The Mini is driving BMW's sales increase.
#1
The Mini is driving BMW's sales increase.
BMW sold 134,000 of them last year & plans to break 140,000 this year. Kind of put's the 35,000 final year's combined sales of the f-bodies in perspective.
http://64.4.8.250/cgi-bin/linkrd?_la...2dM9%2fandl485
http://64.4.8.250/cgi-bin/linkrd?_la...2dM9%2fandl485
#4
Re: The Mini is driving BMW's sales increase.
Originally posted by guionM
[B]BMW sold 134,000 of them last year & plans to break 140,000 this year. Kind of put's the 35,000 final year's combined sales of the f-bodies in perspective.
/B]
[B]BMW sold 134,000 of them last year & plans to break 140,000 this year. Kind of put's the 35,000 final year's combined sales of the f-bodies in perspective.
/B]
Considering that the Mini carries a premium price, no 5-door option, and no diesel version for europe, the sales performance is remarkable. GM should take heed. If BMW is having success with a small, lower-end car - and plans further moves in that direction with the 1-series - maybe a $125,000 Cadillac V12 is a stupid idea.
#5
#6
Originally posted by CamaroJim
it sold that many because they are new. look at the first year 4th gen sales figures. the mini sales will drop
it sold that many because they are new. look at the first year 4th gen sales figures. the mini sales will drop
#10
Re: Re: The Mini is driving BMW's sales increase.
Originally posted by redzed
Considering that the Mini carries a premium price, no 5-door option, and no diesel version for europe, the sales performance is remarkable. GM should take heed. If BMW is having success with a small, lower-end car - and plans further moves in that direction with the 1-series - maybe a $125,000 Cadillac V12 is a stupid idea.
Considering that the Mini carries a premium price, no 5-door option, and no diesel version for europe, the sales performance is remarkable. GM should take heed. If BMW is having success with a small, lower-end car - and plans further moves in that direction with the 1-series - maybe a $125,000 Cadillac V12 is a stupid idea.
BTW, it's the same with the New Beetle. Taken by itself the car has very few redeeming qualities, but since people recognize the shape they make the emotional connection to the original.
In both cases the original sold on its intrinsic value, while the "modern" version is just whoring that image.
Cadillac is absolutely going in the right direction. In the short term BMW's and Mercedes' strategies work well because perception always lags reality in the marketplace, so people still perceive them as expensive brands even though Mercedes now sells a $25,000 hatchback. Eventually this will catch up to them and dilute their brands' equity, at which point their entire lines will suffer.
Going upmarket is harder, but the rewards are far greater. Even now, Cadillac sells more $40,000+ cars than any other brand in North America. (And because of trucks, Chevy sells more $35,000+ vehicles than any other brand.)
#11
Re: Re: Re: The Mini is driving BMW's sales increase.
Originally posted by R377
[B]That's not a valid comparison. The only reason the Mini is selling as well as it is is because of the nostalgia factor. If there were no mini 40 years ago to appeal to the emotions of baby boomers, it would be just another small underpowered car in a crowded market.
[B]That's not a valid comparison. The only reason the Mini is selling as well as it is is because of the nostalgia factor. If there were no mini 40 years ago to appeal to the emotions of baby boomers, it would be just another small underpowered car in a crowded market.
If anything, it proves that there is a market for inexpensive, FUN, stylish cars.
#12
Re: Re: Re: The Mini is driving BMW's sales increase.
Originally posted by R377
That's not a valid comparison. The only reason the Mini is selling as well as it is is because of the nostalgia factor. If there were no mini 40 years ago to appeal to the emotions of baby boomers, it would be just another small underpowered car in a crowded market.
BTW, it's the same with the New Beetle. Taken by itself the car has very few redeeming qualities, but since people recognize the shape they make the emotional connection to the original.
In both cases the original sold on its intrinsic value, while the "modern" version is just whoring that image.
Cadillac is absolutely going in the right direction. In the short term BMW's and Mercedes' strategies work well because perception always lags reality in the marketplace, so people still perceive them as expensive brands even though Mercedes now sells a $25,000 hatchback. Eventually this will catch up to them and dilute their brands' equity, at which point their entire lines will suffer.
Going upmarket is harder, but the rewards are far greater. Even now, Cadillac sells more $40,000+ cars than any other brand in North America. (And because of trucks, Chevy sells more $35,000+ vehicles than any other brand.)
