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Interesting article on BMW sales but if you look at the detail the most controversial styled cars (5 and 7 series) are not selling well. The 3, X5 and Z series cars are not that controversial and the 3 and X5 still sport the older, classic styling.
An interesting question is why are sales of the new 5 series less in May than in May of 2003 when the old style was still in production and the sales of the 7 series are down significantly year over year. I think most people who are buying the new 5 and 7 Series are customers turning in their lease vehicles and leasing a new BMW because their company gives them a car allowance.
I doubt you could find this out but it would be good to know how many people are buying a new 5 series as opposed to leasing (much higher commitment level in buying than leasing) and how many people are buying a 5 series who may have previously owned a Lexus or MBZ.
The new 5 series design is a stinker - buy a used 2003 540i with the Sport package and own the last great BMW.
John
Well, if BMW wants to be another Lexus they can knock themselves out. True auto aficionados will move to other brands that have not been commercialized/Wal-Mart-ized/spoiled as much yet and that still work for their customers (such as Audi, Porsche, Lotus). Have you even looked at Mazda lately?
From the Ultimate Driving Machine BMW is becoming the Ultimately Ugliest, Unappealing, Unreliable and Disfunctional looking POS. A marketing trap like Bose. They continue to pronounce that their heritage matters. If it did, they'd pay it some respect.
I can't believe I can get so pissed of about a car brand! It's only because I like my BMW so much. Speaking of displaced priorities...
You guys do a great job and the thousands of your readers do appreciate making their Fridays feel more like the weekend.
Thanks,
VDI
You're definitely not douche bags for not liking BMW's new designs. The M5 looks slightly better than the regular 5, but it's still ugly. At the end of the new 5's life cycle, I don't think its sales will come close to the E39. I'm looking forward to seeing the new M3 design the most though.
MH
If you look closely at the numbers within each category you can put the lie to BMWs claims of increasing sales:
YTD they sold 4000 fewer cars in 2004 than 2003, and that includes the sales for an entirely new model (6 series)
Light truck sales were up drastically due to the into of the X3 but X5 sales were almost 20% lower.
Mini Sales were up trivially.
So, the development investment of 2 new models (6 series and X3), which is, what, nearly $1B, led to decreased sales of other BMW models through cannibalization, and only in the case of the X3, did actually manage to grow the US market slightly (6000 vehicles YTD net after subtracting X5 losses)
To my mind, not the sign of a company on the right track...
JM
Autospies Rules!!!! Love it!
If you look at the BMW sales, it is down in every category except Mini, X3, and 6-series. Without these models, sales would be going in the tank. I want to like BMW, but they are headed in a bad direction. Ugly, overpriced, and many bad dealers! If BMW messes up the upcoming 3-series, they will be in serious trouble! I think the next couple years will be 'make-it or break-it' for many manufacturers. Competition is fierce!
Keep up the good work!
AC
No. I think the sales figures show how these designs sell. I have to agree with you guys that BMW official pictures of the cars are downright nasty. I mean whoever they're photographer is, needs to be fired!!! But when you actually see the cars in person they really do look good and of course drive a lot better. I think the BMW line is doing good, with the 3's needing desperate refresh and the 7 needs a refresh (more in terms of iDrive than the design). People have gotten into the mindset that the 7 series is complicated and steer away from it... going towards the S class or A8... The 5 & 6's are great, the X3 too (in person), Z4 amazing, and the X5 needs to be flame surfaced (looks a bit dated).
I was with someone who bought a 6 series two weekends ago... Stunning car, stunning stunning stunning... It made me realize that if you trace every line on a flame surfaced BMW they all connect. Even in 3 dimensions…around the car everything ! I also think the new BMW interiors are amazing... the 7, 6 & 5's all look stunning and I do not find them cheap at all... On the other hand I find Mercedes interiors to be full of plastic bits and very cheap looking...
Anyway, I think BMW will continue to sell well and hopefully they will hire a new photographer and take photos of their cars without the nasty German plates..! And remember seeing the car in person is all the difference!
