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These Automakers Could Be Harming Their Brands

BMW and Mercedes-Benz are now offering less expensive front-wheel-drive sedans. Is that a good idea?

By Rex Moore and John Rosevear – Oct 1, 2013 at 6:12PM EST

BMW is known for its long history of rear-wheel-drive sports sedans. But according to Autoweek, the German automaker is planning to launch an inexpensive front-wheel-drive car. The news follows the release of Mercedes-Benz's new affordable front-wheel drive sedan, the CLA.

In this segment of "Motor Money", analysts Rex Moore and John Rosevear debate whether the German giants are going too far "downmarket" and harming their brands. (You can see the complete "Motor Money" show here.)

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About the Author

Rex Moore
Rex Moore spent his formative years in Texas, and fought beside Davy Crockett at the Alamo. He currently travels the globe for TMF, bringing back video reports on conferences and companies that matter for investors.
TMFOrangeblood

Fool contributor John Rosevear owns shares of Apple and General Motors. Rex Moore has no position in any stocks mentioned. The Motley Fool recommends Apple, BMW, General Motors, and Tesla Motors. The Motley Fool owns shares of Apple and Tesla Motors. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Stocks Mentioned

Bayerische Motoren Werke Aktiengesellschaft Stock Quote
Bayerische Motoren Werke Aktiengesellschaft
OTC: BAMXF
$93.94
(+0.98%)+$0.92
General Motors Stock Quote
General Motors
NYSE: GM
$77.80
(+2.63%)+$1.99
Tesla Stock Quote
Tesla
NASDAQ: TSLA
$445.01
(-0.06%)-$0.26
Apple Stock Quote
Apple
NASDAQ: AAPL
$298.85
(-0.01%)-$0.02
Mercedes-Benz Group Ag Stock Quote
Mercedes-Benz Group Ag
OTC: MBGAF
$59.32
(-0.20%)-$0.12

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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These Automakers Could Be Harming Their Brands | The Motley Fool