BMW’s North American CEO, Bernhard Kuhnt, blames stock points for the model’s sharp utility automobile gross sales decline in August 2017.
BMW reported solely eight,847 utility automobile gross sales in August, a harsh 21-percent year-over-year drop for the five-model lineup. Gross sales of Spartanburg, South Carolina-built X3s, X4s, X5s, and X6s plunged 30 % as BMW was luckily boosted by — unusual as it could sound — elevated passenger-car gross sales.
Has the tide turned? Is America’s BMW purchaser forsaking his X3 for a 330i; her X5 for an M550i?
Don’t consider it for a second.
“August numbers had been a bit uncommon in that sedans outpaced our SAVs,” says BMW boss Bernhard Kuhnt, “as mannequin yr change over for the X5 and new mannequin manufacturing of the X3 considerably restricted availability of our particularly fashionable SAV fashions.”
BMW unveiled a third-generation X3 earlier this summer season. BMW has enormous expectations for the model’s new compact crossover.
“The No.1 strategy and goal I clearly have is, there shouldn’t be anybody moreover us who’s No.1,” international CEO Harald Krueger says of the brand new X3, putting a substantial amount of stress on Kuhnt to leapfrog the Acura RDX, Audi Q5, and Lexus NX whereas remaining forward of the Mercedes-Benz GLC and different new members of the sphere.However till the brand new BMW X3 surfaces, count on to see the type of nosediving quantity exhibited in August. Gross sales final month plunged 38 % in the US.
Merging with the X3’s sliding quantity at BMW sellers was a 25-percent drop in X5 gross sales, which Kuhnt blamed on a model-year shift as BMW clears out 2017 X5s in anticipation of 2018s (which is able to solely now start to trickle into BMW sellers). BMW X6 gross sales tumbled 41 %, as effectively.
But regardless of the Z4’s disappearance, an 80-percent i8 dive, i3 and seven Sequence gross sales that had been greater than chopped in half year-over-year, and a 9-percent three Sequence decline, BMW’s U.S. automotive gross sales quantity rose three % in August after falling 15 % within the first seven months of the yr. Many of the credit score belongs to, not surprisingly, a model new automotive.
The BMW 5 Sequence launched earlier this yr reported a 38-percent gross sales improve, climbing to three,587 models in August 2017. The 5 Sequence accounted for 18 % of BMW’s U.S. automotive quantity in August 2016; 24 % in August 2017. In truth, the 5 Sequence got here inside 5 gross sales of matching the common class chief, Mercedes-Benz’s E-Class, in August quantity. E-Class gross sales fell 22 %. The Cadillac CTS was off final yr’s tempo by 16 %, the Audi A6 tumbled 30 %, Jaguar XF quantity slid 40 %, and Lexus GS gross sales had been down 44 %.
Whether or not BMW USA can keep 5 Sequence gross sales progress in a market that’s seen automotive quantity fall 12 % via the primary two-thirds of 2017 stays to be seen. Extra sure is the gross sales success projected for the X3, X5, and their BMW SAV cohorts.
A lot as August’s 21-percent dive in SAV gross sales was a hassle for BMW, “This in fact will enhance as manufacturing ramps up,” says Bernhard Kuhnt. Yr-to-date, BMW has misplaced 16,000 automotive gross sales however gained 6,000 SAV gross sales.
In keeping with ALG, BMW’s common transaction costs rose by greater than 1 %, year-over-year, to $51,231 in August 2017. In contrast with August 2016, incentives had been down 21 % from $6,480 to $5,103, equal to 10 % of the common BMW’s transaction value final month.
Timothy Cain is a contributing analyst at The Fact About Vehicles and Autofocus.ca and the founder and former editor of GoodCarBadCar.web. Comply with on Twitter @timcaincars and Instagram.