BMW Seeks Sales Growth, Lower Margins as New Models Hit Market

Bayerische Motoren Werke AG (BMW), the world’s largest maker of luxury vehicles, predicted record sales and profit in 2012 boosted by eight new and updated models.

The maker of the Z4 roadster stuck to its target of beating last year’s record earnings on higher deliveries and the auto unit generating a margin at the “upper end” of a range of 8 percent to 10 percent, Chief Executive Officer Norbert Reithofer said today. The Munich-based company reported earnings before interest and taxes of 11.8 percent from vehicle sales last year.

“These targets are based on the assumption that the underlying economic conditions remain stable,” Reithofer said in a speech at the company’s annual shareholder meeting. “The high level of public debt in some countries and the euro crisis harbor ongoing risks for the global economy.”

The car and motorcycle manufacturer is expanding to fend off efforts by Volkswagen AG (VOW)’s Audi and Daimler AG’s Mercedes- Benz to grab the sales lead in luxury autos by the end of the decade.

The maker of BMW, Mini and Rolls-Royce models expects higher sales at all its brands, pushing pretax profit higher, Reithofer said today. First-quarter profit beat analyst estimates, with ebit climbing 19 percent to 2.13 billion euros, BMW said May 3.

The company is rolling out a 3-door version of the 1-series compact, a new derivative of the 3-Series, as well as updating the X1 compact sport-utility vehicle, X6 luxury SUV and 7-Series sedan in 2012. These models will add to the Mini Roadster, which hit the market earlier this year, and coupe and convertible versions of the high-performance M6.

Sales of the 1-Series compact, which was revamped late last year, climbed 20 percent in the first quarter while the X3 SUV surged 55 percent, lifting total sales to 425,528 vehicles. BMW is counting on demand for a new generation of the best-selling 3-Series sedan, which was introduced in February, to boost deliveries further and offset development costs for the i3 battery-powered city car, which will be rolled out in 2013.

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Steve was great, he actually works at Infiniti which was my initial vehicle of choice. However, just like STL weather my mind changed constantly. He was actually kind enough and able to assist me at any of the Plaza Dealerships. He was extremelyyyyyyyyy patient with me. I was soooooooooo indecisive about the type of vehicle I wanted. What I did know is I required pure luxury(woodgrain, leather and power everything). I went from white infiniti, to white mercedes, to black mercedes, back to infiniti fx35 then BMW the car of choice. I took almost a month going back and fourth but Steve(what a trooper) he stuck with me, stayed polite,never pushy, very genuine guy(or great actor lol). I can not say enough good things about this man. What I will say though another BMW dealership offered me the same style BMW(different color), 10k less miles at the same price/deal as Plaza, but because of Steve Bierman's most awesome shomanship and patience I went with Plaza. I have and will continue to refer to Steve/Infiniti/Plaza. I am truly a life long customer!-Stl_Heat

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2013 BMW 3-Series Sports Wagon Debuts, Confirmed For U.S.

BMW has revealed the wagon variant of its latest-generation 3-Series and at the same time confirmed that this new model, just like the previous two, will be sold in the U.S.

The vehicle goes on sale in Europe later this year but won’t hit U.S. showrooms until spring 2013.

Powertrains and pricing will be announced closer to launch but expect to see a similar specifications to what is already offered with the sedan.

This means the base model in the U.S. is likely to be a 328i powered by a turbocharged 2.0-liter four-cylinder engine and rated at 240 horsepower and 260 pound-feet of torque. A 335i powered by a turbocharged 3.0-liter six-cylinder engine and rated at 300 horsepower and 300 pound-feet of torque should also be offered for power hungry buyers.

Customers will also be able to choose from three different trim levels including the Sport Line, Luxury Line and Modern Line. For the enthusiast who wants an even sportier Sports Wagon, the M Sport Line will also be offered. No word yet if BMW plans to launch a true M version of the new 3-Series Sports Wagon or an ActiveHybrid model like with the sedan.

