BMW: Sales, Marketing, and Financial News
#321
The sizzle in the Steak
I must be color blind.
#323
The Oracle of Acurazine!
Originally Posted by bgsm1th
That's not Interlagos Blue with a Champagne Leather!
But it's hot!
But it's hot!
#325
Senior Moderator
Originally Posted by iNteGraz92
shame the one millionth car wasn't an m5
#326
Originally Posted by GreenMonster
It's the millionth bmw vehicle that was built in the USA... not the millionth car overall for bmw... IIRC the M5 is built in the fatherland...
Yep, it was gonna be an X or Z and as such the M Roadster is the "most special" being made in Spartanburg. More than likely it was a non-US bound car as there is a much higher percentage of Individual orders from outside the US.
#328
Senior Moderator
Originally Posted by ilitig8
Yep, it was gonna be an X or Z and as such the M Roadster is the "most special" being made in Spartanburg. More than likely it was a non-US bound car as there is a much higher percentage of Individual orders from outside the US.
I wonder if there are still ROW (rest of world) cars vs. US spec cars being built... It would be interesting to know if they are built 2 slightly different versions down there in the south...
#329
The sizzle in the Steak
BMW Group Aiming for Record Profit in 2006
BMW Group Aiming for Record Profit in 2006
In 2006, the BMW Group is on its way to the best year in the company’s history. “Our target is to achieve a profit before tax of euro 4 billion in the current financial year at Group level “, Helmut Panke, Chairman of the Board of Management of BMW AG announced at the Annual Accounts Press Conference in Munich on 15 March 2006. This includes the positive impact of a gain arising from the sale of shares in the British aero engine manufacturer Rolls Royce plc., amounting to euro 350 million to date. “We will continue our profitable growth course in the coming years and generate above-average returns compared to the industry as a whole“, Panke continued.
Currency effects and high raw material prices will continue to have an impact on business development in the current year, however to a lesser degree than in the previous year. This negative effect is partly attributable to the fact that we have less favourable currency hedge rates compared to last year which will have an impact especially in the first half of 2006. The BMW Group will counter this development by means of continuous efficiency and productivity improvements. The targeted sales volume record and improvements in the sales mix will also make a positive contribute to earnings. “In terms of operating results, the current year will therefore be the best year in the company’s history to date“, Panke emphasised.
The BMW Group was again able to prove its inherent strength in the financial year 2005 despite the difficult conditions the worldwide automotive industry is facing. Thanks to the clear sales volume increase and on-going efficiency improvement measures, the negative impact of adverse currency factors and high raw material prices was almost completely offset by the year-end. The profit before tax, at euro 3,287 million, was, as already announced, at approximately the same high level as in the previous year (2004; euro 3,583 million/-8.3%), thus exceeding market expectations.
Before financial result and taxes (and therefore excluding the expense of euro 356 million in conjunction with the exchangeable bond option on shares in Rolls Royce plc), the operating profit (EBIT) rose by 0.5% to a new record figure of euro 3,793 million (2004: euro 3,774 million). The net profit, at euro 2,239 million, was at a similar high level as in the previous year (2004: euro 2,242 million/ - 0.1%). Factors contributing to this development were the lower tax rates applicable in various countries outside Germany and tax reimbursements for prior years. Earnings per share were unchanged from the previous year, at euro 3.33 per share of common stock and euro 3.35 per share of preferred stock.
Group revenues rose by 5.2% to a new high of euro 46,656 million (2004: euro 44,335 million) due to increased sales volumes and the extremely positive performance recorded in the financial services business. The pre-tax return on revenues, at Group level, was 7.0% (2004: 8.1%). “The BMW Group is currently the premium manufacturer with the highest sales volume in the world and is also ahead of almost all of its direct competitors in terms of profitability”, Panke underlined.
Dividend to increase again
In light of the high level of profitability and the positive outlook for the new financial year, the Board of Management and the Supervisory Board will propose a further dividend increase to the Annual General Meeting on 16 May 2006. The unappropriated profit of BMW AG available for distribution amounting to euro 424 million will be used to a pay an increased dividend of euro 0.64 per share of common stock (2004: euro 0.62) and one of euro 0.66 per share of preferred stock (2004: euro 0.64).
Authorisation to buy-back shares proposed
Furthermore, a proposal will be made again to the shareholders at the Annual General Meeting to authorise the buy-back of up to 10% of the Company’s share capital. It has not yet been decided whether or the extent to which the authorisation will be applied to buy back further shares. The buy-back programme decided in September 2005 covering 20,232,722 shares of common stock, or 3% of share capital, was completed on 15 February 2006. In total, shares were bought back for an amount of approximately euro 759 million, at an average price per share of euro 37.51. By the way of dividend and share buy-back, the shareholders of the BMW Group will participate in the success of the company in a magnitude of close to euro 1.2 billion.
Capital expenditure to remain at high level
In the light of the expected continued improvement of cash flow, the BMW Group will strengthen its competitiveness with a substantial capital expenditure programme also in the future: some euro 19 billion are planned to be invested between 2005 and 2009 in order to expand business operations. At the same time, the BMW Group will continue to generate cash flow surpluses due to the earnings and financial strength of its operating activities.
Capital expenditure in 2005, at euro 3,993 million, again remained at a high level. This corresponds to a decrease by 8.1% (2004: euro 4,347 million). Capitalised development costs according to IAS increased by 24.5% to euro 1,396 million (2004: euro 1,121 million). A total of euro 2,597 million (-19.5/ 2004: euro 3,226 million) was invested in property, plant and equipment as well as intangible assets.