Thanks,
Dan
I travel a lot and hear the same thing consistently: in the USA, in the UK, in Switzerland, in Japan…..from those who are current or prospective luxury BMW owners in their 40’s and 50’s and also from the younger generation: an absolute distaste for the new styling direction of BMW – maybe 9 out of 10 in my ongoing and informal poll.
I myself owned a succession of 740’s and transitioned to an M5 to avoid the new 7 styling. I have a new M5 on order, but spend far too much of my time considering, exploring other options, because I find the new 5 styling just awful and uncomfortable. I saw the new M5 exterior at the Geneva show and it looked a little better, but the back still looks like it is about to slide off and walking around the show there were just so many beautiful luxury cars it just seems wrong to encourage BMW in their new design direction!
I’d place my bet on 7 and 5 series sales trending down and or margins diminishing as they require more incentives to move product. Total sales I’m sure will trend up as they add more and more product categories.
PN
Short Hills, NJ
Actually, that is all mere speculation, because you simply cannot know what happened to bmw's sales figures if they had kept the more conservative styling.
Beyond, next step of bmw strategy might be learning and improving from the risky change in product style, especially with regard to 7 series and z4, as competitor mercedes benz is extremely successful with a more conservative, yet sporty and evolutionary approach - not to forget the strong competition from asian car makers lexus and infiniti. For bmw there will be more tension to come in future - actually ever was - to stay unique, yet please customers also in design (that is probably an almost impossible trade-off if you do not want to stay unique in being extremely expensive only), which is not easy if you are to expand your product lines to a broad range in a very short time.
I agree with you that this issue probably can be judged better in some years.
Kind regards
I
Yes they might sell more (total), but looking at the 7-series (down), 5-series (slightly down) I would say when the new model hype is over I don't think that they are selling more if you compare model by model, seems they will need new models (X3, 645i etc) to come to the same total sales.
Maybe that is why they come with the 1-serie and X3 in order to make up unit-sales lost in the 7 and 5-series ?
Mike
I believe your conclusion is substantially flawed, though well intended.
Go back and look at the numbers. Sales fell for most existing BMW car lines, YTD between 2003 and 2004. a 7 year old 5er model sales were barely beaten by a brand new 5er model. Z4 sales down 30%,
E46 sales down, E65 sales down, X5 sales down, et cetera.
Simply, if you pull out 6 series and X3 sales -- since they are brand new models that did not exist in 2003 -- which makes for a fair 2003 to 2004 comparison, you'll see that existing BMW car lines dropped 8%!
The pundits are right and the data shows it.
If you believe that the 6er and X3 models paint the correct picture, let me point out that if BMW's business strategy is to introduce 2 new car lines per year to offset diminishing sales on existing car lines, it will soon be bought out as the stock prices tumble. R&D, tooling and operational costs for new car development will eat it alive.
"Go ugly early" was a bad idea because there are always fish in the automotive waters ready to eat one's lunch.
Enjoy your site and work. Keep it up!
Filippo
You and everyone else have been proven wrong since the beginning about the BMW designs. You have jumped on the vocal minority band wagon and don’t realize that the parade is marching down a different street without you. Most of the people who love BMWs still do because of the Ultimate Driving Experience which is comprised of what happens behind the wheel combined with the fabulous new design of the sheet metal. These new cars have been selling at record numbers ever since they (including the 7 series that kicked the whole redesign theme off) have been available. Get over yourselves. The parade is passing you by.
Randy H.
BMWCCA Member
Sandy, Utah
(Owner of a 1988 325ix and 2003 325Ci)
I saw several 5 series in the metal, and they appear nicer face to sheet metal than in photos. I think BMW's sales will continue to increase. At the very least, BMW will not suffer sales losses resulting from design changes--perhaps from continued poor reliability relative to other luxury brands but not to styling changes.
Eugene
I think you guys are right….. The markets are larger & BMW has more products…. I wonder how individual numbers compare on a car to car basis: ie; Old 5 series vs new 5 series, Old 7 vs new 7!!!!..
