BMWNA CEO Jim O’Donnell Sees Unique Opportunity for Premium Automakers to shape the Future of Individual Mobility

News | August 4th, 2010 by 6
USA-SUMMIT/BMW

Changing consumer behavior and stricter governmental regulations to change established infrastructure, mindset, and vehicle fleet composition Premium manufacturers responsible to lead change BMW to reinvent …

  • Changing consumer behavior and stricter governmental regulations to change established infrastructure, mindset, and vehicle fleet composition
  • Premium manufacturers responsible to lead change
  • BMW to reinvent itself but stay true to its DNA

Speaking at the CAR Management Briefing Seminars today, Jim O’Donnell, President of BMW of North America, LLC, gave an optimistic outlook on the future of the premium market and BMW’s role as global leader of the segment. “In these times of change, the premium business has the opportunity to re-imagine mobility and change an established infrastructure and mindset that has been a 100 years in the making,” said O’Donnell. “You can be sure we and our competitors in the segment will not stray from this responsibility and will continue to invest heavily in the years ahead.”

BMWNA CEO Jim ODonnell Sees Unique Opportunity for Premium Automakers to shape the Future of Individual Mobility

According to O’Donnell, the premium market will continue to drive innovations across the entire value chain that quickly filters down to the mass market benefiting the entire automotive industry. Governments also recognize this contribution and now regularly ask for insight, perspective and experience from companies such as the BMW Group.

To live up to this responsibility, premium manufacturers have come to a good understanding of the driving forces and trends behind the current changes in the market place.

Most importantly, the economic recession has changed the way consumers view and purchase all premium products with a profound effect on the auto industry. In the future, people will take greater care with major purchases and as a result, consumers might buy less, but look for even better quality. “Consumers want something with true value, something that will last,” said O’Donnell. “For us this means there is, and will continue to be an excellent market for premium automobiles.” This is backed by current sales forecasts that indicate low double digit growth for the U.S. premium market for this year through 2012.

Driven by stricter government regulations and changing social and environmental expectations, BMW also believes premium fleet composition will change in the future. According to O’Donnell, premium will be defined increasingly by the overall emotional experience rather than the shape, size, method of propulsion, number of cylinders or the price. “In ten years, premium automobiles will be desired for more than size and stature,” he said. “It will no longer be about cylinders at all but rather how what’s under the hood performs and how it provides a seamless, emotional driving experience filled with delight and joy.” A good example of BMW’s future mobility direction is the three cylinder, diesel hybrid concept car called Vision EfficientDynamics that has the performance parameters of an M3, travels 0-60 in 4.8 seconds but achieves roughly 62 mpg and emits just 99 grams CO2 per kilometer.

In closing, O’Donnell made it clear that BMW will continue to build on its DNA of great dynamics, innovation and aesthetics despite the changing business environment. “We see many significant opportunities to grow, prosper and continue to help develop a future of sustainable mobility, and we at BMW are ready to reinvent in every aspect of our business except to reinvent what we stand for… the ultimate driving machine.”

[Source: BMW ]

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  • FreudeKing

    Nice talk. Lots of motivation coming from the VED…. I do hope they can come up with a car that looks and features that incorporates what BMW has displayed. or else, it will just be galdly used by other manufacturers like the CS for Mercedes Benz.

    One thing that will hinder all that he is talking about: BMW Germany (HQ)’s cost cutting measures. Let’s see how all that plays out. I think the next recall is the 7 Series.

    • kcsnyud

      I think the next recall is electric system failure on ALL cars. LOL

  • Naaman Kelley

    Mr. O’donnell, I called customer relations and asked to speak with you in regards to my dissatifaction with the mechanical endurance of my 750 li BMW. I was told by Marisa Tapia that neither you or other executives are willing to talk with the customers. Is this what the customers of the ULTIMATE DRIVING MACHINE are suppose to expect?

    • FreudeKing

      What a disguisting attitude that these people have. Who the hell do they think they are??? Does this Mr. O’Donnell think that he is so high up in a credible company that he won’t step to the level of BMWs customers and communicate with them.

      I would NEVER allow the management of companies that I own to have such attitudes towards MY customers, customers that are the core stakeholders in revenue generation. if you want to play high and mighty, go be a soldier or policeman. There is NO PLACE in today’s corporate world for arrogant employees like O’donnell. This is exactly the disguisting attitude that current BMW management are having that is driving BMW to the ground. Arrogant, Ignorant, full of themselves and thinking that they know it all. This is exactly the attitude that creates poor public image and poor customer experience.

      You should write to headquarters and newspapers about this. It is time that we get new management at BMW.

  • Aimeewdaniels

    I have had a BMW 525xi for about five or six years which I have generally been very happy with. My first experience with paying for my own service was last year as my car was then out of warranty. I was surprised to learn that the bill for service was around $3,000. When I questioned why it was do high, the service person said that “BMW feels that clients should spend about $3,000/year servicing their cars.” Today, I took my car in because a service light was on yesterday. When they called with the estimate, guess how much it was $3,100. I understand you are in business to make money but it makes me very skeptical as a client as to whether you have my best interest at heart. I love my car but given this concern, I might purchase another brand next time around.

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