Did Your Favorite Brand Live Up To It's New Years Resolution In January?

When you traditionally start a new year, a resolution is typically made to do better and cast off bad habits.

The automakers typically do just such a resolution by forecasting sales for the upcoming year.  Whether it be a modest sales increase in the case of Toyota, predicating a low single digit increase over 2007. Or maybe even the brazen (fool hardy) admonishment by Audi to blow out the luxury market with the aggressive double digit gains.  Either way an expectation for the year is made to the public and the stock holders.

While we all hoped January would signal a turn around, it actually turned out to be a pretty bloody month for sales.  Many of our tried and true performers either stumbled, or quite frankly fell on their faces.

Rule Number 1: If you want to sell cars you have to have them in stock.  

Looking over the results, the biggest shortcoming for January might have been BMW.  After setting a blistering sales pace towards the end of 2007, the supply chain simply was outstripped by demand, and there were not enough cars to sell in January.  If you notice in the numbers below, the shortage of inventory led directly to BMW dropping from 8^th overall in 2007 to 12^th in January allowing Volkswagen, Kia, Mazda and even Mercedes Benz to sell more cars.

Rule Number 2: You have to use every piece of the puzzle to finish it.

The second biggest shortcoming honors for January may have to fall to Lexus.  Everything is cyclical in this business, and Lexus has always avoided the inevitable sales decreases of other makers by an ever expanding portfolio.  But as the lineup rounds out the easy gains experienced over the past have now led the slow down witnessed over the last few months. For Lexus the time has come for each and every model to fully stand on its merits and no doubt their work is cut out for them in 2008.

Rule Number 3: Don’t promise what you can’t deliver.

Let’s not forget the banter tossed out by Audi to dominate the global scene by the end of the next decade.  Big talk indeed. While it is true that Audi proudly claimed a new sales record for January, the truth is that 19 more cars sold for the month won’t push them towards the global goal at breakneck speeds.  Hmm Toyota probably loses more car than that each month.

Rule Number 4:  Learn from your mistakes.

Finally what is the deal with Acura?  After tumbling almost 11% last year, they posted negative January numbers on the already dismal 2007 figure.  If Acura can’t get their act together soon and find a direction other than down, Honda may have to rethink its luxury brands future.

Rule Number 5: Do your homework and you be rewarded.

Who finished on the upside? How about GM! It looks like the tide maybe turning for the lumbering giant, as sales continue to gain momentum.  We have some winners out there and more on the way. I can’t help but wonder if some of these sales are coming from Toyota though.

Mazda and Mini both had sterling months until you remember that Mini had a shortage last year similar to it’s big brother’s woes this January.   

And finally both Bentley and Rolls  Royce showed there is no shortage of the mega rich out there demanding their wares, as both posted impressive gains.  However I think we maybe can put a fork into Maybach, because with sales of only 7 units in January it’s future may be very bleak.

So take a look at the good, bad, and the ugly and let us know what you think of the first month in 2008.

drew630 - 2/5/2008 2:47:18 PM

+6 Boost

Yes, GM did. :)

Agent009 - 2/5/2008 2:49:55 PM

+7 Boost

If they keep up the traction the rest of the market needs to look out, they will pulverize them.

ghosthunter - 2/5/2008 8:43:20 PM

0 Boost

what goes up, must come down. what applies to Toyota, applies to BMW.
really. unless BMW brings back that 5k incentive, i don't see much chance for them to expend their market.

Agent004 - 2/5/2008 10:39:39 PM

+2 Boost

Building more cars and widening your line does not make a car maker "Toyota". If BMW produces and sells 4,000,000 335's this year, it's still 4,000,000 BMW's not 4,000,000 Toyota Camry's.

ICON - 2/5/2008 11:58:02 PM

+3 Boost

Idiot, we have heard enough of your drivel.

BMW will follow their business plan of offering the premium vehicle in whatever market segment that they choose...so you need to get over it.