The increase in capitalised development costs resulted from the higher number of series development projects carried out during the year under report. At 44.8% (2004: 39.8%), the proportion of capitalized development costs is still relatively low for the industry. Including capitalised development costs, the capital expenditure ratio in 2005 (i.e. the ratio of capital expenditure to Group revenues) was 8.6% (2004: 9.8%).
Cash flow for the year, at euro 5,603 million (2004: euro 5,187 million), rose by 8.0% and, as in previous years, exceeded capital expenditure. Free cash flow from industrial operations increased by 82% to euro 3,717 million as depreciation on intangible assets and property, plant and equipment increased and capital expenditure decreased.
Sales volume of all brands at new high level in 2005
The sales volume of all brands reached new peak figures in 2005. With 1,327,992 BMW, MINI and Rolls-Royce brand cars sold in the past year, the BMW Group beat the sales volume record set in the previous year by 9.9% (2004: 1,208,732 cars).
“The product and market initiative is, and will remain, the decisive factor for the BMW Group’s continuing successful performance. With our product and market initiative, we will continue to pursue our course of growth and expansion in a determined matter“, Panke emphasised. Due to the strong brand and product portfolio, the company sees further growth potential for the current year: “We expect the BMW Group to achieve a new sales volume peak in the 2006 business year“, Panke stated.
BMW brand records strong sales volume increase in 2005
With its core model series, the 3, 5 and 7 Series, the BMW brand was the worldwide frontrunner in 2005 in each of the relevant segments. The sales volume of the core brand rose by 10.1% to 1,126,768 (2004: 1,023,583) units. With a total of 149,493 units sold, the BMW 1 Series met high demand in its first full year of production (2004: 39,247 units). The BMW Group’s best-selling car, with 229,932 units sold, was the new 3 Series Sedan available since March 2005. This model accounted for 17% of the total sales volume for 2005. In total, 434,342 units of the BMW 3 Series were sold worldwide last year. This means that, despite the model changes of the two best-selling variants -the 3 Series Sedan and the 3 Series Touring - the previous year’s sales volume was nearly reached (-3.4%/2004: 449,732 units).
With 228,389 units sold in 2005, the BMW 5 Series nearly matched the previous year’s high level as well (-0.5%/ 2004: 229,598 units). The number of BMW 6 Series cars sold went up by 10.9% to 23,340 units, well above the previous year’s level (2004: 21,040 units). In the luxury class, a total of 50,062 BMW 7 Series cars were delivered to customers (2004: 47,689 units), an increase of 5.0%. The BMW X3 recorded strong growth: the number of Sports Activity Vehicles delivered rose by 20.0% to 110,719 (2004: 92,248) units. The BMW X5, in its sixth year since market launch, continued to meet strong demand, and with 101,537 vehicles sold, almost achieved the previous year’s high level (-3.3%/104,988 units). In total, more than 250,000 BMW cars sold in 2005 were equipped with xDrive, thus representing the most successful four-wheel drive system within the premium segment. The sales volume of the Z4 in 2005, at 28,808 units, was below the previous year’s level (-25.1%/38,483 units). The BMW Group presented the updated model of this Roadster in January. In early summer, the Z4 family will be supplemented by the Z4 Coupé and the M-version.
More than 200,000 MINI brand cars sold for the first time in a single year
For the first time, more that 200,000 MINI brand cars were sold in a single year, with the number of cars delivered increasing by 8.7% to 200,428 (2004: 184,357) units. The product mix of the closed version of the MINI and of the MINI Convertible increased in value again compared to the previous year. The brand’s top model, the MINI Cooper S, recorded the most pronounced growth, with sales volume rising by 25.8% to 56,916 (2004: 45,246) units or 28.4% of the total sales volume of the MINI. The MINI Cooper remained the most popular model with a sales volume of 89,079 units (+1.4%/2004: 87,875 units) or 44.4% of the total sales volume of the MINI. 54,433 or 27.2% of our customers opted for the starter model, Mini One (+6.2%/2004: 51,236 units). Since market launch in 2001, more than 730,000 MINI cars have been delivered to customers.
Rolls-Royce maintains its top position in the absolute luxury class
The Rolls-Royce brand maintained its top position in the absolute luxury class. 796 Phantoms were delivered to customers, slightly more than the 792 sold in the previous year. An extended wheelbase version was presented in March 2005. This stretched model was initially introduced to the Middle East and Asia /Pacific regions and will be introduced to the American market in the course of 2006.
Motorcycles sales volume also increases significantly
The Motorcycles segment was also able to achieve growth due to its new models: The sales volume for the full year rose by 5.6% to 97,474 (2004: 92,266) units, with the R 1200 GS, R 1200 RT and K 1200 S contributing especially to the sales performance.
Financial Services still on growth course
The BMW Group expanded its activities in the Financial Services segment and remained on growth course in 2005. The total business volume of the Financial Services segment as disclosed in the balance sheet at 31 December 2005 increased by 24.4% to euro 40,428 million (31 December 2004: euro 32,556 million). For the first time, the total portfolio of lease and financing contracts surpassed the two million mark in 2005 and, with exactly 2,087,368 contracts in place, was 13.2% above the total number one year earlier. At 41.1%, the proportion of new BMW and MINI cars financed by the Financial Services segment in 2005 was marginally lower than in the previous year (2004: 38.3%).
Car sales volume well above previous year’s level in virtually all markets
The USA continued to be the market with the largest sales volume for the BMW Group, with a total of 307,020 cars sold in 2005, up by 3.7% (2004: 296,111 cars). The BMW Group therefore remains the most successful European premium automobile manufacturer operating in the American market. The number of cars sold by the BMW Group in Western Europe increased by 9.7% to 707,800 units. Germany remained, by far, the most important European market. In total, 295,872 vehicles (2004: 283,559 vehicles) were sold, corresponding to a growth rate of 4.3%. In Asia, sales volume rose by 16.9% in 2005 to 111,469 units (2004: 95,376 units).
