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BMW Group reports 10.8% sales increase in May

News | June 9th, 2010 by 23
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BMW brand volumes up 12.3%; MINI 2.7% higher Munich. The BMW Group continues its upward trend in sales: The company increased global sales of its …

BMW brand volumes up 12.3%; MINI 2.7% higher

Munich. The BMW Group continues its upward trend in sales: The company increased global sales of its three premium automobile brands, BMW, MINI and Rolls-Royce, by 10.8% (120,843 / prev. yr. 109,049) in May. Deliveries for the year to the end of May climbed 13.3% to 552,864 vehicles (prev. yr. 487,914).

Ian Robertson, member of the Board of Management of BMW AG, responsible for Sales and Marketing: “The sales trend remains positive – we reported healthy double-digit growth once again in May. Thanks to our numerous new models, such as the BMW 5 Series and the BMW X1, we are on course to maintain our position as the world’s leading manufacturer of premium vehicles throughout 2010.”

BMW Group reports 10.8% sales increase in May

The BMW brand sold 101,775 units (prev. yr. 90,649) worldwide last month – an increase of 12.3%. For the year to the end of May, sales were 14.1% higher than the previous year’s figure (408,377) at 466,087 vehicles. The models with the strongest growth in the month under review were the BMW 7 Series, with an increase of 33.6% (4,501 / prev. yr. 3,370), and the new BMW 5 Series Sedan, with an increase of 13.1% (13,716 / prev. yr. 12,131). The latest BMW 5 Series Touring will come onto the market in the autumn and is set to give sales a further boost, especially in Europe. The BMW 3 Series (+6.9% / 35,398), the BMW Z4 (+10.9% / 2,624) and X6 (+3,3% /3,743) models also made gains in May. Yesterday, 8 June, marked another milestone for the BMW X5, as the one millionth BMW X5 left the production plant of the US site in Spartanburg, South Carolina. This successful model, now in its second generation, has been in production since 1999 and remains the clear market leader in the premium off/on roader segment. Following its recent model overhaul, the BMW X5 is now available with new, more powerful, even more economical engines.

With 18,848 (prev. yr. 18,349) sales worldwide in May, MINI brand volumes were 2.7% higher. The MINI Clubman was purchased by 7.7% (3,624 / prev. yr. 3,366) more customers than in the same period last year. MINI’s traditionally best-selling Hatch versions also made gains in May. The 12,298 deliveries (prev. yr. 11,930) of this model represent an increase of 3.1%.

The company once again made strong gains in the emerging “BRIC” countries. China was one of the clear leaders – also among the Asian growth markets. The BMW Group sold more than twice as many BMW and MINI vehicles here than last May, with an increase of 107.3% (13,998 / prev. yr. 6,752). Strong growth was also reported in Europe’s key high-volume markets: For example, deliveries climbed 44.6% (6,251 / prev. yr. 4,323) in France; 28.1% (10,965 / prev. yr. 8,557) in U.K/Ireland; and 29.4% in Spain (3,995 / prev. yr. 3,087).

The new Rolls-Royce Ghost, which joined the model range in December of last year, continues to drive the Rolls-Royce brand’s highly dynamic growth, with 220 (prev. yr. 51) automobiles sold in May. As such, sales grew more than four fold (+331.4%) compared to the same period last year. The number of Rolls-Royce vehicles delivered to the end of May increased by 145.7% to 678 (prev. yr. 276) vehicles. Ian Robertson: “The new Ghost has been very well received by customers all over the world. With this new model, we aim to double total Rolls-Royce sales this year.”

BMW Motorrad once again achieved a substantial increase in sales in May and continues on its successful course. Despite the continuing strong decline in the global motorcycle market in the segment over 500cc, sales in May climbed 19.3% to reach a total of 12,139 (prev. yr. 10,172) units. For the year to the end of May, BMW Motorrad reported sales growth of 20.9% to 45,431 (prev. yr. 37,570) units. The lasting boom at BMW Motorrad can be attributed to its broad range of attractive products. With 3,705 (prev. yr. 2,766 / +33.9%) deliveries in May the R 1200 GS / GS Adventure model with the new Boxer engine remains the best-selling product in the BMW motorcycle portfolio. Alongside the other R Series Boxer motorcycles, the F and K Series models are also in strong demand. Sales of the S 1000 RR continue to perform well: 5,236 (in May 1,345) units of BMW’s first Supersport motorcycle have already been delivered to customers worldwide in the year to the end of May.

