Is the LT profitable for BMW??? - BMW Luxury Touring Community
 
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post #1 of 5 Old Sep 9th, 2006, 1:25 pm Thread Starter
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Is the LT profitable for BMW???

I would be sad if the LT model died. I wonder what their annual production run has to be before this model is profitable for them? Does anyone know or can make an educated guess? Ron
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post #2 of 5 Old Sep 9th, 2006, 1:42 pm
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BMW has produced more than 20,000 K1200LTs.

It has been in past years one of the best selling models in the BMW lineup in the US, but is not a big seller in Europe.


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post #3 of 5 Old Sep 9th, 2006, 1:45 pm Thread Starter
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If 20,000 units is a total number and not an annual figure, it is hard to believe that they can make a profit on this bike with such a small production run. Ron
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post #4 of 5 Old Sep 9th, 2006, 2:25 pm
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BMW sells only about 20,000 units total per year in the US. Less than 100,000 units worldwide


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post #5 of 5 Old Sep 9th, 2006, 3:34 pm
 
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i would guess that a portion of the premium you pay for BMW (over other brands) goes into higher quality parts and fasteners. another portion goes to pay for union factory labor in germany. so while you would think there is significant margin in a flag-ship offering like the BMW, there are some real-world reasons why it is so expensive, which means the K1200LT may not be the cash cow that it might otherwise be.
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