BMW bets awd 3-series sedan will help top Mercedes in U.S.
Skip to main content
Sister Publication Links
  • Automotive News Canada
  • Automotive News Europe
  • Automotive News China
  • Automobilwoche
AN-LOGO-BLUE
Subscribe
  • Subscribe
  • Account
  • login
  • HOME
  • NEWS
    • Dealers
    • Automakers & Suppliers
    • News by Brand
    • Cars & Concepts
    • Coronavirus Coverage
    • China
    • Shift
    • Mobility Report
    • Special Reports
    • Digital Edition Archive
    • This Week's Issue
    • Working online to book COVID shots, office manager Billie Jean Pellet “typed so fast smoke came off the keyboard,” said dealer Earl Stewart.
      Dealership team hunts for vaccine
      Hope stalls for rebound in European auto sales
      Dana net income falls 53% in Q4
      Daimler hq Stuttgart web.jpg
      Daimler expects to recover production lost to chip shortage amid bullish outlook for 2021
    • Changan
      Huawei, battered by U.S. sanctions, plans foray into EVs, report says
      VW China
      Top VW China exec said to eye joining Renault as local CEO
      Geely to create separate EV business unit
      Valeo, Faurecia outperform China market in 2020
    • Detroit Aerial Panorama during sunset
      Developing future workers to fuel growth in mobility
      Getting around in Las Vegas often involves long waits for a crowded monorail ride, below, or taking escalators up and down to cross elevated pedestrian walkways along the Strip.
      Las Vegas offers best and worst in transportation challenges
      Where is transportation headed?
      In pandemic environment, RV industry ‘roaring back'
    • Aurora's latest acquisition would bolster capability to build lidar sensors at scale
      Electric vehicle recharger
      Consumers on the fence about EVs, J.D. Power says
      Joby
      Toyota's air taxi partner Joby to go public in $6.6 billion deal; firm hires Ford exec
      The Fisker Ocean electric vehicle on display
      Fisker to form EV partnership with Foxconn
    • Elon Musk interview
      Tesla’s Model Y, on sale since March, is a showcase of EV technologies competitors will benchmark.
      Technologies of Electrification
      Cadillac’s Lyriq EV will be unveiled Aug. 6.
      Future Product Pipeline
      A CALL TO ACTION
    • Dealer lots could stay emptier long term
      Toshihiro Mibe is a veteran powertrain engineer, which has put him in close contact with the challenges Honda is facing.
      A return to tradition in Honda's new CEO
      Va. dealers pivot on emissions rules
      By hook or by crook: Hyundai, Kia system goes down
    • Access F&I
    • Fixed Ops Journal
    • Marketing
    • Used Cars
    • Retail Technology
    • Sales
    • Best Practices
    • Dealership Buy/Sell
    • NADA
    • NADA Show
    • Automakers
    • Manufacturing
    • Suppliers
    • Regulations & Safety
    • Executives
    • Talk From The Top
    • Leading Women Network
    • Guide to Economic Development
    • PACE Awards
    • Management Briefing Seminars
    • World Congress
    • Aston Martin
    • BMW
      • Mini
      • Rolls-Royce
    • Daimler
      • Mercedes Benz
      • Smart
    • Fiat Chrysler
      • Alfa Romeo
      • Chrysler
      • Dodge
      • Ferrari
      • Fiat
      • Jeep
      • Maserati
      • Ram
    • Ford
      • Lincoln
    • General Motors
      • Buick
      • Cadillac
      • Chevrolet
      • GMC
      • Holden
    • Honda
      • Acura
    • Hyundai
      • Genesis
      • Kia
    • Mazda
