Bmw relying on the X1 and 5-Series to keep sales stable

Article by Christian Andrei, on August 27, 2010

BMW AG is relying on new models, including the BMW X1 and 5-Series, to shield it against a sudden drop in car sales in Germany -- its top global sales market.

In a recent interview, BMW sales boss Ian Robertson said that this year, there will be more new products. He stated further that there is a product momentum as BMW -- X1, which was released last November, is currently outselling its objectives. 

He also talked about the 5 series which will be arriving soon. The market will also see the entry of the [Mini] Countryman and the [BMW] X3 at the end of the year.

With these new models, BMW Group had managed to evade the sharp decline in Germany's overall first-quarter sales. For the first quarter, BMW brand sold 50,416 cars in Germany, a rise of 2.2%. The X1 accounted for 5,459, or 10.8%, of those sales.

Combined volume for the BMW and Mini brands rose 1.4% to 56,617 units in a market that fell 22.8% to 670 410 units compared with the first quarter of last year.

Robertson described Germany to be a "very tough" market. He said that it could drop by 750,000 units or possibly more. According to J.D. Power Automotive Forecasting, a drop of 761,000 is expected.

Others predict a drop in Germany's full-year sales by as much as 1 million units compared with the 3,807,175 vehicles sold last year.

A large portion of those sales came about as a result of Germany's successful car-scrapping program, which provided motorists cash to trade in old cars for newer models. A majority of the cars purchased with the help of the government subsidy were small cars from volume automakers.

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