*CB*
More markets & more models in the line will always mean more units in gross sales, but BMW has seemingly incurred the wrath of long time customers who don't like the design of their products and the most telling indicators are that even Helmut Panke has admitted to the press that the 7 series was badly designed and public relations mistake after two years of stubbornly holding on. Has BMW ever before had such a public and critical outcry over the re-style of their line up as they have during the last two years and had to re-design newly re-designed vehicles (the upcoming new softened and re-designed 7 to be introduced next year) inside of their traditional life cycles? Their new models have always been eagerly anticipated and appreciatively received in the past and never as far of a leap away from the previous model as these new BMW's have been.
If all was as well as the house of BMW would like it to be, then why are they offering rebates to their dealers to move inventory of what should be their hottest vehicles, like the 530 & 545's? Leads me to believe that THEY believe their sales are soft and inventory is much higher than they would like on these recently introduced remodeled vehicles. You don't discount, if you don't have to and if demand out paces supply. I know of at least a couple dozen other BMW loyalists who have said NO to replacing their current BMW's with a new 5, 6 or 7 series just based on style and overly complicated technology. What's wrong with a radio with dials and buttons and high end cars that set the style rather than copy it?
I have a new Jackson that says the 5 series will be "adjusted" like the upcoming seven inside of the normal 7 year design cycle.
Gary K
I agree with you entirely regarding BMW's errors--record sales notwithstanding--over the past two years... The new 7 is abysmal, with the exclamation mark characterized by the ridiculous "I" drive (and awkward and clunky butt)-- both of them answers to questions absolutely no one ever asked. The 5 series did not learn (enough of) the lesson of the 7 series and BMW lost it entirely in the exterior design and--improved version or not--inclusion of an I Drive feature in the first place. The car now blends in with the rest of the anonymous automotive world populated by ho hum Camry’s, Accords and Maxima’s. Lines going everywhere in side profile with no sense of purpose, ditto front and rear views. Awful--like it was done by one of the Japanese designers from yesteryear. Ditto the 6 series, which is pretty nice except for, again, a butt-ugly butt! What was wrong with the "good ol' evolutionary" approach BMW has almost always espoused in their mainstream sedan line up? And let's hope the forthcoming '06 3 series does not follow suit with the silly--and butt ugly--rear ends found on the larger machines. And, let's pray that BMW does not even remotely consider putting the I Drive in the 3 Series -- that would be the ultimate blasphemy from the former purveyors of the "Ultimate Driving Machine." Keep up your good work and critique of BMW and maybe, just maybe they'll spend the millions necessary for a complete (and total) restyle and ridding of the I Drive system.
On an unrelated (but somewhat related) note: Porsche apparently has learned the less of the so-so 996 look/dynamics by retro-ing back to the much superior look/visual dynamics of the 993 in its creation of the 05 911 Carrera and Carrera S. Ditto the complete interior redo, much overdue.
Thanks
Gregg K
Scottsdale, Arizona
As a long time BMW owner (since 1970) and racer, I have seen the progression of wonderful cars from BMW. Some were beautiful, some were mediocre, some were fast, some not so fast. However, I have never owned a BMW that I did not like. Yes, some models presented with problems, and I occasionally became frustrated. But the enjoyment that I have received from BMW design, engineering and quality continues year after year. The target for all other car companies has been BMW. In individual areas, they may have even surpassed BMW's in performance, price, and design. But, when you get in and drive a BMW there are very few cars that offer the TOTAL package of the "feel" of a BMW. I read day after day about the design criticism of recent BMW's and I also agree that they are not my favorite compared to past models. But, I wonder how many of the critics that write in to you, actually have either driven or owned these cars. BMW bashing seems to be "in." I have been fortunate enough to have owned many BMW's and the latest is my new X-5 4.8is. For any and all of you who would like to experience a great SUV (SAV) -- see if you have a friend or dealer who would let you drive one. All of the best elements of BMW's are in this vehicle -- the power, the design, the quality, and, yes, the unique "BMW" feel. I know that BMW AG will continue to produce great automobiles. They are a dedicated and focused company -- so be prepared for many more great BMW's!