    • McLaren
    • Mitsubishi
    • Nissan
      • Infiniti
    • PSA
      • Citroen
      • Opel
      • Peugeot
    • Renault
    • Subaru
    • Suzuki
    • Tata
      • Jaguar
      • Land Rover
    • Tesla
    • Toyota
      • Lexus
    • Volkswagen
      • Audi
      • Bentley
      • Bugatti
      • Lamborghini
      • Porsche
      • Seat
      • Skoda
    • Volvo
    • (Discontinued Brands)
    • Virtual reveals (Sponsored)
      • MITSUBISHI: 2022 Outlander
      • NISSAN: 2022 Pathfinder and 2022 Frontier
      • GENESIS: 2021 GV80
      • KIA: 2021 K5
      • LEXUS: 2021 IS
      • NISSAN: 2021 Rogue
      • TOYOTA: 2021 Venza and 2021 Sienna
    • Auto Shows
      • Detroit Auto Show
      • New York Auto Show
      • Los Angeles Auto Show
      • Chicago Auto Show
      • Geneva Auto Show
      • Paris Auto Show
      • Frankfurt Auto Show
      • Toronto Auto Show
      • Tokyo Auto Show
      • Shanghai Auto Show
      • Beijing Auto Show
    • Future Product Pipeline
    • Photo Galleries
    • Car Cutaways
    • Design
  • OPINION
    • Blogs
    • Cartoons
    • Keith Crain
    • Automotive Views with Jason Stein
    • Columnists
    • China Commentary
    • Editorials
    • Letters to the Editor
    • Send us a Letter
    • Gerry McGovern is right man to steer Jaguar reinvention
      Forget the Ford GT; Moray Callum's biggest hit is the aluminum F-150
      Nikon turns lens on auto factory, build quality
      Bosch_information_domain_computer web.jpg
      Bosch, Continental battle to supply the brain of the connected car
    • view gallery
      1 photos
      Chip Shortage
      Jaguar is about to undergo its fourth reinvention in five decades as owner Tata Group takes a second crack at shaking up a brand whose glorious past has rarely translated into a profitable present or sustainable future.
      view gallery
      9 photos
      Leo Michael Cartoons - Q1 2021
      Dealers hiring from hospitality sector
      view gallery
      1 photos
      Hospitality Hires
      view gallery
      1 photos
      No ICE, Please
    • Shifting gears away from the stick shift
      SEMA still a wonderful circus
      Penske still has plenty of races to win
      Ford's turn in the hot seat
    • February 23, 2021 | Reliability continues to soar
      February 16, 2021 | Apple looks to take bite out of automotive
      February 9, 2021 | ‘Super’ opportunity for automakers
      February 2, 2021 | GM is all-in on EVs but will consumers follow?
    • Cam Hitchcock
      Benefits remain clear for on-site used-car auctions
      Dave Versical
      The ad that has dealers fighting mad
      John DeMarco
      How to manage a downturn? Clues are in the data
      Dan Shine
      Optimism for the future despite crisis, change
    • Shanghai hints at how Chinese cities will pursue electrification
      How Tesla, GM transformed EV market in 2020
      Is sales recovery nearing an end?
      Beijing's uphill battle to boost EV sales
    • Taiwan Semicon microchips BB web.jpg
      Chip shortage shows need for new thinking
      Digital demands squeeze smaller auto retailers
      President Joe Biden’s move to electrify all government vehicles could push forward charging infrastructure development.
      Dealers aren't wrong to be wary of EV hype
      Economy needs assistance, but dealers do not
    • Buying EV without dealer is just easier
      Dealers are right to worry about EVs
      Tundra engine may not be up to the job
      Chrysler's legacy should continue