BTW...congrats GM..it will be a good year for you.

enthusiastx11 - 2/6/2008 12:30:52 AM

+3 Boost

ghost:

"what goes up, must come down. what applies to Toyota, applies to BMW."

do you not understand that BMW CAN'T KEEP UP WITH DEMAND. they sold so many cars beyond projection in the fall that inventories were ridiculously low in january.

as the article above explained, you need to have cars to sell them!

read genius.

1970toyotamarc - 2/5/2008 3:16:06 PM

-3 Boost

Rule #1...wrong

Just because BMW said in its press release that it had low inventories due to high December sales, dont be fooled by the spin. BMW sales were DOWN in December, BMW had plenty of time with the decreased sales to adjust for inventory levels.

Rule #2....wrong

Lexus did not have an expanding product portfolio last year, and they only has one recently remodeled vehicle, the LS. They sold well based on exisitng product that people wanted. That is hard to maintain two years in a row, and they will have to have some new product THIS year, or sales will continue to drop. (It is, of course, BMW that has the ever-expanding product line-up.)

C'mon 009, you can do better than this.

Add how about that title..... I presume it should read "...live up TO ITS New Years...." (2 errors)

theoptimisticpessimist - 2/5/2008 3:31:41 PM

+7 Boost

Hmmmm, Hate and spin from the one the complain the most about it from others.

JRobUSC - 2/5/2008 3:39:25 PM

+9 Boost

oh my God, seriously, you're like a broken record in here. Anything that doesn't say Lexus is awesome and BMW sucks, you have a problem with. Give it a rest, already. You're not an industry insider, you're obviously completely brand biased, and as such your opinions (which I am sure you base on mountains of intensive research) are just completely devoid of any merit, justification, or value.

You don't know what you think you know. Period. And the worst part is you're contributing to the dumbing down of society every time someone either accidentally reads your posts or reads them without knowing in advance you don't know what the hell you're talking about.

1970toyotamarc - 2/5/2008 3:55:46 PM

-5 Boost

O i see, I'm not allowed to have an opinion now, huh??? Not even one based on FACTS. You do not have one shred of fact to back up your criticism of me. You are just upset that BMW is down so much. YOU need to give it a rest.

And 009, you fixed the "to" in the headline, but still need to fix the it's. English 101, c'mon this mistake is in so many headlines on this site, it's (it is) not professional.

theoptimisticpessimist - 2/5/2008 4:03:32 PM

+8 Boost

Of course you're allowed to have your opinion, but don't whine about everybody else's.

JRobUSC - 2/5/2008 4:19:32 PM

+8 Boost

As they say, opinions are like a$$holes, everyone has one. You are no exception, you are entitled to think whatever you want. My problem with your "opinions" is that you are prone to calling other "opinions" (or even other statements of fact that are not opinions) wrong when they don't happen to coincide with your own beliefs, regardless of the validity of those beliefs. You see, what I am speaking of is the difference between an "opinion" and an "informed opinion". You love the former, I rarely see you with the latter. So yes, you have the right to have opinions, and you even have the right to spew them forth like the word vomit they usually are. But don't be surprised or upset when people with those "informed opinions" roast you for choosing to take advantage of that right. Because that is THEIR right.

Agent009 - 2/5/2008 4:21:12 PM

+7 Boost

Toyotamarc-

Ok you got me on the title and I fixed it (you keep me in line),,,but:

Lexus does have a sales problem. Note the trend and explain:

07/07 +4.9%
08/07 +3.6%
09/07 +1.6%
10/07 +0.6%
11/07 -7.0%
12/07 -7.2%
01/08 -8.2%

BMW and Audi and Merc were generally on the rise at that time.

The expanding portfolio were simply variations of the same theme such as the LS splitting and the addition of Hybrid. different options for additional buyers.

As far as inventories go, I can't access my days on hand data at this time to verify, however BMW knows this data is easily verified so there is no point in dodging the truth.

