Byron
05-Jun-2008, 09:52 PM
BMW puts brakes on UK growth
4 June 2008
Author: Maurice Glover
BMW is capping volumes of popular models after deciding it has reached optimum size in the UK market.
In a move aimed at protecting its position as one of the leading premium brands, the German firm has drawn a line under the 127,000 registrations it achieved in Britain last year – its best result since taking charge of sales from importer TKM in 1980.
“We have enjoyed consistent expansion over three decades but the time has come to apply the brakes – we don’t want to jeopardise our position in the marketplace,” said BMW UK product and market planning chief Carl Sanderson.
Sanderson told AM that the company was no longer seeking higher volumes for core products.
“The 3 Series accounted for half our total sales in 2007 and the 1 Series won more than 23,000 registrations.
We would like to have as many cars as possible in the market, but there is an understanding that we have now achieved a level of business that is profitable for the company and the dealer network.
“We ask our 148 retailers to make considerable investments and it is not in the interests of anyone that they should be forced into discounting in order to move more volume.
“Equally, it would harm our reputation if there was a BMW on every street corner,” he said.
Sanderson, responsible for BMW planning marketing strategy up to 12 years into the future, said that, over the past five years, BMW’s core competition had moved from Mercedes-Benz to Audi, where the A3 and A4 models accounted for most volume.
“Our 3 and 5 Series lines could easily achieve annual sales of 120,000, but that would threaten our position.
4 June 2008
Author: Maurice Glover
BMW is capping volumes of popular models after deciding it has reached optimum size in the UK market.
In a move aimed at protecting its position as one of the leading premium brands, the German firm has drawn a line under the 127,000 registrations it achieved in Britain last year – its best result since taking charge of sales from importer TKM in 1980.
“We have enjoyed consistent expansion over three decades but the time has come to apply the brakes – we don’t want to jeopardise our position in the marketplace,” said BMW UK product and market planning chief Carl Sanderson.
Sanderson told AM that the company was no longer seeking higher volumes for core products.
“The 3 Series accounted for half our total sales in 2007 and the 1 Series won more than 23,000 registrations.
We would like to have as many cars as possible in the market, but there is an understanding that we have now achieved a level of business that is profitable for the company and the dealer network.
“We ask our 148 retailers to make considerable investments and it is not in the interests of anyone that they should be forced into discounting in order to move more volume.
“Equally, it would harm our reputation if there was a BMW on every street corner,” he said.
Sanderson, responsible for BMW planning marketing strategy up to 12 years into the future, said that, over the past five years, BMW’s core competition had moved from Mercedes-Benz to Audi, where the A3 and A4 models accounted for most volume.
“Our 3 and 5 Series lines could easily achieve annual sales of 120,000, but that would threaten our position.