  • DATA CENTER
  • VIDEO
    • AutoNews Now
    • First Shift
    • Special Video Reports
    • Weekend Drive
    • AutoNews Now: Nissan 'breakthrough' could lower emissions
      AutoNews Now: Most buyers still undecided on EVs, J.D. Power finds
      AutoNews Now: Biden tackles chip shortage with lawmakers, order
      AutoNews Now: Kia aims to disrupt 'staid' minivan segment with Carnival
    • First Shift: Tesla output in Calif. resumes after 2-day shutdown
      First Shift: Ford's Farley: 'We need to bring battery production to the U.S.'
      First Shift: Hyundai to replace EV batteries in $900M recall
      First Shift: Hyundai starts next-gen EV push with Ioniq 5 crossover
    • COVID, chips and checks: Sales headwinds and tailwinds for 2021
      N.J. dealer helps position peers for ‘electric revolution’
      DCH Millburn Audi
      'Finding the diamond in the rough': How 2020's No. 1 dealership retains talent
      Don Johnson Motors
      'Distinctive culture' cuts turnover, carves career paths at Wis. dealership group
    • Why the pickup is the auto industry's 'battleground'
      Carlos Ghosn's quest to restore his reputation
      Why Ford must execute to avoid 'deep trouble'
      Why Honda is 'locked and loaded' for 2020
  • EVENTS & AWARDS
    • Events
    • Awards
    • Congress Conversations
    • Retail Forum: NADA
    • Canada Congress
    • Europe Congress Conversations
    • Leading Women Conference
    • Fixed Ops Journal Forum
    • ANE Shift
    • Shift: Mobility at a Crossroads
    • Shift: The Future of Mobility (CES)
    • 100 Leading Women
    • 40 Under 40 Retail
    • All-Stars
    • Best Dealerships To Work For
    • PACE Program
    • Rising Stars
    • Europe Rising Stars
  • JOBS
  • AN Solutions
  • +MORE
    • Leading Women Network
    • Podcasts
    • Webinars
    • In the Driver's Seat
    • Publishing Partners
    • Classifieds
    • Companies on the Move
    • People on the Move
    • Newsletters
    • Contact Us
    • Media Kit
    • RSS Feeds
    • Shift: A Podcast About Mobility
    • Special Reports Podcasts
    • Daily Drive Podcasts
    • AAM
    • Gentex
    • Reputation.com
    • Ricardo
    • Ricardo
    • Allstate: Want more from your F&I?
    • Ally: Navigating the future of automotive retailing
    • Amazon Web Services: Any place, any time, any channel
    • Amazon Web Services: The power of the cloud
    • Amazon Web Services: Universal translator: Harnessing sensor data to build better automotive software
    • Epic Games: Transforming the auto industry with digital assets
    • FTI Consulting: Crisis as a catalyst for change
    • Google: 5 trends shaping the auto industry's approach to a new normal
    • IHS Markit: Automotive loyalty in the wake of the COVID-19 recession
    • IHS Markit: Autonomous vehicles: Automotive and transportation disruption
    • IHS Markit: COVID-19: The future mobility delusion
    • Level5: 2020 Automotive E-Commerce Report
    • Naked Lime: Bring social reputation together as part of big-picture marketing
    • Wells Fargo Auto: Switching gears from LIBOR to SOFR
    • Ally: Do It Right
    • DealerSocket
    • Deloitte: Cyber everywhere: Preparing for automotive safety in the face of cyber threats
    • Facebook: The road to a zero-friction future
    • Guide To Economic Development
    • PayPal Credit: How consumer financing helps drive sales for online auto parts retailers
MENU
Breadcrumb
  1. Home
  2. Future Product
September 17, 2012 01:00 AM

