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BMW Group USA Reports June Sales BMW Group US sales (BMW and MINI combined) down 11 percent in June. MINI sales continue to thrive WOODCLIFF LAKE, N.J., July 1 /PRNewswire/ -- The BMW Group in the U.S. (BMW and MINI combined) today reported June vehicle sales of 26,155, a decline of 11 percent from the 29,394 vehicles sold in the same month of 2007. For the first six months of 2008, BMW Group sales are down 3.9 percent to 157,913 vehicles versus the 164,338 sold in the first half of 2007. BMW Brand Sales BMW brand sales declined 17 percent, to 20,944 vehicles compared to 25,220 vehicles sold in June 2007. Year-to-date, BMW reported sales of 131,513 vehicles compared to the 144,579 reported in the same period a year ago, a decline of 9 percent. "Internet leads and consumer traffic in our dealerships remain good, showing a premium brand such as BMW has the ability to better weather these turbulent times," said Jim O'Donnell, President of BMW of North America, LLC. "Even in this segment however, we see a desire for increased efficiency and that is providing a natural impetus for strong sales of our new 1 Series and the 3 Series 328i models, but also for other vehicles such as the new X6 where consumers see the combination of efficiency, performance and luxury that's right for their unique needs. Within this overall environment, we are determined to remain profitable and help our corporation. We will do this by exercising disciplined volume management matched to demand, and make a small number of vehicles available to other markets where exchange rates are more beneficial for the company." BMW Automobile Sales BMW's automobile sales are down 17.5 percent in June to 16,555 versus 20,068 in the same month a year ago. Year-to-date sales are down 8.7 percent, to 103,522 automobiles compared to 113,396 in the first half of 2007. BMW Sports Activity Vehicles Sales of BMW Sports Activity Vehicles are down 14.8 percent in June to 4,389 vehicles over the 5,152 sold last June. Year-to-date, sales of BMW Sports Activity Vehicles decreased by 10.2 percent, to 27,991 vehicles compared to the 31,184 sold in the same period of 2007. MINI Brand Sales MINI USA reported sales of 5,211 cars, a 24.8 percent increase compared to 4,174 cars sold in the same period a year ago. Year-to-date, MINI USA also reported sales of 26,400 cars, an increase of 33.6 percent over the 19,759 vehicles sold in the same period a year ago. "The last three months have been the best in our history as the significant structural shift to small cars has brought into our dealerships a diverse range of vehicle owners that currently drive large cars, SUVs and trucks. Our retailers tell us these people recognize the combination of efficiency, great dynamics and premium values MINI provides and it allows them to downsize their vehicle without downsizing their aspirations," said Jim McDowell, Vice-President MINI USA. "With very few cars remaining in inventory, our dealers are focusing on taking orders for custom-built cars that will be delivered to MINI drivers in July through September."

...until you dig into the numbers. Barring the A4/S4/RS4 and A5/S5 sales numbers, every other model was down double digits, excluding the TT which was down 5.5%. In essence, their entire business the past few months has been floated upon closeout deals on the B7 A4.

I'm very surprised Audi cannot improve A3 sales more considering the fuel efficiency and size afforded by it. The introduction of the next generation model in notchback form should help immensely.

Credit I think also goes to the special edition they're selling now. Audi product planners have planned well around that car's exit.

I think the steep decline BMW has seen this year (which would be even more pronounced were it not for Mini) is due to two primary factors:

1) Fuel economy: no 4-cylinder model available
2) Aspirational buyers unable to 'step up' due to credit restrictions, worsening lease offers, job market contraction

This has been a well executed model retirement and Audi has one other major advantage that BMW does not: fewer 'aspirational buyers'. A4 buyers are, in general, not quite as interested in keeping up with the Joneses. BMW and Benz have always had more buyers who stretch to get themselves in the door.

Having said that, I think they're missing a big opportunity with the TDI launch in the Q7 - this would give Audi a distinctive advantage in the SUV segment.

In reference to the A6 and A8, I think we might be in the first stages of seeing Americans shift their mindsets from "higher end models = bigger motors" to the more Eurocentric frame of mind that will buy a larger car with a smaller powerplant.

