Industry News: BMW and Mercedes-Benz's High-Performance Four-Door Coupes to Help Fund EVs

[William Maley]

The Geneva Motor Show saw Mercedes introduce their new AMG GT 4-Door and BMW revealing their M8 Gran Coupe concept. We still find ourselves scratching our heads as to why these vehicles exist in the first place, but a new Bloomberg report explains an interesting reason as to why automakers are building them.

These high-performance models with high price-tags will help generate the cash needed to develop electric vehicles. BMW for example is in the midst of its largest rollout of new models and variants. Most of them will be higher-margin to help get more cash into their coffers.

"The market for high-end, high-performance four-door coupes will get significantly more crowded," said Tim Urquhart, an automotive analyst with market researcher IHS Markit. "They are high-value models aimed at boosting margins and brand prestige" and have proved "popular with sports- and supercar owners who need a four-door when they start a family."

It doesn't hurt that four-door coupes are easy to develop since they share platforms and engines with regular sedans. All that's needed is a sleek body.

Source: Bloomberg via Automotive News (Subscription Required)

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[G. David Felt]

Makes sense if you really do not have the cash to fund R&D on EV auto's you have to get it from the rich!

[smk4565]

Makes sense I am sure the margins are good on them but margins are good on any vehicle that is $150k.  Mercedes has an F1 car they can pull electric motors off of, I don’t know how much development they need other than mostly the battery packs which I imagine will consume most of the money.