1970toyotamarc - 2/5/2008 5:37:40 PM

-4 Boost

This has gone on way too long, but let's see what "opinions" I've called people out on today.

First.....BMW's sales are down because they sold so many cars in December...an outright lie, their sales were down in December.

Second...JRob's contention that BMW releases its sales days after the competition....still not proven. Why this is significant is because when something this bad happens (and it is BAD), corporations have to find ways to spin it. It is no coincidence that a day before everyone else released their sales, BMW released its report stating how well it did in 2007, and then delayed the January report the very next day. As I stated earlier today, BMW is not stupid. They knew exactly what they were doing.

Third....the contention that Lexus's sales are down because they have relied on too many new products and now their old products dont sell (the newest addition to today's news cycle, thanks 009).....This is what happens to all brands, Lexus being no exception. The problem here is that Lexus did not have new product last year (009, ya got me, they did debut the hybrid variant of the LS), so they were already selling "old" product. I have already conceded, as of last Friday's sales figures, (you can go back and read my post if you care, I personally wouldnt recommend wasting your time) that Lexus does have a problem with its "old" product (ES), and today said that AGAIN. "they will have to have some new product THIS year, or sales will continue to drop." I'll call Lexus out on its sh*t, when it has it. But what I see here is this blinding hatred for everything Toy/Lex that some of you have. And contrary to popular belief, I dont have that same blinding hatred for all things German. But I am gonna have some fun with a day's news like this.

Finally, let me add that I dont go around attaking anyone for their opinions...EVER. I will call out when facts are misrepresented or when spin has taken over logic. But I dont attack the person. SOmething a few people might consider. S4 constantly calls me out when my facts are wrong or when my logic does not make sense. 009 rarely responds to my criticisms 9thank you for fixing the TO, hw about the IT's), but he will certainly back up his figures if I call him out on his. No one has yet today provided a valid reason why anything I have said is wrong.

Whew.

S4cabriofoxone - 2/5/2008 5:50:27 PM

+6 Boost

"Second...JRob's contention that BMW releases its sales days after the competition....still not proven. Why this is significant is because when something this bad happens (and it is BAD), corporations have to find ways to spin it. It is no coincidence that a day before everyone else released their sales, BMW released its report stating how well it did in 2007, and then delayed the January report the very next day. As I stated earlier today, BMW is not stupid. They knew exactly what they were doing."

But the thing is, this is still all SPECULATION. That was JRob's point. You're trying to prove something, but you have no factual evidence. The only people who know for sure are the people who sell these cars! How do you know it WASN'T a coincidence? You DON'T.

I don't know if it's right or wrong... but you don't, either.

1970toyotamarc - 2/5/2008 5:51:48 PM

-1 Boost

Argghhh TYPOS!! It's hard to do this at work.

1970toyotamarc - 2/5/2008 6:24:49 PM

-1 Boost

S4....

Ah yes, but my point IS just a contention. I never claimed that that was a FACT. There is rarely proof when you are talking about the conspiratorial nature of corporations. Those few times when corps are proven to be conspiring to do evil (not that this is at all evil), the public is still usually the ones getting scr**ed. In this case the public was, in my CONTENTION, merely scr**ed out of getting information in a timely manner. This is certainly not an earth shattering problem, but definitely one worthy of comment, though not 3 pages of arguing indeed. JRob, however, in another post, argued my contention by making a statement of what he claims is a FACT (not proven) that I MUST be wrong in my contention, because BMW almost always releases its sales figures days after the other mfrs. Since the only refutation of my contention is based on a falsehood, I'm sticking by my guns, which is why, 7 hours later, I'm still wasting my time on this stupid topic.

tattedtwice - 2/5/2008 6:49:32 PM

+1 Boost

"Just because BMW said in its press release that it had low inventories due to high December sales, dont be fooled by the spin. BMW sales were DOWN in December, BMW had plenty of time with the decreased sales to adjust for inventory levels."
Plenty of members in here have already put you in your place, but let me call you out too. Like others have said, you're blowing smoke like you're an outsider but you know nothing for fact; just because you don't WANT to believe their inventories were low, doesn't mean they weren't. Sales in December were down from the previous month (and Dec.) but they WERE high, nonetheless. I drive by a major BMW dealer daily, and the lot was practically bare most of the month. So, spin or no spin, whatever the reason for the decline, it was too sharp and too fast to be anything to worry about. Yet.

