View Full Version : BMW Group (USA) Reports September Sales Down 25.8%

10-02-2008, 08:30 AM
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BMW Group US sales (BMW and MINI combined) decreased 4.8 percent year-to-date. In September sales declined 25.8 percent

Woodcliff Lake, NJ - The BMW Group in the U.S. (BMW and MINI combined) reported September sales of 18,506 vehicles, a decrease of 25.8 percent over the 24,932 vehicles sold in September 2007. The BMW Group also reported a year-to-date sales volume of 236,327 vehicles, down 4.8 percent, compared to 248,273 vehicles in the same period of 2007.

BMW Brand Sales
Sales of BMW brand vehicles decreased 29.5 percent in September for a total of 14,744 compared to 20,901 reported in the same month a year ago. Year-to-date BMW brand sales were down 9.6 percent, to 195,633 vehicles compared to 216,337 vehicles sold in the same period in 2007.

"At BMW, we are fortunate to have set a rational plan in place for the entire year. While our sales this month are on a level with others, in the year to date, we are still tracking better than the overall premium market," said Jim O'Donnell, President of BMW of North America, LLC. "New products such as the just refreshed 3 Series with its new look and new iDrive Control will keep us attractive in the market place. A new dimension will be added to our range of vehicles with the introduction of the Advanced Clean Diesels in the 3 Series and the X5, which will be available in all 50 states. We are also getting ready for the U.S. launch of the all-new 7 Series which comes early in the new year."

BMW Automobile Sales
BMW's automobile sales are down 35.9 percent in September to 10,552 versus 16,457 in the same month a year ago. Year-to-date sales also decreased 9.9 percent, to 152,988 automobiles compared to 169,760 in the same period of 2007.

BMW Sports Activity Vehicle Sales
Sales of BMW Sports Activity Vehicles decreased by 5.7 percent in September to 4,192 vehicles over the 4,444 sold last September. Year-to-date, sales of BMW Sports Activity Vehicles were down 8.4 percent, to 42,645 vehicles compared to the 46,577 sold in the first nine months of 2007.

MINI Brand Sales
MINI USA reported September sales of 3,762 automobiles, down 6.7 percent from the 4,031cars sold in September 2007. Year-to-date, the division reported sales of 40,694 automobiles, an increase of 27.4 percent, compared to the 31,936 cars reported in the first nine months of 2007.

"Tight inventories restricted September MINI sales, which were 269 units below prior year levels," said Jim McDowell, Vice-President of MINI USA. "Despite high gas prices, limited credit opportunities, and concern about the overall economy, more and more Americans are rethinking automotive choices they have always made. We think this is the reason why we ended the month with only a six day supply of cars in our retailers' showrooms. In the coming month, we look forward to increased production for our market to help replenish our dealer stocks."

BMW Certified Pre-Owned
Sales of BMW's Certified Pre-Owned vehicles are up 3.9 percent, to 7,707 CPO vehicles versus 7,421 vehicles reported last September. Year-to-date, CPO sales are up 19.7 percent, to 77,144 over the 64,445 reported in the same period in 2007.

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10-02-2008, 10:30 AM
Everyone is feeling it.

Associated Press
Toyota September sales drop 32 percent
Associated Press 10.01.08, 3:07 PM ET

TORRANCE, Calif. - Toyota Motor Sales U.S.A. Inc. said Wednesday its September U.S. sales fell 32 percent, with truck and sport utility models continuing to lose favor as high gas prices and concerns about the economy led consumers to cut spending. Sales of Toyota (nyse: TM - news - people ) and Lexus brand vehicles fell to 144,260 vehicles from 213,042 in September 2007. For the year-to-date period, sales dropped 10 percent to 1.79 million vehicles. Sales of Toyota trucks and sports utility vehicles fell more sharply than passenger-car sales. The Tundra had the biggest drop among truck models at 61 percent to 7,696. The FJ Cruiser SUV model paced the losers in that category, shedding 65 percent to 1,571 vehicles. Sales of Toyota passenger cars declined 27 percent to 78,912, with the popular Corolla and Camry models each losing more than 20 percent and none of the company's cars posting gains. Overall, the Toyota division reported sales of 128,215 vehicles, down 32 percent from last year. The Lexus division posted sales of 16,045 vehicles, a decline of 36 percent.