BMW bets awd 3-series sedan will help top Mercedes in U.S.

  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    BMW says the xDrive awd system will be available for the new BMW 3-series sedan, pictured, from the third quarter of 2012.

    DETROIT (Bloomberg) -- BMW is betting a new all-wheel drive variant of its 3-series sedan, due for release in the third quarter, will help catch a resurgent Mercedes that has outsold BMW all year long in the U.S. market.

    The annual race between the premium brands BMW, Mercedes-Benz and Lexus in the United States has become more important than ever. A slowing economy in China and a five-year slump in Europe have raised the stakes in the United States, where premium cars continue to sell briskly.

    "North America is the only bright spot, and in the luxury race that's shaping up to be really important," said Michelle Krebs, an analyst with researcher Edmunds.com. "It's vital for the German automakers because their home market of Europe is a mess."

    Both the Mercedes and BMW brands are thriving in the United States, but BMW is determined to do better after trailing Mercedes this year even though it introduced a redesign of its popular 3 series in February. The early-year stumble may have been the result of offering the marque's top-selling model without a four-wheel drive version, popular in cold-winter markets such as New York and Boston that are full of luxury-car buyers.

    "We were lacking cars for three or four months, now we are fueling up," Ludwig Willisch, head of BMW's U.S. operations, said last week in an interview from the automaker's offices in Woodcliff Lake, New Jersey.

    Tight race

    Mercedes' introduction last year of an updated C-class compact sedan and new coupe version has helped U.S. sales rise 14 percent to 168,462 this year through August from a year earlier. That puts Mercedes more than 3,800 deliveries ahead of BMW, which boosted sales 5.6 percent to 164,636 for the same period. Industrywide deliveries increased 15 percent through August, according to researcher Autodata Corp.

    The luxury-vehicle fight in 2012 looks to be close like last year when BMW beat Mercedes by 2,715 deliveries, excluding Daimler's cargo vans and Smart cars and BMW's Mini brand, which aren't luxury vehicles.

    "It will go right down to the wire again," Tom Libby, an analyst at R.L. Polk & Co., said in a telephone interview. Lexus is probably too far behind to catch up in the year's remaining months, analysts have said. That leaves the race mainly to the German luxury carmakers.

    In February, Willisch said he expected sales of the new 3 series, last redesigned in 2005, to expand more than 10 percent. So far this year, total U.S. sales of the 3-series line, including old versions of the coupe and wagon models, slipped 1.1 percent to 60,621 while deliveries of the new sedan rose 3.8 percent to 43,053, according to Autodata. BMW has continued to sell the all-wheel drive version of the old 3 series while waiting on the redesigned model.

    Mercedes fight

    Sales of Mercedes' C class, meanwhile, rose 27 percent to 49,868, boosted by 5,969 deliveries of the sportier two-door version. "We're taking the fight to them," Steve Cannon, head of Mercedes' U.S. operations, said last week in an interview in New York. "We've got a nice, strong plan for the rest of the year."

    Mercedes should also see a boost in sales during the final months of the year as a redesigned seven-seat GL-class SUV and an updated GLK, its smallest sport-utility, reach dealer lots.

    "It's going to be full-court to the end of the year," Cannon said. He added that he doesn't know if Mercedes will top BMW this year, citing the fluctuations in his competitor's sales and introduction of the X1.

    Safety features

    Now that BMW has ramped up 3-series production and is bringing out the all-wheel drive version, sales should surge and make BMW the top-seller for the year, Willisch said. "What counts is that we are in the No. 1 position New Year's Day and we plan to do that by a healthy margin," he said.

    The 3 series, which was first introduced in 1975, is one of the most profitable vehicle lines of all time, Max Warburton, a London-based analyst at Sanford C. Bernstein, has said. It has generated $290 billion in revenue and $17 billion in earnings before interest and taxes since 1995, he estimated.

    The importance of all-wheel drive as an option for luxury cars began as consumers moved out of four-wheel drive SUVs and into sedans and coupes and as they put greater emphasis on safety features, Libby said. "The move of customers in the direction of safety has propelled the manufacturers to offer it more," he said. "A manufacturer that does not offer it is in trouble."

    About half of the 3-series sedans sold in the United States are all-wheel drive, BMW said. In the northeast, for example, it's 80 percent.

    AWD required

    For many customers, the all-wheel drive option has become as much a requirement as an automatic transmission, Willisch said. "It really is something that they definitely want to have and they don't want to compromise on," he said.

    BMW's sales will also be lifted in the United States by the addition of the X1, which is classified as a car while looking like an SUV. It's based on the same frame as the previous generation 3 series.

    The X1, a step below BMW's X3 midsize sport-utility vehicle, is the brand's lowest-priced model in the United States, starting at $30,650. BMW expects to sell more than 20,000 X1s in the U.S. next year, Willisch said. Others aren't as optimistic. IHS Automotive estimates BMW will sell 3,000 this year and 13,000 to 14,000 next year, according to Rebecca Lindland, an analyst for the researcher.

