MINI USA Sales Up 12.5% for May

Ian C. Jun 1st, 2007 Link

USA Sales figures for all time still updated here: http://www.gbmini.net/wp/mini_sales/

Looks like the second highest month ever (April 2005 sold 4,310)

lavardera Jun 2nd, 2007 Link

Autoblog’s sales per day adjusted percentages have the increase pegged at just over 8% above last May’s numbers. There were more selling days in May07 than May06. Still an awesome showing.

I wonder, are the negative spin doctors going to walk away from this months report, or can we count on some creative explanations.

charlie Jun 2nd, 2007 Link

about time

Gabe Jun 2nd, 2007 Link

about time

Sales were up worldwide and in the US in April as well.

charlie Jun 2nd, 2007 Link

sorry , gabe I didnt mean that .I am glad they are up

Jon Jun 2nd, 2007 Link

Wonder where all the “sky is falling” people now heh. Good to see Mini making strong gains again, still believe that the numbers will rise a fall over the next few months but the numbers will show that the interest in the new car is atleast as strong as the prior if not even more.

OttoMannS Jun 2nd, 2007 Link

Guys, let’s analyze May’s sales data, shall we?

May 2007:

R56 Cooper = 1,542 cars sold R56 MCS = 1,690 R53 MCS = 14 R50 MC = 18 R52 MCS = 474 R52 MC = 392

Total units = 4,130

21% of the total sales reported by MINIUSA are made up of left over R50/53 hardtops and R52 convertibles.

Take out R50/52/53 sales and u have 3,232 2007 R56 units sold in the United States.

Let’s look at May ‘06 sales for comparison:

R50 hardtop = 1,073 R53 hardtop = 1,393 R52 MC = 388 R52 MCS = 818

Total units = 3,672

OK, lets take out the convertibles and total just the hardtops = 2,466

Keep in mind though, that R50/53 production was already winding down in anticipation of the R56. Hardtops were hard to come by, specially Coopers one year ago.

So to finish the sales analysis, MINIUSA sold a measly 766 more hardtops on May ‘07 than it did on May ‘06. If you add convertible sales for both May ‘06 and May’07, MINIUSA only managed to sell only 458 more cars this year than last (Month of May comparison). That is an unimpressive 11% improvement in sales over the same time period last year.

5 months after introduction and at full factory production, the R56 sales are and remain flat at best, pretty dissapointing for an all new model after a major redesign.

Gabe Jun 2nd, 2007 Link

Dude – you’re trying a little to hard to find something that isn’t there.

OttoMannS Jun 2nd, 2007 Link

Trying hard? Hardly! This is as easy as it comes, DUDE.

The reported sales number speak for themselves. 21% of the total may ‘07 sales are 1st gen MINIs (Left over hardtops and new convertibles).

The R56 is selling but is not braking any records and that must be raising red flags at HQ’s. My dealer has 175+ R56 in stock for immediate delivery and subsidized lease deals on all R56s MCs ($289/month, 36 months, $0 down, $0 inceptions). Never recall during the R50/53 era my dealer bursting with MINI inventory and b) offering dirt cheap lease deals.

I’ll be truly impressed, when the R56 completely outsells previous year’s 1st gen hardtop and cabrio sales combined.

So the R56, being the best MINI ever since the inevntion of the Internet and Sliced bread is pretty much braking even but not braking any sales records, just yet.

This is why MINI needs the Clubman. To boost second generation sales… The only way to do it.

Gabe Jun 2nd, 2007 Link

Seriously… you’re reading things into this that are frank…ly (pun intended) not there.

Keep in mind though, that R50/53 production was already winding down in anticipation of the R56. Hardtops were hard to come by, specially Coopers one year ago.

Simply not correct. Sales were down in May of 2006 but dealers had cars to sell. The production contraints impacted production earlier in the year mostly. If you could see the inventory numbers you’d know that.

I’ll be truly impressed, when the R56 completely outsells previous year’s 1st gen hardtop and cabrio sales combined.

Why? Most people who are buying these cars can’t tell them apart? The public at large doesn’t give a…

slag1911 Jun 2nd, 2007 Link

OttoMannS is dead right on this… I’m sure BMW expected much more out of this redesign then the minor spike in sales we are seeing to date. The 2 MINI dealers in NC each have 60+ R56s on the lot, this is something you never encountered in 2002-06. You are also seeing discounts and offers on the R56 at dealers across the country, why is this if they are selling so well?