"Lexus did not have an expanding product portfolio last year, and they only has one recently remodeled vehicle, the LS. They sold well based on exisitng product that people wanted. That is hard to maintain two years in a row, and they will have to have some new product THIS year, or sales will continue to drop. (It is, of course, BMW that has the ever-expanding product line-up.)"
That's exactly what agent said; sales are down now that the newness has worn off. Now comes the time to see if they can move based off something other than a false reputation and hype.

1970toyotamarc - 2/5/2008 7:06:59 PM

+1 Boost

"I drive by a major BMW dealer daily" One of the worst fallacies, almost as bad as the ad hominem attacks I have been getting all day, an argument based on your own personal, single observation. Yet it's still the best one ive heard yet.

"Plenty of members in here have already put you in your place" Not likely.

Oh I forgot, go Audi.

JRobUSC - 2/5/2008 7:12:58 PM

+2 Boost

and BMW DOES typically release the sales figures to the public a day or two behind. Dealers get them in the sales roundtable on the 1st or 2nd of the month usually but that info doesn't come out in the press release until a day or two AFTER that. It so happens most other brands release the information publicly more quickly. Big deal. Toyota, were you complaining as they followed that procedure when the sales figures were setting records (like they were all of last year)? No, no one made a big deal about it. But the ONE TIME they're down (albeit significantly) and they do THE EXACT SAME THING THEY ALWAYS DO, you cry foul.

Not everything is a conspiracy. Incidentally, the two BMW dealers here typically sell a combined 120-200 new BMWs per month. Right now between them they have less than 110 new BMW's on the ground (46 at one, 63 at the other, and that includes vehicles that arrived presold). The pipeline is FILLED with presold cars and orders, there's just very little on the ground to sell.

So yeah, inventories are low.

JRobUSC - 2/5/2008 7:30:46 PM

+2 Boost

oh, and by the way, you want the other reason BMW's sales were down for January? It actually goes hand in hand with low inventories, and it's something Audi fans have been complaining about a lot recently -- LACK OF SALES SUPPORT. The leases on everything BMW sells, with the exception of the 7-Series due to be replaced at the end of the year, are higher than they've been in years. Most of their vehicles actually cost MORE than comparable Mercedes models to lease, and that is almost never the case. But when inventories are low, the manufacturer doesn't subsidize leases to move product. You won't read about that in the press release, but BMW did warn dealers at the END OF NOVEMBER that the upcoming lease programs were going to be more expensive. Like the release said, BMW knew this was coming.

Do I still need more proof that I know what I'm talking about?

1970toyotamarc - 2/5/2008 7:42:51 PM

-1 Boost

Boy a new excuse for your beloved BMW. Are you on their payroll? So now BMW has decided that maybe it wasnt such a good idea to have such cheap leases on all those 3 series, and it's gonna bite them in their Bangle Butt, huh. "typically sell a combined 120-200 new BMWs per month" apaprently this month it was closer to the 120, not the 200. As I pointed out to tattedtwice (Ive got 5 baby), personal anecdotal observations does not an argument make. Show me the figures from BMW showing a dramatic inventory reduction (not just a couple hundred vehicles either) that would account for its sales being down nearly a quarter of its previous year's and I will gladly recant that part of my argument.

And you still have not provided ONE example of BMW releasing their sales figures days after the other mfrs. It shouldnt be hard to do since you say they do it almost every month.

