Mini: Prices will rise as inventory dwindles

Richard Truett
Automotive News
July 22, 2008 - 1:35 pm ET


DETROIT -- Sales of the red-hot Mini Cooper will fade this summer, no matter how high fuel prices rise.

Jim McDowell, vice president of BMW's Mini division, told reporters here today that the nation's 82 dealers are out of cars and will be selling mostly preordered units for the rest of the year because demand has outstripped supply.

"For the last three months, we were selling from inventory. There's no way [July] can be as good," McDowell said. He said dealers have a one-day supply of cars and that 81 percent of the cars delivered this month have been those that consumers have configured and ordered.

In June, Mini sold 5,211 units, up 24.8 percent from the same month last year. That followed sales increases of 52.8 percent in May and 39.4 percent in April.

Through the first half of the year, Mini sales are up 33.6 percent to 26,400 units.

Dealers who have been asking for more cars won't get much satisfaction soon. Mini will boost production for the United States but only by between 2,000 and 3,000 cars for this calendar year.

The bump in production is the result of the current Mini convertible ending production July 31. BMW is switching the convertible to a new body. The convertible will resume production next spring, said BMW spokesman Thomas Salkowsky.

The Mini plant in Oxford, England, is running three shifts, seven days a week and builds about 800 cars a day for 80 markets.

In other Mini news:

• McDowell said Mini plans to expand its dealership network by 13 stores for a total of 95 by 2011. He said there are some regions of the country where dealers are far apart to service customers.

• Base prices for some 2009 models will increase, but one previously optional safety feature, dynamic stability control, will be made standard on all models.

• The diesel-powered Mini is being studied for the United States, but it won't be offered here until it can be sold in all 50 states, McDowell said. He did not give a model year when the diesel Mini could be available in the United States.

• It's possible the Mini could be built in lower-cost countries. Says McDowell: "As Mini continues to expand, we should be mindful of where Minis are built and should have some currency diversification."

 

And Astra's are rotting on the lot.

Ever seen Mini's ad campaign? Ever seen even a single ad for the Astra?

 

I wasn't aware there was one. I have never, ever seen a TV ad for a Mini. I've probably seen one or two in car magazines, but that's it.

I *have* seen Astra commercials on TV though (once or twice).

 

Someone (Scott maybe?) once said that the Kappa based Nomad concept was envisioned as a Mini competitor.

Too bad GM never made the thing. Even if calling it a Mini competitor was a bit of a reach, a vehicle like that would no doubt sell very well right now.

 

I see quite a few MINI billboards, but not so much for TV spots. I've only seen the Astra on TV one or two times, and it certainly wasn't specifically an Astra commercial.

 

I have seen mini commercials. The one for the new 4 door model that used its rear doors as pinball flippers.

Here it is.

http://www.youtube.com/watch?v=iFhF5MBlIx4

I saw that one quite a bit, but it has been awhile. I wish the Astra could compete on fuel economy with the mini though.

 

...and it needs premium... according to that website...

 

It's still an extra 4 or 5 bucks every fill up

 

The 2008 Mini Cooper gets 28/37, and that is the new rating system, the 2007 was originally rated at 32/40 (both manuals)

http://www.fueleconomy.gov/feg/calcu...umn=1&id=23921

 

Just drove past the Mini dealer in Ft Lauderdale and there was probably 10 lined up along the road with who knows how many more inside.

 

Its is crazy how much they have improved that engine in just a few years. The diesel model coming out in 2009 should get close to 50mpg

 

My boss has an '05 Cooper-S Manual. He averages 35mpg. Of course his driving is about 75% highway. Either way, close to 40mpg highway, and high 20s/low 30s city.

I can't remember ever seeing a Mini commercial. I don't think you need to...even non-car people can identify them because they are so unique. That's the best kind of marketing. Nobody knows what an Astra is...but a Mini has a heritage and unique styling that makes it stand out and easy to remember.

 

The biggest improvement was completely replacing the old "Tritec" BMW/Rover/Chrysler engine with the the new "Prince" BMW/PSA/Peugot/Citroen engine in the second generation car

 

Yes, the so-called "forklift upgrade".

The old engine was designed to be cheap, and it succeeded. The new engine has the same technology that's in the BMW 6s. A huge improvement.