanese style bike that successfully projected as a BMW. There was nothing on that bike that would have prevented a sport bike rider from owning one (except for the stigma of Euro bikes' high cost of service, which BMW did nothing about, a huge mistake, but I digress). It even had an MSRP of only $15K. A total Japanese superbike with a great price, good looks but with a BMW badge. This is a textbook example of how to dominate new market segments, give them what they want, not what you think they should want.
R18 - A PRODUCT OF "KOOL-AID" OR BRAND ARROGANCE
"Drinking the Kool-Aid" means when a premium brand believes its own hype. When that happens it's game over for that company and they may not be able to correct course without new blood. BMW has only 2% of the US market. This is not an indication of a popular brand. It's a point that they simply don't get. Honda sells 20M motorcycles globally, BMW 160K even with scooters and models as cheap as 310cc. BMW did have a hit with the RR because it was conventional. It's pure Japan with a Roundel. With the R18 they should have followed that mindset with a pure US cruiser with the blue and white logo.
If they had only made a highly coveted Limited Edition Heritage model called simply the R18 Cruiser, with finite quantity, numbered and as a homage to their past, it would have been triumphant. But this monstrosity is trying to shove a brand that's not popular in the US in the first place, down the throat of stalwart, highly committed and extremely passionate H-D owners. Also their poor reasoning of assuming Hipsters going to buy it is just silly. They naturally didn't randomly come up with that data. These brands typically use large European data collection agencies and these guys can't distinguish a motorcycle from a bottle of detergent. It's not their job to be experts on bikes, they just use routine research and provide generic suggestions.
If BMW wanted even a tiny bit of this market, they should have done what they did with the RR, take the BMW out and offer the public a German designed American V-2 Harley clone. This new R18 Transcendental is also a H-D clone of course, but is not competitive. Additionally they could have upped the game with a V4 with massive torque or even a narrow 1800cc game-changing V6. Two key points are for the side profile to project an American style cruiser and it must be foot-forward. Frankly a superb V2 may have been sufficient to sell some bikes here, but a hyper fast V6 would have gotten ton of attention.
Is it all downhill from here? Well, they may lose some of the purists like me, but BMW is on path for global market growth. They may not be able to radically increase their numbers in the US, but this is a huge planet and emerging markets adore BMW. Don't cry for BMW, Argentina, they'll be fine.
It's an interesting magazine and getting it is really a good thing. I think anyone can read the entire Issue 105 of the magazine here and also subscribe: https://mail.google.com/mail/u/0?ui=2&ik=b4fa440351&view=lg&permmsgid=msg-f:1711078668873465135
Here is the photo preceding the text:
...and here is the text:
BMW ODs on "Kool-Aid"
If you've kept up with my writings you'd know that I consider BMW among the most highly motivated automotive brands, in reference to sales and incentives. This brand has a very unique talent for constant push for larger volumes, lower overhead and greater profit margins. For example, in 2020, the Munich-based company shipped about 2.3 million autos worldwide. That constant eagerness for expansion used to be limited to the car division as their tiny motorcycle legacy brand wasn't pressured too hard to contribute to the overall revenue. However, all that changed when BMW Group transformed their motorcycle division to become highly relevant and competitive about 17 years ago.
Up until now they have successfully maintained a coherent and consistent vision for their motorcycle division. A vision that is in keeping with the desires and expectations of the elite riders worldwide, specially for their premium models, such as the boxer (R) and the K bikes. The K1600 for example is pure BMW, even though it was a new direction for them with the 1600cc I6. No one raised an eyebrow when BMW released the massive luxo-tourer K1200LT in 1998, because everything about that bike projected BMW DNA but in a larger package.
All cheered when BMW released a totally conventional sport bike, the S1000RR, and even made it a best seller (for a while) in that segment. No one questioned that decision, because it seemed like an authentic execution, even though it had none of the usual features we expect from top bikes at BMW.
What do all these hot and successful models have in common: K1200RS, K1200LT, R1200GS/A, K1600GT/L, K1300S, S1000RR? They were designed by Mr. BMW, David Robb. Robb understood BMW design DNA and the importance of consistently of vision for a premium brand.