BMW Group reports 10.8% sales increase in May

[Source:  BMW ]

  • Artmic

    double dip recession on the way, those figures will look like -18 soon.

    • FreudeKing

      I must say that I am generally happy with the results. BUT, it didn’t really give us the whole picture because I have no idea what Audi and Merc achieved. They could have had double digit growth in the 20′s.

      So whether or not this is good depends on whether they gained market share. If not, these numbers are trash. The fact that they did not mention about gaining market share can easily be seen that they didn’t.

      Also, the only model that was mentioned to be the market leader is the X5. it is a disaster that none of BMW’s other models managed to lead sales in their repective segments. Note that they were all segment leaders not too long ago – back in 2005. So they must pull thier socks up.

      Just before some blind BMW fans call me a BMW hater, this is just a basic analysis of the sales report.

      • bob

        By your own account, being ignorant of Audi’s & M-B’s results precludes even a poor analysis…let alone a “basic analysis”. Sans facts there are only opinions.

        For example, not only the E70, but Robertson has commented recently, in reports dated Monday, that other BMW models are also current segment leaders. Which are they?

        • FreudeKing

          It’s the amazing 7, (X6 5GT as they are the only ones in their respective segments)! But the 7 being reported as class leader was from the past. How am I suppose to know from this report that they are still the leaders? When I read the reports of car sales in my area, the 7 is only a few units behind the 7. What I am saying is I must read between the lines. If you don’t say something, then it means you didn’t achieve it. esp when we are dealing with things like sales reports as they will most certain put all their achievements in there.

          What I said above were not opinions, they were issues that should be raised. I couldn’t care less how sales jumped for BMW compared to last year. The key indicator is market share growth. No mention was made on this indicator of success and I can assure you that they have lost more market share to Audi once again. take note, BMW launched many of their new significant models (5, X1, etc.) and yet failed to capitalise on market share, yet Audi is grabing customers without introducing any new main stream models and without excessive incentives to boost sales. It must be pretty bad at BMW. WAKE UP!

          • bob

            Still more subjective opinions, not objective facts.

  • Babken

    Interesting. The S-Class ruins the 7 Series, the E-Class does the same to the 5 Series, and BMW claims that they are the market leaders. Well, maybe in the premium segment, but not in the luxury segment. Congratulations, Mercedes-Benz.

    • bob

      Are you saying that Daimler’s M-B is no longer a premium brand?

      Well, considering that even lowly Audi has passed M-B — BMW ran over M-B several years ago — you might be right. LOL!

      YTD 21010 thru May:

      1st = BMW – 466,087
      2nd = Audi – 455,700
      Last = M-B – 443, 460

      • FreudeKing

        Exactly, from the report, it seems like the only market leader that BMW is able to achieve is the X5′s segment. It makes you wonder how they can still keep the No.1 spot and how they can be on track – as they put it. If this is the sales numbers when they have launched their new 5, 7, X1, models, I shallow to think what will happen when Audi launches their new A6, A8, etc.

        It also makes you wonder how BMW is able to achieve highest total sales if it doesn’t lead in any one of the segment that it participates in except for the X5. Let me guess, by introducing more in-between, niche models like the X6, 5GT, 3GT, and who knows how many Mini variants there are coming out. Is this really sustainable? It doesn’t seem like these in-between models are doing well comparing the volumes of the main stream products. Are they even earning enough ROI on these models.

        BMW should be ashamed with the gap between itself and the “lowly Audi” as bob puts it. Considering the fact that Audi is not even a genuine premium brand as it is basically a VW. And if you consider the growth in sales of the two brands, it should be even more ashamed. What happened between 2005 and now? Something is wrong with their strategy, clearly.

        I also find it quite interesting to compare the strategy and direction from the two companies:

        BMW: Strategy Number ONE: COST CUTTING, EFFICIENT PRODUCTION AND INCREASING PROFITS (i.e. pleasing shareholders first)
        Audi: To be the sportiest “premium” brand and be no.1 ito sales volume – i.e. focus on brand building and product appeal (i.e. satisfying customers, which would naturally please shareholders)

        So one can see from the above that the two companies are using different strategies and we are seeing different results. What do shareholders get without customers?

