Bayerische Motoren Werke AG (BMW) is rolling out a bigger 1-Series compact car to reclaim the top spot from Audi for the first time since 2008 in the competition for younger customers purchasing entry-level luxury autos.
BMW’s smallest model will add more than 3 inches in length and about 1 inch in width, allowing for a roomier interior and more trunk space, the carmaker said. The vehicle’s starting price will be 23,850 euros ($33,480) in Germany, 900 euros more than its predecessor, and hit European showrooms in September.
“The 1-Series has considerable strategic value for BMW,” said Juergen Pieper, a Frankfurt-based Bankhaus Metzler analyst who recommends selling the shares. “It’s the gateway” for customers in their 30s, he said.
German luxury carmakers are revamping their smallest cars and adding compact models to entice buyers to sample their brands. The redesigned 1-Series will compete with Audi’s A3 and a rebuilt Mercedes-Benz B-Class coming to market this year.
The 1-Series will be the top global seller for luxury compact vehicles in 2011 with deliveries of 210,500, compared with 179,000 of the A3 and 114,000 of the B-Class, according to research firm IHS Automotive. Audi, which sold 208,000 A3s in 2010, has held the top spot in the past two years. BMW delivered 195,000 of the 1-Series last year.
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