BMW new 5-series will re-invigorate the brand

Posted on March 13, 2010
Filed Under BMW, News

Among the thousands of cars on display at the Geneva Motor Show, there is one that stands out, if not with its beauty as for its importance to the company that it does.

For the first time since 2003, BMW has redesigned its 5-Series executive range of models. No other model on display at the Geneva motor show meant so much to be on his mark, as the sixth-generation 5-series – with the obvious exception of small producers with only one or two models in its arsenal.

Where are the 5-Series is right for BMW of crucial importance, since it is the biggest single contribution to the bottom line of the company. Done something wrong and the world’s largest automaker to almost certainly will again knocked out of first place by its main rivals, Mercedes and Audi.
Brand Builder

As a brand builder is to shine the 5-Series’ job a bright light on other BMW models.

“The 5-series is, for me right in the center of the brand”, Ian Robertson, BMW Group Board Member responsible for sales and marketing, told BBC News in an interview. So far, we have more than 2,500 jobs, and before anyone even it is driven.
Thus, if the sixth generation of the 5-Series deemed desirable, then so will its smaller sibling, as the new 3-Series, which is up for renewal in 2012, and his little 1-series will be renewed, next year.

Profit Drivers

But the 5-Series is more than just a driver of sales of the BMW brand. It is also much more profitable than their siblings. It costs roughly the same to the more expensive 5-series to make than it costs, the better 3-series, in essence, it is much harder to make decent profit margins of small cars.

Mr. Robertson is committed to the myth that the 5-series for more than 50% of the profits of the BMW Group, although it released only 25% of turnover. But he acknowledges that it bears “a substantial portion – if that is gradually being phased out, like the British Mini and Rolls-Royce Group reduces subsidiaries continue to grow, and as a separate model of the BMW line-up will be expanded.

Sales Drivers

The 5-series is, however, increase of central importance to BMW’s strategy, its profit margin to be about 8-10% by 2012 in part because it is less expensive than its predecessor, making despite being longer, wider and heavier.
BMW invests one third have less to get the car into production and manufacturing costs reduced by 15% compared to its predecessor.

The 5-Series will also help increase sales of the BMW Group’s history of more than 1.3 million cars this year, wants to 10.4% after a decline in sales in 2009, the company. Although the fifth-generation 5-series sold 1.1 million cars in the course of his life BMW keeps the new one could beat that record.

“So far we have pre-orders for the next two-and-a-half-past three months, before anyone even it is driven,” says Mr Robertson. Crucially, as well as in Germany, the 5-series is produced in China, has overtaken the U.S. as the largest car market in the world. There, the current 5-series has been popular with private owners will have the drivers, allowing BMW to increase sales in the country by 37.5% in 2009.

Small cars

The 5-series has changed over the years, but the biggest new development is the growth of the family of the series of derivatives. Last year, the BMW 5-Series GT, which is larger and probably more than the traditional luxury sedan models.

And it is also a sport utility vehicle in the series, the X5. Such variation can be seen on the luxury segment, with German rival Audi, for example, to the number of models has increased from 32 last year to 42 in 2015.

Above all, this is in his little Audi A1 at the fair, a car that is widely seen as the first serious competitor to BMW Mini, with the exception of his own 1-series. Mercedes, however, is still relatively weak in the small car market, where demand is expected to grow quite rapidly in the coming months and years ahead.

But neither the main competitor of BMW stand still. All three are investments in new model development, so there is no guarantee that BMW retained the top position in the future.

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