U.S. auto sales slump in September

Carmakers hope the massive bailout plan will help drive customers back to showrooms after all major manufacturers post declines.
By Ken Bensinger, Los Angeles Times Staff Writer
October 2, 2008

Auto industry leaders, stung from one of their sharpest dives in monthly U.S. sales, hope the pending $700-billion bailout package will restore public confidence in the nation's financial system and, in turn, resuscitate their ailing operations.

In releasing September sales numbers Wednesday that fell as much as 36.8%, executives at General Motors Corp., Toyota Motor Corp., Ford Motor Co. and Chrysler said that passing the bailout bill should help housing and consumer spending eventually get back on track.


"If the bill helps restore consumer confidence, let's hurry up and make it happen," said Don Esmond, Toyota's senior vice president for automotive operations.

The industry, which gained $25 billion in taxpayer-subsidized loans under a broader measure President Bush signed Tuesday, reported is biggest percentage drop in monthly sales in 17 years.

Toyota, Chrysler, Ford and Nissan Motor Co. reported U.S. sales declines of more than 30% for the month compared with September 2007, while Honda Motor Co. and General Motors Corp. showed sharp downturns as well.

Overall, the industry sold only 964,873 vehicles -- a 26.6% slide from a year earlier and its biggest percentage drop in 17 years, Autodata Corp. said Wednesday.

Industry executives blamed public unwillingness to make purchases amid the nation's financial troubles, as well as a lack of credit from lenders.

"It's tantamount, really, to a natural disaster," said George Pipas, chief sales analyst at Ford. Showroom traffic, he added, was at levels associated with "a large storm or the aftermath of 9/11."

According to CNW Marketing Research, visits to auto dealerships in the last 10 days of September declined 51% compared with the same period last year, the largest slide in at least 22 years.

Toyota's U.S. sales last month were down 32.3% from the year-earlier period, while Ford declined 33.7%, Nissan slipped 36.8% and Honda fell 24%. Since January, Toyota's sales are down 10.4%, while Ford's have fallen 17.1%. Maserati and Bentley were the only makers to post gains in September.

Until last month, Honda had been one of the few carmakers to show a net gain on the year, but declines in August and September have now sucked it down to an overall 1.1% downturn through the first three quarters. Truck- and SUV-heavy Chrysler saw a 32.8% decline for the period, and is off 25% on the year.

GM had a relatively modest 15.5% decline, provoking a near celebratory response from the nation's largest automaker.

"A few months ago, I'd have jumped out the window with these kinds of numbers," said Mark LaNeve, head of sales and marketing for GM. "We're in a kind of crazy market now."

This has been a very difficult year for carmakers, with industry sales down 12.8% across the board since January. In September, manufacturers were on pace to sell 12.5 million vehicles for the year, far below last year's total of 16.1 million, according to Autodata.

Consumer confidence has been sliding since last year, and carmakers were hammered by soaring gas prices in the spring and early summer. Lately, dealers complain that customers are being turned away because banks won't approve loans for anyone without near-perfect credit.

A salesman at Allen Gwynn Chevrolet in Glendale said he was forced to turn away a customer who wanted to buy a Corvette this week despite a relatively high credit score.

"We're losing about three customers a day because of lack of credit," said Pogos Yenkanyan, team manager for new car sales at Allen Gwynn. "That adds up to 100 cars a month."

He and others pointed to the demise of leasing -- which has essentially come to a halt for many manufacturers -- as another factor.

Chrysler abandoned leasing as of Aug. 1, while Ford and GM have greatly increased the cost of such programs. GM said Wednesday that only 1% of its business in September was leases, far below a historical average closer to 20%.

Nerses Nersisyan, a salesman at Star Chrysler Jeep in Glendale, said most of his customers preferred leasing -- and that's not good for him.