Car production volume increased
Due to the higher sales volume, the BMW Group also achieved new peak figures in production volume: in total, 1,323,119 BMW, MINI and Rolls-Royce brand cars were manufactured, an increase of 5.8% (2004: 1,250,345 units). More than 50,000 BMW 3 Series cars were manufactured at the new Leipzig plant between March 2005, when series production began, and the end of the year.
In total, 1,122.308 BMW brand cars were manufactured worldwide in 2005, an increase of 5.9% (2004: 1,059,978 cars). In addition, 200,119 MINI brand cars left the Oxford plant, an increase of 5.6% (2004: 189,492 cars). Furthermore, 692 Rolls-Royce Phantoms were manufactured by Rolls-Royce Motor Cars in Goodwood, England, 20.9% fewer than in the previous year (2004: 875).
Sales network expanded
The BMW Group further expanded its international sales network in 2005 and is now represented in 34 countries with its own sales companies. Approximately 100 countries are handled by local importers.
Following the opening of the new sales company in Portugal at the beginning of 2005, the BMW Group is now represented with its own sales companies in all Western European EU countries. With the establishment of a new sales company in China, the BMW Group assumed direct responsibility also for imports as of October. The joint venture company, Brilliance China Automotive Holdings Ltd., continues to be responsible for local production of BMW 3 and 5 Series cars and retail of those cars on the Chinese market. The BMW Group also made preparations in 2005 to enter the Indian market. The sales company, based in the Delhi region, and the assembly plant in Chennai, will commence operations at the beginning of 2007.
At present, the dealer organisation for the BMW brand comprises more than 3,000 locations around the world. By the end of 2005, the number of locations serving the MINI brand had increased to over 1,400, which means that the MINI brand is now present in 80 countries. As in the previous year, Rolls-Royce motorcars are sold worldwide by approximately 70 dealers in 23 countries.
Workforce remains constant
At the end of 2005, the BMW Group had a worldwide workforce of 105,798 associates, similar to the high level one year earlier (31 December 2004: 105,972 employees). More than three quarters of the workforce are employed in Germany. The number of apprenticeship positions, at 4,464, remained unchanged compared to the end of the previous year.
Currency effects and high raw material prices will continue to have an impact on business development in the current year, however to a lesser degree than in the previous year. This negative effect is partly attributable to the fact that we have less favourable currency hedge rates compared to last year which will have an impact especially in the first half of 2006. The BMW Group will counter this development by means of continuous efficiency and productivity improvements. The targeted sales volume record and improvements in the sales mix will also make a positive contribute to earnings. “In terms of operating results, the current year will therefore be the best year in the company’s history to date“, Panke emphasised.
The BMW Group was again able to prove its inherent strength in the financial year 2005 despite the difficult conditions the worldwide automotive industry is facing. Thanks to the clear sales volume increase and on-going efficiency improvement measures, the negative impact of adverse currency factors and high raw material prices was almost completely offset by the year-end. The profit before tax, at euro 3,287 million, was, as already announced, at approximately the same high level as in the previous year (2004; euro 3,583 million/-8.3%), thus exceeding market expectations.
Before financial result and taxes (and therefore excluding the expense of euro 356 million in conjunction with the exchangeable bond option on shares in Rolls Royce plc), the operating profit (EBIT) rose by 0.5% to a new record figure of euro 3,793 million (2004: euro 3,774 million). The net profit, at euro 2,239 million, was at a similar high level as in the previous year (2004: euro 2,242 million/ - 0.1%). Factors contributing to this development were the lower tax rates applicable in various countries outside Germany and tax reimbursements for prior years. Earnings per share were unchanged from the previous year, at euro 3.33 per share of common stock and euro 3.35 per share of preferred stock.
Group revenues rose by 5.2% to a new high of euro 46,656 million (2004: euro 44,335 million) due to increased sales volumes and the extremely positive performance recorded in the financial services business. The pre-tax return on revenues, at Group level, was 7.0% (2004: 8.1%). “The BMW Group is currently the premium manufacturer with the highest sales volume in the world and is also ahead of almost all of its direct competitors in terms of profitability”, Panke underlined.
Dividend to increase again
In light of the high level of profitability and the positive outlook for the new financial year, the Board of Management and the Supervisory Board will propose a further dividend increase to the Annual General Meeting on 16 May 2006. The unappropriated profit of BMW AG available for distribution amounting to euro 424 million will be used to a pay an increased dividend of euro 0.64 per share of common stock (2004: euro 0.62) and one of euro 0.66 per share of preferred stock (2004: euro 0.64).
Authorisation to buy-back shares proposed
Furthermore, a proposal will be made again to the shareholders at the Annual General Meeting to authorise the buy-back of up to 10% of the Company’s share capital. It has not yet been decided whether or the extent to which the authorisation will be applied to buy back further shares. The buy-back programme decided in September 2005 covering 20,232,722 shares of common stock, or 3% of share capital, was completed on 15 February 2006. In total, shares were bought back for an amount of approximately euro 759 million, at an average price per share of euro 37.51. By the way of dividend and share buy-back, the shareholders of the BMW Group will participate in the success of the company in a magnitude of close to euro 1.2 billion.
Capital expenditure to remain at high level
In the light of the expected continued improvement of cash flow, the BMW Group will strengthen its competitiveness with a substantial capital expenditure programme also in the future: some euro 19 billion are planned to be invested between 2005 and 2009 in order to expand business operations. At the same time, the BMW Group will continue to generate cash flow surpluses due to the earnings and financial strength of its operating activities.
