Does anybody know how much it costs BMW (roughly) to produce an M5. Thanks

 

LOL people can guess, but thats pretty confidential information. My guess is (of course it was more expensive to produce the car in 06 than now in 2010) for a 2010 M5 the cost to produce was probably ~55-60k... Just a pure guess tho

 

They make all their money with the options...they barely make any money with a bare car...

I would say for a bare car, they make about 4-8%...that is a pure guess though...

 

Margins on the M cars are going to be slimmer than on the regular E60. A significant number of parts are unique to the M as are some specific R&D costs that also end up being amortized over far fewer unit sales. None of us here have specific numbers, but I'd be willing to bet that the percentage difference between cost price and selling price is greater for a 535/550 than it is with the M5. I'd have to assume the same basic logic holds good for all of the M cars for the same reasons.

 

BMW is a MASSIVE company, think about how much money they poured into F1. There is no way they could've supported such a financial burden, such as F1, if they were only making 4000-8000 on a 100k car. Their profit margin for the 3 series is much less, so they make up the profits with their M cars.

Just think of it this way, a similarly optioned 550i and M5 have a price difference of close to $40k. Now I know the M5 obviously has more expensive parts, but definitely not to the tune of $40k worth...

 

The M5 and M6 share an extensive list of parts (V10 and SMG tranny just for starters), thus helping lower their costs...Not to mention that the M3 V8 is essentially just a tweaked V10 with two cylinders cut off, even further reducing the cost to produce the M3, since all the R&D for the engine was done when building the V10.

 

But you missed the point of my post, I stated that BMW makes their money on the up-sells....the options. A brand new M5 with zero options costs about $85000...loaded your paying $100,000+...THAT'S where the money lies.

I was talking about 4-8% with a bone dry M5...

 

True, they do make a good amount on options, but they still make a massive amount on the base car as well.

 

I guess we'll never know

 

$88.256,07 in oct-09, with avg options.