sp330i
07-14-2004, 05:38 AM
<TABLE cellSpacing=0 cellPadding=15 border=0>*******><TR><TD colSpan=2>Sourced From: Financial Times; Reuters, July 7 2004; Detroit News, July 8, 2004
<TR><TD><TABLE cellSpacing=0 cellPadding=3 width="100%" border=0>*******><TR><TD class=tablehdg1 bgColor=#dddddd>Situation</TD><TR><TD bgColor=#eeeeee><TABLE cellSpacing=0 cellPadding=8>*******><TR><TD class=a11 bgColor=#eeeeee>1. BMW overtook M-B in 1st half of 2004, takes #1 position in luxury market for 1st time in 7 years </TD></TR><TR><TD class=a11 bgColor=#eeeeee>2. From Jan through June, BMW group sales jumped 8.5% to 590,983; M-B group fell 3.3% to 584,800 </TD></TR><TR><TD class=a11 bgColor=#eeeeee>3. BMW sales success mirrors aggressive development of models to fill in gaps, including X3 offroader, 6-series coupe </TD></TR><TR><TD class=a11 bgColor=#eeeeee>4. M-B predicting recovery later in year w/ redesigned A-Class and new Smart 4-seater; expects sales to be 50K higher than last year’s 1.3m </TD></TR><TR><TD class=a11 bgColor=#eeeeee>5. JD Power predicts M-B will retake top slot in total year and increase lead next year w/ 17% jolt to 1.56M compared w/ BMW’s expected 1.22M </TD></TR>********></TABLE></TD></TR>********></TABLE>
<TABLE cellSpacing=0 cellPadding=3 width="100%" border=0>*******><TR><TD class=tablehdg1 bgColor=#dddddd>Significant Points</TD><TR><TD bgColor=#eeeeee><TABLE cellSpacing=0 cellPadding=8>*******><TR><TD class=a11 bgColor=#eeeeee>1. BMW brand outsold M-B in May and June, though Mercedes badge was in lead for 6-month period </TD></TR><TR><TD class=a11 bgColor=#eeeeee>2. M-B division of DC trying to convince unions to agree to wage cuts for sake of reaching BMW’s higher level of profitability </TD></TR><TR><TD class=a11 bgColor=#eeeeee>3. DC searching for new chief for M-B after union representatives rejected Wolfgang Bernhard just as he was to begin job </TD></TR><TR><TD class=a11 bgColor=#eeeeee>4. BMW says profits more important than sales rank, whereas M-B wants to be #1 luxury brand in long term </TD></TR>********></TABLE></TD></TR>********></TABLE>
<TABLE cellSpacing=0 cellPadding=3 width="100%" border=0>*******>*******><TR><TD class=tablehdg1 bgColor=#dddddd>Says</TD><TR><TD bgColor=#eeeeee><TABLE cellSpacing=0 cellPadding=8>*******>*******><TR><TD class=a11 bgColor=#eeeeee>"There is a question about whether or not Mercedes can actually close the gap with BMW in terms of return." -- Keith Hayes, Motor Industry Analyst, Goldman Sachs
</TD></TR><TR><TD class=a11 bgColor=#eeeeee>"We want to be the No1 premium brand on a long-term perspective. It will be completely different next year and we will have increases again." -- Mercedes Company Statement
</TD></TR><TR><TD class=a11 bgColor=#eeeeee>"This is the most successful first half in the history of the BMW group." -- BMW Group Statement
</TD></TR><TR><TD class=a11 bgColor=#eeeeee>"They (BMW) are the most amazing marketing machine. They are managing their sales this year astoundingly well." -- Harald Hendrikse, CSFB Analyst</TD></TR>********>********></TABLE></TD></TR>********>********></TABLE>
</TD></TR>********></TABLE>
<TR><TD><TABLE cellSpacing=0 cellPadding=3 width="100%" border=0>*******><TR><TD class=tablehdg1 bgColor=#dddddd>Situation</TD><TR><TD bgColor=#eeeeee><TABLE cellSpacing=0 cellPadding=8>*******><TR><TD class=a11 bgColor=#eeeeee>1. BMW overtook M-B in 1st half of 2004, takes #1 position in luxury market for 1st time in 7 years </TD></TR><TR><TD class=a11 bgColor=#eeeeee>2. From Jan through June, BMW group sales jumped 8.5% to 590,983; M-B group fell 3.3% to 584,800 </TD></TR><TR><TD class=a11 bgColor=#eeeeee>3. BMW sales success mirrors aggressive development of models to fill in gaps, including X3 offroader, 6-series coupe </TD></TR><TR><TD class=a11 bgColor=#eeeeee>4. M-B predicting recovery later in year w/ redesigned A-Class and new Smart 4-seater; expects sales to be 50K higher than last year’s 1.3m </TD></TR><TR><TD class=a11 bgColor=#eeeeee>5. JD Power predicts M-B will retake top slot in total year and increase lead next year w/ 17% jolt to 1.56M compared w/ BMW’s expected 1.22M </TD></TR>********></TABLE></TD></TR>********></TABLE>
<TABLE cellSpacing=0 cellPadding=3 width="100%" border=0>*******><TR><TD class=tablehdg1 bgColor=#dddddd>Significant Points</TD><TR><TD bgColor=#eeeeee><TABLE cellSpacing=0 cellPadding=8>*******><TR><TD class=a11 bgColor=#eeeeee>1. BMW brand outsold M-B in May and June, though Mercedes badge was in lead for 6-month period </TD></TR><TR><TD class=a11 bgColor=#eeeeee>2. M-B division of DC trying to convince unions to agree to wage cuts for sake of reaching BMW’s higher level of profitability </TD></TR><TR><TD class=a11 bgColor=#eeeeee>3. DC searching for new chief for M-B after union representatives rejected Wolfgang Bernhard just as he was to begin job </TD></TR><TR><TD class=a11 bgColor=#eeeeee>4. BMW says profits more important than sales rank, whereas M-B wants to be #1 luxury brand in long term </TD></TR>********></TABLE></TD></TR>********></TABLE>
<TABLE cellSpacing=0 cellPadding=3 width="100%" border=0>*******>*******><TR><TD class=tablehdg1 bgColor=#dddddd>Says</TD><TR><TD bgColor=#eeeeee><TABLE cellSpacing=0 cellPadding=8>*******>*******><TR><TD class=a11 bgColor=#eeeeee>"There is a question about whether or not Mercedes can actually close the gap with BMW in terms of return." -- Keith Hayes, Motor Industry Analyst, Goldman Sachs
</TD></TR><TR><TD class=a11 bgColor=#eeeeee>"We want to be the No1 premium brand on a long-term perspective. It will be completely different next year and we will have increases again." -- Mercedes Company Statement
</TD></TR><TR><TD class=a11 bgColor=#eeeeee>"This is the most successful first half in the history of the BMW group." -- BMW Group Statement
</TD></TR><TR><TD class=a11 bgColor=#eeeeee>"They (BMW) are the most amazing marketing machine. They are managing their sales this year astoundingly well." -- Harald Hendrikse, CSFB Analyst</TD></TR>********>********></TABLE></TD></TR>********>********></TABLE>
</TD></TR>********></TABLE>