That's not a valid comparison. The only reason the Mini is selling as well as it is is because of the nostalgia factor. If there were no mini 40 years ago to appeal to the emotions of baby boomers, it would be just another small underpowered car in a crowded market.
BTW, it's the same with the New Beetle. Taken by itself the car has very few redeeming qualities, but since people recognize the shape they make the emotional connection to the original.
In both cases the original sold on its intrinsic value, while the "modern" version is just whoring that image.
Cadillac is absolutely going in the right direction. In the short term BMW's and Mercedes' strategies work well because perception always lags reality in the marketplace, so people still perceive them as expensive brands even though Mercedes now sells a $25,000 hatchback. Eventually this will catch up to them and dilute their brands' equity, at which point their entire lines will suffer.
Going upmarket is harder, but the rewards are far greater. Even now, Cadillac sells more $40,000+ cars than any other brand in North America. (And because of trucks, Chevy sells more $35,000+ vehicles than any other brand.)
As far as less expensive cars diluting the image, Mercedes are used as taxis in Germany, just like Crown Vics in New York. Similarly, there were available with plaid upholstery, plastic hub caps and weak 75hp diesel motors. Didn't diminish the image of the brand, though.
Cadillac might sell the most $40,000 sedans in the United States, but those sedans are going to increasingly elderly buyers. With ZERO name credibility among Lexus and BMW buyers, Cadillac is faced with starting from scratch before their customer base dies off. The CTS represented a small victory for entry-level near luxury buyers, but $70-125,000 cars are irrelevant, especially for a brand with such a poor image. Can you say "Allante?"
Mercedes and BMW are successful brands, and will maintain that success by extending their product range downmarket. BMW 1-series buyers will trade into to larger, higher profit models as they age, just as 3-series buyers do today.
Mercedes might be less successful, as their cheaper cars have been purchased by affluent, but elderly, retirees. (I know an octogenarian that's moved from a 300E to a C280 to a C230 Sport Coupe. In ten years he'd traded down from a $47,000 to a $27,000 car. At least they kept him in the brand fold, something GM wishes it could do with the oldsters trading Buicks for Toyotas.) This phenomenon is more prevalent in Europe, but it hasn't stopped Mercedes from gaining market share. The move downmarket has killed the topend offerings of Ford, Opel and Citroen.
Going downmarket sells, trying to push a brand up the prestige ladder doesn't.
Last edited by redzed; 12-10-2002 at 06:52 PM.
#13
Re: Re: Re: Re: The Mini is driving BMW's sales increase.
Originally posted by redzed The new Mini actually makes sense as an urban performance car in congested Europe, especially as the supercharged Cooper S. As far as playing on nostalia, the original Austin Mini sold in miniscule numbers in the U.S. - it disappeared after 1967 because it couldn't meet Federal safety standard. Novelty, and the prestige of being sold from BMW franchises, are the reasons why a Geo Metro sized car is selling in the U.S. The New Beetle was a different story. Big nostalgia stateside, poor sales in Europe because it was comparitively large and space inefficient.
As far as less expensive cars diluting the image, Mercedes are used as taxis in Germany, just like Crown Vics in New York. Similarly, there were available with plaid upholstery, plastic hub caps and weak 75hp diesel motors. Didn't diminish the image of the brand, though.
Cadillac might sell the most $40,000 sedans in the United States, but those sedans are going to increasingly elderly buyers. With ZERO name credibility among Lexus and BMW buyers, Cadillac is faced with starting from scratch before their customer base dies off. The CTS represented a small victory for entry-level near luxury buyers, but $70-125,000 cars are irrelevant, especially for a brand with such a poor image. Can you say "Allante?"
Allante is a different kettle of fish. Poor quality and poor execution killed it more than other factor. If done right and with reasonable sales goals, the XLR will do well. (I'll agree that the Cien might be too much of a stretch though.) Remember how people laughed at Toyota when they launched Lexus?
Mercedes and BMW are successful brands, and will maintain that success by extending their product range downmarket. BMW 1-series buyers will trade into to larger, higher profit models as they age, just as 3-series buyers do today.
I'm not saying it's an overnight transformation, but eventually people will cease to covet them because they're no longer hard to get.
Going downmarket sells, trying to push a brand up the prestige ladder doesn't.
Another history lesson: BMW used to sell cheap little Isetta mini cars, but they successfully brought their brand upmarket. Let's hope their ride back down is just as fun .
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