OttoMannS Jun 2nd, 2007 Link

Let’s just say that at one point in time I had 100% access to inventory information and I can tell you hardtop Coopers where fairly scarce. We had more MCS’ on hand than we did Cooper tintops. I saw the numbers on computer generated printouts. (For your eyes only stuff)

I disagree. People do notice and can tell the difference between the 2 cars. I have 2 friends that have never owned a MINI before and immediately picked up the differences between the 2 generations without me even point them out.

MINI needs you Gabe. Why? because of your “celebrity” status and by you selling your beautiful R53 and getting a new custom ordered, fully optioned R56, you are showing the world that the R56 is the only truly worth it MINI to own and with the exposure you have, MINIUSA is hoping that since Gabe bought a $35K MINI, more people will be willing to jump the fence.

You are like the NASCAR or NBA star endorsing a product and the sponsor hoping that your endorsement will bring them $$$$ sales.

Nothing wrong with that, simply pointing out the obvious.

Gabe Jun 2nd, 2007 Link

That’s cool, Frank-ly it’s pretty funny how much thought you’ve put into this. You can believe whatever you want and you can post it here but it doesn’t make any of it true. The fact of the matter is nothing you or I say really matters at the macro level.

And the funny thing is I could give a sh*t either way. I’m more worried about the two R53s I have up on jacks in my garage.

lavardera Jun 3rd, 2007 Link

I agree with Frank. The R56 is selling, but not yet breaking any records. Out selling most of the past months, but no records. Of course the last time the sales figures were posted Frank was claiming that the R56 was not selling. So he is slowly coming around! Ha!

lavardera Jun 3rd, 2007 Link

Reading through Franks analysis again it is completely lame.

You are offering that 20% of may sales were convertibles and that is somehow reflects poorly on R56 sales? Back in May06 over 30% of sales were convertibles. If Mini is disappointed about anything it is probably that convertible sales are not keeping up with past levels.

In May 06 the verts sold 1206, represented 32% of the month’s sales. In May 07 the verts and 50/53s sold 898, represented 22% of the month’s sales.

Perhaps that is not fair because the verts are selling at numbers similar to what they always have. What is really going on is that the coupes are selling at higher numbers. So lets take the convertibles out of the equation as you suggest and look at the sales of hard top coupes:

May 07: 1542MC, 1690MCS May 06: 1073MC, 1393MCS Apr 05: 1302MC, 1480MCS (month of highest total sales 4310)

So R56 sales exceeded past sales by a good margin in both of these months.

goaljnky Jun 3rd, 2007 Link

How do the sales figure correlate to the fact that the R56 are still fugly?

msh441 Jun 3rd, 2007 Link

Frank? I knew of a Frank posting a bunch at NAM and MINI2 once… he’s apparently gone now, though.

slag1911 Jun 3rd, 2007 Link

Bottom line: The redesign and launch of the R56 has taken 5 months to show a single digit percent raise in sales year to year.

For the first time, large R56 inventory exists on dealers lots, and discounts off of MSRP is the reality.

The universal appeal of the R53 kept inventory low and prices high for its entire run… it does not appear that the R56 is going to repeat.

lavardera Jun 3rd, 2007 Link

Its taken the 4 months – jan thru apr – to get the product in the sales channel, yes. Looks like its there now though.

I’m not seeing any dealer offering off MRSP – links? My dealer’s inventory is low. However they have knocked thousands off the few remaining 06’s. Great deals to be had there on those very few left.

The difficult manufacturing of the R53 also kept inventory low, which made for high prices. I’ll guess Mini does not want to repeat that.

slag1911 Jun 3rd, 2007 Link

http://www.northamericanmotoring.com…highlight=msrp post 62 mufflethis got his R56 250 under MSRP post 63 Babul03 got his R56 600 under MSRP post 48 phishybrewer got his R56 MC 300 under MSRP

http://www.northamericanmotoring.com…highlight=msrp post 54 YO-MINI got his 500 under MSRP for a special order post 48 Birdman got his R56 5% under MSRP (lots of follow up posts) post 60 undertow got his 250 under MSRP for a special order

The NC dealers are sitting with 60+ units in their inventory… folks shouldn’t have to bargain to strenuously to break under MSRP with those numbers…

Gabe Jun 3rd, 2007 Link

Shouldn’t be too much of a shock to anyone. Dealers have been making similar discounts for years on R53s. I know of several dealers that were doing $1,000 and over off new R53s over the last several years.

