A new BMW flagship model has become a victim of the global financial crisis.
The world’s largest premium car maker has cancelled plans for a production version of its 2007 Concept CS, a four-door coupe-style gran turismo that was expected to adopt the 8-Series label.
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As revealed exclusively by Drive last September, the CS was to be built by BMW’s M Gmbh performance subsidiary for a launch in 2010.
BMW, however, has decided it can’t risk building the new halo model, with the company – and the overall car industry – being adversely affected by the downturn in the global economy.
The German car maker announced this week its third-quarter financial results, revealing that profits after tax had plummeted by 63 per cent year-on-year – from €803 million ($1.53b) to €298 million ($567m).
With BMW citing the problems of “ongoing consumer reticence on the main sales markets, the weak state of the pre-owned car markets together with difficult refinancing conditions”, the company says it is now concentrating on other priorities to maintain profitability after declaring that the financial crisis meant it could no longer predict its total revenue and earnings for 2008.
“The sharper focus on profitability will result, amongst other things, in product decisions being revisited,” says a BMW statement. “As a result, the BMW Group will no longer produce a series version of the Concept CS since this vehicle does not meet the internal requirements for rates of return.”
BMW says it is cutting 2008 production by another 40,000 units, after announcing a 25,000-unit reduction earlier this year. The BMW Group has also cut some of its workforce.
BMW still has a number of all-new models to launch in the near future, however, including 4WD versions of the 1-Series (X1) and Mini (Crossover), as well as the Progressive Activity Sedan (PAS).
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