    BMW faces pressure from Mercedes in the United States as it also sees increased competition from Volkswagen AG's Audi brand in other markets. BMW, the world's best-selling luxury brand, saw its global lead narrow to 2,110 over Audi after August sales, the companies' reported numbers show.

    Last year, BMW brand sold 1.38 million cars and SUVs. Audi sold 1.3 million units, while the Mercedes brand sold 1.26 million vehicles.

    Automotive News Europe contributed to this report

    RECOMMENDED FOR YOU
    Nikola announces hydrogen fuel cell vehicle lineup
    Letter
    to the
    Editor

     

     

    Send us a letter

    Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.

    Recommended for You
    Nikola announces hydrogen fuel cell vehicle lineup
    Nikola announces hydrogen fuel cell vehicle lineup
    How McLaren aims to rebuild supercars for EV era
    How McLaren aims to rebuild supercars for EV era
    Cadillac to take 500 reservations for Blackwing sedans
    Cadillac to take 500 reservations for Blackwing sedans
    Sponsored Content: Auto Sales In A New World
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    See more newsletter options at autonews.com/newsletters.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Digital Edition
    Automotive News 2-22-21
    THIS WEEK'S EDITION
    See our archive
    Fixed Ops Journal
    Fixed Ops Journal 2-8-21
    Read the issue
    See our archive
    CARS & CONCEPTS NEWSLETTER: Sign up for a Tuesday afternoon newsletter roundup of products, concepts and auto show news, including photo galleries, blogs and links to car reviews.
    DAILY NEWSLETTER: Sign up to get the top stories of the day in your inbox every business weekday afternoon.
    Get Free Newsletters

    Sign up and get the best of Automotive News delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    Subscribe Today

    Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.

    Subscribe Now
    Connect With Us
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter

    Our mission

    The Automotive News mission is to be the primary source of industry news, data and understanding for the industry's decision-makers interested in North America.

    AN-LOGO-BLUE
    Contact Us

    1155 Gratiot Avenue
    Detroit, Michigan
    48207-2997

    (877) 812-1584

    Email us

    Automotive News
    ISSN 0005-1551 (print)
    ISSN 1557-7686 (online)

    Fixed Ops Journal
    ISSN 2576-1064 (print)
    ISSN 2576-1072 (online)

