I’m currently driving the X6 50i and pondering how it slots into what BMW has been historically. There has been lots of talk among automotive enthusiasts about the influx of SAVs at BMW and how they may or may not have impacted the brand. Yet they sell. But better news for BMW, they offer more profit per vehicle than anything else in the fleet.
And that leads to the idea… did the SAV save BMW from being gobbled up by a larger automaker years ago? During the corporate buying spree of the early and even mid 2000′s, BMW was ripe for a take-over. It’s worth considering that the additional sales and profit from the X5 and the X3 (the single most profitable vehicle in the line-up) sured up BMW’s financials and helped elevate the company to where it is today.
Granted the full answer is probably a little less dramatic. BMW’s line-up has appealed to more people and surely benefited from the rise of the luxury class in the 2000s.
Additionally, one could make the argument that MINI had a hand in that success as well. Yet you can’t overlook the SAV in all of this. And as an enthusiast who has typically cast aside the SAV (rightly or wrongly over the years), I have to admit it’s been an important part of the equation for many reasons.
BMW Press Release: With unparalleled dynamic performance on the road and outstanding traction on rough terrain, the BMW X5 has been on an unstoppable course for success for ten years. BMW presented the first generation of the all-wheel-drive five-door vehicle at the North American International Auto Show in 1999, thereby founding the segment of the Sports Activity Vehicle(R) (SAV). The world premiere marked the start of an unprecedented success story. Within a decade, over 845,000 units of the BMW X5 have been sold. As a result of the consistent ongoing development of the SAV(R) concept, there are now three BMW X models to choose from, with a fourth ready to start production later in 2009. In creating a segment, the BMW X5 became the key inspiration for an entire competitive field of all-wheel-drive vehicles. In its anniversary year, now in its second generation, the BMW X5 remains the role model and benchmark of its class in terms of driving dynamics, efficiency, versatility, premium quality and safety.
Remember that X5 clone that BMW sued to get off Italian roads earlier this year? BMW has lost it’s case and the CEO (as it’s called) built by Shuanghuan Automobile will continue to be sold in Italy. 117 were registered in Italy during 2007 and another 300 were delivered to dealers this year. Obviously it’s not a huge threat to BMW but an unfortunate precedent has been set by this verdict.
Here’s an excerpt from the Automotive News article on the verdict:
“We are convinced the CEO wasn’t a clone of the X5. We are happy to see our view supported by a court ruling,” said Viviana Martinelli, spokeswoman for Milan-based Martin Motors, which is Shuanghuan’s European distributor.
Car production in the US has taken another hit today; BMW too will join the list of manufactuers letting employees go. With the reported temporary plant closures in Germany and these layoffs BMW hopes to weather the current market. Approximately 733 temporary workers at the plant in South Carolina will go to work on December 19th and not anticipate returning until economic conditions improve. BMW has stated they will be paid until the end of this year.
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We believe in the old school BMW ownership experience. We believe in garage nights with a six pack and some friends. We believe in 2002s, in E30 M3s and E34 540s with the 6 speed. We believe in progress in both design and engineering but we haven't lost sight of what made the brand and its products great all those years ago. And yes, we believe in the manual transmission.
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Sections: E53 X5, E70 X5, E83 X3, E84 X1, F25 X3, Sales/Marketing Jul 27th, 2009 7 Comments 
