Autoblog

Audi to spend $17 billion to fight BMW

Michael Harley — Sat, 29 Dec 2012 17:30:00 EST

Filed under: Plants/Manufacturing, Audi, BMW, Earnings/Financials

It's no secret that VW Group, parent company to not only Volkswagen but also Audi, Bugatti, Bentley, Lamborghini, Porsche and Ducati brands sold in the US, is determined to become the world's largest automaker. Even more impressive is that VW is prepared to spend billions to make it happen.

With that comes word that VW Group will be spending $17 billion on its Audi brand over the next three years to push itself above rival BMW. The money will be invested in both vehicle development (including lightweight auto design and alternative powertrains) and facilities (including expansion in Hungary, China and new operations in Mexico). The luxury brand is focused on global manufacturing infrastructure.

Already Europe's best-selling luxury brand, Audi's objective is to overtake BMW by the end of the decade by selling more than two million cars per year (BMW is shooting for 1.54 million sales in 2013). If those objectives are met, VW Group should be on track to be the industry's volume leader by 2018.

Audi to spend $17 billion to fight BMW originally appeared on Autoblog on Sat, 29 Dec 2012 17:30:00 EST. Please see our terms for use of feeds.

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Mercedes-Benz offering up to $5,000 discounts to VIPs

Chris Tutor — Sat, 03 Nov 2012 16:01:00 EST

Filed under: Car Buying, BMW, Lexus, Mercedes-Benz, Luxury

In an effort to take the US luxury-sales crown from BMW, Mercedes-Benz is offering some sweet deals.

The German carmaker has told its US dealers they can offer discounts up to $5,000 on the GL-Class SUV for "VIP customers," a distinction to be determined by general managers. The program also includes $750 off C-Class, $2,250 for E-Class, $3,000 for GLK-Class and $3,275 for S-Class vehicles (which also includes 2013 models).

"We limit the number of cars" in the Customer Advocacy Program, says Mercedes spokeswoman Donna Boland in a Bloomberg story. "It is not carte blanche."

While BMW beat both Lexus and Mercedes in 2011 US luxury car sales, Bloomberg says Mercedes leads so far this year by 5,221 units. Experts quoted in Bloomberg's story expect the competition between the two German companies to continue through the end of the year, which could be really good news for luxury car shoppers.

Mercedes-Benz offering up to $5,000 discounts to VIPs originally appeared on Autoblog on Sat, 03 Nov 2012 16:01:00 EST. Please see our terms for use of feeds.

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BMW moving thousands of cars from Europe to US, Asia

Chris Tutor — Sat, 20 Oct 2012 17:31:00 EST

Filed under: China, Europe, BMW, Luxury

If you think the US economy is in bad shape, consider this: BMW is diverting "tens of thousands" of cars from European dealers to the US and Asia.

Ian Robertson, BMW sales chief, tells Automotive News that Europe faces "a lot of bumps on the road" before a sales recovery takes place. The publication says that region's automotive industry expects 2012 to show the biggest annual sales drop in 19 years.

BMW sold 14 percent more vehicles worldwide in September, with demand for the new 3-Series sedan in the US and China contributing big.

BMW officials didn't indicate what models it would divert from Europe.

How this will affect the sales race between BMW, Audi and Mercedes is unclear, especially since all three brands are feeling equal amounts of hurt. Also, there's no word on whether an expanded US inventory will spur BMW to offer deals to customers.

BMW moving thousands of cars from Europe to US, Asia originally appeared on Autoblog on Sat, 20 Oct 2012 17:31:00 EST. Please see our terms for use of feeds.

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BMW reports record profit margin, but Audi's is better

Jeff Sabatini — Thu, 08 Mar 2012 15:30:00 EST

Filed under: Audi, BMW, Earnings/Financials

It reported a record profit margin, but BMW still wasn't as profitable as its rival Audi. According to a report in Automotive News, BMW booked an 11.8-percent profit margin, up from eight percent last year. Audi, however, managed 12.1 percent.

Both figures were calculated using the earnings before interest and tax method (EBIT).

Audi and BMW have had a blossoming rivalry since Audi began directly targeting BMW, both in the development of its products and in its advertising. The two ultra-competitive German luxury brands most famously clashed in a series of billboard ads in Southern California.

Analysts had forecast an 11.9-percent profit margin for BMW, according to AN. Despite this "mild disappointment," as one analyst called it, BMW still led Audi and Mercedes-Benz as the top-selling luxury brand in 2011.

The company expects to set another annual sales record this year, besting the 1.67 million units it moved in 2011, thanks largely to it's new-for-2012 F30 3-Series.

BMW reports record profit margin, but Audi's is better originally appeared on Autoblog on Thu, 08 Mar 2012 15:30:00 EST. Please see our terms for use of feeds.

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Did BMW and Mercedes engage in a game of sales chicken?