    Resources
    • About us
    • Contact Us
    • Media Kit
    • Subscribe
    • Manage your account
    • Reprints
    • Ad Choices Ad Choices
    • Sitemap
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • HOME
    • NEWS
      • Dealers
        • Access F&I
        • Fixed Ops Journal
        • Marketing
        • Used Cars
        • Retail Technology
        • Sales
        • Best Practices
        • Dealership Buy/Sell
        • NADA
        • NADA Show
      • Automakers & Suppliers
        • Automakers
        • Manufacturing
        • Suppliers
        • Regulations & Safety
        • Executives
        • Talk From The Top
        • Leading Women Network
        • Guide to Economic Development
        • PACE Awards
        • Management Briefing Seminars
        • World Congress
      • News by Brand
        • Aston Martin
        • BMW
          • Mini
          • Rolls-Royce
        • Daimler
          • Mercedes Benz
          • Smart
        • Fiat Chrysler
          • Alfa Romeo
          • Chrysler
          • Dodge
          • Ferrari
          • Fiat
          • Jeep
          • Maserati
          • Ram
        • Ford
          • Lincoln
        • General Motors
          • Buick
          • Cadillac
          • Chevrolet
          • GMC
          • Holden
        • Honda
          • Acura
        • Hyundai
          • Genesis
          • Kia
        • Mazda
        • McLaren
        • Mitsubishi
        • Nissan
          • Infiniti
        • PSA
          • Citroen
          • Opel
          • Peugeot
        • Renault
        • Subaru
        • Suzuki
        • Tata
          • Jaguar
          • Land Rover
        • Tesla
        • Toyota
          • Lexus
        • Volkswagen
          • Audi
          • Bentley
          • Bugatti
          • Lamborghini
          • Porsche
          • Seat
          • Skoda
        • Volvo
        • (Discontinued Brands)
      • Cars & Concepts
        • Virtual reveals (Sponsored)
          • MITSUBISHI: 2022 Outlander
          • NISSAN: 2022 Pathfinder and 2022 Frontier
          • GENESIS: 2021 GV80
          • KIA: 2021 K5
          • LEXUS: 2021 IS
          • NISSAN: 2021 Rogue
          • TOYOTA: 2021 Venza and 2021 Sienna
        • Auto Shows
          • Detroit Auto Show
          • New York Auto Show
          • Los Angeles Auto Show
          • Chicago Auto Show
          • Geneva Auto Show
          • Paris Auto Show
          • Frankfurt Auto Show
          • Toronto Auto Show
          • Tokyo Auto Show
          • Shanghai Auto Show
          • Beijing Auto Show
        • Future Product Pipeline
        • Photo Galleries
        • Car Cutaways
        • Design
      • Coronavirus Coverage
      • China
      • Shift
      • Mobility Report
      • Special Reports
      • Digital Edition Archive
      • This Week's Issue
    • OPINION
      • Blogs
      • Cartoons
      • Keith Crain
      • Automotive Views with Jason Stein
      • Columnists
      • China Commentary
      • Editorials
      • Letters to the Editor
      • Send us a Letter
    • DATA CENTER
    • VIDEO
      • AutoNews Now
      • First Shift
      • Special Video Reports
      • Weekend Drive
    • EVENTS & AWARDS
      • Events
        • Congress Conversations
        • Retail Forum: NADA
        • Canada Congress
        • Europe Congress Conversations
        • Leading Women Conference
        • Fixed Ops Journal Forum
        • ANE Shift
        • Shift: Mobility at a Crossroads
        • Shift: The Future of Mobility (CES)
      • Awards
        • 100 Leading Women
        • 40 Under 40 Retail
        • All-Stars
        • Best Dealerships To Work For
        • PACE Program
        • Rising Stars
        • Europe Rising Stars
    • JOBS
    • AN Solutions
    • +MORE
      • Leading Women Network
      • Podcasts
        • Shift: A Podcast About Mobility
        • Special Reports Podcasts
        • Daily Drive Podcasts
      • Webinars
      • In the Driver's Seat
        • AAM
        • Gentex
        • Reputation.com
        • Ricardo
        • Ricardo
      • Publishing Partners
        • Allstate: Want more from your F&I?
        • Ally: Navigating the future of automotive retailing
        • Amazon Web Services: Any place, any time, any channel
        • Amazon Web Services: The power of the cloud
        • Amazon Web Services: Universal translator: Harnessing sensor data to build better automotive software
        • Epic Games: Transforming the auto industry with digital assets
        • FTI Consulting: Crisis as a catalyst for change
        • Google: 5 trends shaping the auto industry's approach to a new normal
        • IHS Markit: Automotive loyalty in the wake of the COVID-19 recession
        • IHS Markit: Autonomous vehicles: Automotive and transportation disruption
        • IHS Markit: COVID-19: The future mobility delusion
        • Level5: 2020 Automotive E-Commerce Report
        • Naked Lime: Bring social reputation together as part of big-picture marketing
        • Wells Fargo Auto: Switching gears from LIBOR to SOFR
        • Ally: Do It Right
        • DealerSocket
        • Deloitte: Cyber everywhere: Preparing for automotive safety in the face of cyber threats
        • Facebook: The road to a zero-friction future
        • Guide To Economic Development
        • PayPal Credit: How consumer financing helps drive sales for online auto parts retailers
      • Classifieds
      • Companies on the Move
      • People on the Move
      • Newsletters
      • Contact Us
      • Media Kit
      • RSS Feeds