BMW sells plenty of vehicles within the U.S. lately. The truth is, finally rely, the marque moved 371,346 vehicles and SUVs final 12 months. It didn’t occur in a single day; fifty years in the past, BMW of North America’s inaugural 12 months, the model solely bought 19,419 vehicles. One of many largest pace bumps on the model’s journey to promoting that many vehicles got here within the late Eighties. Issues started because the U.S. greenback to Deutschmark change fee fell, which sadly made BMWs extraordinarily expensive within the U.S. (and elsewhere). Including to the model’s U.S.-based woes have been more and more stringent emissions requirements. Arguably, a few of BMW’s best fanatic choices by no means made it to our shores due to them. Then, lastly, within the remaining 12 months of the Eighties, BMW had another reason to lie awake at night time: Lexus.
Lexus Challenges BMW
In 1989, Toyota formally launched the Lexus model. Its purpose was to focus on the BMW/Mercedes-Benz purchaser with luxurious automobiles and an eye fixed to customer support; traditionally, a single buyer criticism launched a brand-wide service marketing campaign, which drew plenty of optimistic consideration. In 1991, Lexus made landfall, and it was painfully clear for anybody taking a look at BMW’s gross sales numbers. Whereas the model bought 96,759 vehicles in 1986, 1991 noticed that quantity fall to a painful 53,343. “What was clear was that our mannequin vary merely didn’t stay as much as ‘The Final Driving Machine,’” mentioned Vic Doolan, then newly appointed as BMW AG Head of Gross sales and Advertising and marketing. “We knew that to compete we needed to excite and please the BMW proprietor.” The unstated fact? Lexus was profitable market share by advantage of its highly effective and clean V8 engines, wonderful consolation and facilities, and perceived reliability because of its Toyota ties.
BMW Battles Again
So, BMW started engaged on one thing Lexus had demonstrated was a buyer want: greater and badder V8 engines. The 5 and seven Collection turned extra interesting to U.S. clients, in response to BMW, and a brand new product line within the Z3 roadster additional bolstered the lineup. Modifications began occurring on the dealership stage, too. In spite of everything, they needed to with the intention to compete with Lexus’s newly-earned status. “Our vendor community was demotivated and unprofitable,” Doolan mentioned. “Poor vendor service was the consequence.” Doolan applied complimentary scheduled upkeep and improved technical coaching to make sure a greater service expertise.
Large adjustments additionally occurred to how folks purchased BMWs within the mid-Nineties. BMW Monetary Companies was launched in 1992, which supplied higher charges and elevated flexibility for patrons and sellers. Buyer loyalty elevated, whereas sellers had enhanced entry to pre-owned BMW automobiles. By 1996, BMW managed to put up gross sales of 105,761 for the 12 months. By 1999, Lexus had bought its millionth car after lower than a decade of existence. Thus, the battle continued.
As we all know right now, there was room for each manufacturers — and plenty of different rivals — within the market. By 2000, BMW had introduced the E39 M5 and all-new BMW X5 SUV to market. The latter, significantly, was an ideal foil for the blossoming Lexus portfolio, which added the Land Cruiser-based LX 470 SUV in 1998. As a little bit of a “the place are they now,” Lexus moved 91,609 automobiles in Q3 2025. BMW, however, bought 96,886. As shut as ever, so it could appear. As an enormous fan of each manufacturers — and proprietor of each a GX 470 and “clown shoe” M Coupe — it’s wonderful to see the dividends that good competitors paid.
Supply: BMW USA
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