The new Tii reminds us of yesteryear.

It is easy to be critical of BMW in recent years, with the “Bangle Butt” from the 7 to the flared side panels on the Z4. Then there’s iDrive. A much needed concept, but originally flawed in so many ways. BeyondtheKM.com has long been critical of these design ideas, in part because they pay too little attention to past design, and in part because they are going to “mainstream” and “un-Teutonic” with their designs. Recent designs are too radically changed.

(more…)

So BMW USA announced today that one of the famed “3 Tenors”, Pacido Domingo, is getting a free ride in the new BMW Hydrogen 7. It’s unclear why BMW has chosen him for their latest pro-Hydrogen alternative fuel advertising. Will Britney Spears be next? Maybe she will find it an easier time to strap her children into the car seats of a 7…

From BMW’s illustrious Press Group (we will try to dig up a picture)

Woodcliff Lake, NJ – October 2, 2007… World-renowned opera singer-conductor Placido Domingo will be given the keys to a BMW Hydrogen 7 – the first hydrogen-powered luxury sedan – for his everyday use, BMW announced today. Widely regarded as the greatest operatic artist of modern times, Domingo joins several other preeminent figures in entertainment, government, the environment and more, as the latest person to drive the BMW Hydrogen 7 on U.S. roadways as a part of the BMW Hydrogen 7 Pioneer Program, designed to help the company in its mission to build widespread support of hydrogen as a viable alternative to fossil fuels.
(more…)

For your weekend enjoyment:

While reading an article from LeftLane News, we got quite a laugh after learning that many of America’s youth (the young-ish looking people with tattoos and iPods stuck to their ears) don’t recognize the Land Rover brand as British, nor do they recogize a competing brand, Lexus, as Japanese!

The article follows:

“58.4 percent of U.S. college students surveyed by Anderson Analytics believe Land Rover is an American brand. Only 18.5 percent of respondents correctly identified the marque as British.

(more…)

Few carmakers enjoy the kind of brand loyalty that BMW enjoys. BMW has been in the states since 1975. Since that time, the cars have evolved and have set themselves apart and technology innovators.

BMW has come under criticism during the tenure of chief designer Chris Bangle. This tenure has been the single biggest disgrace to BMW since 1975. That’s not to say that every vehicle since his arrival has been terrible. The E46 3 series was a solid and non-revolutionary design. But in 2002, he introduced the most radical change ever seen at BMW. The 2002 7 series was criticized roundly as being ugly in the front and absolutely hideous in the back. So bad was this design that it has since been labeled the “Bangle Butt”. The latest 7 series is less drastic, but the influence of Bangle remains clear.

Most recently this influence can been seen in the redesigned BMW 3 series. Oddly, the redesign didn’t just cover the exterior of the car but the interior as well. We drove the 2007 BMW 328i and found it to be a well engineered, if painfully redesigned automobile.
(more…)

The BBC recently reported that British Prime Minister Tony Blair and F1 racing legend Michael Schumacher have been talking. The two want to but an end to crashes that result in highway deaths. Traffic deaths kill more young men than any other cause, except HIV/AIDS.

To put the problem in perspective, the BBC notes that 1,200,000 people are killed each year in traffic accidents. Of those, 400,000 are under 25 years of age. 66,000 people are seriously injured in traffic accidents every day as well. In Africa, BBC claims that 70% of the children injured are providing the main source of income for the family. Such injury can be devastating to the injured and those dependent upon the income.

Photo courtesy BMW.

At Beyond The KM, we are constantly inundated with letters from readers asking about car buying advice. One such letter read:

“Dear BTKM,

I want a car that costs $41,575, comes from Europe, and breaks my neck as I accelerate. Which car should I buy?”

Another recent letter read:

“Dear BTKM,

I need to spend at least $41,575 on a German car with two doors, an engine, and those great flappy gearbox paddles! Which car do you recommend?”

If you are one of those two readers, boy have we got the car for you. Welcome the 2007 BMW 335i Coupé. (more…)

Yes, it’s that time of the year, the picks for the best cars as of Winter 2007.

Which European cars are by matter of fact, “the best”? Find out below:

Best Supercar over $500,000: Bugatti Veyron 16.4

Best Supercar under $500,000: Lamborghini Gallardo Spyder

Best Ultra Luxury Convertible: Rolls-Royce Phantom Drophead Coupé

Best Ultra Luxury Sedan: Rolls-Royce Phantom

Best Ultra Luxury Coupé: Bentley GT

Best Hot Hatchback: VW GTI

Best Hot Sedan: Audi S8

Best sound: (tie) Ferrari 599 GTB/Ferrari F430

Best sports car under $100,000: Porsche 911 Carrera S

Best sports car over $100,000: Aston Martin DB9 Volante

Best new sports car: Aston Martin V8 Vantage

Best Small Car: Mini Cooper S (John Cooper Works Edition)

Best Old Car Experience: Caterham Lotus 7 SV

Most economical and fun sports car: Lotus Elise

Mid-sized Sedan: BMW M5

Best Car for Old People Who Don’t Give a Damn: Mercedes-Benz S65 AMG

Best SUV: Mercedes-Benz G55 AMG

Best minivan/mpv (yes, I’m ACTUALLY including this category): Mercedes-Benz R63 AMG

The Financial Times reported next week that the Chinese will become the third largest buyer of Rolls-Royce Phantoms taking the spot from Japan. Rolls-Royce plans to sell 70 Phantoms in China and 50 in Japan according to the article.