Capital expenditure in 2005, at euro 3,993 million, again remained at a high level. This corresponds to a decrease by 8.1% (2004: euro 4,347 million). Capitalised development costs according to IAS increased by 24.5% to euro 1,396 million (2004: euro 1,121 million). A total of euro 2,597 million (-19.5/ 2004: euro 3,226 million) was invested in property, plant and equipment as well as intangible assets.
The increase in capitalised development costs resulted from the higher number of series development projects carried out during the year under report. At 44.8% (2004: 39.8%), the proportion of capitalized development costs is still relatively low for the industry. Including capitalised development costs, the capital expenditure ratio in 2005 (i.e. the ratio of capital expenditure to Group revenues) was 8.6% (2004: 9.8%).
Cash flow for the year, at euro 5,603 million (2004: euro 5,187 million), rose by 8.0% and, as in previous years, exceeded capital expenditure. Free cash flow from industrial operations increased by 82% to euro 3,717 million as depreciation on intangible assets and property, plant and equipment increased and capital expenditure decreased.
Sales volume of all brands at new high level in 2005
The sales volume of all brands reached new peak figures in 2005. With 1,327,992 BMW, MINI and Rolls-Royce brand cars sold in the past year, the BMW Group beat the sales volume record set in the previous year by 9.9% (2004: 1,208,732 cars).
“The product and market initiative is, and will remain, the decisive factor for the BMW Group’s continuing successful performance. With our product and market initiative, we will continue to pursue our course of growth and expansion in a determined matter“, Panke emphasised. Due to the strong brand and product portfolio, the company sees further growth potential for the current year: “We expect the BMW Group to achieve a new sales volume peak in the 2006 business year“, Panke stated.
BMW brand records strong sales volume increase in 2005
With its core model series, the 3, 5 and 7 Series, the BMW brand was the worldwide frontrunner in 2005 in each of the relevant segments. The sales volume of the core brand rose by 10.1% to 1,126,768 (2004: 1,023,583) units. With a total of 149,493 units sold, the BMW 1 Series met high demand in its first full year of production (2004: 39,247 units). The BMW Group’s best-selling car, with 229,932 units sold, was the new 3 Series Sedan available since March 2005. This model accounted for 17% of the total sales volume for 2005. In total, 434,342 units of the BMW 3 Series were sold worldwide last year. This means that, despite the model changes of the two best-selling variants -the 3 Series Sedan and the 3 Series Touring - the previous year’s sales volume was nearly reached (-3.4%/2004: 449,732 units).
With 228,389 units sold in 2005, the BMW 5 Series nearly matched the previous year’s high level as well (-0.5%/ 2004: 229,598 units). The number of BMW 6 Series cars sold went up by 10.9% to 23,340 units, well above the previous year’s level (2004: 21,040 units). In the luxury class, a total of 50,062 BMW 7 Series cars were delivered to customers (2004: 47,689 units), an increase of 5.0%. The BMW X3 recorded strong growth: the number of Sports Activity Vehicles delivered rose by 20.0% to 110,719 (2004: 92,248) units. The BMW X5, in its sixth year since market launch, continued to meet strong demand, and with 101,537 vehicles sold, almost achieved the previous year’s high level (-3.3%/104,988 units). In total, more than 250,000 BMW cars sold in 2005 were equipped with xDrive, thus representing the most successful four-wheel drive system within the premium segment. The sales volume of the Z4 in 2005, at 28,808 units, was below the previous year’s level (-25.1%/38,483 units). The BMW Group presented the updated model of this Roadster in January. In early summer, the Z4 family will be supplemented by the Z4 Coupé and the M-version.
More than 200,000 MINI brand cars sold for the first time in a single year
For the first time, more that 200,000 MINI brand cars were sold in a single year, with the number of cars delivered increasing by 8.7% to 200,428 (2004: 184,357) units. The product mix of the closed version of the MINI and of the MINI Convertible increased in value again compared to the previous year. The brand’s top model, the MINI Cooper S, recorded the most pronounced growth, with sales volume rising by 25.8% to 56,916 (2004: 45,246) units or 28.4% of the total sales volume of the MINI. The MINI Cooper remained the most popular model with a sales volume of 89,079 units (+1.4%/2004: 87,875 units) or 44.4% of the total sales volume of the MINI. 54,433 or 27.2% of our customers opted for the starter model, Mini One (+6.2%/2004: 51,236 units). Since market launch in 2001, more than 730,000 MINI cars have been delivered to customers.
Rolls-Royce maintains its top position in the absolute luxury class
The Rolls-Royce brand maintained its top position in the absolute luxury class. 796 Phantoms were delivered to customers, slightly more than the 792 sold in the previous year. An extended wheelbase version was presented in March 2005. This stretched model was initially introduced to the Middle East and Asia /Pacific regions and will be introduced to the American market in the course of 2006.
Motorcycles sales volume also increases significantly
The Motorcycles segment was also able to achieve growth due to its new models: The sales volume for the full year rose by 5.6% to 97,474 (2004: 92,266) units, with the R 1200 GS, R 1200 RT and K 1200 S contributing especially to the sales performance.
Financial Services still on growth course
The BMW Group expanded its activities in the Financial Services segment and remained on growth course in 2005. The total business volume of the Financial Services segment as disclosed in the balance sheet at 31 December 2005 increased by 24.4% to euro 40,428 million (31 December 2004: euro 32,556 million). For the first time, the total portfolio of lease and financing contracts surpassed the two million mark in 2005 and, with exactly 2,087,368 contracts in place, was 13.2% above the total number one year earlier. At 41.1%, the proportion of new BMW and MINI cars financed by the Financial Services segment in 2005 was marginally lower than in the previous year (2004: 38.3%).
