02-04-2020, 12:26 AM | #1 |
Captain
682
Rep 749
Posts
Drives: M3 /M2C/540
Join Date: Feb 2014
Location: California
iTrader: (0)
Garage List 2018 BMW M3 [0.00]
2021 BMW M2 [10.00] 2018 BMW 540 [0.00] 2013 Porsche Boxster S [0.00] 2013 BMW M3 [0.00] |
Why are YOY sales down?
I am 20,000 miles and nearly two years into what has been a very satisfying ownership experience. With that said, I am a bit surprised that 5 series sales are not better.
Thoughts? |
02-04-2020, 12:31 AM | #2 |
Private
26
Rep 65
Posts |
|
Appreciate
0
|
02-04-2020, 05:47 AM | #3 |
Private First Class
93
Rep 184
Posts |
Exactly. Sedan sales have absolutely tanked. It doesn't help that as a result of poor sedan sales, manufacturers don't want to invest in updating them.
__________________
2017 540 M-Sport, 2016 Lexus GX460
And some fast motorcycles |
Appreciate
0
|
02-04-2020, 06:40 AM | #4 |
Major General
2758
Rep 5,082
Posts |
+1
SUV s seem to be the most popular these days although here in the uk I do still see fair amount of 5 series . I always thought the 5 was regarded as a good revenue generator for bmw but wonder if that's still the case these days. |
Appreciate
0
|
02-04-2020, 08:41 AM | #5 |
Captain
779
Rep 994
Posts |
Yup, sedan sales from most brands are declining. GM and Ford are dropping many of theirs. The 5 Series is in its 4th model year so no new news to boost sales a bit. We love ours but I'm sure there will be an additional depreciation hit when it's time for something else.
|
Appreciate
0
|
02-04-2020, 11:01 AM | #6 |
Captain
640
Rep 624
Posts |
As others have noted, the trend today is towards SUVs, not sedans. I spoke recently with the owner of the dealership where I worked and he said their sales are now 70% SUVs. That includes BMW, Mercedes, Land Rover (naturally) and Hyundai. Unfortunately, I park under a lift so with a 10' garage ceiling, I can only have a five foot tall car along with my 4 foot tall Z06. Fortunately, I love my 540xi. --Bob
__________________
2019 540xi M Sport, Carbon Black/Cognac, 2014 328xi, 2016 Corvette Z06; Previous:2010 BMW 535xi M Sp, 2008 335xi, 1998 M3 Sedan,1980 528i, 1977 320i, 1976 2002
|
Appreciate
0
|
02-04-2020, 11:15 AM | #7 | |
Colonel
2020
Rep 2,939
Posts
Drives: 2020 BMW 530xe
Join Date: Jul 2019
Location: Farmington, NY
|
As mentioned by others, SUVs are dominating the market. So much so that some car companies are killing sedan production entirely.
But! Doesn't this just mean we can get better deals on sedans as long as we're interested in buying them?? Quote:
Things can swiftly swing back if gas prices start ticking up again. |
|
Appreciate
0
|
02-04-2020, 11:59 AM | #8 | |
Brigadier General
3086
Rep 4,210
Posts |
Quote:
But there is no doubt that the SUVs are running the market. Even in Europe with small, twisty roads you are seeing an influx of SUVs, albeit tending toward the smaller versions. |
|
Appreciate
0
|
02-04-2020, 12:28 PM | #9 |
Major
1615
Rep 1,431
Posts
Drives: 2023 iX xDrive50
Join Date: Nov 2011
Location: Seattle
|
The trend is definitely moving towards SUV's. The 3 and 4 series are also following the same trend towards the X3/X4. Below is a chart comparing US sales of the 5 vs the X5. Keep in mind there are also fluctuations due to new model releases and LCI (5'er LCI is due this summer).
|
Appreciate
1
ArchieV295.50 |
02-04-2020, 12:46 PM | #10 |
Ring Leader of G8X Haters
25064
Rep 8,761
Posts |
The X5 exists in a world that only wants crossovers. The 5-series has been kicked to the curb.