Back in 2012, the famed former BMW designer David Robb suddenly quit the brand. Robb was with BMW for about 20 years and he was one of the motivators for turning the motorcycle dept to be more like their cars, a performance oriented product. (I wrote about this in the last issue.) Robb also had a highly coveted VP status with this major global brand and of course was on his way to a healthy pension with perks. As a reference, the head of US motorcycles also carries a VP status. Why would Robb just give the finger and walk out? The official reason has always been that "he had an argument with a colleague." I think he left because he was unable to prevent BMW from making the replacement for the old R1200C cruiser, a giant boxer. He knew it wouldn't fly. They didn't listen and being a passionate person that he is, I am assuming that he wanted nothing to do with it. This of course is only my assumption and I could be wrong about Robb's departure, however, building a new American style cruiser has been on BMW's list for more than 10 years.
This recent widely panned misstep by BMW proves that the brand will do anything just to sell a few bikes. That's a new development and it's highly unsettling. With the touring variations on the R18, they unintentionally signal that Harley-Davidson has been right all along.
What options did BMW have to tackle this very specific wholly Harley-owned market segment? The answer is so easy it might shock you. Learn from S1000RR. Let me explain.
S1000RR - A PRODUCT OF HUMILITY
I've written about this topic numerous times, BMW won with the RR because they offered the market exactly what it was used to riding. The S1000RR was a 100% Japanese style bike that successfully projected as a BMW. There was nothing on that bike that would have prevented a sport bike rider from owning one (except for the stigma of Euro bikes' high cost of service, which BMW did nothing about, a huge mistake, but I digress). It even had an MSRP of only $15K. A total Japanese superbike with a great price, good looks but with a BMW badge. This is a textbook example of how to dominate new market segments, give them what they want, not what you think they should want.
R18 - A PRODUCT OF "KOOL-AID" OR BRAND ARROGANCE
"Drinking the Kool-Aid" means when a premium brand believes its own hype. When that happens it's game over for that company and they may not be able to correct course without new blood. BMW has only 2% of the US market. This is not an indication of a popular brand. It's a point that they simply don't get. Honda sells 20M motorcycles globally, BMW 160K even with scooters and models as cheap as 310cc. BMW did have a hit with the RR because it was conventional. It's pure Japan with a Roundel. With the R18 they should have followed that mindset with a pure US cruiser with the blue and white logo.
If they had only made a highly coveted Limited Edition Heritage model called simply the R18 Cruiser, with finite quantity, numbered and as a homage to their past, it would have been triumphant. But this monstrosity is trying to shove a brand that's not popular in the US in the first place, down the throat of stalwart, highly committed and extremely passionate H-D owners. Also their poor reasoning of assuming Hipsters going to buy it is just silly. They naturally didn't randomly come up with that data. These brands typically use large European data collection agencies and these guys can't distinguish a motorcycle from a bottle of detergent. It's not their job to be experts on bikes, they just use routine research and provide generic suggestions.
If BMW wanted even a tiny bit of this market, they should have done what they did with the RR, take the BMW out and offer the public a German designed American V-2 Harley clone. This new R18 Transcendental is also a H-D clone of course, but is not competitive. Additionally they could have upped the game with a V4 with massive torque or even a narrow 1800cc game-changing V6. Two key points are for the side profile to project an American style cruiser and it must be foot-forward. Frankly a superb V2 may have been sufficient to sell some bikes here, but a hyper fast V6 would have gotten ton of attention.
Is it all downhill from here? Well, they may lose some of the purists like me, but BMW is on path for global market growth. They may not be able to radically increase their numbers in the US, but this is a huge planet and emerging markets adore BMW. Don't cry for BMW, Argentina, they'll be fine.
It's an interesting magazine and getting it is really a good thing. I think anyone can read the entire Issue 105 of the magazine here and also subscribe: https://mail.google.com/mail/u/0?ui=2&ik=b4fa440351&view=lg&permmsgid=msg-f:1711078668873465135