He said a lease from an outside bank on a Chrysler Sebring, for example, costs $400 a month, while Mazda offers a $249 lease rate on its Mazda6.

"My customers have a budget," Nersisyan said. "If I don't make the budget, they go to somebody who does."

This year's challenging conditions have made for a dramatically different selling environment. A prime example is Ford, which can no longer rely upon easy financing and generous lease terms to move the high-end, high-profit vehicles -- such as the $31,000-and-up Expedition sport utility vehicle -- that it specializes in.

In September, only one high-volume Ford model, the compact Focus, showed a sales increase; it was up 4.7%. Expensive gas-guzzlers such as the Expedition, Explorer and F-150 pickup were down 37.4%, 67.3% and 41.6%, respectively.

Toyota, which still offers leasing and specializes in lower-priced vehicles, is doing little better. The Japanese carmaker boosted production of models such as the Corolla to meet soaring consumer demand in the early summer. Yet in September, deliveries of the Corolla were down 27.9%.

Toyota's Esmond said that wasn't due to a lack of credit; rather, it was because nobody was even making offers. The Wall Street crisis "certainly put the brake on consumers," he said. "We had people calling to ask for their deposits back on Lexus orders."

GM said its third-quarter sales topped both the first- and second-quarter results, even as its supply of cars, year over year, has dropped by almost half a million units. But Michael DiGiovanni, GM's top sales analyst, said that inventory control and dealer incentives -- such as the two months of employee pricing GM offered through Tuesday -- weren't enough to drive business.

"Everything is just compounded at once," said Jessica Caldwell, an auto industry analyst at Edmunds. "This is about people not wanting to spend the money right now."


10-05-2008, 02:25 PM
What happened last week is that America was weaned off of credit in one week. The economy has been built on purchases made on credit of items few people can really afford. How or whether we recover in the next few years will really be debatable.:eek:

10-05-2008, 04:54 PM
The local Advance Auto Parts store where I picked up some lubricant was very busy this past Saturday... :eeps:

I think everybody is just holding on to their money...

Johnny Lee
10-05-2008, 09:45 PM
I think BMW should be more proactive on the leases in order to regain it sales that is for sure (leases are getting worse and worse every year).

10-06-2008, 08:15 AM
The other trick would be to selectively decontent the cars, make certain options less expensive or make some packages smaller- an example is navigation, it is a high margin item, bundle it with satellite, strip out the year subscription. Allow no sunroofs, etc. Reintroduce the cloth seats instead of plastic. These can keep the rise of the cars prices more in check.

11-03-2008, 07:46 PM
I think BMW should be more proactive on the leases in order to regain it sales that is for sure (leases are getting worse and worse every year).

Well what do you expect when the same car I leased in 2008 is almost 3K more for the 2009 model year

11-04-2008, 10:15 AM
BMW has a new financing called "BMW Select". I think its similar to the "Porsche Options" financing.

It looks like a 5 year term with much lower monthly payments, but a big balloon payment at the end. Or just sell the car outright to somebody else to pay off the remainder.

For example, a fully loaded 335i convertible was quoted on their website at $830 per month for a vehicle price of $63K with $2,500 down.

However, the price quote varies per car and not every car at the same price gets the same deal. For example, a $63K M3 was quoted at around $1100. But the $63K 335i convertible was only $830.

11-04-2008, 10:38 AM
BMW has a new financing called "BMW Select". I think its similar to the "Porsche Options" financing.

It looks like a 5 year term with much lower monthly payments, but a big balloon payment at the end. Or just sell the car outright to somebody else to pay off the remainder.

For example, a fully loaded 335i convertible was quoted on their website at $830 per month for a vehicle price of $63K with $2,500 down.

However, the price quote varies per car and not every car at the same price gets the same deal. For example, a $63K M3 was quoted at around $1100. But the $63K 335i convertible was only $830.

BMW Select is not new, it's been around for years. It was initially developed for states like TX, which do not allow leases in the traditional sense.