MejorMotard Jun 3rd, 2007 Link

Ummm, okay I’ll believe you about the “several dealers” discounting their R53’s in ‘05 and ‘06, but what year did the R53 come out? Just to add a little more contrast…what MONTH did the R56 come out, and why are they already being discounted?

Skiploder Jun 3rd, 2007 Link

I bought my MCS in 03. I could not buy an 02 because four months after being released, it was a 6 to 9 month wait as dealers had no inventory, no cars to test drive and were charging $1500 to $3000 over MSRP.

Last year I toyed with the idea of ordering a factory JCW. Again, major wait times and major mark-ups.

There are the following dealerships in Northern California – Niello, East Bay, Concord Mt. View and SF. I have been to four of the five (my old man’s interested in an R52) and all of them have unsold R56s on the lot. This number varies from about 16 to over 40 – numbers than were unheard of from 02 to 06. Nay Minis on the lot during that time had “Sold” signs in them.

For 5 years I could not walk in to a Mini dealership and order an R53 at either MSRP or walk off the lot with one.

Tomorrow (if I wanted), with the new R56 – I can.

During the R50/53 years, only East Bay offered cars at MSRP. Now, all four of the dealerships I visited are doing this.

Yes there are a few R50s and a few convertibles, but no R53s to speak of a no discounts on the convertibles.

Again, the situtation between 02 and 06 was so desperate out here that people were buying their cars out of state and having them shipped here to avoid the markups and the wait times.

This has obviously changed. Looking at the sales numbers, it seems that the R56 is selling roughly the same as the R53/R50 did. Maybe the car is just being produced in greater numbers than they can sell it – I can buy that. That means one thing – production appears to be outpacing demand.

Maybe the trick is the production limitations with the old model perfectly matched demand – creating the conditions on the west coast I described above. Maybe there isn’t a market in the US for 4500 Minis a month.

In the end it doesn’t matter – the fact remains that three months into it’s release, and for the first time in five years – there is inventory sitting on the lots and the dealers aren’t getting their usurious mark-ups.

Slag has posted links to people getting cars for under MSRP. When I was ordering my 03 I called dealerships all over the country inquiring about mark-ups and shipping costs to the left coast. While several dealers were willing to sell at MSRP, none were willing to go below. As far as I’m concerned, brand new cars clogging up lots and being sold for under MSRP is something to be concerned about.

lavardera Jun 3rd, 2007 Link

Ahh Slag – I thought you were talking about advertised discounts. But you’re not – you are talking about negotiations. Ok. I guess the bottom is falling out.

lavardera Jun 3rd, 2007 Link

So lets summarize where we are.

Sales are up. Mini is making more cars faster. Inventory is up. People can get cars when the want them. Prices are coming down. Consumers are spending less. Dealers and manufacturers are seeing greater volume. They are making more money even with discounts.

Ok. Everybody seems to be winning in this equation so what’s wrong?

Oh yeah – the “Motards” think the R56 is fugly… right, thats what this is all about…

Gabe Jun 4th, 2007 Link

No need to call anyone out here. I’m not sure why there’s all this animosity about vehicle sales but if you guys feel the need to debate further, we just ask they you keep it relatively civil.

Mininutshavenone Jun 4th, 2007 Link

Let’s see…as Lava posted, hardtop sales (the only ones relevant to the current discussion) are up 14% over the best month ever. At the same time, year-to-year sales of convertibles are down 27%. I guess by Jinky’s logic, the correlation is that the R52/53 is fugly.

lavardera Jun 4th, 2007 Link

Will do.

slag1911 Jun 4th, 2007 Link

Lava…

You are correct that dealers are seeing more volume, however this should not be viewed as a positive unless they are able to move their stock in a reasonable time. In the case of the R56, we are seeing large numbers of vehicles sitting in dealer inventory. We are not “talking about the bottom falling out”… yet. However R56 sales to date cannot be viewed as anywhere near the success that BMW encountered with the R53 launch.

BTW… I believe the term “Motard” refers to the R56 enthusiast, so you have used the term incorrectly.

OttoMannS Jun 4th, 2007 Link

Slag1911, could not have said it better myself.

lavardera Jun 4th, 2007 Link

Slag, demand is not going to be evenly distributed among dealers. If they have cars on the lot too long I’m sure they won’t be happy. But if the car is selling well and beyond past numbers then Mini and the majority of dealers will be doing better.