Oh and everyone keep deboosting me. g'ahead. It's so lonely out here in cyberland. Chirp chirp. My life is so painfully affected by these negatives. really tho, seriously, chirp chirp, hello Will, Mitch, I'm all alone out here, hellooooo???

chewy - 2/5/2008 9:31:53 PM

0 Boost

BMW has always released its sales numbers on the same day as everyone else. It was obvious that something was up.

You probably are right about lack of cheap leases. That must be the number one reason for the sales drop. Will BMW continue to buy sales in the future?

enthusiastx11 - 2/6/2008 12:32:42 AM

+2 Boost

1970:

you need at least 3 months to adjust for inventories. first you have to ramp up staff, then production, then actually get the higher volume of cars shipped. doesn't happen in a few weeks smart guy.

enthusiastx11 - 2/6/2008 12:36:33 AM

+2 Boost

1970:

you can't argue all you want about december bmw sales. why no comment on the SEVEN MONTH downward trend of lexus sales?

i'll restate for your convenience. lexus sales:

07/07 +4.9%
08/07 +3.6%
09/07 +1.6%
10/07 +0.6%
11/07 -7.0%
12/07 -7.2%
01/08 -8.2%

1970toyotamarc - 2/5/2008 3:17:24 PM

+3 Boost

BTW...GREAT breakdown of sales!!! Nice to have it so thoroughly done!!

Agent009 - 2/5/2008 4:22:40 PM

+2 Boost

Thanks. there is truth in figures but feel free to read them as you see fit.

chewy - 2/5/2008 9:40:00 PM

+1 Boost

can you do a total summary of all the manufacturerers, I see a lot of red negative figures, but it would be interesting to see how much or little the drop is altogether

Agent009 - 2/6/2008 9:29:28 AM

+1 Boost

That is an upcoming article, I am going in depth on them now by brand, just to see what trend is across the last six months.

S4cabriofoxone - 2/5/2008 5:43:00 PM

+2 Boost

I agree with just about everything, but...

"Let’s not forget the banter tossed out by Audi to dominate the global scene by the end of the next decade. Big talk indeed. While it is true that Audi proudly claimed a new sales record for January, the truth is that 19 more cars sold for the month won’t push them towards the global goal at breakneck speeds. Hmm Toyota probably loses more car than that each month."

?

Why are you ragging on Audi for having a slight increase when everyone else went down this month?

carguy68 - 2/5/2008 5:55:14 PM

+8 Boost

bmw and lexus people are the most annoying people on this site.

VISO - 2/5/2008 6:37:46 PM

+3 Boost

Spoken like a true Profit! Amen to that brother!

1970toyotamarc - 2/5/2008 6:28:06 PM

+4 Boost

+1

Indeed, I'm switching back to Audi, where I was prior to 1989. How 'bout that Godfather ad.

VISO - 2/5/2008 6:43:59 PM

+2 Boost

+1 1970. A fall of 26.7% is no lack of inventory. Nice BS Spin, but no cigar!

Dr550 - 2/5/2008 7:41:17 PM

+1 Boost

Rolls Royce up 152.2% Bentley up 51.7% Happy days are here again!

ATrain - 2/5/2008 9:21:37 PM

+2 Boost

009

Don't think I'm picky but there are still two typos in the title.

"Did Your Favorite Brand Live Up To It's New Years Resolution In January?"

should read as

"Did Your Favorite Brand Live Up To Its New Year's Resolution In January?"

1970toyotamarc - 2/6/2008 11:35:02 AM

+1 Boost

009 will never change it's to its. I can't tell you how many times I have pointed out that grammatical error in his titles. I really don't think he believes that he is wrong using it's.

M35MT - 2/6/2008 8:03:12 AM

+1 Boost

Is anyone else suprised that Isuzu sold more vehicles in January 07 than Jaguar sold in January 08?

Whoa...