Despite intense competition, BMW's 3 series continues to lead the compact luxury pack
10-26-05, 07:13 AM
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Despite intense competition, BMW's 3 series continues to lead the compact luxury pack
Despite intense competition, BMW's 3 series continues to lead the compact luxury pack
DIANA T. KURYLKO | Automotive News
Posted Date: 10/26/05
It's the target of every new or revamped entry into the compact luxury car segment, but nothing has caught up with the BMW 3 Series.
Nearly six months into sales of the fifth-generation 3 Series, BMW is again blasting the doors off the competition.
The 3 Series outsold its competition in the United States in September, moving 8,693 units, most of which were the new version. Its nearest competitors were the Acura TL, with 6,228 units sold; Infiniti G35, with 5,472 units; and Mercedes-Benz C-Class, with 5,050 units.
"BMW deserves a huge amount of credit. That car has been at the top of that segment forever," Tom Libby, senior director of industry analysis for the Power Information Network in Troy, Mich., told Automotive News. "It has an extraordinary reputation and that has been built up over decades. There aren't many models that have that history."
Rolling out lineup
The sedan version of the replacement 3 Series went on sale in May. A station wagon and an all-wheel-drive model reached showrooms this month. The coupe, convertible and M3 high-performance model will be rolled out over the next 18 months.
U.S. sales of the 3 Series peaked at 115,428 cars in 2002; none of its competitors has sold more than 100,000 units a year in the United States. With the competition growing and the run-out of the predecessor, 3 Series sales settled at 106,549 units last year.
Ken Bracht, 3 Series brand manager for BMW of North America, says the 2006 3 Series sedan alone will sell at least 50,000 units this year. When the full 3 Series lineup is in place, BMW expects sales to equal the peak, he says.
The 3 Series has a base price of $31,595, including shipping. The average transaction price on the 3 Series is $38,245 -- higher than competitors and $4,860 above that of the Mercedes-Benz C-Class, according to Power Information Network data.
Bracht says BMW's mix has improved, with 34 percent of buyers opting for the more expensive 330i compared with 17 percent for the prior generation. He attributes that to pricing.
For the previous generation, it cost about $4,000 to move up from the 325i to the more powerful 330i. With the model changeover, BMW has made the jump cost $2,700.
1977 debut
The BMW 3 Series debuted in the United States in 1977 as the 320i, a spry European sports car that was nimbler, lighter and different from domestic or other import models. Although the car has gotten larger and more sophisticated over the years, the basic concept hasn't changed in nearly three decades, says Tom Purves, CEO of BMW of North America.
"We've sold 1. 2 million of them since then," he says, "and it's the iconic BMW."
Bracht says the major competitors for the 3 Series are the Mercedes-Benz C-Class, Audi A4, Infiniti G35, Acura TL, Lexus IS and Cadillac CTS.
Although the C-Class is a key competitor, it is no longer the archrival. Bracht says as Mercedes-Benz has moved upscale and expanded its range, the market perception is that "Mercedes is more of an S-Class company."
He says: "A lot of people think of BMW as the 3 Series (company) -- this is where we banked our reputation."
DIANA T. KURYLKO | Automotive News
Posted Date: 10/26/05
It's the target of every new or revamped entry into the compact luxury car segment, but nothing has caught up with the BMW 3 Series.
Nearly six months into sales of the fifth-generation 3 Series, BMW is again blasting the doors off the competition.
The 3 Series outsold its competition in the United States in September, moving 8,693 units, most of which were the new version. Its nearest competitors were the Acura TL, with 6,228 units sold; Infiniti G35, with 5,472 units; and Mercedes-Benz C-Class, with 5,050 units.
"BMW deserves a huge amount of credit. That car has been at the top of that segment forever," Tom Libby, senior director of industry analysis for the Power Information Network in Troy, Mich., told Automotive News. "It has an extraordinary reputation and that has been built up over decades. There aren't many models that have that history."
Rolling out lineup
The sedan version of the replacement 3 Series went on sale in May. A station wagon and an all-wheel-drive model reached showrooms this month. The coupe, convertible and M3 high-performance model will be rolled out over the next 18 months.
U.S. sales of the 3 Series peaked at 115,428 cars in 2002; none of its competitors has sold more than 100,000 units a year in the United States. With the competition growing and the run-out of the predecessor, 3 Series sales settled at 106,549 units last year.
Ken Bracht, 3 Series brand manager for BMW of North America, says the 2006 3 Series sedan alone will sell at least 50,000 units this year. When the full 3 Series lineup is in place, BMW expects sales to equal the peak, he says.