Every manufacturer wants their products to be popular. But to have customers calling around looking for cars, not able to buy one when and where they want one. No manufacturer is going to want that – its like leaving business on the table. Not selling cars they could be selling. Yet I see people posting about that like the glory days of the R53 was a good thing. I don’t know what these people are thinking but its economics 101.

The extra volume will quickly overtake any downside of larger inventory. And the dealers who can’t move what they got this go-round will have a smaller allocation next time. Those cars will go to the regions where the lots are near empty. Problem solved.

Oh, and about the term “Motards”, you are incorrect. The term “Motard” refers to the R56 anti-enthusiast as demonstrated by the person posting above under the name “MejorMotard”. Git ur facts straight.

Gabe Jun 4th, 2007 Link

Okay – last time guys. Name calling is step 2 in a 3 step process of getting a comment section closed. We have no issues with people not liking one car or another but please keep it smart.

goaljnky Jun 4th, 2007 Link

Hey, Lava

Not to state the obvious, but Ferrari routinely makes production runs that are less than what they market research shows could be sold. Their way of maintaining exclusivity. So at least one manufacturer is “willing to leave business on the table”.

Obviously that is not the business model BMW is pursuing with the MIN. Well, at least not with the R56.

goaljnky Jun 4th, 2007 Link

Hey, Lava

Not to state the obvious, but Ferrari routinely makes production runs that are less than what their market research shows could be sold. Their way of maintaining exclusivity. So at least one manufacturer is “willing to leave business on the table”.

Obviously that is not the business model BMW is pursuing with the Mini. Well, at least not with the R56.

msh441 Jun 4th, 2007 Link

However R56 sales to date cannot be viewed as anywhere near the success that BMW encountered with the R53 launch.

How do you figure? MINI was selling between 2000 and 3000 cars a month for the first year and a half during it’s wildly sucessful introduction.

Since the R56 has been readily availible (March), MINI has sold 3655 (March), 4120 (April) each and every month. Numbers that it took years for MINI to consistantly accomplish.

The reality is MINI is no Ferrari. There are only a small handful of marquis that can follow that ultra-exclusive business model and MINI (or Mini) isn’t one of them. Never has been, never will. More cars = more money for BMW, which is their measure of sucess. Don’t fool yourselves, either. This is just as it was for Austin, Rover and any of the others cranking out the Mini, whether anyone likes to admit it or not. If they could have streamlined production, increased sales and made more $$$, they would have.

Limit production to maintain exclusivity? Hey, I love ‘em all to death, but the reality is: it’s just a MINI!

lavardera Jun 4th, 2007 Link

Hey goaljnky,

Thats a valid business plan Mini was not approaching the price nor craftsmanship of a ferrari. What they were doing was struggling to make as many Mini’s as they could to meet the demand they had at hand. They probably did pretty well, but the anecdotal stories of people in CA calling around the country and having cars shipped, dealers charging mark-ups, etc are all indicators that they were letting sales slip through their fingers. What going on with Mini is consistent with BMWs own brand and it certainly has not hurt the marks cachet.

slag1911 Jun 4th, 2007 Link

msh441… this is economics 101 here. MINI sold every r53 as quick as they could build them. Not so with the R56, which are backing up on dealers lots barely 5 months into production. By your measurement, Ford and Chrysler are extremely successful because they sell tens of thousands of units each month, but such is not the case. If build capacity continues to out pace demand, you will soon see output cutbacks, hardly a success by any measurement.

goaljnky Jun 4th, 2007 Link

All right, look, I don’t care. It was stated: “…to have customers calling around looking for cars, not able to buy one when and where they want one. No manufacturer is going to want that – its like leaving business on the table.” I just pointed out the error of that statement. I don’t care about production numbers. R56 is ugly. Just because they sell more of them means nothing. Damn Camrys are the best selling cars in the country and have the stylistic appeal of a used condom.

That being said I will probably pick up a Clubman when they come out. One, I need the room. Two, I will be able to save the mileage and not put it on my beloved R52/53s.

lavardera Jun 4th, 2007 Link

goal if it makes you happy I stand corrected. You’re absolutely right that some manufacturers like ferrari operate just that way.

goaljnky Jun 4th, 2007 Link

Thank you. We can now move on to more important topics.

msh441 Jun 5th, 2007 Link

this is economics 101 here. MINI sold every r53 as quick as they could build them. Not so with the R56, which are backing up on dealers lots barely 5 months into production.