Car sales volume well above previous year’s level in virtually all markets
The USA continued to be the market with the largest sales volume for the BMW Group, with a total of 307,020 cars sold in 2005, up by 3.7% (2004: 296,111 cars). The BMW Group therefore remains the most successful European premium automobile manufacturer operating in the American market. The number of cars sold by the BMW Group in Western Europe increased by 9.7% to 707,800 units. Germany remained, by far, the most important European market. In total, 295,872 vehicles (2004: 283,559 vehicles) were sold, corresponding to a growth rate of 4.3%. In Asia, sales volume rose by 16.9% in 2005 to 111,469 units (2004: 95,376 units).
Car production volume increased
Due to the higher sales volume, the BMW Group also achieved new peak figures in production volume: in total, 1,323,119 BMW, MINI and Rolls-Royce brand cars were manufactured, an increase of 5.8% (2004: 1,250,345 units). More than 50,000 BMW 3 Series cars were manufactured at the new Leipzig plant between March 2005, when series production began, and the end of the year.
In total, 1,122.308 BMW brand cars were manufactured worldwide in 2005, an increase of 5.9% (2004: 1,059,978 cars). In addition, 200,119 MINI brand cars left the Oxford plant, an increase of 5.6% (2004: 189,492 cars). Furthermore, 692 Rolls-Royce Phantoms were manufactured by Rolls-Royce Motor Cars in Goodwood, England, 20.9% fewer than in the previous year (2004: 875).
Sales network expanded
The BMW Group further expanded its international sales network in 2005 and is now represented in 34 countries with its own sales companies. Approximately 100 countries are handled by local importers.
Following the opening of the new sales company in Portugal at the beginning of 2005, the BMW Group is now represented with its own sales companies in all Western European EU countries. With the establishment of a new sales company in China, the BMW Group assumed direct responsibility also for imports as of October. The joint venture company, Brilliance China Automotive Holdings Ltd., continues to be responsible for local production of BMW 3 and 5 Series cars and retail of those cars on the Chinese market. The BMW Group also made preparations in 2005 to enter the Indian market. The sales company, based in the Delhi region, and the assembly plant in Chennai, will commence operations at the beginning of 2007.
At present, the dealer organisation for the BMW brand comprises more than 3,000 locations around the world. By the end of 2005, the number of locations serving the MINI brand had increased to over 1,400, which means that the MINI brand is now present in 80 countries. As in the previous year, Rolls-Royce motorcars are sold worldwide by approximately 70 dealers in 23 countries.
Workforce remains constant
At the end of 2005, the BMW Group had a worldwide workforce of 105,798 associates, similar to the high level one year earlier (31 December 2004: 105,972 employees). More than three quarters of the workforce are employed in Germany. The number of apprenticeship positions, at 4,464, remained unchanged compared to the end of the previous year.
#331
The sizzle in the Steak
^^ ...and the better car that is greater than the 3 series that is $10k less is???????
#332
Drifting
a e36 3 serries?
Anywho, I like most of their lineup, besides the 3, 7, x3, x5, 1 and the 5 if i've taken my medicine. Well okay so I only really like the z and the 6.
I'm amazed that when they brought out the 02 7 they broke sales records with it. I suppose people like that sort of thing.
Anywho, I like most of their lineup, besides the 3, 7, x3, x5, 1 and the 5 if i've taken my medicine. Well okay so I only really like the z and the 6.
I'm amazed that when they brought out the 02 7 they broke sales records with it. I suppose people like that sort of thing.
#333
Race Director
And whenever some great car comes out people say "this kill BMW" - BMW just laughs at such nonsense all the way to the bank. The only way to kill BMW is if they do it themselves by screwing up their money making models.
#334
The sizzle in the Steak
BMW leads...others follow. People hated Bangle designs...now everyone copies them.
#335
Burning Brakes
Join Date: Mar 2002
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i actually liked the bangled design when it first came out...but i have to admit the refresh on the 7series looks better
and the 5series look badass...but then again, i like the hate it or love it designs...i guess some ppl aren't into that
btw, i think the new 3series is ugly
and the 5series look badass...but then again, i like the hate it or love it designs...i guess some ppl aren't into that
btw, i think the new 3series is ugly
#336
Instructor
Join Date: Aug 2001
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Originally Posted by Moog-Type-S
^^ ...and the better car that is greater than the 3 series that is $10k less is???????
#337
Originally Posted by tktommy
IMO-a lot of BMW drivers got the car for the badge (brand cache), not the performance.
#338
Race Director
Originally Posted by phile
It really doesn't matter, to date the IS from Lexus is the closest competitor to the 3-Series, in terms of size, intention, everything. And so far, every single head to head comparison between the two has the same outcome: the Lexus is crazy fast to 60, but we give the nod to the BMW, it's just the better driver's car.
#340
Senior Moderator
BMW's new Advertisment Strategy
No more Ultimate Driving Machine?
WSJ:
I've started seeing the Leipzig factory commercials on tv. The Guggenheim Museum in NY is currently showing an exhibit on Zaha Hadid. I went there a couple weeks ago, and the Leipzig factory is on display. Although it is strikingly different from traditional auto factories, I have a feeling that it is only the "front" that is different. I doubt the paint shop or body in white portions of the factory are any different from other plants.
WSJ:
Over the last five years, BMW AG had its foot pressed hard on the gas, increasing sales in the U.S. by 62%, a rate that has outpaced just about every other auto maker. Now the German company is making a bold move in hopes of maintaining its breakneck pace.
