It came right down to the wire, but BMW pulled out all the stops in December to bring in a total of 37,399 sales for a 2012 total of 281,460 cars and SUVs. The was enough to beat Mercedes-Benz’s December total of 28,145 and 2012 total of 274,134, an all-time record for the folks from Sindelfingen. The margin of 7,326 sales locked up the luxury segment crown for the Bavarians for another year.
It will be interesting to see if the fierce rivalry between the two German automakers will involve some of the questionable tactics used last year when BMW dealers actually registered new cars to bolster the numbers and then sold the cars as demonstrators, used but with the full new car warranty. Mercedes employed similar tactics to beef up its numbers.
Lexus, which had been the king of the hill for many years beginning in the first years of the 21st Century, came in third with a 12-month total of 244,166. Lexus did beat Mercedes’ monthly sales in December by delivering 30,607 cars and trucks.
Cadillac was the top premium brand, placing fourth in December sales but dropping behind Acura to fifth for the year. Actual retail sales of GM’s luxury marque were only slightly ahead of those reported by sixth-place Audi, which set its own all-time record in 2012.
Sales of the S60 and XC60 gave Volvo its best sales year since 2007 as the U.S. once again was the largest market for the Swedish brand.
Porsche sales soared 61.8% in December, sealing the deal for a new all-time sales record as sales of the newest 911 climbed 41.8% in 2012.
Land Rover sales were up, but Jaguar took a slight tumble. Still Jaguar Land Rover’s 2012 results were positive.
BMW claimed victory in the July premium brand race, reporting 21,297 sales, 1,986 sales ahead of arch-rival Mercedes-Benz. The strong month also left BMW just 104 sales behind the folks from Sindelfingen for the first seven months of the year.
However, according to a report in the Wall Street Journal, BMW dealers are saying that some of the vehicles included in the sales report are still in their showrooms; still waiting for a buyer.
According to dealers, BMW of North America made a special, one-day offer on July 31. For that day, the dealers would receive discounts of as much as $7,000 for each 2012 MY 7-series car reported as sold.
Dealers apparently took advantage of the offer to stock up on demonstrators, the cars the dealers use for test drives and other uses. Kenn Sparks, a BMW spokesman, said its July sales total includes those vehicles but declined to give a specific quantity, citing company policy.
Automakers book their revenue when they ship new vehicles to dealers; they’re known for using a variety of methods to improve their numbers beyond retail customer purchases, such as heavily discounted rental fleet deals and special incentives and even strong-arm tactics to get dealers to stock more vehicles than they need.
But, as the car companies have discovered, stuffing dealer lots and piling on incentives to move the metal can backfire. A short-term boost is usually followed by a payback slump when the promotions end. Deep discounting also can hurt a carmaker’s profit margins and erode the residual value of the vehicles themselves.
On paper, BMW’s dealer incentives look like they did the trick, giving the Bavarians the lead for the month. But as the chart shows, the July sales of 7-series cars, BMW’s most expensive standard sedan line with prices that start above $73,000, are far and away the best monthly numbers in the past 25 months. In fact, one has to go back several years to find a comparable monthly total in any month. Not only did the 7-series triple its sales from July 2011, it more than doubled the sales of competitive vehicles like the Lexus LS, Mercedes-Benz S-Class and Porsche Panamera.
The 3-Series coupe had spiffs totaling $3,200 and it, too, enjoyed a boom. Sales hit 2,555 units in July, more than double the 1,222 sold in June.
Most automakers require that vehicles designated as demonstrators must be kept for a certain period of time, usually 90 to 180 days. Some also require the vehicle to be sold as used. According to Mr. Sparks, BMWs purchased as demos are supposed to be clearly marked and sold only as used cars, as well, but dealers said they routinely offer the vehicles as new, with no objections from BMW.
BMW dealers are under competitive pressure from two sources: First, they’re in competition with other BMW dealers to get every factory penny they can to to be able to match or beat their rivals’ deals. Second, they are competing with BMW dealers in China for product allocations: they need to be able to show the 2012 inventory is being depleted so they won’t see a cut in the number of new vehicles BMW sends to the U.S.
So far, Daimler AG has had no response to the Journal’s report.
Guests at the Embassy Suites Nashville South/Cool Springs hotel can now ride in the world’s first all-electric stretch limousine. The hotel, operated by John Q. Hammons Hotels & Resorts, has taken delivery of a one-of-a-kind, custom-built, 7-foot 9-inch Nissan Leaf. The car, which took a year to go from concept to completion, has seating for eight and is completely roadworthy and licensed.
The idea to make the limousine came from the hotel management working with Black Tie Valet Solutions.
With Nissan North America’s headquarters in Nashville, it’s not surprising that the Nissan Leaf was selected as the base vehicle.
“When the idea of building an electric limousine emerged, we immediately knew it had to be a Nissan Leaf,” said Bob Horner, general manager of the hotel. “Not only because Nissan North America is our neighbor and strategic partner, but also because of the vehicle’s high quality and global popularity. Nissan’s decision to produce the Nissan Leaf in Middle Tennessee by year-end 2012 also made it a natural choice.”