        I am a huge BMW fan and I don’t like Audi’s, but to a normal customer, Audi has better appeal at the moment – this can be seen from their consistent and huge growth in market share (i.e. taking customers away from BMW). Take note that they did not even get hit by the recession a few months ago, whereas BMW and Merc were licking their deep wounds

        The premium segment is the luxury segment as luxury = premium.

  • efoza

    I think the success of the 5GT sales must have really made a difference to these figures

  • bob

    1. “…from the report, it seems like the only market leader that BMW is able to achieve is the X5’s segment.”

    Have you done your research to verify that? JOOC, since you purport yourself to be an *OBJECTIVE Analyst*. Interestingly, you’ve provided no *objective* data…only *subjective* opinion.

    2. “It makes you wonder how they can still keep the No.1 spot and how they can be on track – as they put it.”

    Have you looked at the numbers? Not just this latest monthly Sales Report, which is only a ‘snapshot’ — as it’s not a (presumably) Q’ly externally-audited document, they can pretty much say, or not say, whatever they want. Tho, granted, they tend to put a ‘happy face’ on things…

    3. “If this is the sales numbers when they have launched their new 5, 7, X1, models, I shallow to think what will happen when Audi launches their new A6, A8, etc.”

    How many F10s + E84s has BMW NA sold so far? The US is a major market for BMW, right? Is there sufficient data to draw any meaningful conclusions as of yet?

    4. “It also makes you wonder how BMW is able to achieve highest total sales if it doesn’t lead in any one of the segment that it participates in except for the X5. ”

    First, what confirmation(s) do you have that the E70 is BMW’s only segment leader?

    Second, that’s a good point! How does BMW stay on top? Seriously, how have they’ve been able to do it? *Objectively*, of course.

    5. “Let me guess, by introducing more in-between, niche models like the X6, 5GT, 3GT, …”

    Partly, Yes. What other factors are involved?

    6. “Is this really sustainable?”

    What & When was BMW’s last commercial flop?

    7. “Are they even earning enough ROI on these models.”

    Every financial analyst that follows BMW AG knows that they use the measure, ROCE not ROI. The desired purpose is more or less the same; it’s just a tipoff as to whether actually follows BMW as closely as they say they do. In any event, Yes, all of BMW’s niche products have to meet the corporate ROCE requirements (unforeseen market conditions not withstanding), from MINI R-R. Otherwise the Vorstand won’t sign-off on them.

    8. “BMW should be ashamed with the gap between itself and the “lowly Audi” as bob puts it. Considering the fact that Audi is not even a genuine premium brand as it is basically a VW. And if you consider the growth in sales of the two brands, it should be even more ashamed. What happened between 2005 and now? Something is wrong with their strategy, clearly.”

    OK, what exactly did happen between 2005 and now? Show facts.

    9. “So one can see from the above that the two companies are using different strategies and we are seeing different results. What do shareholders get without customers?”

    You falsely assume that all customers are created equal. They’re not.

    10. “I am a huge BMW fan and I don’t like Audi’s, but to a normal customer, Audi has better appeal at the moment – this can be seen from their consistent and huge growth in market share (i.e. taking customers away from BMW).”

    Has it ever occurred to you that some of the conquest sales that Audi may or may not have gotten from BMW are those sales that BMW simply doesn’t want?!

    It’s another tipoff of the amateur analyst. Quality of sales matter, they really do. Demographics also. The message that O’Donnell has been telling the media lately is that, they’d rather see sales fall in tough times, which will happen anyway, than to pursue ‘weaker’ customers. Tho, he also said that, if Audi & M-B increase incentives, BMW will have to be competitive.

    As long as BMW remains the world’s #1 premium maker the only conclusion to be drawn is that their strategy is the best.

    11. “The premium segment is the luxury segment as luxury = premium.”

    Babken stated the two are different. I disagree.

    • bob

      ^^^ Intended for FreudeKing.

