BMW, Audi optimistic despite August sales slump - BMW brand falls 11.3% - Audi down 2.7%

MUNICH -- German premium carmakers BMW and Audi remained optimistic despite posting lower global new-car sales in August.

BMW group sales including its BMW, Mini and Rolls-Royce brands fell 9.7 percent to 91,790 from the year-earlier period while Audi's volume was down 2.7 percent to 65,900 cars.

BMW said it was "cautiously optimistic" about returning to growth soon.

"We are heading in the right direction -- since April we have continually regained ground month-on-month," Ian Robertson, the company's head of sales and marketing, said in a statement.

"I am cautiously optimistic that we will be back on our growth path in the months ahead and will remain the leading international supplier of premium automobiles this year, even though we will not sell as many cars in total in 2009 as in 2008," he added.

BMW brand sales declined by 11.3 percent to 75,689 last month. Mini sales were down 1.2 percent to 16,064 while Rolls-Royce delivered 37 cars compared with 101 the year before.

In the January-August period, BMW group sales fell 17.7 percent to 817,183 units, BMW said.

BMW brand sales were down 18 percent to 679,893. Mini sales fell 15.7 percent to 136,879. Rolls-Royce sales dropped 41.1 percent to 411.

Audi's sales declined 7.5 percent to 616,850 units in the January-August period. Audi said it was certain of reaching its 2009 sales target of 900,000 units.

“We will emerge from this crisis as the strongest premium brand,” Peter Schwarzenbauer, the carmaker's marketing and sales boss, said.

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GermanNut - 9/8/2009 10:00:37 AM

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The August global sales results continue the trend that sees Audi posting consistently smaller global monthly sales declines than its main rivals BMW and Mercedes-Benz. The BMW brand continued to see global sales fall by double digits (11.3% decline in August) meanwhile Audi was very close to posting its third consecutive global sales increase but came up just short with a 2.7% global sales decline.

The January - August numbers tell the story even more clearly.

For the first 8 months of 2009, the BMW brand saw sales fall 18% to 679,873 cars. Comparatively, Audi fell just 7.5% for the first 8 months of 2009 to a total of 616,850.

I love Audi's marketing and sales boss Peter Schwarzenbauer's following quote, “We will emerge from this crisis as the strongest premium brand.”

This is very true considering Audi's significantly better performance than its rivals.

GermanNut - 9/8/2009 10:58:06 AM

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The BMW brand posted global sales of 1,200,000 units in 2008.

The Audi brand posted global sales of 1,003,000 units in 2008.

That is a difference of 197,000 units for the year.

For the first 8 months of 2009, the BMW brand has posted global sales of 679,873 units.

Audi has posted sales of 616,860 units for the same time period of 2009.

That is a difference of just 63,013 units between Audi and BMW.

If this keeps up, Audi can surpass BMW by 2013.

M53R - 9/8/2009 12:21:27 PM

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That's if the recession continues till then :)

BMW4me4ever - 9/8/2009 1:36:54 PM

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exactly. O

validus00 - 9/8/2009 7:41:10 PM

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real moneys car that's still "made in china". sounds like an oxymoron no?

AlleVier - 9/8/2009 7:49:31 PM

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Yesterday, I read something in Reuters speaking of the same new-money/old-money dichotomy. The article also noted how many Chinese prefer to be chauffeured given the horrendous traffic and cheap and plentiful supply of willing drivers. It has finally answered the question of why they make an A4L for the Chinese market, but not elsewhere (that I'm aware).

http://www.reuters.com/article/ousivMolt/idUSTRE58600S20090907

GermanNut - 9/8/2009 1:03:21 PM

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The recession does not have to continue for Audi to surpass BMW :)

Audi has already posted a healthy, couple hundred million dollar profit compared to BMW's loss through Q2 2009.

Audi is the clear market leader in China, which has experienced a HUGE increase in sales and is presently the world's largest auto market by annual sales.

Audi has a significantly smaller exposure to the ailing U.S. market than BMW and Mercedes-Benz. While the U.S. is starting to recover from the recession that has plagued it since September of last year, it will be at least another 6-8 months before the U.S. market has stabilized to the point where BMW and Mercedes-Benz can rely on the U.S. for strong sales. U.S. consumers are still cautious about purchasing big-ticket items like luxury cars as evidenced by the U.S. sales numbers published last week.

Audi has created a string of hit cars that, although selling in very small numbers, help boost its brand image(R8) and Audi has also created high-volume cars that have been received with great reviews and sales (Q5, A5)

Furthermore, Audi has a string of new models coming out including the A5/S5 Sportback, the A7 (MB CLS/ BMW 6-series competitor) and the huge-volume A1 (MINI competitor) not to mention the Q3 (BMW X1 competitor.

