BMW CPO - The Scream

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BMW battles to retain dominance in luxury market

When Cadillac officials met with reporters during the recent upscale Pebble Beach Concours d’Elegance in California, they spent a surprising amount of time discussing their competition — in particular, BMW. With its new compact sports sedan called the ATS, Cadillac is taking aim at the Bavarian manufacturer, which has become the benchmark of performance luxury. 

“It won’t be easy” to take on BMW, said Cadillac General Marketing Manager Don Butler, but if the company has any hope of regaining credibility in the luxury market, General Motors’ flagship brand has no other choice. And it’s not alone. 

 

Last year, the BMW logo adorned more luxury cars than any other brand sold in the U.S., and BMW’s formidable reputation for making its self-proclaimed “ultimate performance machines” establishes it as the king of the hill that virtually every high-end automaker targets, from German rival Mercedes-Benz to Toyota's Lexus.

Time and again, that has proven easier to say than do, and BMW has continued to gain ground in recent years. But it certainly doesn’t mean competitors are backing down. Audi, for instance, is making inroads with products that deliver a mix of solid handling and acceleration along with eye-catching design. Akio Toyoda, president of Toyota, Lexus' parent company, has vowed to put more “passion” and “performance” into new and redesigned products like the LS 460 sedan that will go on sale later this year.

“I would not tell you the truth if I said I did not care” about the challenge the competition is presenting, said Ludwig Willisch, who last year became the CEO of BMW of North America. He added he's also intent on maintaining the position BMW gained in 2011 as the U.S. market’s luxury sales leader.

Being No. 1 “is meaningful to us,” said the German executive, and not just when compared to the likes of Cadillac, Mercedes or Lexus.  Though BMW was the luxury sales leader in the U.S. in 2011, China surged to become BMW’s top market. As of June, however, the U.S. is back in the lead — although BMW of North America is now in a tight race with Mercedes-Benz. And after seeing its sales collapse in 2011 as a result of product shortages stemming from Japan’s March earthquake and tsunami, Lexus is now back in the competition, as well.

BMW has rolled out a number of new models in recent months, including an all-new 3-Series, several high-performance M models, the new X1 compact crossover and, for 2013, it will update its flagship 7-Series.

The new X1 targets a fast-emerging compact crossover segment that Willisch anticipates will bring “new customers we haven’t seen so far.”

Collectively, the German luxury automakers have launched what is considered to be the most aggressive era of product proliferation in automotive history. As soon as some product gaps are identified, BMW or Mercedes or Audi rapidly jumps in — usually with the Teutonic competition quickly following. 

 

“It’s all about entrepreneurial spirit,” said Willisch, who downplayed concerns that BMW is overdoing things. A few years ago, the automaker saw skeptics abound when it rolled out the X6 Sport-Activity Vehicle, a crossover blending attributes of a conventional SUV and a sports coupe. But demand has been strong enough to persuade the maker to prepare a smaller version, the soon-to-launch X4.

Still, not everyone is convinced. Lexus CEO Mark Templin said he has no interest in adding “100 new models … because I don’t have to,” especially at the lower end of the luxury spectrum. The Japanese marquee brand doesn’t intend to compete with the X1 or the 1-Series passenger car because that, Templin said, is the role of the mainstream Toyota brand.

 

He has a point. Skeptics dub such miniluxury models as “compliance cars,” which luxury makers like BMW and Mercedes-Benz have to add to their lines in order to meet strict new U.S. mileage mandates and toughened European carbon dioxide rules. Lexus, Cadillac and Audi can turn to down-market sibling brands, such as Toyota, Chevrolet and Volkswagen.

Indeed, while BMW is rolling out a number of new battery-powered cars and plug-in hybrids, such as the new 3-Series-based ActiveE and the upcoming i3 and i8 models, Willisch acknowledged they’re likely to generate collective volumes “in the four digits.”

More conventional hybrids, such as the revised 2013 7-Series version, could do better. A recent study found that the Toyota Prius is frequently found as a companion to luxury models like the 7-Series in the 10 most affluent ZIP codes in America. Willisch said more and more luxury buyers, regardless of their income and net wealth, “are interested in fuel economy,” even if they're just driving something they can brag about to friends and neighbors.

Last year’s strong showing by BMW in China makes it clear that the automaker will have to adapt to global realities. BMW is developing new products specifically for China, notably a stretched version of the 3-Series designed to appeal to buyers who prefer being chauffeured. But no worries, insisted Willisch. He said his company “will continue to build ‘truthful’ BMWs” that can live up to the ultimate driving machine image.

But expect the manufacturer to also put more emphasis on design, creature comfort and safety, as well as quality and customer service. If competitors like Cadillac want to take a shot at BMW, the Bavarians are more than ready to return fire.

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I just finished purchasing a BMW 335d from Plaza Motors BMW, and what a great experience it was.