The 3 Series has a base price of $31,595, including shipping. The average transaction price on the 3 Series is $38,245 -- higher than competitors and $4,860 above that of the Mercedes-Benz C-Class, according to Power Information Network data.
Bracht says BMW's mix has improved, with 34 percent of buyers opting for the more expensive 330i compared with 17 percent for the prior generation. He attributes that to pricing.
For the previous generation, it cost about $4,000 to move up from the 325i to the more powerful 330i. With the model changeover, BMW has made the jump cost $2,700.
1977 debut
The BMW 3 Series debuted in the United States in 1977 as the 320i, a spry European sports car that was nimbler, lighter and different from domestic or other import models. Although the car has gotten larger and more sophisticated over the years, the basic concept hasn't changed in nearly three decades, says Tom Purves, CEO of BMW of North America.
"We've sold 1. 2 million of them since then," he says, "and it's the iconic BMW."
Bracht says the major competitors for the 3 Series are the Mercedes-Benz C-Class, Audi A4, Infiniti G35, Acura TL, Lexus IS and Cadillac CTS.
Although the C-Class is a key competitor, it is no longer the archrival. Bracht says as Mercedes-Benz has moved upscale and expanded its range, the market perception is that "Mercedes is more of an S-Class company."
He says: "A lot of people think of BMW as the 3 Series (company) -- this is where we banked our reputation."
10-26-05, 12:49 PM
#3
Super Moderator
Originally Posted by rominl
interesting article, no doubt the new 3 series is everywhere already
i would like to see how the new IS goes with it though. personally i dont' think it will overtake the 3 series yet, but i want to see how close it gets
i would like to see how the new IS goes with it though. personally i dont' think it will overtake the 3 series yet, but i want to see how close it gets
10-26-05, 12:54 PM
#4
Lexus Fanatic
Originally Posted by AmethySC
I believe the new IS can easily achieve the 40k+ a year sales goal, but it won't get anywhere near 3 series #'s without a coupe & a convertible like the 3 series.
10-26-05, 01:03 PM
#5
Originally Posted by AmethySC
I believe the new IS can easily achieve the 40k+ a year sales goal, but it won't get anywhere near 3 series #'s without a coupe & a convertible like the 3 series.
10-26-05, 01:26 PM
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I agree that the IS350 needs a manual to compete with the E90 3-series. The IS is fast, looks great and has a beautiful interior but many buyers of these sports sedans will automatically rule out the automatic only IS. I will have to reserve judgement until I drive a manu-matic IS, apparently it works quite well, very positive feeling shifts... but wouldn't it be easier to just put a clutch in there and make us all happy for real?
10-26-05, 01:37 PM
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Well congrats to them, since they debut in 1977 they better be up there. Unfortunately MB crapped the bed in this segment considering how long they been in the game. As for the Lexus IS300 that debut back in(correct me if I am wrong...) 2000-2001, and now the new launch of the Lexus IS350, after BMW seeing what Lexus has on their plate and knowing this is just the beginning.....that it will not be long for them to hold this spot as they already see the IS250/350 in their rear view mirror!
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10-26-05, 04:48 PM
#8
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I'm absolutely blown away by two things here.
1) BMW has fallen into the same trap as the domestic automakers, thinking that the number of units moved is a good measure of success. For GM and Ford, every car they sell is at a loss. They would be better off selling FEWER cars that actually made a profit. I'm not saying BMW is in that position, but focusing only on sales numbers seems to lead to less focus on things like the quality of the vehicles or the customer service experience.
2) The Acura TL is selling like hotcakes! It's a 4-door that comes in only one trim level, and it's right up there with the segment leader in terms of sales. Imagine if Acura had managed to come out with a desirable coupe (a CL that didn't look bulbous and quite so Accord-derived)! There have got to be some mighty happy Acura dealers selling all those TL's, who still wished they had a coupe in between the RSX and NSX to sell.
1) BMW has fallen into the same trap as the domestic automakers, thinking that the number of units moved is a good measure of success. For GM and Ford, every car they sell is at a loss. They would be better off selling FEWER cars that actually made a profit. I'm not saying BMW is in that position, but focusing only on sales numbers seems to lead to less focus on things like the quality of the vehicles or the customer service experience.
2) The Acura TL is selling like hotcakes! It's a 4-door that comes in only one trim level, and it's right up there with the segment leader in terms of sales. Imagine if Acura had managed to come out with a desirable coupe (a CL that didn't look bulbous and quite so Accord-derived)! There have got to be some mighty happy Acura dealers selling all those TL's, who still wished they had a coupe in between the RSX and NSX to sell.