Quote, originally posted by George@Fourtitude »

Yeah, but you can't really discount Audi's feat. The new A4 is due as soon as August/Sept and it's already been shown. Reviews are hitting market and the B7 is still helping break the record. That says something I think. 2.0T is undoubtedly helping - an engine BMW and Mercedes haven't yet tried to compete with. I have to guess they're thinking solidly about a 4cyl now though. Credit I think also goes to the special edition they're selling now. Audi product planners have planned well around that car's exit.

This much I can assume. A4 TDI is in the cards and likely A6 as well. A3 could even happen and likely will in the next generation car that will probably be sold in the USA and maybe even be built in the USA at the proposed plant. The current car could be sold with the VW 1.9 TDI as a fwd (not powerful enough to meet Audi's expectations as an AWD). That's what I'd do if I were Audi but their cost may not be right on A3 and they can sell all they build more profitably in Europe.

More importantly for Audi of America, the A4 hits this fall and that will boost sales. Q5 hits at the end of year with similar sales, so Audi is in a good position from a timing standpoint -they're spaced out for steady growth. I wish Q7 TDI were here already too, but I understand the strategy.

The a4 Special edition lease kept us floating for sure, but the Certifired Pre-Owned numbers were also big (33 units).

numbers like the year to year sales figures, are really showing Audi has something strong going for them.
and to sell the SE A4's like we did with the general public knowning the B8 A4 is on the door step, really is proving the 2.0T is where its at.

Audi +5.3%

Mercedes Benz -0.1%

Infiniti -11.5%

BMW -17.0%

Acura -25.7%

Volvo -26.8%

Lexus -29.8%

Modified by ProjectA3 at 8:06 AM 7/3/2008

1) End of model year offerings
2) 2.0T offering

Based on our business and what I've been seeing, affordability and fuel economy are the two big issues at the moment. With available wealth contracting and gasoline prices going higher, Audi, like Honda, is better situated than most.

However for Audi it is really only the A4 that is offering that combined one-two punch to drive sales. The rest of their model lineup isn't generating the same volume interest. Particularly stark is the TT sales numbers - this tells me that consumers are becoming more cautious with regard to spending.

This trend is echoed over at BMW whose more 'discretionary' vehicles (6 series, Z4) have really taken a clobbering. Models like the 5, 6, 7, Z and A6, A8, S-line and RS models aren't quite as susceptible to gasoline prices, but they are susceptible to the wealth effect (A5/S5 and R8 excluded due to exclusivity/volume limitations).

BMW's worsening lease deals and price increases are definitely taking a toll on sales, and the lack of a more fuel efficient model here in the US is clubbing them as well.

The deflationary environment we're in right now is going to make things very interesting for all of the automakers. They find themselves facing higher material costs and lower margins on imported vehicles (Euro -> US), but are also finding that they cannot increase prices significantly to offset these increases without getting hammered in volume. Audi's advantage at the moment is the 2.0T and moving into the fall the new B8 A4. Pricing pressures and consumer spending ability are going to make this a very tough market to navigate.

Quote, originally posted by ProjectA3 »

Our dealership sold 85 cars last month, which i think is an incredibly solid number compared to the horror stories of entire domestic dealerships selling less than 20 cars TOTAL new/used. The a4 Special edition lease kept us floating for sure, but the Certifired Pre-Owned numbers were also big (33 units). numbers like the year to year sales figures, are really showing Audi has something strong going for them. and to sell the SE A4's like we did with the general public knowning the B8 A4 is on the door step, really is proving the 2.0T is where its at. Audi +5.3% Mercedes Benz -0.1% Infiniti -11.5% BMW -17.0% Acura -25.7% Volvo -26.8% Lexus -29.8% Modified by ProjectA3 at 8:06 AM 7/3/2008

Nobody can compete with the 2.0T. With that much torque and great gas mileage, it makes BMW and MB base V6's models last years news and not as competitive.

At our dealership, we're doing a ton of certifed Audi's as well. You'll never have a problem selling clean used A4's.

Try selling used Tahoes, Yukons, and Escaledes right now.

I'm making more money that I ever have selling cars in 7 years with Audi. All with gas nearing $5 gallon and a very tight economy.


Modified by jperryrocks at 11:32 AM 7/3/2008

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