[Jason]

BIMMERPOST NEWS

BMW Group Achieve Best Ever August Sales

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September 13, 2017

Munich. August saw a new record achieved in BMW Group sales with deliveries in the month totalling 169,913 worldwide, a 2.7% increase year-on-year. The company also sold more vehicles than ever before in the first eight months of the year, with a total of 1,571,467 (+4.2%) vehicles delivered to customers around the world.

“When we announced our second quarter results in early August, we reported yet another quarter within our profit guidance and profitability remains our clear focus,” said Dr Ian Robertson, Management Board Member for Sales and Brand BMW. “While we continue to see headwinds in several key markets and have the model changeover of the BMW X3 and the BMW 5 Series in China, we have nonetheless achieved a new record level of sales for August. Our nine electrified vehicles continue to enjoy increasing success, with the two newest additions – the BMW 5 Series and the MINI Countryman plug-in hybrid variants – achieving strong sales,” he continued.

Global BMW brand sales in August increased 3.1% on the same month last year, with a total of 146,926 vehicles delivered to customers. The brand’s sales for the first eight months of the year were also higher than ever before, with 1,338,475 vehicles sold, up 4.4% on the same period last year. Many models in the portfolio contributed to these record figures. Despite the current model changeover of the BMW X3, the BMW X family continues to be a major growth driver with overall BMW X sales up 13.9% (457,442). The BMW 1 Series (121,415 / +10.1%) and BMW 7 Series (41,536 / +16.9%) also achieved significant growth. Meanwhile in August, the new BMW 5 Series achieved sales growth of 50.7% (16,762) in markets excluding China, where the BMW 5 Series is currently in model changeover.

August was also a record month for MINI brand with 22,736 units delivered to customers around the world, an increase of 0.7% compared with the same month last year. In the first eight months of 2017, a total of 230,925 MINI vehicles were sold, an increase of 3.1% year on year. The MINI Convertible (23,311 / +20.3%) has achieved very positive sales growth in the year to date, while the new MINI Countryman was the main growth driver in August, with sales up 43.6% (5,693) in the month. In August, the BMW Group released the first pictures of the MINI Electric Concept, which had its World Premiere at the Frankfurt Motor Show yesterday.

Sales of the BMW Group’s unrivalled range of electrified vehicles continue to grow strongly. A total of 57,895 BMW i, BMW iPerformance and electrified MINI vehicles have been delivered to customers around the world since the start of the year, an increase of 67.0%. With a total of nine electrified automobiles on sale today, ranging from the BMW i3 (combined fuel consumption in the EU test cycle 0,0 l/100 km; combined electricity consumption 13,1 kWh/100 km; combined CO2 emissions 0 g/km) through the MINI Countryman (fuel consumption in the EU test cycle: 2.3 - 2.1 litres/100 km, electricity consumption 14 kWh/100 km, CO2 emissions: 52 - 49 g/km) to the BMW 7 Series, the BMW Group has an 11% share of the global electrified market, far ahead of any other traditional car maker. In Europe, the BMW Group has a 21% market share (Source: IHS / POLK, 31 August 2017). The two newest additions to the electrified fleet are already achieving significant sales: the new BMW 530e (fuel consumption combined: 1.9-2,1 l/100 km; combined electricity consumption: 13,1-14,1 kWh/100 km, CO2 emissions combined: 44-49 g/km. Fuel consumption and CO2 figures were calculated as per the EU test cycle and may vary depending on the tyre format) was delivered to more than 1,000 customers in markets excluding China in August, meaning that over 6% of BMW 5 Series sold in those markets in the month were plug-in hybrids. It’s a similar story with the MINI Cooper S E Countryman ALL4 (fuel consumption in the EU test cycle: 2.3 - 2.1 litres/100 km, electricity consumption 14 kWh/100 km, CO2 emissions: 52 - 49 g/km): with a total of nearly 500 sold in the month, nearly 9% of MINI Countryman models delivered to customers around the world were a plug-in hybrid.

BMW Motorrad also achieved strong sales in August, with 10,504 motorbikes and maxi-scooters delivered to customers. This was an increase of 13.2% compared to the previous year. In the first eight months of the year, 113,728 units were delivered to customers - an increase of 9.5% compared to the same period last year. Both figures are better than ever before.

BMW & MINI sales in the regions/markets at a glance

With the economic situation remaining volatile in several markets, the BMW Group continues to follow its policy of balancing sales around the world, in order to achieve profitable, sustainable growth.

Despite significant headwinds in the important UK market, BMW & MINI sales in Europe remained at the same high level they achieved in August last year, with a total of 62,734 vehicles delivered in the month. Year-to-date sales in the region total 696,204, an increase of 1.6%.