Also like the sedan, the latest 3-Series Sports Wagon is slightly larger than its predecessor, most notably its wider track which is 1.46  inches wider up front and 1.85 inches wider in the rear. The vehicle’s length has also been increased by some 3.66 inches. This has increased room for rear-seat passengers as well as boosting cargo capacity by 10 percent.

A net as well as an additional strap along the right side panel can be used to help secure cargo. On top of this, four tie-downs are integrated into the cargo floor. A net along the left-hand panel will also be available. A pair of coat hooks and an addition 12-volt outlet add an extra measure of flexibility.

The rear seats can be folded down in three sections in a 40:20:40 split. The large, through-loading facility allows the new 3-Series Sports Wagon to carry four adults and longer items, such as skis or snowboards, at the same time. Also available are roof-rails as well as a full glass panoramic sunroof.

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Fantastic, Fantastic, Fantastic!!! Everyone is great from Jason in management, to Bob Salzman in sales, to Eric Swanson in service. It all started with my 2009 650 that was a business lease. It was a great car, but I kept getting phone calls from Bob in sales. It was getting toward the end of my lease and Bob kept saying that I had to test drive the new 2012 650. Bob was right! The car is excellent! But if the car is excellent and service after the sale sucks I will literally bring the car back and threw them the keys and ride my bike or take a hanglider everywhere because I am very busy and have no time for BS. At Plaza BMW the whole team takes absolutely great care of me! For example, today at 4:50 on a Saturday afternoon I came in with a problem. The guys all hopped in and took care of me the way that they would take care of their own family! Again, this was 4:50 and I walked in off the street with NO appointment. I honestly expected to wait until Monday or Tuesday to get the car in. Absolutely not! I was in a rental and on my way in a few moments! I can't express my sincere appreciation for their courtesy and professionalism! They even treat my dog Isaac like their own dog! Way to go guys! If you don't buy or service here with Bob, Eric or Jason you are missing out! Tell them Isaac the dog sent you! :)-Mark

BMW Pushes Solar Power With New Partnership

BMW has taken another step in what is shaping up to be a multifaceted electric vehicle initiative that focuses on spurring infrastructure and lifestyle changes among consumers, as much as touting the vehicles themselves.

A new partnership between BMW and Real Goods Solar, a Louisville, Colo.-based provider of residential and commercial solar technology, will allow owners of current BMW ActiveE experimental electric vehicles and future buyers of the i3, BMW’s first full-production EV scheduled to launch in 2013, to buy solar panels for their homes at up to a 35% discount. They must live in California, Connecticut, New Jersey, New York and Massachusetts.

They will have the option to purchase or lease the equipment, which Real Goods Solar will install and service. The company’s website lists two 20-year lease options, one with zero down that amortizes equipment costs over the term of the lease, and another where owners pay $5,269 upfront and forgo a monthly payment. The website says the zero-down option has the potential to save ConEd customers in New York $71,036 over 20 years in avoided gas and utility costs, while the prepaid option could save up to $84,599. (Go to the Real Goods Solar website to see how it calculated those savings.)

The savings are potentially so large because the solar array wouldn’t just recharge electric vehicles. It would provide energy to the whole house for air conditioning, appliances and heating water, for example.

This announcement builds on BMW’s previous partnership announced earlier this year with Tendril Inc. The Boulder, Colo.-based firm provides software infrastructure to connect homes to the electrical grid and optimize energy usage. These so-called “smart homes” can communicate with the “smart grid” to charge up vehicles when electricity demand is low, which not only saves consumers money, but also keeps the grid from getting overtaxed.

The fact that BMW’s approach to selling electric vehicles is more holistic than efforts by other automakers thus far is encouraging, because the changes that need to occur for EVs to reach significant adoption go way beyond simply swapping a gas engine for an electric motor in each car.