__________________
Current Garage: 2022 Mercedes-Benz S 580 / 2023 Genesis GV70 2.5T / 2007 Mercedes-Benz E 350 / 1999 Mazda MX-5 Miata
Retired: '95 E36 325i 5MT / '04 E46 330i 6MT / '05 E83 X3 3.0i / '11 E90 335xi / '17 G30 540i / '19 F87 M2C 6MT / '19 MB CLS 53 / '20 MB GLC 300 |
Appreciate
0
|
02-04-2020, 12:59 PM | #11 |
Lieutenant General
6659
Rep 15,858
Posts |
|
Appreciate
0
|
02-04-2020, 01:04 PM | #12 | |
Colonel
2020
Rep 2,939
Posts
Drives: 2020 BMW 530xe
Join Date: Jul 2019
Location: Farmington, NY
|
Quote:
The only thing that could slow that shift back would be more electric SUVs either as full BEVs or PHEVs to keep the fuel costs down. |
|
Appreciate
0
|
02-04-2020, 01:24 PM | #13 | |
Major
1615
Rep 1,431
Posts
Drives: 2023 iX xDrive50
Join Date: Nov 2011
Location: Seattle
|
Quote:
SUV's are the modern station wagon and people like their flexibility. Our roads also contribute to the desire to move to something that sits higher. I can't tell you how tiring it is to try and avoid potholes, high curb stops (avoid damage to air dam) and other obstacles while driving a sedan. SUV's definitely provide some peace of mind in that category. PHEV's seem like a good option for fuel savings but people like myself who spend $90k to $110k on a car are not always thinking about saving $200/year on gas (or what ever the savings is on a PHEV). People are either making an environmental statement or want to be part of something grander (move to the future of personal transportation). Personally, I'm past the PHEV idea especially if it means sacrificing acceleration or performance. However, I'm willing to make the tradeoff of going to a BEV that has V8 level torque at the expense of weight gain. The shift to SUV's has been a slow but measurable move and from my travels to various countries in the EU and Asia, I don't think it's a phenomenon that is unique to North America. |
|
Appreciate
0
|
02-04-2020, 02:53 PM | #15 | |
Major
1615
Rep 1,431
Posts
Drives: 2023 iX xDrive50
Join Date: Nov 2011
Location: Seattle
|
Quote:
I know quite a few Tesla owners and have cross shopped them myself (I really want a BEV). Most Tesla owners that I know come from mid range Japanese cars (Toyota, Nissan, and Honda sedans and minivans) or lower end German cars (lower tiered 3 series or C-Class). What I find interesting is that not one of them want to go back to an ICE but even those who purchased a Tesla after owning a lower tiered 3-Series or C-Class all say the fit and finish in the Tesla is lacking but they won't go back to an ICE engine. Bottom line, I don't think BEV's are eating into the sale of sedans like the 5 series in a meaningful way but that could change with time. Right now it's SUV's that are eating into the sedans. If Tesla starts to meaningfully improving the interiors of their cars like the Model S then that might be another data point for the costal cities that seem to shop for BEV's but also make up a bigger percentage of BMW's sales in the US. |
|
Appreciate
0
|
02-04-2020, 03:31 PM | #16 | ||
Ring Leader of G8X Haters
25064
Rep 8,761
Posts |
Quote:
https://www.bloomberg.com/graphics/2...evolution.html
__________________
Current Garage: 2022 Mercedes-Benz S 580 / 2023 Genesis GV70 2.5T / 2007 Mercedes-Benz E 350 / 1999 Mazda MX-5 Miata
Retired: '95 E36 325i 5MT / '04 E46 330i 6MT / '05 E83 X3 3.0i / '11 E90 335xi / '17 G30 540i / '19 F87 M2C 6MT / '19 MB CLS 53 / '20 MB GLC 300 |
||
Appreciate
0
|
02-04-2020, 03:55 PM | #17 | |
Colonel
2020
Rep 2,939
Posts
Drives: 2020 BMW 530xe
Join Date: Jul 2019
Location: Farmington, NY
|
Quote:
With the large amount of people who lease their $90K Germany luxury cars I'd say this market segment is likely far more volatile when monthly expenditures shift. For instance, if a $100/m gas bill becomes a $200/m gas bill that may motivate a shift. There are quite a lot of buyers who punch above their weight to get into BMWs and would be impacted by fuel price spikes. The market has moved in ways to counter the effects of lower fuel prices on SUVs with increased fuel economy, but the Trump administration is removing the vast majority of those restrictions so we can expect SUV fuel economy to regress and become more vulnerable in a higher fuel cost scenario. I do think once buyers go BEV or PHEV though they likely never would go back to pure ICE (and I'm sure many PHEV owners will shift to BEVs when it makes sense to do so). As electric has a lot of strong advantages when it can work out for a driver. Everything from lots of torque to less time wasted "fueling up" to less wear and tear items. |
|
Appreciate
0
|
02-04-2020, 04:03 PM | #18 | |
Major
1615
Rep 1,431
Posts
Drives: 2023 iX xDrive50
Join Date: Nov 2011
Location: Seattle
|
Quote:
|
|
Appreciate
0
|
02-04-2020, 04:06 PM | #19 | ||
Ring Leader of G8X Haters
25064
Rep 8,761
Posts |
Quote:
The point of the article is that BMW most definitely has lost sales to Tesla, particularly with their bread and butter 3-series, and likely soon the X3 with the Model Y coming soon.
__________________
Current Garage: 2022 Mercedes-Benz S 580 / 2023 Genesis GV70 2.5T / 2007 Mercedes-Benz E 350 / 1999 Mazda MX-5 Miata
Retired: '95 E36 325i 5MT / '04 E46 330i 6MT / '05 E83 X3 3.0i / '11 E90 335xi / '17 G30 540i / '19 F87 M2C 6MT / '19 MB CLS 53 / '20 MB GLC 300 |
||
Appreciate
0
|
02-04-2020, 04:58 PM | #20 | |
Major
1615
Rep 1,431
Posts
Drives: 2023 iX xDrive50
Join Date: Nov 2011
Location: Seattle
|
Quote:
Trading in a car of one brand for another doesn't mean that the first brand lost a sale. Here's a personal example, when I was in my 20's, I traded in a used BMW for a new Nissan which I needed for a long commute to a new job. There was no way I could have afforded a new BMW at that point in my life and I wanted something better in the snow (before xDrive was a thing). Did BMW lose a sale to Nissan because I decided to trade in a used BMW for a new Nissan? |
|
Appreciate
0
|
02-04-2020, 06:29 PM | #22 | |
Captain
158
Rep 866
Posts |
Quote:
SUV's are terrible, IMO, if you want to "save the planet" as well as having me "Bring My Wallet" to the fuel depot! |
|
Appreciate
0
|
Post Reply |
Bookmarks |
Thread Tools | Search this Thread |
|
|