Audi is on a roll......

BMW4me4ever - 9/8/2009 1:39:14 PM

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Furthermore, Audi has a string of new models coming out including the A5/S5 Sportback, the A7 (MB CLS/ BMW 6-series competitor) and the huge-volume A1 (MINI competitor) not to mention the Q3 (BMW X1 competitor.

** while this is true for Audi, it is also true for BMW. BMW has the X1, X3 due to arrive next year. The New AWD 7-series due this fall, the X5 M, the New 2011 5-series next summer for the US, a New 6-series Next fall. Just to name a few.

GermanNut - 9/8/2009 2:08:37 PM

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I agree with your statement BMW4me4ever. Now, though, with Audi's products becoming even more desireable in terms of performance, design, fuel-efficiency, interior quality etc. it should be very interesting to see who gains the upper hand going forward.

I think the A7, A1, Q3, A8, and A5/S5 Sportback models should be great s should the offerings from BMW.

Let the race begin!

validus00 - 9/8/2009 7:46:59 PM

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audi's desireability can only be proven with sale volumes. until audi surpasses bmw in sales, bmw, with its award-winning designs, performance benchmarks.. etc, will continue to be world's premium car brand.

global sales don't involve leasing, son. you oughtta know the boundary of your usual rhetorics.

GermanNut - 9/8/2009 8:33:08 PM

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No, sales volume is not the only way to prove desirability, validus. How about PROFIT???? Ever think about that one Invalidus??

Audi is making significantly more money than BMW right now. If BMW cannot find a way to turn itself profitable its award-winning designs, performance benchmarks, and all the rest will be washed away as its Rsearch & Development cost will be a tiny piece of what it once was.

Furthermore, BMW's global monthly sales are falling significantly more than Audi's. Audi has outperformed BMW both in the United States and globally when looking at monthly percentage sales declines and profitability.

BMW's 197,000 vehicle lead over Audi for 2008 has shrunk down to just 63,000. Audi has narrowed the gap in sales volume by 68%, yes 68% in less than one year.

Even more importantly, Audi has made a several hundred-million dollar profit through Q2 of 2009. BMW has seen a loss. BMW has not been able to manage the crisis as effectively as Audi because BMW lacks the economies of scale that Audi enjoys since Audi is owned by Volksagen. Lastly, BMW's lack of ability to make a profit will be its biggest deficit when trying to maintain the global annual sales lead over Audi.

validus00 - 9/8/2009 9:10:39 PM

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if audi's cars are truly more desireable than bmw's, audi's sales wouldn't be trailing bmw's now, would they? especially when audi's products compete with bmw's neck to neck in almost every car segment.

you can make up excuses for audi's current insufficient sale volume to overtake bmw, but you can't mark up the desireability of audi's products with something unrelated to the supply and demand of production - such as profit margins.

you may be good at quoting company financials but bad at making crap up.

GermanNut - 9/9/2009 8:54:43 AM

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Validus00, just remember this: BMW's sales volume lead over Audi has been cut by 68% in less than one year.... and Audi executives are already saying that Audi will come out of the recession as the strongest premium luxury brand. Unless BMW has a 4th quarter sales performance that is truly remarkable, look for that lead to shrink even further along with profitability.

I know that makes everyone in the BMW camp sleep soundly at night. That sales lead is shrinking month by month.

GermanNut - 9/9/2009 9:39:51 AM

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Oh yeah I forgot BMW saw a 5.8% global sales decline in 2008 compared to Audi's 4.1% global sales increase.

2009 would therefore be the second consecutive year where Audi was outperformed its competition (BMW and Mercedes-Benz) by a significant margin.

GermanNut - 9/9/2009 9:41:04 AM

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** 2009 would therefore be the second consecutive year where Audi HAS outperformed its competition (BMW and Mercedes-Benz) by a significant margin.

validus00 - 9/9/2009 10:26:44 AM

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finally learned your place buddy? stick to quoting numbers and you'll be just fine.

but now you're just repeating yourself over and over again... like someone who needs a constant reminder.

validus00 - 9/9/2009 10:40:12 AM

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actually i got a few questions or tasks for you. go find out if audi is doing anything on the production side to increase their supply. find out what audi's inventory is like - they full or empty. find out if they're planning to increase their production on all or specific models to 110% in order for them to match or surpass bmw's current production level, because i don't think introducing new trims or platforms alone is enough when competitors are expanding their lineup as well. and i don't just mean new factories for their new upcoming lineup either.

i want to know how conservative or radical audi's plans are for its global operations over the next couple of years.