September BMW US sales up 0.7% amid US Light Vehicle Surge

BMW sales in North America rose 0.7% in September compared to the same month last year. While this is a bit of growth, it’s a bit less compelling when one looks deeper into the numbers. First off, there were 26 sales days in September 2017, and only 25 in 2016. That extra day right there should be about a 4% increase if the daily sales rate were unchanged. Overall US Light Vehicle sales were up 6.3% for the month, so BMW was far from leading the pack. If we look at Matt’s Luxury Index, the only silver lining is that BMW wasn’t the worst performer: that honor goes to Mercedes-Benz that dropped 1.2%. But overall, the MLI was up 5.9% for the month, only slightly trailing the overall US Light Vehicle Fleet.
The market as a whole is generally bullish. Many of the Automotive fortune tellers chalk it up to the strong US economy. Interest rates are still low, gas is still pretty cheap. Replacement sales for the two hurricanes also contributed to a strong month. But all this rosy spin is countered by two worrisome items: Incentive spending is up, and inventory is up as well. While incentives aren’t reported, both firms that track and estimate incentives per car have them a bit shy of $4,000 per sale. Inventory is reported, the average car now spends 80 days on a dealer lot.
The text of this months release from is a bit too optimistic to our ears. Bernhard Kuhnt, President and CEO, BMW of North America delivers the “Just wait, We’ll Do Better Soon” monthly line claiming that increased capacity in Spartanburg and the new X3 will make it all OK. While globally BMW is doing well, the North American market seems to have the company very, very confused.
Notable vehicle sales in September include the BMW 4 Series and BMW 5 Series, which both showed strong gains for the third straight month, and the BMW X5. The BMW 4 Series increased 58.9 percent to 3,637 vehicles, while the BMW 5 Series increased 144.4 percent to 3,718 vehicles. The BMW X5 increased 6.0 percent to 3,975 vehicles.