BMW holds out hope for seven series
BMW holds out hope for seven series
The redesigned BMW 7-series sedan failed to set a sales record or regain segment leadership in two thousand sixteen as BMW’s U.S. executives had targeted. But they’re not providing up.
“All in all, we have very glad customers, and we clearly have a target to be a leader in that segment,” said Ludwig Willisch, head of BMW Group Region Americas. “But that doesn’t happen overnight.”
It can still happen in 2017, tho’, Willisch said, pointing out that 7-series sales rose ten percent in March.
That said, 7-series sales through the very first three months of two thousand seventeen decreased 9.1 percent to Two,103 cars. For two thousand seventeen so far, it’s well behind its key competitor, the Mercedes-Benz S class, which posted Three,648 sales through March. In 2016, the very first utter year for the redesigned seven series after its fall two thousand fifteen launch, BMW sold 12,918, while Mercedes sold Eighteen,803 units of the S class, which had been redesigned two years earlier.
The leader in the large luxury car segment, according to the Automotive News Data Center, is the Cadillac XTS. Its sales tally was Four,678 through March and 22,171 in 2016. But as a front-wheel-drive vehicle with a much lower price point than the rear-wheel-drive German flagship sedans, the XTS is not considered a direct competitor.
Willisch made clear what the seven series is pursuing: “We take all competitors very serious — also the other competitor that has an S in its nomenclature.”
He wasn’t talking about the Tesla Model S, which he sees as a direct competitor in Northern California but not as much in other parts of the U.S. The Model S pulls more BMW buyers away from the five series than from the seven series, Willisch said. Tesla sold 24,000 Model S sedans in the U.S. last year, almost dual that of the seven series.
The S class is the primary rival for the seven series as BMW makes another run at leadership. The Audi A8/S8 line, while well regarded by reviewers, hasn’t approached either of its German competitors on the sales front, selling Four,149 vehicles in 2016.
Outside of same-brand vehicles, the S class was the vehicle most cross-shopped by seven series buyers during the very first quarter, according to Kelley Blue Book.
The seven series also was the most cross-shopped vehicle after same-brand options for S-class buyers.
Regarding the two thousand seventeen faceoff, a Mercedes spokesman said only: “We like our chances.”
The S-class sedan was last redesigned in late 2013. A re-engineered version with fresh engines and updated semiautonomous driving technology will go on sale this fall.
Willisch didn’t forecast a hard sales target for two thousand seventeen but said it “would be superb” if BMW could repeat the almost 13,000 sold last year. Sales typically are highest early in the vehicle’s life cycle, he said.
The redesign seemed to expand the demographics of the 7-series buyer, bringing in some junior consumers who like the vehicle’s cutting-edge technology, said Kirk Cordill, dealer principal at BMW of Schererville in Schererville, Ind., on the outskirts of Chicago. Cordill, a former BMW executive who bought his store with a playmate two years ago, eyed 7-series sales at his dealership more than dual in 2016, to forty one vehicles.
“We’re very bullish on the vehicle,” Cordill said. “It is a fantastic vehicle, and with the broadened appeal, we should do very well with it.”
First-quarter sales for the nameplate at his store dropped by one vehicle compared with the same period a year ago, he said. Regarding the outlook for full-year 2017, “it’s most likely too early to tell,” Cordill said.
The seven series is predominately a lease vehicle, he said, and sales tend to build up momentum through the year as customers come out of expiring leases. In 2017, BMW has put together a “more structured lease pull-ahead program, which can help you as far as retaining customers,” he said.
Incentive spending has been high in the segment. BMW spent an average of $12,544 per seven series for all of two thousand sixteen and an average of $11,095 through the very first three months of 2017, according to Autodata. In comparison, Mercedes spent an average of $12,998 on the S class in two thousand sixteen and $11,467 so far in 2017. The base seven series starts at $84,095, while the S-class sedan starts at $97,525; prices include shipping. Base prices for top-level trims for both lightly top $150,000.
Overtaking the S class in sales this year will be a tall order for the seven series, said Rebecca Lindland, a senior analyst for Kelley Blue Book.
The redesigned model wasn’t able to top its rival in two thousand sixteen because “it wasn’t enough of a game changer” in terms of design, she said.
She criticized the amount of money spent on incentives, particularly at the end of 2016. Segment leadership isn’t a “useful aim,” she said.
“A useful aim is to spend the money on design, on researching consumer preferences, on recognizing market switches, and spending time with their dealers attempting to understand how you’re going from exceptionally high consideration to sales numbers that are not reaching what they ought to be,” Lindland said.
“Attempting to regain a sales title? Nobody wins in that.”