The cost of a Rolls-Royce Phantom starts at about US$400,000 in the Chinese mainland. Most orders are in Hong Kong, which has the world’s highest number of Rolls-Royce motorcars per capita. After taxes, the price is nearly doubled because the Chinese heavily taxes imported cars. As a reference point, Thailand taxes imports so heavily the final price can be 4 times what it would be without taxation. Of course, no company knows customisation like Rolls-Royce, and this is the reason one Chinese developer recently paid US$2,000,000 to import a highly customised version recently.

Of course, taken in the grand scheme of it all, Chinese imports of 70 cars pales in comparison to California, which will import twice as many for the rich, and possibly, famous.

For the BTKM analysis, we view this all as a sign that with the significant increase in the number of Chinese millionaires, Rolls-Royce can expect to see increase demand and thus increased revenue generated in Asia. Therefore, R-R will need to consider a strong marketing and supply channel push in the country in the coming year. At current rates, Rolls-Royce could expect to import more cars than California in less than five years.

Of course the implication here is that other European carmakers will also prosper. Rolls-Royce former amalgamate, Bentley, would lead us to believe that the Crewe, England-based automaker will also see much increased sales, especially considering a lower, yet exclusive price point.

Editors note: Here at Beyond the KM, we would buy a Phantom, but still need to find the money and the driver … so feel free to click the ads to generate a little loving revenue!

In the previous posting of Beyond the KM, we took a look at the competition that the European automakers from Peugeot to Porsche will face in the coming years. We examined some of the East Asian manufacturers and assessed their strategies in Europe. In this installment we will suggest some strategies that the automakers might employ to fight off the increasing competition from Asia.

First, the marketing must change at European carmakers. Mercedes-Benz, for example, will see competition in the form of a Chery – Chery Automobiles of China that is. As noted in part 1, pointed out before, Chery will compete on price. Mercedes-Benz could never be profitable producing their vehicles and then selling them for $20,000. They require higher costs and profit margins. As a result, Mercedes and BMW must offer superior channels for delivery of vehicles, offer more models to fit as many niches as economically possible, and they must offer as much customization as possible, and they must develop a special connection with owners to retain current customers and gain more. These factors are essential to not just grow the market, but to retain market share in the face of stiff, price-based competition.

A second strategy that the automakers must focus on is innovation. Innovation does not mean BMW’s iDrive (few people find it fun OR enjoyable to spend five minutes “configuring” a car in order to turn it from mild mannered coupé into deadly beast). The innovation will not just come from more computers that interfere with driver usability, rather the innovation will come in the form of safety systems, handling improvements, design improvement, and improvements in drive train. Most importantly in the coming years will be improvements in engine technology that allows for more fuel-efficient engine designs and later the implementation of alternative fuel engines such as hydrogen.

Third, auto service must become increasingly important to the Europeans. Not only do they have the home field advantage, the companies have existing service centers. Additionally, service is typically higher profit than new car sales. Additionally examine, the highline car market. The average profit for a domestic car in the U.S., of which tens of thousands are made each year compared to the Porsche 911, which has fewer and far more customized vehicles, is vastly different. A Ford dealership may make just a few hundred dollars, but a new Porsche can make thousands because it is more exclusive, higher priced, and a very customized vehicle.

In another example, BMW has a service program called BWM Ultimate Service, available only in the U.S. This program should be offered everywhere because it really puts BMW in a class of its own in the way it deals with the customer. Any problem is easily taken care of, no questions asked. This allows the service departments at dealerships to run like cogs in a well-oiled machine. Service is where the profit is and will be in the future, car companies must embrace this.

Another area that will require change in the future will be on the part of government. Government changes must take place at the national and international levels. Tax laws must favor automakers and suppliers both. Labor laws must become less restrictive and more flexible as the market changes. Import laws must also be modified to handle imports from China. The European Union must take notice now so as to allow proper time for discussion.

Finally, the labor force must change. Germany’s automakers are some of the least product in the world. Only recently did VW force its unions to make its members more flexible in the hours it works. Until the recent agreement, VW workers were working under 29 hours per week and were the highest paid in the world! In addition to flexibility of the workers, the work forces in the EU and even U.S. must become smarter. Education levels are rising and the “blue collar” work is the worker of yesterday. In the future, workers will have to be mentally more flexible and be more innovative in the way they work.

Change is afoot in corporate offices in Europe’s automakers. GM and Ford have struggled for many years now with the harsh realities of the global auto market. Now those realities are knocking on the doors of the European automakers. About two-thirds of Western Europe’s carmakers have seen changes in the executive suite in the last two years.

The reasons vary, e.g. BMW’s Helmut Panke left due to age restrictions, yet the BMW board failed to grant him a waive to allow him to drive the ultimate machine longer. The fact remains though that boardrooms and shareholders, alike, are concerned about increasing competition from the Far East.

Once a joke to respectable manufacturers, the Chinese automakers – led by Shanghai Automotive Industry Corporation (SAIC) and Nanjing Automobile – are increasingly competitive. The Chinese are increasingly developing more and more sophisticated facilities and borrowing more and more from the Europeans. Take American Axle and Manufacturing. AAM has been setting up new factories at breakneck pace. Indeed some of the intellectual property has been sold to the Chinese as well.

What all of this means is that the Chinese now have a way to produce good quality cars, yet sell them for next to nothing. Therein lies the problem not just for Renault and Peugeot and VW. Mercedes-Benz and BMW must be careful in their strategies since companies like Chery, is planning to bring their “luxury” automotives to the U.S. market soon. At $20,000 Mercedes and BMW are tracking the company, you can be sure. In the end, automakers will find difficulty in beating the Chinese on price. They must find other ways or they will falter as Ford and GM have done.

The next part in this topic will deal with possible strategies that the European automakers might develop to combat the competition from the east.