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Old 05-24-2013, 06:16 PM   #16
Butters OP
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Some of the reasons I could see BMW being able to sell the bikes cheaper than they initially sold the X bikes are:

1) The engines are now totally(?) sourced from Loncin, which I assume is a fair bit cheaper than the 2007 Rotax engines. Although I don't think they reduced prices on the X-Country when those bikes had the Loncin engines after 2007.

2) By marketing as entry level (even though a better bike than the G IMHO), they could offer it with a 1 year warranty rather than the typical 3 year warranty.

3) I can't imagine the airshock was truly much more money than a conventional shock. But maybe there's some savings there.

4) Lastly, they could view the bike as a loss leader. Even if you only break even or even lose some money initially, you get more people in the shop to buy apparel and accessories (high margins) and later they return to buy a $16K-$20K R or K bike.

But the fact is, if they can't come close to the price of the TR bikes, it is moot. While I love my X-Challenge, it wouldn't have even been on my radar at its initial MSRP. But when Max BMW was closing them out at $5995 it was a no brainer. Other than the weight disadvantage, the TR bikes have some very compelling points over the X bikes: fuel range, conventional suspension, smooth engine, and no expansive battery issues to taint a new bike to market.

But whether they could sell them side by side with the G bikes is another question. I'm curious how the BMW/Husky dealers dealt with that when they had both bikes in the showroom.
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Old 05-25-2013, 08:38 AM   #17
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Quote:
Originally Posted by itsatdm View Post
"I think you assume they are sitting around thinking how to make this bike the very best possible or not , as a gauge of their bike interest. They sit around and think, what does it take to sell as many as possible w/o incurring alot of additional expense."

I own a F800gs, I don't think that at all. Its a business, they would not be in the business if their product did not sell at a profit. Do you suppose maybe that is why they sold Husqvarna?

You may be right about bringing back the 650 back in G650 form being a business decision. They did it after changing to Loncin for engine manufacture. Probably just a cost consideration. Here is a chilling thought, Loncin has a F800 assembly line. You don't suppose at some point there will Chinese 800 engines being made?


The less sophisticated G650 and Sertao, sell for a lot more than the Terra/Strada. Everyone wants a Terra like bike, at the current price. They could sell thousands of them. Everyone seems to forget that Husqvarna lost money. What makes any one think that BMW could produce a Terra like bike at a Terra like price? I clearly stated that my opinion was that they won't. You got a different one that's OK too. My observation is if their current products sells, why spend more money on it?
You correctly mentioned the fact that Husky lost money for BMW, but what seemed to have happened (by reading various internet press reports) is that BMW dumped a metric ton of money into rebuilding the Italian Husky plant, but it was all for naught. Because by reports, when Pierer took over Husky he was shocked to find the new facility was a disaster and not financially worth saving, and may be the reason BMW wanted a lightening quick sale. And, that's why he's closing it down and moving Husky production to Austria.

What that tells me, among other things, is that BMW is not really run by motorcycle guys who have a true enthusiast understanding of the market, so any decisions corporate BMW make are not made from the enthusiast prospective. To me, BMW is a car company that happen to make some motorcycles. Like the X line using a air shock that is pure automotive technology, and a lot of their motorcycle designs are based on automotive technologies and not established motorcycle technologies. The X line and the G450s were good attempts, but hampered by a lack of understanding of the market and manufacturing a product to satisfy that market.
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Old 05-25-2013, 08:39 AM   #18
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If you have followed the 650 class for any length of time you would have seen that BMW has sold a shitload of 650's and that the customers that have bought these bikes have overall more of less liked the delivered package. But in all those years of sales they were all clamouring for something less portly, better offroad, better suspension ect ect. Bmw tried to answer these requests with the Xbike. Luckily the Engineers at BMW knew they could not deliver what the customer wanted and still fall into the financial constraints imposed by BMW corporate. So what you ended up with is a compromise of sorts that fell in between the original F650 platform and what the public was clamouring for for years. Now nobody was pleased. Complaints such as the gastank was to small not enough range, the electrical system was to weak, blau blau blau. Well somebody in the Eng dept must actually adventure travel because the design adopted was brilliant in its own right as it allowed for upgrading components for the serious traveler will still delivering a decent package initially. The X when knew was an expensive bike let alone the cost of upgrading the components. But now that you can pick up a low mileage X for 4500-5000 it is a steal for the person who wants to upgrade the suspension and turn it into a personal long range travel motorcycle. The Husky seems like a real nice bike and in a few years when the low mileage used one appear on the market they will probably be a steal. I am not a BMW guy but I really like the X bikes. Disagree get on one a zip around the neighborhood.
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