U.S. BMW X4 Sales Are Rising Higher

[Tragic Bronson]

http://www.thetruthaboutcars.com/2015/05/shock-horror-u-s-bmw-x4-sales-rising-higher/

It’s only been on sale ten months. But those who hoped BMW wouldn’t be able to repeat the X6’s moderate levels of success will be disappointed to hear the BMW X4 just recorded its best U.S. sales month so far. 920 copies of the X4 were sold in April 2015,

April’s total was 89% better than the average monthly total from the first-quarter of this year. Moreover, April’s X4 U.S. sales total was 54% better than the total from the prior month, when the U.S. new vehicle market was 6% larger. Indeed, the X4’s April total of 920 units was 12% greater than the total achieved by BMW USA in December of last year, December being the month for luxury auto sales in America.

Just days after TTAC’s managing editor mentioned the rate at which Porsche Macans are flying out of showrooms – not that the Macan is the highest-volume vehicle by any means, not even among Porsches – the realization that X4 sales are rising higher makes a measure of sense. True, the X4 is not the shockingly effective all-arounder that the Macan is. But in 2015, as a general rule, auto consumers love SUVs (and the various spin-off names of the SUV class: crossovers, CUVs, utilities, tall wagons.) Added to that, auto consumers love luxury branded vehicles. Auto consumers also love BMWs; after all, BMW was America’s best-selling premium auto brand in 2014 and only trails Mercedes-Benz by a hair through the first-third of 2014.

But the X4? Is it simply selling more often now than when it first originated because Americans love SUVs, especially luxury SUVs, and especially BMWs?

Like the X6 and the discontinued Acura ZDX, the X4 is a more costly, less flexible version of a more mainstream luxury utility vehicle. In the X6’s case, the donor vehicle was the X5. The ZDX was the second-gen MDX’s offspring. The X4 is a more costly, less flexible version of the BMW X3. And one might have naturally assumed that in stark contrast to the less-is-more formula that works for so many a special edition Porsche sports car, the less-style-equals-more-ugly conundrum of the X4 would see the BMW suffering the ZDX’s fate.

Yet nearly one year into its tenure, the BMW X4 is selling better than at any point in the model’s brief history.


And in April, the X4 sold 59% more frequently than the Acura ZDX did in its best-ever month.

Lovers of taste can be grateful, however, as the increasingly popular X4 is still really not all that popular. Only one out of every ten BMW SAV sales in April involved an X4. (Only one in five involved the more expensive X6.)

BMW’s more conventional X1, X3, and X5 combined for a 19% year-over-year loss in April and are down 25% year-to-date in an SUV/CUV market that was up 15% in April and 13% year-to-date. The addition of the X4 and improved X6 sales don’t alter the fact that BMW utility vehicle sales are still down this year: 6% in April; 17% year-to-date. More specifically, the X3’s decline (32% in April; 40% YTD) hasn’t been completely made up for by the X4, either. Meeting global demand for luxury SUVs isn’t an easy task at the moment, as the United States isn’t the only market with a hankering for vehicles like the X3, which is in short supply.

Regardless, with the X4’s moderate level of success, don’t be surprised if automakers delve deeper into this bizarre niche. Indeed, we’ve already seen that the next M-Class (to be called the GLE) will offer a so-called coupe version; an X6 fighter. Let’s just hope they find a way to make them all a little prettier.

What is up US luxury buyers' taste these days?

 

[Tragic Bronson]

sorry krew, the site was having issues, so please delete the other three threads

 

[Och]

I don't know about the X4, but its based on the X3, and last I drove the X3 it was very unimpressive.

 

[mmcartalk]

What is up US luxury buyers' taste these days?

Probably some of the same people who passed up on the Acura ZDX and are now having second thoughts.

 

[CIF]

sorry krew, the site was having issues, so please delete the other three threads

Already done .

 

[TripleL]

X4 is not my personal cup of tea, but there is no denying BMW is continuing it's quest to expand its model line to ensure they have something for everyone in their line up.

 

[Tragic Bronson]

Scary to think, what if Lexus made a GS with a height of an RX....would that be selling like hotcakes too?

 

[CIF]

Scary to think, what if Lexus made a GS with a height of an RX....would that be selling like hotcakes too?