Imperial Coach Builders in Springfield, Missouri performed the conversion. Imperial workers added 400 pounds and about 4 feet to the center of the car to make room for more seating and installed plush leather and cedar wood trim to create a more luxurious experience.
“When the idea of building an electric limousine emerged, we immediately knew it had to be a Nissan Leaf,” Horner said. “Not only because Nissan North America is our neighbor and strategic partner, but also because of the vehicle’s high quality and global popularity. Nissan’s decision to produce the Nissan Leaf in Middle Tennessee by year-end 2012 also made it a natural choice.”
The countdown to the unveiling of the flagship of the Lexus line continues with the release of a teaser photo of the 2013 LS sedan. The official debut is scheduled for Monday, July 30, at 8:30 PM Pacific Daylight Tinme (11:30 PM Eastern, 10:30 Central, 9:30 Mountain). Follow the event live on Facebook.
The first regular production 2013 Cadillac ATS sedans have left the line at GM’s Lansing Grand River assembly plant in Michigan. The cars will be headed for dealers in time for the sales launch next month.
The ATS is Cadillac’s latest volley in its efforts to compete with BMW’s 3-series, the perennial best-seller among premium models. Unlike previous, departed-but-not-missed, attempts at small Cadillacs, like the Cimmaron and Catera, the ATS isn’t another GM model with a new badge and grille. It has a new, clean-sheet front-engine, rear-wheel-drive Alpha platform with a 50/50 weight balance and “targets nimble, quick and fun driving performance.” All-wheel drive is also available.
The new junior Caddy ATS weighs in at less than 3,400 pounds, making it one of the lightest cars in its segment, and features a new five-link independent rear suspension; multi-link double-pivot MacPherson-struts with separate lower links are fitted up front. There’s a driver-adjustable sport suspension with Cadillac’s Magnetic Ride Control real-time damping. Cadillac tested the ATS on roads and race tracks around the world, including a turn at Germany ’s Nürburgring.
Customers will be able to choose from three engines, a base 2.5-liter four producing 202 horsepower at 6300 rpm and 190 lb-ft of torque at 4400 rpm; an optional all-new 2.0-liter turbocharged four rated at 272 horsepower @ 5500 rpm and 260 lb-ft of torque available from 1700-5500 rpm and Cadillac’s 3.6-liter V-6, estimated at 321 horsepower @ 6800 rpm with 274 lb-ft of torque at 4800 rpm. A six-speed automatic transmission is standard, but a six-speed manual is available with the turbo four.
Stopping power comes from discs all ’round with four-channel ABS. Brembo brakes are an option with the turbo four and the six as are high-intensity discharge headlamps with adaptive forward lighting.
Exterior colors choices include: Radiant Silver Metallic, Black Raven, Black Diamond Tricoat, Crystal Red Tintcoat, White Diamond Tricoat, Thunder Gray ChromaFlair, Opulent Blue Metallic, Glacier Blue Metallic, Silver Coast Metallic and Summer Gold Metallic.
Inside are all the amenities expected of a Cadillac. Depending on their tastes and wallets, customers can select from the base ATS, which starts at $33,900, or upgrade to Luxury, Performance or Premium trim levels.
THe ATS comes with CUE (Cadillac User Experience), which accepts data from up to ten Bluetooth-enabled mobile devices or USBs, SD cards and MP3 players and integrates it with an infotainment system that reduces complexity and distraction with customized information, voice commands, larger, easier-to-hit icons and fewer buttons. Cadillac says some competing systems have as many as 20 buttons while the Cadillac has just four.
To produce the new ATS, GM invested $190 million on upgrading the Lansing Grand River plant, which also builds the CTS and CTS-V coupe, sedan and station wagon. The company says the ATS is responsible for 600 jobs.
“The new Cadillac ATS represents an investment in Lansing and our workforce,” said Tony Francavilla, Lansing regional plant manager. “A successful launch needs a great process and a great product, but at the heart of it all are the people, and the care they put into each and every vehicle.”
Cadillac needs a hit: GM’s premium marque, and America’s the best-selling luxury brand for 50 years, is sagging in the market. For a number of years, Cadillac was fourth in the luxury segment, behind Lexus, BMW and Mercedes-Benz, but it has now fallen to sixth, passed by Acura and Audi. Cadillac sales have fallen 17.5 percent in the first six months of the year, the largest deficit of any upscale brand. Much of the shortfall is due to discontinued models like the DTS and STS, but every current model has missed its numbers from the first half of 2011. In fact, the ATS’ target, the BMW 3-series, has already hit a sales volume equal to nearly three-quarters of Cadillac’s total sales.
However, if the ATS can live up to its specs, it could be the shot in the arm Cadillac’s been needing. Early impressions are positive and actually exciting. We can’t wait to get some wheel time in one.
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