BMW Warns U.S. Sales Slump To Continue Through Summer - Stock Drops 4% on Weak Outlook

MUNICH— BMW AG warned of a tough business outlook for the rest of the year, citing difficulty in reversing declining sales in the U.S. on top of uncertainty in China and Europe.

The sober outlook sent the luxury-auto maker’s stock price down more than 4% despite BMW’s reporting a rise in first-quarter profit.

“We expect that the U.S. trend will continue until the summer,” Mr. Krüger said. BMW first-quarter sales in the U.S. fell 11% from the year-earlier period.

Amid a strong shift in the U.S. toward sport-utility vehicles, the German auto maker is now boosting production of SUVs in the U.S. and cutting back on sedans. BMW expects its U.S. business to pick up in the second half of the year.




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GermanNut - 5/4/2016 2:15:24 PM

+6 Boost

Looks like BMW's sales decline in the U.S. is set to continue. More importantly, this means Mercedes-Benz is very likely to outsell BMW globally in 2016 given its much better sales performance in the U.S. and surging sales in China - the two largest markets for both BMW and Mercedes-Benz.

carsnyc - 5/4/2016 2:33:21 PM

+2 Boost

Already feeling a lot of pressure on the upcoming 5 series. BMW better not screw that one.

PUGPROUD - 5/4/2016 5:48:45 PM

+1 Boost

You'll likely find it difficult to tell new 5 Series from the old one. BMW has become so risk adverse as to be boring! No risk no gain.

MDarringer - 5/4/2016 7:49:06 PM

+2 Boost

Yes, because their product line is in the toilet stylistically.

llaroo - 5/4/2016 9:08:50 PM

+2 Boost

BMW is totally lost when it comes to their design direction. Cars and SUV's are chunky and lack refinement for a higher end brand. Too many variations and not enough thought into what they are trying to present vs trying to fill perceived holes in their product lines. And then you add the M lines and they look like aftermarket kit cars

MBguy - 5/4/2016 9:15:59 PM

+7 Boost

Time to call out their inferior interiors. Designs are cheap and dated compared with most of the competition.

GermanNut - 5/5/2016 12:37:51 AM

+5 Boost

BMW is paying a heavy price for its lacking interiors, indistinguishable exterior design and overall lack of execution. It is nearly guaranteed to lose its global sales crown to Mercedes-Benz for 2016 and Audi's next A8, which promises to introduce an all-new exterior design philosophy that is based on differentiation and aggression is right around the corner.

BMW is at a crossroads and what it does with the next 5-Series could well determine if it falls to third place globally in 2017 as Audi is promising a raft of new SUVs.

mre30 - 5/5/2016 10:53:10 AM

-2 Boost

Bring back Chris Bangle!

llaroo - 5/5/2016 11:41:06 AM

+2 Boost

Chris Bangle was nothing special, The 5 series and z4 were bad designs, 3 series mediocre at best

carsnyc - 5/5/2016 12:29:45 PM

+1 Boost

Agreed. The E60/E61 was ugly and E65-68s were horrendous

lmariorod - 5/7/2016 11:52:41 AM

+1 Boost

Sorry but BMW lost me when I sat in the new M2 at the N.Y. Auto show. That inferior interior was a non starter for me. I could care less how much better it could drive versus my current B8.5 Audi S5. Nothing beats a wonderful driving car and beautiful interior.

4ron - 5/25/2016 8:25:05 PM

+1 Boost

BMW has been riding on its past laurels. The 3 series has been decommissioned to a soft handler and the driving experience of its other models is not far behind. They need to go back to their roots and rediscover the engineering that created their beloved reputation. I love our 135i coupe.

MDarringer - 5/25/2016 9:15:33 PM

+1 Boost

BMW's teaming with Toyota presents them with their ultimate solution. Over time, the auto industry will consolidate and BMW very wisely chose Toyota. Sooner or later they will be one company.

The solution is to use Lexus as the softer luxury brand and BMW as the sport luxury brand. Win/win