For well over a decade, BMW has focused its marketing almost exclusively on its cars' German engineering and technical sophistication, and targeted its message to one very specific customer group -- upscale auto enthusiasts.
In a break with that formula, the company is promoting a corporate culture of independence and innovation. One advertisement in a new campaign that has turned heads in the auto industry highlights the design by architect Zaha Hadid that BMW chose for a striking glass-walled factory in Leipzig, Germany.
BMW hopes the approach will broaden its position in market share and appeal to a group the company calls "the idea class" -- upscale car-buyers who are swayed more by artistic values than horsepower.
Despite its aesthetic nature, the effort is all about business. BMW needs to fend off rising competitors like Nissan Motor Co.'s Infiniti brand and the Acura unit of Honda Motor Co. that offer credible performance vehicles for far less money. The company also aims to grab a bigger share of the U.S. market as part of an ambitious global plan to increase sales of BMW-branded vehicles to 1.6 million a year by 2010, from just over one million this year.
"Our opportunity to grow exists in the U.S.," says Tom Purves, chief of BMW's North American sales arm, noting the company has less than 2% market share in the U.S. -- about half its share in Western Europe and well below the roughly 10% it has in Germany.
"Why can't we sell more in the U.S.?" Mr. Purves says. "If we doubled our market share, that's a huge volume increase for us and that's what we have in Europe. We thought that was possible, but we had to think about it in a different way."
BMW's new direction reflects the intensifying competition in the luxury-car segment, a key battleground that generates a big chunk of the industry's profit.
The baby-boom generation, which is now in its peak earning years, will drive increasing sales of luxury cars for the next several years, says Michael J. Jackson, chief executive of AutoNation Inc., the nation's largest chain of auto dealerships. "Luxury cars will be a crucial high profit opportunity."
BMW's shift in direction began last year, after an internal study revealed 1.9 million consumers bought luxury cars in 2004, and 1.4 million of them didn't even consider BMW. Of those, about 600,000 said they were looking for cars that are fun to drive -- which should be BMW's forte. "That is low hanging fruit," says Jack Pitney, BMW's head of marketing in the U.S.
Instead, many of these buyers ended up choosing Saab, the Swedish brand of General Motors Corp., or the Japanese luxury brands Infiniti, Acura and Toyota Motor Corp.'s Lexus unit.
One reason these buyers overlooked BMW is that they know little about the brand. Steven Bennett, an optometrist who owns two busy vision centers in Ann Arbor, Mich., admits he likes a car with some kick. "I like power. I like being first off the line," he says. He drives a Lexus LS430, which he bought in 2002 for $54,000. When he bought the car, BMW never crossed his mind. "I've never driven one. I've just never given them a thought."
Mr. Pitney says BMW realized it had to do a better job of reaching out to customers like this. Last fall it decided to switch advertising agencies and chose GSD&M, an Austin, Texas, agency. GSD&M suggested BMW target the wealthy group of high-achievers author Richard Florida described in his recent book, "The Creative Class."
This "idea class" is made up of self-motivated architects, professionals, innovators and entrepreneurs, and numbers about 1.5 million people. They typically are not car nuts although they buy luxury automobiles. They prize innovation, authenticity and, above all, independent thinking.
To appeal to them, GSDM crafted a series of ads to show that these values also run deep in BMW's corporate culture. "BMW is known for performance but there's so much more to this company," said Lee Newman, an agency executive who works on the BMW account.
One ad listed other luxury brands and their corporate parents, suggesting rivals like Cadillac and Acura have to make compromises to cooperate with their mass-market sister brands, Chevrolet and Honda. The ad showing the Leipzig plant asked, "Would a parent company let us build this?"
The ads are intended to say that BMW, as an independent company, can put its ideas into reality, Mr. Purves says. "It should appeal to the idea class that we are independent, that we are free to do something."
Going beyond straight advertising, BMW recently said it is now sponsoring a PGA Tour golf tournament that will be called the BMW Championship, one of four tour playoff tournaments. The golf sponsorship completes BMW's three-pillar sports strategy, which also includes sponsorships in Formula One and the America's Cup. The BMW golf tournament will be held at golf courses in Chicago and other cities in the Midwest, where BMW hopes to increase sales, Mr. Purves says.
For well over a decade, BMW has focused its marketing almost exclusively on its cars' German engineering and technical sophistication, and targeted its message to one very specific customer group -- upscale auto enthusiasts.
In a break with that formula, the company is promoting a corporate culture of independence and innovation. One advertisement in a new campaign that has turned heads in the auto industry highlights the design by architect Zaha Hadid that BMW chose for a striking glass-walled factory in Leipzig, Germany.
BMW hopes the approach will broaden its position in market share and appeal to a group the company calls "the idea class" -- upscale car-buyers who are swayed more by artistic values than horsepower.
Despite its aesthetic nature, the effort is all about business. BMW needs to fend off rising competitors like Nissan Motor Co.'s Infiniti brand and the Acura unit of Honda Motor Co. that offer credible performance vehicles for far less money. The company also aims to grab a bigger share of the U.S. market as part of an ambitious global plan to increase sales of BMW-branded vehicles to 1.6 million a year by 2010, from just over one million this year.
"Our opportunity to grow exists in the U.S.," says Tom Purves, chief of BMW's North American sales arm, noting the company has less than 2% market share in the U.S. -- about half its share in Western Europe and well below the roughly 10% it has in Germany.
"Why can't we sell more in the U.S.?" Mr. Purves says. "If we doubled our market share, that's a huge volume increase for us and that's what we have in Europe. We thought that was possible, but we had to think about it in a different way."
BMW's new direction reflects the intensifying competition in the luxury-car segment, a key battleground that generates a big chunk of the industry's profit.