Zach Bowman — Sat, 07 Jan 2012 17:01:00 EST

Filed under: Car Buying, Europe, Plants/Manufacturing, BMW, Mercedes-Benz, Earnings/Financials, Luxury

BMW and Mercedes-Benz took a bit longer than other manufacturers to report their final sales figures for 2011, and some analysts believe the delay may have something to do with the fact that both automakers were vying for the sales crown among luxury makes. Long-time champion Lexus suffered production setbacks at the hands of the earthquake and tsunami disasters in Japan last March, which left the door open for the two German companies to make a move for the top slot. In the end, Mercedes-Benz announced its numbers first. BMW followed suit by revealing the company had bested its rival by fewer than 3,000 units.

But the story doesn't end there. According to TheDetroitBureau.com, Mercedes-Benz may have been pulling a few tricks in an attempt to nab the top spot. The site claims Mercedes-Benz was offering sizable bonuses to dealers who agreed to take a certain number of vehicles into their test fleets. Those models could then be listed as sold before being plopped onto the used lot with like-new warranties a day later.

That wouldn't be the first time an automaker has resorted to shell games in an attempt to swipe a sales crown. The Detroit Bureau reports Cadillac once had to recant its victory after playing similar tricks.

Did BMW and Mercedes engage in a game of sales chicken? originally appeared on Autoblog on Sat, 07 Jan 2012 17:01:00 EST. Please see our terms for use of feeds.

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BMW remains world's best-selling premium automaker through September

Zach Bowman — Tue, 11 Oct 2011 14:29:00 EST

Filed under: Car Buying, Europe, Audi, BMW, Mercedes-Benz, Mini, Rolls-Royce, Luxury

Automotive News reports that BMW has managed to hold onto the title of world's best-selling premium automaker through September. The company's core brand saw its sales increase by 9.3 percent last month, putting BMW ahead of Audi and Mercedes-Benz at the same time. Audi sales in September increased by 17 percent while Mercedes-Benz saw its sales jump by a more modest two percent. BMW says the recent results underscore the fact that the automaker is well on its way to deliver more than 1.6 million vehicles globally this year.

Mini alone enjoyed a sales increase of 20.5 percent last month, thanks in part to the arrival of the new Countryman. The model has sold 76,000 units worldwide since going on sale nearly a year ago. Meanwhile, vehicles like the BMW X1, X3 and 5 Series helped push the automaker's increase as well. Sales of the X3 shot up by 260.6 percent to 11,345 units last month. Even Rolls-Royce enjoyed a 41-percent sales surge through the first nine months of the year.

BMW remains world's best-selling premium automaker through September originally appeared on Autoblog on Tue, 11 Oct 2011 14:29:00 EST. Please see our terms for use of feeds.

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BMW leads global sales race among luxury brands through July, Audi second

Jeff Glucker — Mon, 08 Aug 2011 16:31:00 EST

Filed under: Car Buying, Performance, Audi, BMW, Mercedes-Benz, Luxury

BMW is apparently the Ultimate Selling Machine. The German automaker has retained the title of top luxury brand after its most successful July in history, moving 108,721 units for the month. Overall sales are up 17.9 percent for the entire BMW Group through the first seven months of the year.

One of the BMW products moving off lots quickly is the redesigned X3. Sales of the compact crossover rose 193.2 percent, which equates to 9,763 units finding a new home in July. The X5 also helped total volume numbers by improving 51.7 percent in July, with 24,196 examples sold.

With 106,000 total sales in July, Audi isn't very far behind, and it hopes to stand in the top spot ahead of BMW by 2015. BMW is aiming for 1.6 million in sales this year, while Audi is shooting for 1.2 million. Mercedes-Benz came in at number three with 100,391 units sold in July.

BMW leads global sales race among luxury brands through July, Audi second originally appeared on Autoblog on Mon, 08 Aug 2011 16:31:00 EST. Please see our terms for use of feeds.

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Report: Audi may have passed Mercedes in Q1 global sales, but BMW is still #1

Chris Shunk — Tue, 13 Apr 2010 12:32:00 EST

Filed under: Car Buying, Audi, BMW, Mercedes-Benz

2010 BMW 750i - Click above for high-res image gallery

Audi outsold Mercedes Benz globally in the first quarter of 2010; a big deal considering it was the first time the four-ringed automaker had ever accomplished such a feat. But while Audi was finally able to pass its crosstown rival in sales, the German automaker is still longing for the title of the top luxury brand in the land.

