In a decision that has been linked with a need to raise its profitability, BMW CEO Norbert Reithofer has recently announced that the company has scrapped plans to build the Mercedes-Benz CLS rival, the CS.
The Concept CS was shown at many automotive shows this year as an upcoming player in the fast-growing “four-door coupe” segment. Even though BMW has a history of building, at least in some form, production versions of their concept cars, it seems this is one that will be filed away under the history section of BMW’s plans.
At the core of this decision is profit margins. BMW recently posted an operating return on sales of less than 1.3 percent and a sharper focus on profitability has led to product decisions being revisited, according to a company statement.
“At the moment we do not need that kind of brand shaper”, Reithofer said.
Indeed, it seems that the company that touts itself as being “an independent company” needs to reassess its business goals and return to profitability if it wants to stay that way. Still, with this news also comes some insight into what BMW has in store for the future. The company will be focusing on showing its electric version of the Mini Cooper and concentrating its immediate efforts into building more fuel-efficient vehicles.
“The next step will be a mega city car with two different drivetrain options – one with electric powertrain and one with a highly efficient combustion engine,” Reithofer said.
He most certainly means the new Mini Cooper, and with this shift in focus, BMW hopes to once again sail the seas of profitability.
Source: Auto Week