I think "selling" is a relatively loose term when we're talking about BMW. They practically give away a lot of their models with the cutthroat lease deals they offer.

 

[mmcartalk]

I think "selling" is a relatively loose term when we're talking about BMW. They practically give away a lot of their models with the cutthroat lease deals they offer.

BMW's traditionally low depreciation and high residual values are what allow those cheap lease deals. They aren't really giving them away...they are still making money on those deals, because second-hand buyers are willing to pay for used BMWs. .

 

[Och]

BMW's traditionally low depreciation and high residual values are what allow those cheap lease deals. They aren't really giving them away...they are still making money on those deals, because second-hand buyers are willing to pay for used BMWs. .

I wonder how long this trend can sustain though. New vehicles are so complicated and expensive to repair, and in case of BMW they are also not particularly reliable, some being complete disasters more often than BMW cares to admit. I think they are going to start depreciating a lot faster in the future, because I don't think people in their rights minds are going to be willing to shell out big bucks for off warranty BMWs.

I currently own one BMW and lease two, and the one that I own is already having major engine issues with only 17k miles. As much as I love BMWs, I'll only lease them in the future.

 

[CIF]

BMW's traditionally low depreciation and high residual values are what allow those cheap lease deals. They aren't really giving them away...they are still making money on those deals, because second-hand buyers are willing to pay for used BMWs. .

This is true for their lower-end entry-level models, but compared to Lexus, the mid-range and higher-end BMWs have lower residuals and higher depreciation. What I mentioned was more a figure of speech . The fact is they continue to offer near-fire-sale lease deals, to keep propping up high monthly sales numbers. To me this is an unsustainable business model.

 

[mmcartalk]

This is true for their lower-end entry-level models, but compared to Lexus, the mid-range and higher-end BMWs have lower residuals and higher depreciation. What I mentioned was more a figure of speech . The fact is they continue to offer near-fire-sale lease deals, to keep propping up high monthly sales numbers. To me this is an unsustainable business model.

Probably not a whole lot different, though, as a model, from what we used to see with American-designed mid-size sedans (Taurus, Malibu, Stratus/Cirrus, etc....). It's no secret that much of their "sales" numbers came from large fleet-sales as rental-cars. This was especially significant with the Taurus, because, in the 1990s, it went back and forth, with the Accord and Camry, for the title of best-selling passenger car in the U.S.

 

[mikeavelli]

i remember an article a few years ago about BMW Germany really concerned with BMW USA's sales practices. I wish I had it. BMW still is quite profitable as they chase volume. This is a company just twenty years ago basically had
3
5
7
8
Series cars and that was it! BMW has moved into SUVs and clearly created the Sport Coupe SUV segment and dominates the latter.
X1
X3
X4
X5
X6
with a X7 coming. People want them so why to deliver them?

 

[mmcartalk]

i remember an article a few years ago about BMW Germany really concerned with BMW USA's sales practices. I wish I had it. BMW still is quite profitable as they chase volume. This is a company just twenty years ago basically had
3
5
7
8
Series cars and that was it! BMW has moved into SUVs and clearly created the Sport Coupe SUV segment and dominates the latter.
X1
X3
X4
X5
X6
with a X7 coming. People want them so why to deliver them?

..............and, don't forget the i electric car.

 

[Och]

i remember an article a few years ago about BMW Germany really concerned with BMW USA's sales practices. I wish I had it. BMW still is quite profitable as they chase volume. This is a company just twenty years ago basically had
3
5
7
8
Series cars and that was it! BMW has moved into SUVs and clearly created the Sport Coupe SUV segment and dominates the latter.
X1
X3
X4
X5
X6
with a X7 coming. People want them so why to deliver them?

Because all of BMWs SUVs are awesome, all of them. They have proper RWD based drivetrain, proper engine placement, proper chassis, etc. Of course people want them, as there isn't much alternate at all. If only they made them more reliable.

 

[mikeavelli]

Because all of BMWs SUVs are awesome, all of them. They have proper RWD based drivetrain, proper engine placement, proper chassis, etc. Of course people want them, as there isn't much alternate at all. If only they made them more reliable.

The X5 is one of my favorite driving SUVs..as you stated like a car, its really really well done.