The BMW Group, the largest premium automaker in the world managed to successfully stage a comeback for the iconic Mini brand – but the make’s expansion into new territories ultimately backfired.
While the German automaker has predicted it would make Mini profitable from the beginning, the company struggled to achieve the performance seen at the namesake BMW brand – and one of the key reasons was a complex industrial matrix. Now, in order to buoy long-term profitability, the parent has decided that Mini should make do with five core models instead of eight. The British marquee is expected to give up presenting a successor for the low-selling models Coupe, Roadster and Paceman at the end of their normal life cycle. According to figures from IHS Automotive, the other five model lines brought 95% of the brand’s total global sales of 325,000 autos built in 2014. And because BMW AG doesn’t break down individual financial results for the group’s brands, many industry experts even wonder if Mini brought any income home over the years.
Today, the Mini marquee has eight models based on three different technical platforms, constructed in three different factories and the average yearly output was of around 313,000 units since 2012. The British brand should become profitable, or at least financially viable when it trims down to just five core models, produced on a single platform that is shared with BMW brand models – including the 2 Series Active Tourer and the upcoming future generation 1 Series.
Via Automotive News Europe