My Client Advisor was Mike Kuhlmann, and I highly recommend dealing with him. Let me tell you why. I live in Northern California, where my 2011 335d is being shipped. Over the last few months, I have looked at, and dealt with quite a few 335d’s and Client Advisor/Salespeople. The communication, follow up, and professionalism often were not to my standards during these few months. (I can be demanding) I enjoy negotiating, and these skills are required. But not with Mike and Plaza BMW, he is a true professional, who I would hire in a heartbeat if he lived in Northern California. (I manage a staff that exceeds 100) His communication skills, attention to details, and genuine desire to help are off the charts. Example, he called me on his off day, to answer questions, when I was having issues with a credit union and loan documents (issue not with Plaza BMW). All the time their finance department also had been dealing with the issue, but Mike wanted to make sure I was receiving excellent customer service, which I was. Mike gave me straight forward answers to my many questions, listened to what I was looking for, and made me feel as if I had an advocate. Mike is truly an asset to Plaza BMW.

I believe the culture and image of a customer friendly service staff starts from the top. I had one correspondence with Ed Federmann (GM of Plaza BMW), after my deal was finalized, and he was open to listening, and quick with responding, and made my request happen. All within minutes, wow what great customer care here! When Mike was off, often Jason Catlin (General Sales Manager) would follow up if I had an urgent question. I found that Jason had many of Mike’s attributes. These two managers surely have developed a sales environment that is respectful, empathic, and truly professional to prospective customers.

My only regret is, too bad Plaza BMW is not located in Northern California because I am sure their service department is managed with these high standards.
Thank you to the team at plaza BMW, you are truly amazing!-lscheetz

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BMW R7 Motorcycle Wins Best-In-Class Award

A 1934 BMW R7 won the best-in-class award for motorcycles at the 2012 Pebble Beach Concours d’Elegance. The Concours is generally regarded as a classic-car event, but motorcycles have increasingly made an impression among collectors there.

This year the show included a special featured category of motorcycles from Germany and BMW entered the R7, which its BMW Group Classic unit had restored. The German company built the R7 during the art deco period, which influenced its design heavily.

The bike was built as a concept vehicle but never entered production, so it is one of a kind. It is now a part of BMW Group Classic’s collection of significant BMW cars and motorcycles.

“The BMW R7 is one of the most extraordinary motorcycles in our collection,” said Karl Baumer, head of BMW Group Classic. “We are delighted that the effort to bring the BMW R7 to the Pebble Beach Concours was rewarded with best in class for motorcycles.”

Can you guess the year and model of this BMW?

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BMW 3-series GT concept set for Paris show

Seen here in Autocar’s artist’s impression, it will be previewed as a lightly veiled concept car at the Paris motor show next month before going on sale in the first half of 2013.

The new five-door liftback is based on a long-wheelbase version of the latest 3-series platform. Exact dimensions are still under wraps but the GT is likely to get a slightly shorter wheelbase than the Chinese market 3-series Li, which adds 110mm to the standard 3-series saloon’s 2810mm measurement.

The same platform structure is expected to be used for the to-be-confirmed 4-series Gran Coupé — another new four-door, 3-series based variant planned for launch in 2015.

Known internally under the codename F34, the 3-series GT follows the form of the 5-series GT, with a higher roofline and broader waistline than existing 3-series models, along with four frameless doors and a heavily angled tailgate.

With a longer wheelbase than its siblings, the upcoming 3-series GT is claimed to boast more rear legroom and load space than both the latest 3-series saloon and Touring models — something BMW suggests will see it appeal to family car buyers.

An optional glass roof is also said to combine with comparatively large windows to give the new car its own distinct cabin ambience, despite sharing most of its interior fittings with other models.

As with the 5-series GT, the two-piece tailgate opens either porthole-style or in union with the rear window for added versatility.

BMW engineers are also talking up the 3-series GT’s refinement, suggesting the longer wheelbase has allowed scope for a more comfort-orientated approach to its chassis tuning.

How To Change A Flat Tire

There’s no sound  as disheartening to a driver than the flop flop of a flat tire. They always seem to come at inconvenient times, too. But to a person who knows how to change a flat, that flopping noise is a chance to display his self-sufficiency.

Just like knowing how to jumpstart a car, knowing how to change a flat tire is a skill everyone should possess. It will save your own butt when you’re out on some lonely stretch of highway and come in handy when helping a damsel in distress or a hapless traveler on the side of the road. Follow these steps and you’ll back on the road in no time.

 

Tools needed: Spare tire, jack, lug wrench.

1. Park your car on a flat surface. If you get a flat while on the road, pull your car as far away from traffic as possible . Make sure to put on the emergency brake. It’s also recommended to put a block on the tire opposite of the flat tire. Put to use that fruitcake from Aunt Gertie you’ve been toting around in the trunk. Here’s a blocking example: if your right rear tire is flat, put the block on the front left tire.

