BMW Redirects Thousands of Cars to U.S. and Asia as European Sales Weaken

[Jason]

BIMMERPOST NEWS

BMW Redirects Thousands of Cars to U.S. and Asia as European Sales Weaken

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via Bloomberg:

Bayerische Motoren Werke AG (BMW) has shifted “tens of thousands” of cars that were originally targeted for Europe to the U.S. and Asia this year as sales weaken in the crisis-hit region.

“Challenges in Europe are getting greater,” Ian Robertson, sales chief for the world’s largest luxury-car brand, said to reporters today at a company event in Munich. The region faces “a lot of bumps on the road” before it stabilizes and an auto-market recovery could take years, he said.

Europe’s car industry is poised to suffer its biggest annual sales drop in 19 years in 2012. Munich-based BMW has avoided the brunt of the European sovereign-debt crisis thanks to demand in the U.S. and China for models like the new 3-Series sedan. The brand sold 14 percent more cars and sport-utility vehicles in September globally, helping boost nine-month deliveries 8.6 percent to 1.11 million vehicles.

Robertson said he expects “good” growth in the U.S. in October and November, and China is still attractive, even if growth has slowed since the beginning of the year.

“The slowdown in China is part of what’s happening in Europe,” as the effects of the debt crisis ripple beyond the continent, he said.

The growth elsewhere doesn’t help BMW’s partners in Europe, and the company may need to help dealers through the crisis, especially in Spain where it faces “some very difficult decisions” on restructuring the dealership network, Robertson said.

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[mpm3]

whoa

[cipher5]

Surplus = Cheaper cars?

[PrimoM3]

This is a good thing for U.S. (and China) buyers in the market for a new car. Means greater incentives and available choices as dealers hold more inventory.

[ozinaldo]

Makes me wonder how it may affect future model launch schedule especially brand new models like i series and some niche models like M series.

[Venom]

wouldn't they need to change quite a few parts on these cars?

I know there are quite a few parts that BMW doesn't sell to the US that are on their indicated European models only.

[SamS]

Originally Posted by Venom

wouldn't they need to change quite a few parts on these cars?

I know there are quite a few parts that BMW doesn't sell to the US that are on their indicated European models only.

Maybe they mean "production capacity", not actual built cars.

[techwhiz]

Quite a few of BMW cars are "world cars" and some markets do use left hand vs right hand drive cars.

[Venom]

Originally Posted by SamS

Maybe they mean "production capacity", not actual built cars.

That would make more sense, the title "Redirecting" is misleading because it makes it sound like the cars have already been built.

[Diver]

These are probably cars that have not yet been built because even a world car is going to run into certification differences with some items, notably headlights. It might result in more aggressive incentives in the US.

What I see here is partially the same as what I see in the business news. Things are much better in the US than in Europe. China is slow, though.

[bavarian19]

... but yet you always hear about how well sales are going. Maybe Europe is ahead of the curve in thinking the price gouging has gotten to be more than slightly ridiculous recently.

close to 60k for a non-M 3er with decent options? Seriously?

[Mbauer]

This article does not load, or the headline is fake. Cars ate built for their market, and their market only.

[SamS]

Originally Posted by bavarian19

close to 60k for a non-M 3er with decent options? Seriously?

Compared to, what?

Not my analysis, but it does make sense.

Here's a comparison of a 2013 328i with ZPP/Premium package, ZSP/Sport package - aka Sport line, ZCW/Cold Weather package, HK stereo, BMW Assist/Enhanced Bluetooth, and xenon headlights with models equally equipped from model years 2009, 2008, and 2004.

2013 F30 MSRP - $46,920
2009 E90 MSRP - $48,940 in 2012 dollars, $45,575 at the time
2008 E90 MSRP - $47,745 in 2012 dollars, $44,620 at the time
2004 E46 MSRP - $47,875 in 2012 dollars, $39,255 at the time, this model lacked many of the technological and safety advancements that came with the E90 models.

[red-sauerkraut]

Not a good sign IMO.

[ptack]

Impress me BMW - send us some more 1Ms.

[wdeerfield]

sign me up for an RHD F30 so it can get stolen!

[Kalud]

Originally Posted by wdeerfield

sign me up for an RHD F30 so it can get stolen!

[DDS2015]

These are cars that haven't been built yet and don't require much in the ways of "modifications" in order to be certified in the US, and Canada. It will cost BMW some amount of money to shift the production, but it will cost them less than having those cars sit on dealer lots in Europe.

[theART]

'The brand channel stuffed 14 percent more cars and sport-utility vehicles in September globally, helping boost nine-month deliveries 8.6 percent to 1.11 million vehicles.'

Corrected.

[zzzmmm]

Originally Posted by ozinaldo

Makes me wonder how it may affect future model launch schedule especially brand new models like i series and some niche models like M series.

expect low grade parts like my recalled oil pump on a brand new M5.
Gotta keep the same margins thus look for the cheapest contractor.

[Fraggy]

Now if only the the US would slow down its buying of BMWs, it might make them consider some recent decisions.

[bimmerjph]

I think the title redirecting allocations would be more appropriate. Hopefully BMW's strong global presence will make up for the crappy european market.