Well, Keep something in mind... theyre sales increased by almost double BUT they only sold 800 cars more. If your only selling 1-2 thousand cars a year, the introduction of a hi-perf. SUV could easily make sales go up dramitically. Toyota I believe sold something like 12-15 thousand more cars this february? (I dont remember the number, but im about to find out)

And those BMW guys are cocky as all hell... "Japanese cars feel hollow and have terrible feel after 80 mph"? SC400s back in '92 were reported to be as stable and quiet at 150 mph as any other car at 50!!!

 

I correct myself, Toyota sold TWENTY TWO THOUSAND more cars this month. Remarkable.

 

Good point. Thanks, LexusLuver....as much as I keep up with the auto market, I had forgotten about the effect the Cayenne would have. And, you're right....it was not a player 12-18 months ago. It's a crazy world, isn't it, when a Porsche SUV appeals to so many people.....even considering, like one poster mentioned, Porsche's small overall sales numbers. In the Cayenne's favor, however, is excellent off-road ablity combined with good on-road Porsche handling......something very rarely seen in an SUV.....and, in the Turbo version, 444 HP.

 

I think the Cayenne is just a fad. Once the novelty wears off sales should level out. Porsche has plans or already offers a V6 variant. I doubt the Cayenne will maintain sales through its entire 5-7yr lifecycle.

Reminds me of the H2
Bummer For The Hummer
Sales are way down. Can GM make its hulk less of a gas hog and comfier inside?

Last summer, the Hummer H2 was the hottest thing on four wheels. Buyers eager to get the hulking, militaristic sport-utility vehicle waited months to take delivery and even paid dealers as much as $10,000 on top of the $48,000 sticker price. With profits topping $20,000 per H2, General Motors Corp. (GM ) looked downright clairvoyant for buying the Hummer brand from military contractor AM General Corp. in late 1999. The H2 was a bona fide hit.
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Not anymore. Now it looks as if the big beast is starting to lose momentum just as GM is set to start production on its equally pricey pickup version, the H2 SUT, which is due out in June. Plagued by complaints about its abominable fuel economy, cheap interiors, and tiny cabin, the H2 saw sales tumble 33% in January over the previous year, the fifth straight month of declines. In October, GM even cut production. "Selling a Hummer was the easiest job in America," says Los Angeles dealer Howard Drake. "Now it's way harder."

Has Hummer lost its mojo? Not yet, but GM has its work cut out for it. Once on track to sell 40,000 units a year, the auto maker looks headed to move just 30,000 this year. Inventory has risen to 68 days' worth of vehicles -- about average for the industry, but almost triple what dealers carried a year ago. GM is counting heavily on the launch of the smaller, $28,000 to $35,000 H3 next year to boost annual sales to 100,000. To get there, the H3 -- which debuted as a pickup concept in December at the Los Angeles auto show but will appear in '05 as an SUV -- will have to trade on more than combat-truck styling and a macho image.

$50 EVERY 320 MILES. Taking the Hummer mainstream won't be easy. Even when sales were hot, customers had complaints. In a J.D. Power & Associates Initial Quality Survey taken last year, the H2 ranked near the bottom. The biggest gripe: While no one bought a Hummer for the sake of its thrifty gas mileage, its 11 to 13 miles per gallon was even worse than expected. Brian Walters, senior director of vehicle research for J.D. Power, said the firm spoke to owners who bought their Hummers in the fall of 2002. By the time the survey was taken in March, 2003, gas prices had spiked to $1.70 per gallon, forcing H2 owners to shell out more than $50 every 320 miles.

STUCK FOR SPACE. The Hummer's lack of creature comforts is another problem. In a Power study of vehicle appeal conducted last fall, the H2 ranked slightly below average among luxury SUVs. Owners dinged it for having poor rear-window visibility, cheap workmanship inside, and scarce passenger and cargo space. The H2 seats five comfortably, but fitting in a sixth person means squeezing into a jump seat next to the spare tire. And that takes up all of the storage space. Competing luxury SUVs such as the Range Rover, Lincoln Navigator, and Cadillac Escalade are nicer inside and usually have more room.

That's why, for GM, making future Hummers more practical is key. Hummer marketing director Michael C. DiGiovanni says the H2's interior will get a little sprucing up when the SUT comes out, and the H3 will be more plush, too. To improve gas mileage, next year's H3 will use a five-cylinder engine rather than a V8 -- though that will mean less power. As for the gas-guzzling H2, GM may around 2008 have in place a hybrid-electric system and a technology called displacement-on-demand, which saves gas by shutting down four of the engine's eight cylinders when it's cruising at highway speeds.

With sales falling, a year is a long time to wait for the new H3. In the meantime, DiGiovanni is hoping the H2 SUT will provide a lift; the pickup version may seem smaller and a little less menacing to buyers turned off by the size of the H2 SUV. Then with the H3's rollout next year, GM is hoping to attract a whole new class of drivers, including those under 40 for whom the brand has special appeal. The trick will be to tame the Hummer without losing its rugged personality.


Sorry dont have the link,

Porsche is treading a fine line b/w longterm and shorterm success. I really do like Porsches though. Particularily the 996TT GT3 and GT2. I personally would take an S2000 over a Boxter anyday. Or maybe even the NSX over a Carrera 4S

 

BMW, while private, is rumored to be a VERY profitable company. I wouldn't doubt it.

I also doubt they're going to have serious long term problems because even THEY will eventually realize the iDrive is awful. The 5 series is quirky but not a complete disaster. And many people will buy the vehicles for the brand alone. The X5 has been a big success and I'm sure they'll come out with a BIG SUV at some point.

I don't know if it's true though but I heard 40% of 7-series owners returned their cars (traded in I guess) within 6 months because they're unusable.

BMW does have two major achiles heels though - cost of German labor, and German software.

 

It's not just BMW making some contreversial moves. The competition has jumped on BMW territory. Lexus with the IS/GS. The Benz AMG line is grown tremendously in 5 years. Even Nissans, Hondas, Kias, etc are copying BMW. Everyone went to chasing and making a sporty product pretty much.

Also with internet forums, countless people on the outside looking in thought cars like BMW and Benz were invincible. It is not clear, that is not the case and the cars can be quite problematic. So now more people do not fear the 3 pointed star or roundel.

LexusLuver, I think the Cayenne will sell as it has 2 things going for it. It is an SUV (ANY SUV sells) and it is a Porsche. Since most Porsche owners have a need for a SUV, they no longer have to leave the brand. I think having 2 Porsches in a driveway is a helluva thing for a person to say. So the Cayenne will decline in sales but be a strong selller. And with a new 911, a new Boxter, Boxster coupe coming, the Cayenne will get plenty for floor traffic.

The H2 is trendy like the VW bug. GM will just offer rebates on the H2 as it always does to keep the product moving. It still makes GM 30k a pop in profit for each one sold!BIt from my understanding, 2nd in the world to Porsche. I-drive has not just killed 7 sales without rebates and incentives, but re-sale value, as people simply cannot figure it out. Imagine buying a car the PREVIOUS buyer can't tell you how to work.