  • Iks

    Sales on F10 only 13% higher than in last months of E60 life (May 2009)??? Sorry, but this means fail. Why? People are not stupid, X5/X6 experience show, you dont need to buy right now, wait!!!! Otherwise you ll loose money.
    How many people, who bought first E70 were feeling stupid, when E71 appeared – they were have to sell E70 to get right X6 . The same now. A lot people dont want to get “unisex” F10 – during one year BMW ll make “right” one – 6 with 4 doors).
    As i understand from report, no words about X5 – does it mean LCI model is loosing sales volumes?

    • FreudeKing

      What’s your point, I don’t understand what you are trying to say. People generally don’t feel stupid when LCI or new models come out, unless you bought it right at the end of the cycle/midcycle (but then you normally get a huge discount to compensate anyway. The only instance one should feel stupid is if you buy this 1 Series M that’s coming out as the 1 Series will be replaced in about a year’s time.

      • Iks

        FreudeKing, thanks for reply. About “stupid”) I was trying to say is an example from life. Person, who owned E53, bought new E70 in 2007. But a little bit later, in 2008, BMW launched more interesting model of X – the E71 X6. What was owner of E70 has to do? Sell 1 year old E70, loosing about 30% on value???? Good surpise from BMW AG.
        The same was with other person. He bought X6 50i, dealer said there ll be no X6M. Ofter half year – great surprise from BMW, X6 50i is not the fastest, you have to buy M :-( Of person would know, that X6M will be soon – he would wait and bought it.
        In addition, i want to say thanks, that for F10 BMW firstly launched GT. But now poterncial buyers ll want 6 4d Coupe. You see it on sales figures.

        • bob

          I agree to some extent regarding ‘surprises’ from AG. On the other hand, CAVEAT EMPTOR is ever present.

          In your first example, re: E71, ROUNDEL reported it for their August 2005 issue. That person had ample warning. Furthermore, the E71 is a niche product, for those who wouldn’t buy an E70 anyway. The fact that they went from an E53 to an E70 may represent a slightly diferent demographic.

          As for the second person, re: X6///M, if they believe everything a dealer says, then there’s little we can do to help.

          “You see it on sales figures.”

          Can you provide an example with real world sales data? I think you’re probably right. Potential opportunity to see how AG manages its sales overall.

          • Iks

            Thanks Bob.
            P.S. “You see it on sales figures.”.I am correctly understood, that F10 sales in May 2010 are only 13% higher than E60 in May 2009? If it is so, do you think is it OK for totaly new model? (not simple LCI !)

          • bob

            Iks

            “I am correctly understood, that F10 sales in May 2010 are only 13% higher than E60 in May 2009? If it is so, do you think is it OK for totaly new model? (not simple LCI !)”

            Note that AG reported May 2010 5 Series *SEDAN* sales, worldwide, as being up 13.1%. Well, the US market didn’t have the F10 *SEDAN* in May. NA reported 5 Series sales in May as down 41.4%.

            The 5 Series *Range* includes not only the Sedan, but the Touring, as well as the new F07.

            How can you say that the F10 is a failure, when it wasn’t even available in BMW’s 2nd biggest market, the US, during the reporting period(May)?

            You said: “You see it on sales figures.”

            OK, how so?

  • FreudeKing

    Let me give you some answers to your questions in square brackets:

    1. “…from the report, it seems like the only market leader that BMW is able to achieve is the X5’s segment.”

    Have you done your research to verify that? JOOC, since you purport yourself to be an *OBJECTIVE Analyst*. Interestingly, you’ve provided no *objective* data…only *subjective* opinion.

    [I already said, from the report. I see no point in them not adding the 7, etc. if they were indeed market leaders. The X6, X1, 5GT, etc. can definitely not be leaders as they are loners in their segments, waiting for someone to join in. Which other models would you consider to be a leader (WORLDWIDE), C>3, E>5, the only possible other leader is the 7 and I don't think it was able to achieve a leader status worldwide, that why they didn't mention it.]

    2. “It makes you wonder how they can still keep the No.1 spot and how they can be on track – as they put it.”

