Looks like BMW will be going all out to win the #1 title, and launch several new models/refreshes, meaning the 2016 and 2017 must go at clearance prices .
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Mr. Krüger at a press conference played down BMW’s fall to second-place. He pledged to fix markets that have underperformed, especially the U.S., where BMW sales fell nearly 9% last year.
“In 2017 we are starting the biggest model offensive in the history of the BMW group,” he said. “We are going to launch more than 40 new and revised models in the market this year and next year.”
Mr. Krüger has come under pressure to push harder to refresh BMW’s model lineup after Daimler overtook the company’s namesake BMW brand in sales last year. BMW margins slipped in 2016 after it misread tastes in the U.S., the biggest premium auto market in the world, even as BMW focused on the new generation of its flagship 5-Series sedan.
BMW has been rebalancing its U.S. mix after dealers were left holding unsold sedans when the U.S. market shifted back to sport-utility vehicles and light duty trucks. The cornerstone of BMW’s comeback in the U.S. is its 5-Series sedan and a batch of new and revised SUVs.
I saw that video on yahoo today too. I’ve been wanting to get a 2017 BMW 540i with an msrp of 68,410 but the payments i was given was just to damn high so i decided to wait off on it until June or July. I pray that those crazy specials come ASAP.
Interesting. I’m curious to see if they redesign the X3. I know it’s been awhile since it’s been redesigned. Still happy with my X3 deal, but I’ll be in the market again in 3 years anyway.
Heir Kruger and this article is referring to bmw losing the world luxury crown to MB. I would not read this article as providing evidence for inflated residuals and subvention to make bmw leases more attractive. Rather, it’s about BMW making cars that the consumer finds attractive and the new 5 series, given the absurdly high lease payments being offered suggests that the demand is supporting $850 payments for a $70k car. Obviously, this flunks the 1% rule of thumb. Yet, the car is selling very well.
I think the jury is still out for 2018, but certainly it does not appear they are looking to compete at the US level in 2017. Not a problem, and there will be deals to be made nonetheless.
I also agree that BMW is done with high sales numbers, low profit sales. It’s evident by the reduced maintenance plan months, lower residuals, increase in many of its models next month, without adding standard equipment, less standard equipment than most manufacturers. Plus their global sales keep going up, it’s just US sales that are down for them. But it’s one thing for the bean counters to project, it’s another to see it happen, meaning, maybe they’ll change their minds.
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