Irv S.
001 - I don't think you're wrong. The way I read the numbers, all the credit for the increase in sales goes to the X3, which is a conservative design. 5-series numbers are anemic -- they should be better for a new model replacing one as old as the E39 was -- and the 7 continues to fade.
If I were a BMW executive, these sales figures would make me nervous. Plus, between all the cash they're spending to launch new models and the weak dollar, I'll bet they're making a lot less money than a year ago.
Steve s
Boise, ID
I have been reading AutoSpies on a regular basis and I must say I truly look forward to it each and every week. I have been a BMW buyer for the last 25 years, I have never been as impressed with a new car design as I was with the 2002 introduction of the new 7 series. I got out of the lease on my 2000 745 and got right into a beautiful black 02 745i.I loved the look of the car, I loved the ride, comfort, handling and so on, I even enjoyed using the I drive control. What I didn't like and what I think hurt this car form breaking all sales records were the numerous problems with the car, not the design. After 8 months of biweekly trips to the repair shop BMW finally took me out of my lease and offered me a great deal on an 03 ($1026, per month for a $84000. LI 36 mo. lease 15k miles per year) they even made my 1st payment AND handed me a reimbursement check of $7500 for my payments on my prematurely introduced 02 745i.Obviously I took the deal and I must say after 1 year of driving this beautiful, unbelievable dream car, I couldn't be happier, I love this car, This car is a winner both in comfort, performance and especially looks.
Thank You
Gary G
Boca Raton, Florida
I have written you before - asking why you are being so harsh on BMW.
Anyway, I think you are right and wrong, that is, the truth lies somewhere in between. BMW has admitted that the 7 went too far so there is hope that they will keep this in mind for future models.
I think (and as a BMW owner) I hope BMW will temper their edgy designs such that the cars appeal to the true drivers among us as well as those interested in the badge and some traditional European classic design queues.
Mercedes design is in general classically elegant however, the C, E and S all look very similar only differing in size. BMW has established separation however, I hope they will temper their design direction to incorporate their new age edginess with classical design details.
The new 6 I think is closer to that ideal (I know some don't like the rear) however, from many angles the 6 is indeed a nice piece.
BMW is a great company to have around - I think we can both agree that we wish them well and that we both desire BMW's that kindle emotions from the old as well as the new guard...
David
The revolt against the new BMW style has been led by a handful of automotive journalists who like to use the word "controversial" in magazines that use lots of question marks in their stories, as in: "Is BMW doomed to failure?" or when they want to promote some product: "Is the Chrysler 300 the best car ever made?" You know who they are.
When "critics" at a car magazine, spitefully placed the BMW 5 series near the bottom of the list in their comparison test, with the Mercedes E on top, they may have thought that the shock provoked by their preference of a lowly Mercedes over their formerly beloved BMW would send a strong signal to the Munich and that BMW would say they were sorry. Perhaps they thought Susanne Quandt would appear on her knees, heavily veiled and in tears, begging them to return to the fold.
Well, that didn't happen, did it? And after reading the word "controversial" in reference to BMW so many times I went out last Saturday and checked out the 5. My wife, who has a Mercedes E and loves it, wanted me to get a new car. After a 20 minute drive I bought the BMW. No controversy in my house.
My best to you.
Carlos D V
The numbers don't lie, and they are proving us enthusiasts correct. Total sales might be up, but sales of 5 Series, 7 Series, and Z4 (i.e. the primary
Banglebungles) are all down. Especially noteworthy is the fact that the new
5 series has failed to outsell its predecessor (at least for the month of May).
Dave E.
I don't think your wrong about BMW sales. The only way they've been able to increase sales is by introducing new models, and this can't go on forever, otherwise sales are mostly down over 03. Although the Z3/Z4 numbers don't add up for 03, so maybe car sales are about even compared to last year?
Dave