BMW holds out hope for seven series
BMW holds out hope for seven series
The redesigned BMW 7-series sedan failed to set a sales record or regain segment leadership in two thousand sixteen as BMW’s U.S. executives had targeted. But they’re not providing up.
“All in all, we have very glad customers, and we clearly have a target to be a leader in that segment,” said Ludwig Willisch, head of BMW Group Region Americas. “But that doesn’t happen overnight.”
It can still happen in 2017, however, Willisch said, pointing out that 7-series sales rose ten percent in March.
That said, 7-series sales through the very first three months of two thousand seventeen decreased 9.1 percent to Two,103 cars. For two thousand seventeen so far, it’s well behind its key competitor, the Mercedes-Benz S class, which posted Trio,648 sales through March. In 2016, the very first utter year for the redesigned seven series after its fall two thousand fifteen launch, BMW sold 12,918, while Mercedes sold Legitimate,803 units of the S class, which had been redesigned two years earlier.
The leader in the large luxury car segment, according to the Automotive News Data Center, is the Cadillac XTS. Its sales tally was Four,678 through March and 22,171 in 2016. But as a front-wheel-drive vehicle with a much lower price point than the rear-wheel-drive German flagship sedans, the XTS is not considered a direct competitor.
Willisch made clear what the seven series is pursuing: “We take all competitors very serious — also the other competitor that has an S in its nomenclature.”
He wasn’t talking about the Tesla Model S, which he sees as a direct competitor in Northern California but not as much in other parts of the U.S. The Model S pulls more BMW buyers away from the five series than from the seven series, Willisch said. Tesla sold 24,000 Model S sedans in the U.S. last year, almost dual that of the seven series.
The S class is the primary rival for the seven series as BMW makes another run at leadership. The Audi A8/S8 line, while well regarded by reviewers, hasn’t approached either of its German competitors on the sales front, selling Four,149 vehicles in 2016.
Outside of same-brand vehicles, the S class was the vehicle most cross-shopped by seven series buyers during the very first quarter, according to Kelley Blue Book.
The seven series also was the most cross-shopped vehicle after same-brand options for S-class buyers.
Regarding the two thousand seventeen faceoff, a Mercedes spokesman said only: “We like our chances.”
The S-class sedan was last redesigned in late 2013. A re-engineered version with fresh engines and updated semiautonomous driving technology will go on sale this fall.
Willisch didn’t forecast a hard sales target for two thousand seventeen but said it “would be good” if BMW could repeat the almost 13,000 sold last year. Sales typically are highest early in the vehicle’s life cycle, he said.
The redesign seemed to expand the demographics of the 7-series buyer, bringing in some junior consumers who like the vehicle’s cutting-edge technology, said Kirk Cordill, dealer principal at BMW of Schererville in Schererville, Ind., on the outskirts of Chicago. Cordill, a former BMW executive who bought his store with a playmate two years ago, eyed 7-series sales at his dealership more than dual in 2016, to forty one vehicles.
“We’re very bullish on the vehicle,” Cordill said. “It is a fantastic vehicle, and with the broadened appeal, we should do very well with it.”
First-quarter sales for the nameplate at his store dropped by one vehicle compared with the same period a year ago, he said. Regarding the outlook for full-year 2017, “it’s most likely too early to tell,” Cordill said.
The seven series is predominately a lease vehicle, he said, and sales tend to build up momentum through the year as customers come out of expiring leases. In 2017, BMW has put together a “more structured lease pull-ahead program, which can help you as far as retaining customers,” he said.
Incentive spending has been high in the segment. BMW spent an average of $12,544 per seven series for all of two thousand sixteen and an average of $11,095 through the very first three months of 2017, according to Autodata. In comparison, Mercedes spent an average of $12,998 on the S class in two thousand sixteen and $11,467 so far in 2017. The base seven series starts at $84,095, while the S-class sedan starts at $97,525; prices include shipping. Base prices for top-level trims for both lightly top $150,000.
Overtaking the S class in sales this year will be a tall order for the seven series, said Rebecca Lindland, a senior analyst for Kelley Blue Book.
The redesigned model wasn’t able to top its rival in two thousand sixteen because “it wasn’t enough of a game changer” in terms of design, she said.
She criticized the amount of money spent on incentives, particularly at the end of 2016. Segment leadership isn’t a “useful purpose,” she said.
“A useful purpose is to spend the money on design, on researching consumer preferences, on recognizing market switches, and spending time with their dealers attempting to understand how you’re going from exceptionally high consideration to sales numbers that are not reaching what they ought to be,” Lindland said.
“Attempting to regain a sales title? Nobody wins in that.”