10-26-05, 04:58 PM
#9
Lexus Test Driver
i read in the LA Times some weeks back that the three most profitable automakers in the world right now
(profit per car sold)
are Porsche, BMW and Toyota (in that order i think.)
BMW doesn't seem to have that problem the domestic automakers have because dealers move them off lots without the need of having incentives.
(profit per car sold)
are Porsche, BMW and Toyota (in that order i think.)
BMW doesn't seem to have that problem the domestic automakers have because dealers move them off lots without the need of having incentives.
10-26-05, 05:14 PM
#10
Lexus Fanatic
I don't think BMW needs to worry either, Iceman. Their sales numbers have been strong only because they actually build cars that people desire, not because they "focus on sales numbers" and limit their profit margin. Quite on the contrary, as whoster pointed out, their profit margin is among the highest in the industry.
10-26-05, 05:26 PM
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BMW 3-series has four body styles(sedan, coupe, convertible, and wagon), five engine choices now(3.2L I6 333hp, 3.0L I6 255hp, 3.0L I6 225hp, 3.0L I6 215hp, 2.5L I6 184hp, excluding the ZHP E46 3 coupe's 235hp 3.0L I6), choices of RWD and AWD, and choices of who knows how many kinds of transmissions(6MT, 6AT, the old 5AT, SMG, etc), And yet they only move around nine thousands units a month. This is not bad, in fact very good. But not unbeatable. Acura TL has only one engine choices, one body style, two transmission choices, FWD only, it doesn't even offer packages or options except performance tires and navigation system. And still Acura dealers move in average six to seven thousands units of TL a month, now that is, in my opinion, way more impressive than 3-series as far as sales go. 3-series would be the real king of the class only when it could oversell all or most of its competitors combined. Right now it is simply a class leader by not a big margin.
10-26-05, 06:52 PM
#12
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It might be forever before someone else takes the #1 spot. The 3 continues to get better too, lets not forget. And they offer so many versions in Europe its not even funny.
And it simply has the name,image. I am sure we all know tons of people who will say they want a 3, don't even know nothing about it and know even less about the competition.
Kudos to BMW, they have kept the 3 on or near the top for a long time
And it simply has the name,image. I am sure we all know tons of people who will say they want a 3, don't even know nothing about it and know even less about the competition.
Kudos to BMW, they have kept the 3 on or near the top for a long time
10-26-05, 06:56 PM
#13
Speaks French in Russian
Thread Starter
Originally Posted by TwiBlueG35
BMW 3-series has four body styles(sedan, coupe, convertible, and wagon), five engine choices now(3.2L I6 333hp, 3.0L I6 255hp, 3.0L I6 225hp, 3.0L I6 215hp, 2.5L I6 184hp, excluding the ZHP E46 3 coupe's 235hp 3.0L I6), choices of RWD and AWD, and choices of who knows how many kinds of transmissions(6MT, 6AT, the old 5AT, SMG, etc), And yet they only move around nine thousands units a month. This is not bad, in fact very good. But not unbeatable. Acura TL has only one engine choices, one body style, two transmission choices, FWD only, it doesn't even offer packages or options except performance tires and navigation system. And still Acura dealers move in average six to seven thousands units of TL a month, now that is, in my opinion, way more impressive than 3-series as far as sales go. 3-series would be the real king of the class only when it could oversell all or most of its competitors combined. Right now it is simply a class leader by not a big margin.
10-26-05, 06:59 PM
#14
Keeper of the light
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Originally Posted by Bercasio
Well congrats to them, since they debut in 1977 they better be up there. Unfortunately MB crapped the bed in this segment considering how long they been in the game. As for the Lexus IS300 that debut back in(correct me if I am wrong...) 2000-2001, and now the new launch of the Lexus IS350, after BMW seeing what Lexus has on their plate and knowing this is just the beginning.....that it will not be long for them to hold this spot as they already see the IS250/350 in their rear view mirror!
Nearly six months into sales of the fifth-generation 3 Series, BMW is again blasting the doors off the competition
You want a sedan? No problem.
You want a coupe? No problem.
You want a vert? No problem.
You want it with a 4 cyl? No problem.
You want it with a 6? No problem.
You want it with a HUGE 6? No problem
You want a sedan in an auto, but with the huge 6? No problem.
You want a sedan in an auto with the 4 banger? No problem.
You want a vert with an auto 4 cyl? No problem.
You want a vert with a 6 and the ///M package? No problem.
You want those in a 5 speed too? he....... No problem.
Really..... this could take all night.,.........
10-26-05, 07:01 PM
#15
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Originally Posted by magneto112
hmmm...I can agree with that.