The ongoing weakness of the US dollar against the euro is hitting BMW of North America’s margins and is likely to limit unit volume increases, WardsAuto.com reported, citing the importer’s CEO Tom Purves.
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BMW has not reduced its allocation of cars to North America markets but is unlikely to increase shipments of imported vehicles, despite launching the redesigned 3-series sedan there, the report added.
“If we get an increase in production, we wouldn’t see an increased volume for the US,” Purves told WardsAuto.com, adding: “We would raise allocations for areas where the currency is stronger than the dollar.”
Wards noted that the US remains BMW’s top export market, with sales of about 260,000 units, followed by the UK (where Purves at one time headed the BMW operation) with around 105,000 units a year.
Purves reportedly also said competition in the US luxury segment is getting more intense.
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By GlobalData“The resurgence of Cadillac, Acura and Infiniti is eating into luxury sales,” he told WardsAuto.com. “If you blink, somebody else will eat your breakfast.”
WardsAuto.com said BMW continues to enjoy success in Canada, where volumes have nearly doubled recently, while Mexico is seeing similar increases, though volume there is only about 5,000 units. BMW’s gains come despite heightened competition in Mexico, including launch of Alfa Romeo sales, the report noted.
Purves told WardsAuto.com that BMW’s combined volume is about 5,000-6,000 cars in Argentina and Brazil.
“Mini (owned by BMW) is a big success in Argentina,” he said, according to the report, adding: “But Brazil has been a big disappointment. It has not developed as much as we had hoped.”
WardsAuto.com said Purves is cautious about forecasting future growth. “Hitting 300,000 units (in the US) is a little time away, but achievable within five years, or less,” he reportedly said.
