BMW Off To A "Restrained Start", UK Subsidiaries Save The Day
M.Y. 2008 M3 Sedan Can’t Arrive Too Soon.Paraphrasing (crudely) the seminal 80′s flick Wall Street: the rich may be bitching, but the super-rich ain’t.
All but the truly inflation proof are subject to the uneasy prospect of slowing markets this world round. And that maxim is coming home to the Roundel whose North American sales spun a little too long off the line – losing share to last year’s performance by 4.1%.
BMW’s press release admitted that the marque started the year with “a restrained start.”
That having been said, more of the very well-off took delivery of new Rolls-Royces than e’er before. Rolls sales were up a prosperous 64% (translating to 41 units) thanks to the new convertible.
Cheap ‘n cheerful (in this company at least) MINIs also faired well by jumping 13.3% over January last year.
This all means that for once, it was the British subsidiaries’ performance that drove share performance – not the hyper-efficient Teutons. Score two for Albion.
Still, BMW’s right to spin a positive sales outlook for the near future.
“In 2008, the BMW Group will once again maintain its top position as the world’s leading manufacturer of premium vehicles. We have once again taken on a great deal and are aiming to set new sales records for all three brands,” promised marketing man Stefan Krause.
With the impending intro of the oh-so hot 1-Series, the so/so M3 sedan, and the sure-to-be-at-every-soccer-match X6, he may just be right. Though, the BMW’s intake will be whatever the market will bear.
And there are only so many of the super-rich to go around.
About the Author: Gunnar Heinrich is publisher of Automobiles De Luxe online and is executive producer of the Automobiles De Luxe Television series on PBS member station CPTV.
J | Feb 12, 2008 | Reply
The motorcycle group also had a record year.
The credit crisis and the Weinmar Republic like value of the dollar will wreck havoc on the Roundel folks for the next couple of years.
Word on the street is that BMWNA is in full financial crisis mode. They are buying out long time employees and slashing perks and staff. This started long before the problems spread to Europe so things may have bottomed out or are at least near the bottom for Woodcliff Lake. But these are not happy times for BMW.
I wonder how many bimmers were bought with cash gain from refinancing the McMansion?
Gunnar Heinrich | Feb 12, 2008 | Reply
Jim > I continue to be astonished by this so called credit crisis. BMW has had record years for two years straight now and one would think that the profit they’ve made would grant them the ability to weather this pretty handily. It doesn’t make sense.
steane | Feb 13, 2008 | Reply
In my humble opinion I see a rocky road ahead for more than just the likes of BMW. I think we are seeing the start of a downturn not the bottoming out of one.
I hope I am wrong – I usually am…
J | Feb 13, 2008 | Reply
Gunnar, you’re being naive about corporate finance. Last year was last year and those profits have been salted away in the bank accounts of the Quants and others and won’t be returned to support the company till the employees have suitably whipped and exhausted.
Steane, you’re right it is going to be a rough couple of years. After all the belt tightening GM has done they still had a record loss.