Asia continues to be a significant growth driver for BMW Group sales, with the Chinese market performing particularly strongly. Sales there were up 12.2% (47,385) in August and 16.4% (383,976) in the year-to-date.

The ongoing downturn in the US automotive market is reflected in the BMW Group’s figures for the Americas, which in the year to date are 3.7% below last year’s level.

[Laki021]

Fantastic!
Congrats on the great results!

[JustChris]

Great results

[floydarogers]

Little wonder why they're converting the Rosslyn SA plant to X3 production.

Sad news for the 3 & 5 series, particularly wagon/touring sales however.

[shamun160]

I love how the USA is getting glossed over as the "Americas". While the overall US market is softening, BMW is getting smoked Audi, Porsche, and to a lesser extent MB.

[dmboone25]

Originally Posted by shamun160

I love how the USA is getting glossed over as the "Americas". While the overall US market is softening, BMW is getting smoked Audi, Porsche, and to a lesser extent MB.

Great comment

[F32Fleet]

Originally Posted by shamun160

I love how the USA is getting glossed over as the "Americas". While the overall US market is softening, BMW is getting smoked Audi, Porsche, and to a lesser extent MB.

US consumer is tapped out.

[Matski]

Originally Posted by shamun160

I love how the USA is getting glossed over as the "Americas". While the overall US market is softening, BMW is getting smoked Audi, Porsche, and to a lesser extent MB.

How the **** is the USA being glossed over... the USA figures are there in Black and White?

... any excuse for a ****ing whinge.

[conradb]

Originally Posted by shamun160

I love how the USA is getting glossed over as the "Americas". While the overall US market is softening, BMW is getting smoked Audi, Porsche, and to a lesser extent MB.

This. The numbers are setup to soften the blow. BMW's saving grace is China right now. Without China, BMW is flailing in the wind like a tattered flag.

[E91WAG3N]

Originally Posted by conradb

This. The numbers are setup to soften the blow. BMW's saving grace is China right now. Without China, BMW is flailing in the wind like a tattered flag.

This.

It's not an equal comparison. BMW is painting the positive picture they want for investors.

Existing long term markets are flat/declining and newer markets have an increase in sales which offset the declines in other regions.

[Matski]

Originally Posted by conradb

This. The numbers are setup to soften the blow. BMW's saving grace is China right now. Without China, BMW is flailing in the wind like a tattered flag.

Because USA should be the numbers that count.. right?

Fuckin lol.

[Viffermike]

Originally Posted by Matski

How the **** is the USA being glossed over... the USA figures are there in Black and White?

... any excuse for a ****ing whinge.

A-frakking-MEN.

Any sixth grader can make out the U.S. from the Americas in that chart, much less an investor ... and any sixth grader can see that the U.S. is the only market in which BMW is losing sales YTY.

shamun160 and dmboone25 : Try again.

[E91WAG3N]

Originally Posted by Matski

Because USA should be the numbers that count.. right?

Fuckin lol.

I believe I stated "existing markets" not calling one out in particular. It might be the US this month, might be Germany the next.

The point is that it requires more to capital to enter into a new or expanding market, whether it be to construct new dealerships, factories, spend money advertising, building relationships with local companies to transport their product, and so on.

It is highly probable that it costs more to sell a single unit in a newer market compared to a market already well established. BMW could very well be taking significant losses on units sold in newer markets in order to be competitive. What happens when they spend all this money expanding in China then see a regression similar to the US while the same decline is still occouring in other regions. Balance sheets are screwed and it no longer becomes a sustainable business model.

Fuckin lol is right.

[Viffermike]

Originally Posted by ubersteuer

I believe I stated "existing markets" not calling one out in particular. It might be the US this month, might be Germany the next.

The point is that it requires more to capital to enter into a new or expanding market, whether it be to construct new dealerships, factories, spend money advertising, building relationships with local companies to transport their product, and so on.

It is highly probable that it costs more to sell a single unit in a newer market compared to a market already well established. BMW could very well be taking significant losses on units sold in newer markets in order to be competitive. What happens when they spend all this money expanding in China then see a regression similar to the US while the same decline is still occouring in other regions. Balance sheets are screwed and it no longer becomes a sustainable business model.

Fuckin lol is right.

You're forgetting one very, very important metric in many of those 'expanding' markets: potential customer base.

For example: 15 years ago, China was a country full of very few haves and well more than a billion have-nots. Now there is an exponentially larger upper class and a still-burgeoning middle class that will only grow in size as the country builds more cities and infrastructure and maintains its economic model. In short, there will be no regression for decades if things stay as they are.

