BMW Wants A Bigger Slice Of The Amerikan Pie
Germany and Japan have had a bit of a love hate relationship in the automobile world. VW-Suzuki (love), Daimler-Mitsubishi (hate), Volkswagen-Toyota (hate), Bertel and Tomoko (love). Now, here comes another hate relationship. Lexus is the 900lb silverback in the US car market. It’s Lexus’ biggest market and they do a lot to protect it. But now, some Bavarian yokels from Munich want a piece of that American pie (any sexist jokes will result in a ban … or at the very least, an icy glare from me).
Lexus fired back by saying that their sales in March rose “well over 10 percent” from last year. They also added that being the number one luxury carmaker in the United States “has never been our goal” (haven’t we been here before?). BMW branded cars sold 196,502 units in 2009, whereas Lexus sold 215,975 for the same period. Mind you, there is a third player in this game: Mercedes-Benz branded vehicles sold 190,538 units for 2009, and their sales for March 2010 rose 10 percent, according to Ernst Lieb, President of Mercedes-Benz North America. All I can say is “viel Glück.”
Lexus will defend the US market vigorously. Maybe BMW could try the “we support manufacturing jobs in the USA” aspect? BMW has a plant in South Carolina and is scouting for a location to build their new parts plant in the US. “Produziert in Amerika, y’all” as they say in South Carolina….or not.
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I think less nickel-and-diming on options packages would be a good start for BMW if they want to be #1 in the US. It seems like it's almost impossible to find a 3 without the Premium Package - might as well make it basic equipment and fold it into the price. If they're struggling to introduce models like the 1-series and X1 without cutting content, then they should bring over some smaller engine options and equipment levels that we currently can't get in the US. I personally would prefer a 1-series with a turbo four, good cloth seats, and a few other options (sport package, good stereo) to a 128i with vinyl seats and no other options. Maybe I'm missing something, but seems to me that BMW could sell more cars this way without hurting margins or their brand image.
The moment any car maker mentions the word "market share", the deal is over for the hardcore enthusiasts market segment. Simply b/c what makes BMW (or any other car brand) fanatics "fanatics" is not the same with what could potentially make the rest of the population "loyal buyers". Toyota's story during the last 10 years is a good example of what will happen to Audi, BMW, and everybody else. There is no exception. You will have 1-2 models that will somehow maintain the core characteristics but they will not be affordable to 99% of the "fanatics" who helped the brand become what it now is. The rest of the lines will simply be desirable only to the average folks with limited understanding and appreciation of what really makes a "good car". Be prepared for soft gearboxes, bulkiness, safe designs, plenty of electronics, cheap leather/wood, and 4 cylinders. The cure to the disaster is one: well-maintained old models. Best to all!