The baby-boom generation, which is now in its peak earning years, will drive increasing sales of luxury cars for the next several years, says Michael J. Jackson, chief executive of AutoNation Inc., the nation's largest chain of auto dealerships. "Luxury cars will be a crucial high profit opportunity."
BMW's shift in direction began last year, after an internal study revealed 1.9 million consumers bought luxury cars in 2004, and 1.4 million of them didn't even consider BMW. Of those, about 600,000 said they were looking for cars that are fun to drive -- which should be BMW's forte. "That is low hanging fruit," says Jack Pitney, BMW's head of marketing in the U.S.
Instead, many of these buyers ended up choosing Saab, the Swedish brand of General Motors Corp., or the Japanese luxury brands Infiniti, Acura and Toyota Motor Corp.'s Lexus unit.
One reason these buyers overlooked BMW is that they know little about the brand. Steven Bennett, an optometrist who owns two busy vision centers in Ann Arbor, Mich., admits he likes a car with some kick. "I like power. I like being first off the line," he says. He drives a Lexus LS430, which he bought in 2002 for $54,000. When he bought the car, BMW never crossed his mind. "I've never driven one. I've just never given them a thought."
Mr. Pitney says BMW realized it had to do a better job of reaching out to customers like this. Last fall it decided to switch advertising agencies and chose GSD&M, an Austin, Texas, agency. GSD&M suggested BMW target the wealthy group of high-achievers author Richard Florida described in his recent book, "The Creative Class."
This "idea class" is made up of self-motivated architects, professionals, innovators and entrepreneurs, and numbers about 1.5 million people. They typically are not car nuts although they buy luxury automobiles. They prize innovation, authenticity and, above all, independent thinking.
To appeal to them, GSDM crafted a series of ads to show that these values also run deep in BMW's corporate culture. "BMW is known for performance but there's so much more to this company," said Lee Newman, an agency executive who works on the BMW account.
One ad listed other luxury brands and their corporate parents, suggesting rivals like Cadillac and Acura have to make compromises to cooperate with their mass-market sister brands, Chevrolet and Honda. The ad showing the Leipzig plant asked, "Would a parent company let us build this?"
The ads are intended to say that BMW, as an independent company, can put its ideas into reality, Mr. Purves says. "It should appeal to the idea class that we are independent, that we are free to do something."
Going beyond straight advertising, BMW recently said it is now sponsoring a PGA Tour golf tournament that will be called the BMW Championship, one of four tour playoff tournaments. The golf sponsorship completes BMW's three-pillar sports strategy, which also includes sponsorships in Formula One and the America's Cup. The BMW golf tournament will be held at golf courses in Chicago and other cities in the Midwest, where BMW hopes to increase sales, Mr. Purves says.
#341
I'll bet $10,000 USD with anyone that bmw's mini will go bankrupt like the benz's smart. And 5-10 years down the line, benz and bmw cars will be valued realistically and practically at around the same as american cars. American cars nowadays are just as realiable and good as their european counterparts.
#342
Originally Posted by oemtsxparts
I'll bet $10,000 USD with anyone that bmw's mini will go bankrupt like the benz's smart. And 5-10 years down the line, benz and bmw cars will be valued realistically and practically at around the same as american cars. American cars nowadays are just as realiable and good as their european counterparts.
I don't agree on Mini, the Smart is a different niche and the Mini has so much more draw over the utilitarian Smart.
Not sure what you mean by valued but if you mean priced you are wrong.
I also am not sure what you mean by "good as their..." but in most people and journalists opinion European and particularly German cars share a solid lead over American cars when it comes to ability and driving with a few exceptions like the C6.
#343
Senior Moderator
Originally Posted by ilitig8
I don't agree on Mini, the Smart is a different niche and the Mini has so much more draw over the utilitarian Smart.
Not sure what you mean by valued but if you mean priced you are wrong.
I also am not sure what you mean by "good as their..." but in most people and journalists opinion European and particularly German cars share a solid lead over American cars when it comes to ability and driving with a few exceptions like the C6.
Not sure what you mean by valued but if you mean priced you are wrong.
I also am not sure what you mean by "good as their..." but in most people and journalists opinion European and particularly German cars share a solid lead over American cars when it comes to ability and driving with a few exceptions like the C6.
#344
Senior Moderator
Join Date: May 2003
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Originally Posted by oemtsxparts
I'll bet $10,000 USD with anyone that bmw's mini will go bankrupt like the benz's smart. And 5-10 years down the line, benz and bmw cars will be valued realistically and practically at around the same as american cars. American cars nowadays are just as realiable and good as their european counterparts.
I'll take that bet!
With the resale value, following and brand image they've managed to establish, I just dont see it.
#345
Senior Moderator
Originally Posted by oemtsxparts
I'll bet $10,000 USD with anyone that bmw's mini will go bankrupt like the benz's smart. And 5-10 years down the line, benz and bmw cars will be valued realistically and practically at around the same as american cars. American cars nowadays are just as realiable and good as their european counterparts.
I love all your posts.
#346
The sizzle in the Steak
Originally Posted by oemtsxparts
I'll bet $10,000 USD with anyone that bmw's mini will go bankrupt like the benz's smart. And 5-10 years down the line, benz and bmw cars will be valued realistically and practically at around the same as american cars. American cars nowadays are just as realiable and good as their european counterparts.
#347
Senior Moderator
Is not the Mini Cooper rated somewhere in the top 5 in resale value?? Although I cannot stand them, BMW's Minis have pretty much exceeded everybody's sales expectations AFAIK. (The jury is out on the MB smart cars but with gas prices bet. $3-4+, the short term outlook looks favorable. )
But I will agree with OEM on the American vs Euro reliability comparison. American brands seem to have made significant progress when it comes to reliability.