Contrast that with the U.S., which has a potential customer base that is shrinking thanks to a number of factors, from more direct competition to tighter credit.

Contrast that yet again with much of Europe, which despite relatively stagnant population growth and pockets of severe economic issues (among other reasons) is considered an expanding market for the next 20-30 years. Why? Two reasons out of several: Automakers such as BMW are broadening their lineups to, in turn, broaden their customer base -- which does not exclusively think of BMW as a luxury automaker, by the way -- and long-term thinking in terms of product planning. Basically, Europe (and, to an extent, Asia) is the entire reason BMW and several other automakers are developing EVs so vigorously.

Simplistic and/or U.S.-only thinking just makes people look like fools regarding this stuff. C'mon. On this scale, think globally or get left behind, either in the short term or the long-term.

[Kev312]

I wonder how their profitability will look once they start trimming down the lines.

[E91WAG3N]

Originally Posted by Viffermike

You're forgetting one very, very important metric in many of those 'expanding' markets: potential customer base.

For example: 15 years ago, China was a country full of very few haves and well more than a billion have-nots. Now there is an exponentially larger upper class and a still-burgeoning middle class that will only grow in size as the country builds more cities and infrastructure and maintains its economic model. In short, there will be no regression for decades if things stay as they are.

Contrast that with the U.S., which has a potential customer base that is shrinking thanks to a number of factors, from more direct competition to tighter credit.

Contrast that yet again with much of Europe, which despite relatively stagnant population growth and pockets of severe economic issues (among other reasons) is considered an expanding market for the next 20-30 years. Why? Two reasons out of several: Automakers such as BMW are broadening their lineups to, in turn, broaden their customer base -- which does not exclusively think of BMW as a luxury automaker, by the way -- and long-term thinking in terms of product planning. Basically, Europe (and, to an extent, Asia) is the entire reason BMW and several other automakers are developing EVs so vigorously.

Simplistic and/or U.S.-only thinking just makes people look like fools regarding this stuff. C'mon. On this scale, think globally or get left behind, either in the short term or the long-term.

We're on the same page! My whole point was that BMW, like other companies in a similar position, is painting the picture they want to highlight only the positive aspects of their performance, burying the undesirable figures at the bottom of the report.

The other piece with China is their unpredictability, even with their expanding customer base, their government could potentially come in and shut down operations or implement a ridiculous import tax once their domestic auto manufactures are more competitive with foreign offerings.

Only time will tell.

[Viffermike]

Originally Posted by ubersteuer

We're on the same page! My whole point was that BMW, like other companies in a similar position, is painting the picture they want to highlight only the positive aspects of their performance, burying the undesirable figures at the bottom of the report.

Yep. That's Press Release Composition 101.

Originally Posted by ubersteuer

The other piece with China is their unpredictability, even with their expanding customer base, their government could potentially come in and shut down operations or implement a ridiculous import tax once their domestic auto manufactures are more competitive with foreign offerings.

Only time will tell.

Indeed. China is definitely a risk for any business, and the possible mechanizations and scenarios are frightening, particularly regarding China's mind-boggling international holdings, both tangible and monetary. But I feel that those same holdings are part of what's fueling foreign investment there, in kind of a "You have this where I'm from, so I'll put this where you're from" way.

That's the contemporary definition of globalization, in a nutshell: tit-for-tat investment. The big-thought question is whether or not both entities can see returns and get along long-term using, in some ways, very different sets of rules.

[babaikram]

Blah Blah, All I would say is that BMWs are everywhere in the North East of England, the supposed poorer part of England. 4 series especially are everywhere. Certainly BMW is not losing any sales in England

[tetsuo111]

Originally Posted by Matski

Because USA should be the numbers that count.. right?

Fuckin lol.

Or not. Numbers don't lie. BMW is dying a fast death in every global market except for two developing regions: Asia and Latin America.

Pull your head out of the sand. The results are there in black and white.

This is the reason BMW's product portfolio has devolved IMO. Marketing 101 - know your customer base. Are Asian customers luxury or performance-centric? I'm Asian / American, am a performance purist, and would argue that Asian culture places a premium on perceived luxury above performance.

These aren't your father's BMWs. Sadly.

[Motorsportenterprise]

Originally Posted by shamun160

I love how the USA is getting glossed over as the "Americas". While the overall US market is softening, BMW is getting smoked Audi, Porsche, and to a lesser extent MB.

Very true. Good sales growth in Audi and Porsche (despite the fact that you figured Cayenne sales would slow due to new gen announcement).

It's no surprise BMW is trying to spin their slow sales...one other thing worth mentioning, US Mini sales are down 11% YTD YoY. They conveniently glossed that one given the more macro picture described.