Report: Bmw sees fragile market rebound after Q3 miss

Report: Bmw sees fragile market rebound after Q3 miss
BMW AG gives a tepid outlook for the auto markets. BMW predicts that the euro would stay strong after third-quarter earnings before interest and tax (EBIT) dropped 86% to 55 million euros (about $80.5 million).

Recently, BMW’s shares fell 6.2%, making it the biggest decliner in the DJ Stoxx European car sector index, which was down 3.5%. Analysts don’t have much confidence in the stock of the world’s biggest maker of premium cars. They cited dismal third-quarter results; its core automobiles business lost 76 million euros ($112.3 million) before interest and tax in the quarter. DZ Bank analyst Michael Punzet said that his firm’s negative view on BMW came from the several risks BMW is exposed to from currencies, especially euro/sterling. He also sees lower residuals in the future.
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ItsMiItsMi - 11/5/2009 1:34:36 PM
+1 Boost
The analyst is right, "lower residuals". People with good Bimmers, they will hang onto them longer. Bimmers with issues will be pushed into the secondary market, further eroding people's faith in their products. This trend is not going to end soon, unless BMW stop ignoring customers’ complaints and dissatisfaction.


Yonder7Yonder7 - 11/5/2009 2:07:33 PM
-4 Boost
Did You how they are selling the X3?, comapred with GLK, is a fail, However we have to see the next month but this one was very bad for a brand new model that is very cheap compared to the X6 and even the X6 is selling more (and it have very bad sales numbers).


JRobUSCJRobUSC - 11/5/2009 2:55:07 PM
+3 Boost
nothing you just said is correct. First, the X3 is not a brand new model, it's the oldest model BMW currently sells. They're hardly even building it right now because it's outdated versus the competition. The totally new one will be out next year, which I am sure will sell just as well as the X3 did for the first four years it was out (which was "very well"). Second, the X6 isn't supposed to sell in huge numbers. It's a niche model, you're not supposed to see them on every street corner. Are you seeing Audi S5's all over the place? No? Why do you suppose that is? Is it because it has "very bad sales figures" (sales figures which, by the way, are almost identical to the X6)? No? That's not why? It's not a bad seller? Oh, then maybe because it's Audi wants to keep them exclusive and rare. Interesting how people totally love and understand that philosophy when Audi does it, but when BMW does the same thing, it's a sign of disaster. Very interesting indeed.


theoptimisticpessimisttheoptimisticpessimist - 11/5/2009 3:45:13 PM
+1 Boost
Did you know that the X3 is in last year of production. Did you know that BMW contract with Magna Styer expired and it's costing BMW more to have one built,ergo the build very few. The new X3 is just a year a way. Did you know that the X6 is a limited production car, and is doing ok (Check out the resell value article). In a recent Car and Driver the X3 (the oldest of the group) finish second to the brillant Q5. The GLK by the way finish dead last.


JRobUSCJRobUSC - 11/5/2009 5:51:11 PM
+3 Boost
"You honestly think both Audi and BMW would purposely restrict sales of 2 $50-70k vehicles just to keep them niche??"
Yes. That's how you keep them desirable, by not flooding the market with them. People like diamonds, right? Diamonds are valuable? If diamonds grew on trees and were readily available, their value would diminish and they wouldn't be sought after. Why do you think Audi has had a waiting list for S5's and R8's for over a year and BMW dealers sold out their entire allotment of 2008 X6's just two months into production? By your logic they should have just built and built and built. How'd that work for GM? Not too well.

"If I walked into a BMW dealership and inquired about buying 10 X6s for my business, they wouldn't pepper me with questions, they'd simply give me a timeline for delivery."

100% dead wrong. They would absolutely pepper you with questions to make sure you weren't an exporter who planned on shipping the X6's outside the U.S. It's one of the hottest cars on the market for exporters. Feel free to give it a shot. In fact, here's an experiment for you: call up any random BMW dealer and in a fake accent (Russian works well, but any accent will do) tell them you want to buy even one new X6. See what they say. Now try asking for 10 of them.


ghosthunterghosthunter - 11/5/2009 8:21:09 PM
0 Boost
lolz. X3 sold well? they never did, unless you compare to 1 series.
X6 limited production car? they prodicted 4k a month or so when it fist came out. limited? as 4k a month? heck, then honda S2000 and Lexus SC are more limited than X6.

don't fool youself. the X3 and X6 are sales failures. just like Acura RL.




JRobUSCJRobUSC - 11/6/2009 2:22:46 PM
0 Boost
4k X6's per month? You are outside your mind. And the 1-Series was projected at 10k per YEAR. In its heyday the X3 sold over 40k units per year. Nice try though spreading misinformation ghosthunter.


Yonder7Yonder7 - 11/5/2009 3:40:22 PM
+1 Boost
JRobUSC: Sorry man you are right, it is an old model, some times I get confuse with the X1 and X3 cause they look almost the same even in size, However I disagree with the X6 statements. X6 is not selling as well as they hope. and the same goes for the New 7. Now If you compare the sales of the 7 against the sales of the S class, It have a Jump that most of people did not catch. 7 Series sold more cars than S class in octuber, is not a big difference but is huge improvement. Regarding the X6 it is not selling cause it is too expensive for a SAV with almost no space and most of people does not like the design...and yes it will fail in the same way that the AMC Eagle....the time will say who's right...and in my life this is the first time that I see BMW in the current position, yes it looks like a forseen disater...from the bottom of my heart, I hope no cause BMW is one of the main companies pushing the limits and in many aspects, the are the yardstick of the Auto Insdustry.


ItsMiItsMi - 11/5/2009 4:24:33 PM
-3 Boost
Why is the drop like a cliff sales of the X3 such a misery to everybody here? Apparently, those at the Magna Steyr plant in Austria just couldn't drop the automatic transmissions properly into many of the X3's and resulted in having many undesirable effects that are difficult to correct, if at all possible. So this seems not as much of a deal as Toyota's unintended acceleration of late, but still even BMW wanted to avoid selling too many for these.


Yonder7Yonder7 - 11/5/2009 4:24:35 PM
0 Boost
X6 is a limited production car?...nop this is not a limited production car....LFA is a limited production car. GLK Sales were almost 10 times better than the sales of the outgoing X3 (which is not a surpise)...We have to see what will happen with X1 and the 5GT..I am trying to think in which models of high volume are coming from BMW and for now X1 is the only one. It won't matter if you accept it or not. X6 and 5GT won't help...and they have to do something to save the 7 which looks ok inside but ugly outside. I still thinking that the 3GT is not a good Idea, unless they give it a design with a more elegant profile as Mercedes which is thinking in an small 4 doors coupe.


theoptimisticpessimisttheoptimisticpessimist - 11/5/2009 5:39:13 PM
-1 Boost
Limited production means limited production. The first year out worldwide numbers were 40k it sold that many. The X6 was never meant a huge seller. As far as the goofy 5er GT all it has to do to exceed sales goals in the US is to sell 1001 cars. BMW on plans a 1000 cars for the US. More important cars will be the new 5er due in June and the X3 next January. The X1, not so much, look for it to cost about the same as the new X3 because of the cost savings of building the X3 in the US.


Yonder7Yonder7 - 11/5/2009 5:52:17 PM
+1 Boost
theoptimisticpessimist: I know you love BMW and I like it too but I'm not blind and if I am the time will give us the answer.


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