    Have you looked at the numbers? Not just this latest monthly Sales Report, which is only a ’snapshot’ — as it’s not a (presumably) Q’ly externally-audited document, they can pretty much say, or not say, whatever they want. Tho, granted, they tend to put a ‘happy face’ on things…

    [Of course I have looked at the numbers, and if we are not looking at the May snapshot, what else shoud we look at? Should we look at last year's sales rather? Are you suggesting that these are incorect information? Even if the reports were externally audited, there is absolutely no requirements on what they should report on in terms of a sales report. This is not a set of financial statement, as long as the unit numbers are correct, it is up to them to say whether a specific product is a market leader or not. And as I said, they will most probably say so when some of their products are infact leaders.]

    3. “If this is the sales numbers when they have launched their new 5, 7, X1, models, I shallow to think what will happen when Audi launches their new A6, A8, etc.”

    How many F10s + E84s has BMW NA sold so far? The US is a major market for BMW, right? Is there sufficient data to draw any meaningful conclusions as of yet?

    [NA is only a fraction of BMW sales. It is ONE OF the major markets for BMW. I look at things in a global perspective. There is obviously reasons to draw on conclusions, the first 6 months of a car's lifecycle is extremely important as it is where sales is suppose to peak. Obviously there are macro-economic factors, but it doesn't paint a good picture when you are losing chunks of market share. It just means that your competitors are doing much better in the same environment, so you have lost competitive advantage.

    4. “It also makes you wonder how BMW is able to achieve highest total sales if it doesn’t lead in any one of the segment that it participates in except for the X5. ”

    First, what confirmation(s) do you have that the E70 is BMW’s only segment leader?

    [As above, from the report, that's what I gathered.]

    Second, that’s a good point! How does BMW stay on top? Seriously, how have they’ve been able to do it? *Objectively*, of course.

    [My prediction is that they will not be on top for long considering Audi's potent growth and their ability to take customers away from BMW. This is also my biggest worry.]

    5. “Let me guess, by introducing more in-between, niche models like the X6, 5GT, 3GT, …”

    Partly, Yes. What other factors are involved?

    [Strong brand image, but they may well be diluting it with less concentration on the core values and absolute attention on ED (which is important, but not core), introduction of FWD (which is against most customer believes and contradicting what BMW said in the past few decades), these are all things that diluet brand image and with Audi's aim of becoming THE sporting premium brand (which is what BMW should be), the public is finding Audi more attractive, clearly. BMW took its eyes off the ball.] [All the above strategies are boosting short term sales unit growth with immense damage to what the brand stands for, customers will then find it less exclusive and therefore sales will drop in time]

    6. “Is this really sustainable?”

    What & When was BMW’s last commercial flop?

    [Back in 2000/2001 with Rover, it almost got taken over. The fact that it has been financially healthy for the past decade does not mean that it is never going to go down. Look what Audi is able to achieve during a recession and you will see how weak BMW is in comparison.]

    7. “Are they even earning enough ROI on these models.”

    Every financial analyst that follows BMW AG knows that they use the measure, ROCE not ROI. The desired purpose is more or less the same; it’s just a tipoff as to whether actually follows BMW as closely as they say they do. In any event, Yes, all of BMW’s niche products have to meet the corporate ROCE requirements (unforeseen market conditions not withstanding), from MINI R-R. Otherwise the Vorstand won’t sign-off on them.

    [My ROI is a general term to describe whether or not they are earning a return on their investment. I couldn't care less that they use ROCE with their firm specific adjustments to report on their numbers. BTW, I am talking about specific product categories, not the entire company. Furthermore, if they really wanted to be accurate, they should have used EVA variants as we all know that ROI and ROCE alone may encourage these managers to play with figues in a way that harms the long term prospects of the company, while they get big bonuses with artificially inflated numbers. For external reporting purposes, it's ok to use ROCE, but internal project analysis, EVA and other BSC measures should be used. Does this mean that BMW executives are properly evaluated to minise the agency problem?]

    8. “BMW should be ashamed with the gap between itself and the “lowly Audi” as bob puts it. Considering the fact that Audi is not even a genuine premium brand as it is basically a VW. And if you consider the growth in sales of the two brands, it should be even more ashamed. What happened between 2005 and now? Something is wrong with their strategy, clearly.”

    OK, what exactly did happen between 2005 and now? Show facts.

    [You can go look up the worldwide facts. Basically Audi market share jumped double digit percentage and BMW lost chunks of market share.]

