April numbers were a mixed bag for BMW NA. While US light vehicle sales declined 4.7% when compared to April of last year, BMW deliveries dropped 9.3%. While this doesn’t look good, it falls squarely between the 8.5% drop at Mercedes-Benz and the 11.1% drop at Lexus. Last month BMW slightly edged MB in sales volume, but sadly, the trend didn’t continue.
While sedans continue to take the most of the bad news, down 11%, this month also marks the first time light truck sales have declined since September 2013. Even though the decline was only a very slight 0.1%, the SUV/CUV/Pick-Up juggernaut appears to have finally run out of steam. In the face of increasing inventories and increasing incentives to lure buyers, even the most bullish of forecasters are admitting that US light vehicle sales have plateaued and that the start of what may be a long, tough decline may be at hand. The die-hards point out increasing consumer confidence, but looking deeper at the numbers shows that consumption spending isn’t reflecting the same optimism. (Usually these two numbers move roughly in the same direction at the same rate. Why this is the case is causing many economists sleepless nights!)
Matt’s Luxury Index doesn’t contain a much good news either. Jaguar leads the pack on the exceptional versions of the F-Type and the F-Pace, and Volvo product continues to move well. Audi achieved yet another month of sales growth. One interesting item is that 2016 model sales accounted for 8% of sales, up from 3% just five years ago. Inventory is sticking around longer, and that’s not good. It’s hard to command top dollar for the latest and greatest when last years product is still on dealer lots, often selling at a significant discount. The good news is that all of the big-three of luxury sales in the US, MB, BMW and Lexus, all had bad months. We’d call that glass half-empty, for sure!
BMW sedans, other than the 4-series and the 7-series, all took a bit of a beating. While the 5-series has been very well received, the model line-up isn’t complete and supplies are limited. Sales numbers are down compared to last year. Really, the X1 and the X3 carried the X-series flag this last month.
Official News: Woodcliff Lake, NJ – May 2, 2017… Sales of BMW brand vehicles decreased 9.3 percent in April for a total of 22,624 compared to 24,951 vehicles sold in April, 2016. Year-to-date, the BMW brand is down 1.3 percent in the U.S. on sales of 94,306 vehicles compared to 95,564 sold in the first four months of 2016.
“For BMW, tight supply of key models had a strong effect in April” said Bernhard Kuhnt, President and CEO, BMW of North America. “Our very popular new 5 Series is still ramping up production as the latest variants are making their way to our dealerships. Our Sports Activity Vehicles are still in high demand with the X1 and X3 turning in good results.”
Notable vehicle sales in April include the BMW X3 which increased 32.3 percent to 3,204 vehicles, the BMW X1 which increased 29.4 percent to 1,872 vehicles, and BMW 7 Series which increased 14.0 percent to 994 cars.
BMW Pre-Owned Vehicles
- April 2017 sales of BMW Certified Pre-Owned were 12,757 vehicles, an increase of 13.1 percent from April 2016.
- Total BMW Pre-Owned sales for April were 20,608 vehicles, an increase of 8.2 percent from April 2016.
- Total BMW Pre-Owned cars sold year-to-date were 80,791, a 26.5 percent increase from the first four months of 2016.