I'm willing to wager but we'll never know who is right. It is the development cost, not the parts that I'm talking about. It probably costs BMW $1M plus to test and fine tune a transmission. If you're talking about the DCT you can spread that 1M over thousands of cars sold. For the manual the take rate is really low so you've got many less vehicles to spread the costs to. So the parts might be cheaper but any additional "profit" from the lower hardware costs is going right to R&D costs.
I've talked to people in BMW at length about this. This isn't something I'm guests on, this is exactly why they don't offer manual on everything. They cannot justify the cost when they won't see the return.
My E46 M3 Rebuild Thread
Last edited by tim330i; 11-15-2012 at 08:52 AM.