2. Remove the hubcap. If your car has a hubcap, remove it so you can get to the lug nuts. Use the hubcap to hold the nuts, just like the dad in A Christmas Story. Just don’t let your kid hold the hubcap or he’ll lose them and drop the F-bomb.

3. Loosen the nuts. Grab your lug wrench and place it on the flat tire’s lug nuts. Loosen them up by turning them counterclockwise. The nuts are probably on there really tight, so you’ll have to use all your man strength to unscrew them. Loosen the nuts a few turns, but don’t take any of them off yet!

4. Place the jack underneath your car. Check your owner’s manual for the correct placement of the jack. Turn the hand crank at the end of the jack to raise the jack until it comes into contact with your car’s frame. Make sure it’s touching a sturdy spot.

5. Jack it up! Start cranking the jack until the wheel is high enough above the ground to remove the tire.

6. Remove the flat. Remove the lug nuts from the wheel. You should be able to do it by hand because you’ve already loosened them. Remove the flat tire and lay it flat. You don’t want the wheel to roll into traffic during rush hour and cause a thirty car pile-up.

7. Slap on your spare. Take your spare tire and line up the lugs, or bolts, with the holes in the wheel and slide the wheel on. Once the wheel is on, take your lug nuts and tighten them by hand until you meet firm resistance.

8. Lower the car. Lower the jack until the wheel is firmly on the ground.

9. Finish tightening your lug nuts. These babies must be on super tight so the wheel doesn’t come flying off while driving to the tire shop to get the flat fixed. So you need to unleash the super power of the star pattern to get those lugs tighter than a deer tick. Use this tightening pattern if you have five bolts on your wheel. Start with any lug nut and then follow this pattern:

If your car has four, use this pattern:

BMW - Feeling Remains :30

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Olympic sponsor BMW takes the stage at Olympic Stadium with mini Minis on the field

Olympic venues are supposed to be free of sponsor ads, but night after night BMW’s iconic Mini car is right there in the middle of the main stadium at the London Games.

The automaker is deploying miniature remote-controlled versions of the car to move track and field equipment around Olympic Stadium.

The International Olympic Committee’s in-house broadcaster has regularly zoomed in on the cars and sent images to networks globally, giving BMW wide exposure of its brand.

The IOC’s television and marketing director, Timo Lumme, said at a news conference that the rules weren’t being breached because the cars don’t have any branding.

But they feature the phrase “it’s a MINI adventure,” and Lumme later acknowledged that from “the silhouette ... you can recognize it’s a Mini.”

“There are a number of IAAF validated vehicles that could have been used,” Lumme said. “So the one that they chose, quite naturally, because BMW is the sponsor, was the BMW one.”

BMW’s sponsorship of the London Games is worth $63 million, including the cost of providing vehicles.

Rule 50 of the IOC charter states that “commercial installations and advertising signs shall not be allowed in the stadia.”

Olympic sponsor Omega has its logo on clocks in venues, but BMW has specifically used its Mini for a task that could have been carried out by a generic vehicle.

“We are obviously pleased with the result,” BMW spokesman Graham Biggs said. “The Mini shape is recognizable — it’s all about good design. They are not branded but the design is something people recognize as Mini.”

Biggs insisted that the rules are being adhered to as the Minis collect javelins, hammers and discuses and return them to competitors.

“This is something that was discussed at length with LOCOG and the IOC,” he said.

BMW acquired the Mini brand through its 1994 purchase of the Rover Group. Conceived as a thrifty vehicle during the 1950s fuel crisis, the car came to symbolize the “Swinging 60s” Britain.

BMW’s canny use of Minis highlights the challenge sponsors face at the Olympics to secure a return on their investment when exposure is heavily restricted by the IOC.

Steve Martin, chief executive of marketing agency M&C Saatchi Sport and Entertainment, said the use of Mini is the “surprise sponsorship of the Olympic Games.”

“People in the industry will look and see it’s the smartest thing around the Olympic Games for a long time,” Martin said. “The Olympic Stadium is almost a brandless sanctuary within the Olympic Park.”

The use of the Minis could open the door at future Olympics for sponsors to search for ways to get around IOC advertising restrictions.

“Fans have become accustomed to seeing their favorite Olympians in clean stadiums but they may come to accept brands appearing on the field of play if they have a clear role and add some value to the experience,” said Lucien Boyer, chief executive of brand agency Havas Sports & Entertainment. “The Mini radio-control cars collecting javelins have been useful to the organizers and amusing for spectators.

“However, the IOC must be sensitive to the reactions of other partners and mindful of what has made their sponsorship program so successful as these opportunities develop.”

Happy Monday fans! Let’s all have a fantastic week! Can you guess the make and model of this vehicle?

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