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ReprintsBMW not planning to hike Mini output
Richard Truett
Automotive News
July 8, 2008 - 3:35 pm ET
DETROIT -- There is no relief in sight for Mini dealers who are short on inventory. Despite high demand and record sales for the small, fuel-saving hatchback, BMW is unlikely to approve an increase in production for the United States in the near term, said Tom Kowaleski, BMW's North American vice president of corporate communications. Demand for the stylish subcompact has risen this year with the price of gasoline. That has left Mini dealers with just 1,051 cars in inventory as of July 1 -- or a five-day supply. For the first half of 2008, sales of the Mini Cooper are up 33.6 percent to a record 26,400, compared with 19,759 vehicles sold during the same period of 2007. Kowaleski said Mini marketing officials are working on a new U.S. forecast to gauge long-term demand before lobbying BMW to increase production at the car's sole plant in Oxford, England. "Increased capacity equals cost. It comes down to the accuracy of forecasting," he said. Because the Mini plant is running at full capacity, a production increase would mean an expensive expansion of the plant, a move BMW is not yet ready to make. Kowaleski also said prices of the 2009 models are being reviewed in light of higher commodities costs and the weak U.S. dollar. "Discussions are under way to determine what the price should be," he said. A number of automakers have already announced price increases to cover higher costs. |
You can reach Richard Truett at rtruett@crain.com.
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Mini sales continue to rise, but there are no plans to increase production. |
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