How Does BMW Make Money Off of the Less Popular X6 Coupe?
Do you ever see an automaker launch a new model or redesign an existing model and think, why on earth would anyone want or need a vehicle that big or that fast? Sometimes, it begs the question, how would a manufacturer even make money off of some of these lesser popular or niche target vehicle options? In the case of the 2020 BMW X6, consumers may be asking themselves these very questions.
The answer lies in knowing that no matter how extravagant or ridiculously fast a vehicle may be, there will always be someone out there ready to buy it. And there is some method to the madness in generating revenue, even on such non-mainstream attractive models.
The 2020 BMW X6 will knock your socks off
According to Edmunds, BMW redesigned the X6 for 2020, and this sweet ride gets a host of tech and engine updates in comparison to the X5. It’s a tad bigger in terms of legroom and cargo, as well.
The automaker manages to shave almost a half-second of the quickness when compared to last year’s model, too. The X6 is abundantly comfortable, full of high-quality interior touchpoints, and yes, it’s incredibly fast.
Car and Driver calls it bigger, quicker, and still ridiculous
The BMW X6 is available this year with a rear-wheel-drive at the base model sDrive40i. But even the little guy engine offers 335 hp from its turbocharged, 3.0L inline-six. The “go big or go home” version of the X6 is the M50i, with the impressive 4.4L V8 engine under the hood.
Imagine stomping on the gas to harness 523 horses at 553 lb-ft of torque. Car and Driver say not only is this BMW bigger, but it’s also faster, and even ridiculous with top speeds of 155 miles per hour when equipped with the optional summer tires. Sticking with the standard tires, you can still expect to hit 130 miles per hour.
How can such a ridiculously equipped vehicle generate money?
Sure, the 2020 BMW X6 is a monster performer, but who really needs all that muscle? And while some consumers out there are ready to purchase their X6 models, it’s certainly only a small fraction of the car-buying public.
BMW recognizes that even the lesser popular models, when introduced with all the bells and whistles, will attract a few buyers. Even if the X6 only sells a fraction, maybe one-tenth of the volume the X5 sells but manages to command a $5,000 price hike, it’s well worth it.
Doing the actual math, as the MotorTrend experts did in a recent review of the Porsche Cayenne, is staggering. Consider a $5,000 profit margin on the X6, multiplied by 6,000 units sold, equals a hefty $30,000,000.
The X6 is still a BMW at its core
The BMW X6, despite its performance handling and monster engine output, is still a BMW at its core. Meaning, owners will enjoy the best of interior design, much like that of the popular X5, including the 12.3-inch touchscreen and panoramic roof.
One X6 owner shared the impressiveness of the quality finishes, intuitive interface, and sports car handling. You might not ever need the Sport mode or the full power of the 5L V8 turbo, but for those who have it, they love the wow-factor experience.
When it comes to automakers generating revenue, they recognize that selling volume doesn’t necessarily need to be the approach with every vehicle. For BMW, the X6 is more of an “if you build it, they will come” kind of attitude.
They know that while the target consumer for this top performer is much narrower than some of its other, more popular vehicles, there is enough profit margin to bring the X6 to life.