    9. “So one can see from the above that the two companies are using different strategies and we are seeing different results. What do shareholders get without customers?”

    You falsely assume that all customers are created equal. They’re not.

    [no I didn't, what kind of arguement is this? It is a fact that more customers are turning to Audi, both new and old of the premium segment. While not all customers are equal, like you said, the majority of change is to Audi (new and old). The level of competitive advantage and product and brand appeal can also be evaluated by looking at the change in market share over this period]

    10. “I am a huge BMW fan and I don’t like Audi’s, but to a normal customer, Audi has better appeal at the moment – this can be seen from their consistent and huge growth in market share (i.e. taking customers away from BMW).”

    Has it ever occurred to you that some of the conquest sales that Audi may or may not have gotten from BMW are those sales that BMW simply doesn’t want?!

    [That is a biggest load of rubbish that I have read so far from you. If all BMW's products are profitable (should I rather say not value adding), there is no reason why they won't want sales. In fact, if there are products that are not profitable (or they are offering financing terms that are not profitable to the group as a whole), why are they still continue making it/offering it? Tell me and the shareholders of BMW which BMW products they don't want to have sales (i.e. not profitable) and we can all go ask management why they are still carrying on making this specific product to destroy shareholders' wealth.]

    It’s another tipoff of the amateur analyst. Quality of sales matter, they really do. Demographics also. The message that O’Donnell has been telling the media lately is that, they’d rather see sales fall in tough times, which will happen anyway, than to pursue ‘weaker’ customers. Tho, he also said that, if Audi & M-B increase incentives, BMW will have to be competitive.

    [Yes, quality of sales do matter and each product of the company should be adding value. Hence market share is the most important indicator of performance, both internally and externally. We all know BMW is failing in this department despite launching of all these funny models. I do not consider current times to be tough times, not when the premium segment is increasing in growth in a double digit percentage manner. It's just that BMW failed to capitalise on the growth, not to mention the fact that they are the ones offering most incentives.

    As long as BMW remains the world’s #1 premium maker the only conclusion to be drawn is that their strategy is the best.

    [There is a period/time lag between a poor strategy implemented and losing the crown. This right now is that lag period. I will greet you again WHEN BMW is dethrowned by lowly Audi in the very near future. BMW's strategy is best for boosting short term share price, not long term company prospects and shareholder well-being]

    11. “The premium segment is the luxury segment as luxury = premium.”

    Babken stated the two are different. I disagree.

    Finally I am not an analyst, just a fan analysing BMW’s sales figures.

    • bob

      “Finally I am not an analyst, ”

      True.

      “just a fan analysing BMW’s sales figures.”

      False.

    • kcsnyud

      Um, how do u know? The US is one of bmws biggest markets, and 5 series production hasnt even started there yet. And since when was the c class better than 3 series?

      Tell me wat u think. O sure, the 3 series is the worst bmw ever, c class is thousand times better, same goes wit 5 series, terrible bmw, never buy bmw again, always buy audi and merc, its facts ok??? U suck bmw

      Take that.

      • FreudeKing

        I have never for once said that any Merc or Audi car is better than BMW. What I did say is that more customers are choosing Audi and Merc than BMW based on market share growth. This is why I consider it a sad situation as BMW clearly have superior products at the moment. And just to let BMW guys know as well, good products don’t sell themselves, you need to push for ads and promo’s.

        Just to point out another thing: this CEO told us that BMW should strat building FWD cars because 80% of 1 Series hatch drivers didn’t know their cars were RWD. I don’t consider this to be a justified reason for trashing one of the long standing brand values that defined what a BMW is for decades. My blame should be: why the hell did you fail to let your customers and potential customers know about one of the most important competitive advantage of the 1 Series, being the best handling sports hatch and the only one with RWD in its class. Has that guy even considered the fact that the buyers may not be the drivers? e.g. husband buying wife the 1 Series, while they themselves drive the 3/5/7?

  • MPLAMKATA

    That’s perfect:)

  • Davidz

    SO STUPID A NON FAN OF BMW WILL SPEND SO MUCH TIME ANALYZING ISSUES ON BMWBLOG. U SURE HAVE BETTER THINGS TO DO OR YOU’RE PAID TO DO THIS.

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