Credit Crunch Kills Bmw Concept Cs

The Age

Wednesday November 12, 2008

Jez Spinks

Jez Spinks reports grand plans for a gran turismo have been axed due to the global crisis.

ANEW 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 ConceptCS - a four-door, coupe-style gran turismo that was expected to adopt the 8-Series label.

As revealed exclusively by Drive last September, the CS was to be built by BMW's MGmbH 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 manufacturer announced this week its third-quarter financial results, revealing that profits after tax had plummeted by 63% year-on-year - from ?803million ($1.53billion) to ?298million ($442million).

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 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, among other things, in product decisions being revisited," BMW says. "As a result, the BMW Group will no longer produce a series version of the ConceptCS since this vehicle doesnot meet the internal requirements for rates of return."

The CS production version was set to be a five-metre-long, four-seater car based on BMW's latest-generation 7-Series limousine.

It's believed the M division - responsible for iconic high-performance models such as the M3 - had been commissioned to build its first non-M car because BMW wanted the CS to have the required sporty handling to take on rivals such as the Mercedes CLS and upcoming Porsche Panamera and Aston Martin Rapide.

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.

The car maker says it is focusing investment in the company's Efficient Dynamics and ProjectI programs. The first program is being applied to all BMW models to reduce fuel consumption and emissions while staying faithful to the company's sporty focus.

Project I is BMW's plan for new sustainable urban vehicles, which is set to include electric-powered cars. The company is also unveiling an electric Mini at this month's Los Angeles motor show.

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).

BMW Group sales for the first nine months of 2008 are still up slightly, by 1.7%, thanks to Mini (up 12%) and Rolls-Royce sales (up 43%).

© 2008 The Age

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