But I will agree with OEM on the American vs Euro reliability comparison. American brands seem to have made significant progress when it comes to reliability.
#349
The sizzle in the Steak
BMW acquires John Cooper Works
BONN (AFX) - Bayerische Motoren Werke AG said it is acquiring the rights to the brand name John Cooper Works under a deal signed yesterday and effective from January 2007.
No financial details were disclosed.
A BMW spokesman said the acquisition is in line with BMW's strategy to strengthen the company's MINI brand.
John Cooper Works currently fits BMW's Mini Cooper and Mini Cooper S models with tuning kits and accessories for customers who want to make the cars faster and sportier.
No financial details were disclosed.
A BMW spokesman said the acquisition is in line with BMW's strategy to strengthen the company's MINI brand.
John Cooper Works currently fits BMW's Mini Cooper and Mini Cooper S models with tuning kits and accessories for customers who want to make the cars faster and sportier.
#354
The sizzle in the Steak
Originally Posted by aesir11
Great, they planning on building anything besides the Mini?
...and yes there is another model due out in a year or two:
The Clubman
https://acurazine.com/forums/showthr...hlight=clubman
#356
Moderator Alumnus
Join Date: Oct 2000
Location: Washington DC (NOVA)
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BMW buys Cooper
BMW buys Cooper - - Source: Autoweek
BMW has bought the John Cooper Works brand name from the Cooper family for its Mini brand. On future Minis, the performance packs will be corporate BMW rather than cottage-industry Cooper.
BMW struck the deal over the holidays with Mike Cooper, the son of John Cooper, the former Formula One race car builder who inspired the original 1960s Mini Cooper.
Mike Cooper set up JCW to make tuning kits for the new Mini. JCW first sold through Mini dealers but quickly became so popular that BMW started installing them on Mini's Oxford, England, assembly line. Mini boss Kay Segler says JCW is strong enough to be developed as a good subbrand.
Neither side disclosed the terms of the sales.
BMW struck the deal over the holidays with Mike Cooper, the son of John Cooper, the former Formula One race car builder who inspired the original 1960s Mini Cooper.
Mike Cooper set up JCW to make tuning kits for the new Mini. JCW first sold through Mini dealers but quickly became so popular that BMW started installing them on Mini's Oxford, England, assembly line. Mini boss Kay Segler says JCW is strong enough to be developed as a good subbrand.
Neither side disclosed the terms of the sales.
#357
The sizzle in the Steak
Old news....no?
https://acurazine.com/forums/showthr...ht=john+cooper
https://acurazine.com/forums/showthr...ht=john+cooper
#358
A repost... by gavriil?!?!
#359
The sizzle in the Steak
BMW to Re-Brand JCW Cooper Works
BMW to Re-Brand JCW Cooper Works
Feb 21st, 2007
Feb 21st, 2007
Exclusive: While BMW’s buyout of the JCW brand may have taken longer than anticipated, BMW is wasting no time in getting to work. Not only are engineers in Munich and Designers in London hard at work on new JCW vehicles, but branding experts are also working on how to tweak the JCW messaging. That’s right, we’ve learned that BMW is planning on a complete JCW re-branding to debut later this year.
#360
Senior Moderator
Report: BMW seriously considering Volvo takeover
From Leftlanenews...
Earlier this year, BMW seriously mulled launching a takeover bid for Volvo, according to a new report. The German automaker went as far as requesting a complete breakdown of Volvo’s financial situation, according to the U.K.'s Autocar magazine.
It's not known if BMW scrapped plans for the bid, or if it is still considering making an offer to Ford for the company. Given Volvo integral role at Ford in terms of safety and platforms, it's likely Ford would expect a hefty sum for the Swedish firm.
BMW is said to be seeking a brand to pair with Mini in order to increase profitability. BMW could theoretically share front-wheel-drive platforms between small to midsize Volvo and Mini vehicles. Sources to the magazine said BMW considered acquiring Alfa Romeo –another front-wheel-drive specialist — before looking at Volvo.
The proposal is based around the idea that Mini sales of 250,000 to 270,000 cars per year is not enough for long-term profitability. A combined 500,000 Volvos and Minis built on similar underpinnings, however, would ensure profitability.
The Volvo S40, V50, C70, and C30 could all share a platform with a large five-door Mini and Mini SUV, the report said. Volvo's larger luxury vehicles could be switched to rear-wheel-drive BMW platforms.
BMW bought the Rover brand in 1994 and was forced to sell it six years later due to massive losses. Ford, which owns Volvo, bought the Land Rover component of Rover from BMW.
It's not known if BMW scrapped plans for the bid, or if it is still considering making an offer to Ford for the company. Given Volvo integral role at Ford in terms of safety and platforms, it's likely Ford would expect a hefty sum for the Swedish firm.
BMW is said to be seeking a brand to pair with Mini in order to increase profitability. BMW could theoretically share front-wheel-drive platforms between small to midsize Volvo and Mini vehicles. Sources to the magazine said BMW considered acquiring Alfa Romeo –another front-wheel-drive specialist — before looking at Volvo.
The proposal is based around the idea that Mini sales of 250,000 to 270,000 cars per year is not enough for long-term profitability. A combined 500,000 Volvos and Minis built on similar underpinnings, however, would ensure profitability.
The Volvo S40, V50, C70, and C30 could all share a platform with a large five-door Mini and Mini SUV, the report said. Volvo's larger luxury vehicles could be switched to rear-wheel-drive BMW platforms.
BMW bought the Rover brand in 1994 and was forced to sell it six years later due to massive losses. Ford, which owns Volvo, bought the Land Rover component of Rover from BMW.