Automotive News reports that BMW announced final Q1 sales of 265,809 vehicles, besting Audi by an anorexic 1,709 units for the three month period. BMW saw a global sales increase of 14 percent compared to the same period of 2009, buoyed by strong sales of its new X1 crossover and a 56 percent increase in 7 Series sales. BMW sales boss Ian Robertson said in a statement that the company intends to improve sales across the globe, adding, "We are back on our growth track in nearly all the automobile markets." And BMW isn't just hoping the market improves - the automaker is counting on an increase in sales courtesy of its new 5 Series lineup, which was launched overseas last month and arrives in the U.S. in June. BMW also has a refreshed 3 Series coupe and convertible on the way as well. With single digit growth, BMW intends to sell 1.3 million vehicles in 2010.

But while BMW pulled out the slimmest of victories in Q1, we're thinking Audi's performance during the first three months effectively puts its German competitors on notice. With a very good product lineup and a considerable foothold in China, Audi may well achieve its goal of becoming the largest luxury car maker on earth by 2015 a lot earlier than most people expected.

Gallery: Review: 2009 BMW 750i

[Source: Automotive News - Sub. Req.]

Report: Audi may have passed Mercedes in Q1 global sales, but BMW is still #1 originally appeared on Autoblog on Tue, 13 Apr 2010 12:32:00 EST. Please see our terms for use of feeds.

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REPORT: BMW threatening to oust Lexus as #1 luxury automaker in U.S.

Jeremy Korzeniewski — Tue, 30 Jun 2009 13:30:00 EST

Filed under: Car Buying, Trends, BMW, Lexus, Earnings/Financials

2010 BMW 5 Series Gran Turismo - Click above for high-res image gallery

Life is hard at the top, whether that precipice happens to be at the zenith of the overall sales chart or of a specific market niche, such as Lexus' position as the best-selling luxury automaker in the United States. Toyota's posh brand has held the top spot since the year 2000, with BMW perpetually trailing in second place. Could 2009 finally be the year that BMW breaks through to number one?

So far this year, Automotive News is reporting that BMW's 76,819 total sales in the States puts the German brand slightly ahead of Lexus, which has moved a total of 73,186 units thus far in '09. Both brands are down somewhat from 2008, though BMW's 30.5% decline is not quite as severe as Lexus' 37.2% fall. Neither automaker is interested in boasting of its successes in this market, though BMW will gladly accept the extra market share. Speaking to Automotive News, Jan Ehlen, a spokesman for BMW of North America, said:

This year's emphasis is on maintaining our market share and even growing our share a bit. If this results in remaining in the top spot of the premium market, that would be a nice bonus.

Gallery: 2010 BMW 5 Series Gran Turismo

[Source: Automotive News]

REPORT: BMW threatening to oust Lexus as #1 luxury automaker in U.S. originally appeared on Autoblog on Tue, 30 Jun 2009 13:30:00 EST. Please see our terms for use of feeds.

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BMW outsold by Mercedes-Benz in July

Stuart Waterman — Mon, 07 Aug 2006 14:35:00 EST

Filed under: BMW, Mercedes-Benz, Earnings/Financials

For the first time in four months, Mercedes-Benz outsold arch-rival BMW in July, as sales for the BMW brand fell 7.7 percent. However, the BMW Group (BMW, MINI and Rolls-Royce) handily outsold the Mercedes Car Group (Mercedes-Benz, Smart, Maybach).

A combination of factors are weighing down the BMW group at the moment:

MINI production is temporarily limited as the U.K. plant undergoes a major expansion
3 Series coupe sales are slumping ahead of the new model's rollout in September
SUV customers are sitting on the sidelines, waiting for BMW's X3 and X5 models to get an overdue freshening (scheduled for August and late this year, respectively)
MINI sales are likely to taper off ahead of the introduction of the new model later this year.

Nonetheless, BMW is holding to its forecast of record unit sales in 2006.

[Source: Reuters]

BMW outsold by Mercedes-Benz in July originally appeared on Autoblog on Mon, 07 Aug 2006 14:35:00 EST. Please see our terms for use of feeds.

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BMW is on a roll

Stuart Waterman — Tue, 16 May 2006 16:32:00 EST

Filed under: BMW, Mini, Rolls-Royce, Earnings/Financials

BMW is doing much better than the luxury carmaker had forecast. Speaking at the company's annual meeting, CEO Helmut Panke (right) revealed that the company will reach its 2008 target of 1.4 million in annual car sales a full year ahead of schedule, in 2007. He is now targeting 1.6 million units by 2010 - almost twice the company's unit sales in 2000.

Even without the windfall profits from the sale of the Rolls-Royce aircraft engine business earlier this year, BMW will book a record pretax profit of about $5.15 billion in 2006, driven by strong sales growth (up 13.9 percent in the first quarter) and efficiency improvements. All this despite the drag of a strong euro (vs. a weak dollar) and the rising cost of raw materials.

Now that's the kind of news a CEO likes to take to the annual meeting...

[Source: BMW]

BMW is on a roll originally appeared on Autoblog on Tue, 16 May 2006 16:32:00 EST. Please see our terms for use of feeds.

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