As pointed out elsewhere… that’s a regional phenomenon. There are about three or four regions with a glut of dealerships and MINIs on those lots. You live in one of those ares: Texas. That’s you’re perspective and I appreciate that. Other areas are still looking at 3-6 month waiting lists for the car. How build slots are passed out is beyond me, but it’s obvious they are flooding some areas and holding back in others.

slag1911 Jun 5th, 2007 Link

Actually I live in NC, and its more than 3 or 4 regions… the glut is building nationwide, just not at every dealership. Perhaps some dealers have already cutback on new orders? BMW had something special going on with the MINI, but I suspect like all things run by corporations, we are seeing the end of that era.

Alex T. Jun 5th, 2007 Link

Ugh… this discussion feels like teaching business theory to kindergarteners. The reality is that if you want to be able to afford a MINI, then it has to be made by a corporation that can build a lot of cars, but may be forced to make compromises in order to achieve enough demand to make it worthwhile. I do not understand why the MINI community has so much suspicion of large corporations and their motives.

I think it is a little early in the production cycle to be saying whether or not the R56 will be a success over the life of the model.

lavardera Jun 5th, 2007 Link

There is no glut Slag. Worst case if Mini has miscalculated the distribution then customers in my region will be calling dealers in your region looking for cars because they are flying off the lot here.

slag1911 Jun 5th, 2007 Link

Your right… there is no glut. We just have both MINI dealers here in NC, both of which have over 50++ R56s sitting on their lots (50++ for each lot!). And our region is not unique, just call or search around.

During the 2002-06 R53 era, you literally had a difficult time finding 1 unit in stock to see what they looked like! However… there is no glut … its just miscalculated distribution.

lavardera Jun 5th, 2007 Link

Glad you’ve come to your senses.

slag1911 Jun 5th, 2007 Link

Yep… its just a “miscalculated distribution” problem… and these are not the droids your looking for :-o

Skiploder Jun 5th, 2007 Link

An inventory search of the five Norcal Dealerships shows that each dealership (on average) has 12 R56s MCSs sitting on the lot. Double that number for the MCs.

This does not count any leftover 2006 MCs or 2007 R52s.

This is in California, which has traditonally seen jacked up prices and long wait times.

The simple fact is that there is unsold inventory. I don’t think this is a good thing for anybody but the R56 buyer.

So comparing the MCS against it’s rivals, the Civic Si and the GTI show the following:

GTI Inventory: Walnut Creek – 3 Broadway – 3 Bob Lewis -4 Concord – 9 Royal – 7

Average = 5.

Civic Si Inventory: Concord – 5 Livermore -2 Dublin – 4 Fremont – 2 Marin – 3

Average = 3

So the average Bay Area Mini dealership has over twice the inventory of MCSs on the lot compared to the local VW dealerships (GTI) and 4 times the number compared to the Civic Si.

Anybody have the production numbers for the other two cars? Are they comparable?

lavardera Jun 5th, 2007 Link

What’s that got to do with the price of milk in Cleveland?

goaljnky Jun 5th, 2007 Link

Not sure about milk in Cleveland. Is there a shortage? Are there milk dealers in Cleveland. But I will tell you this much. I saw my first Mini commercial today. During an episode of “The Shield”. It was for the R56, of course. Don’t recall seeing an R50/53/52 TV commercial. Ever. Speaks volumes. At least to me it does.

Skiploder Jun 5th, 2007 Link

Nothing at all I guess………

………except in the last four months it suddenly became harder to score a Civic Si in my area and easier to get an MCS.

It also shows that in what was traditionally one of the hottest Mini markets in the country, cars are sitting on the lots. It isn’t relegated to North Carolina or Cleveland or Futtbuck Egypt.

Counting the R56 MCs, one dealership has almost 50 cars in inventory. Crap, the local VW shop doesn’t have that many Rabbits and GTIs sitting collecting dust.

Or are we still talking about miscalculated distribition? Where are these cars in short supply?

Skiploder Jun 5th, 2007 Link

Long Beach Mini – over 35 combined R56s in stock.

Jinky – are they sitting on the lots down there too?

slag1911 Jun 6th, 2007 Link

Guys… like lava said, what we have here is a problem with “miscalculated distribution”… everywhere…

Repeat after me: … there is no glut …. … there is no glut …. … there is no glut ….

lavardera Jun 6th, 2007 Link

Let us know when you have completed your nationwide survey.

Nigel Jun 6th, 2007 Link

Below you will find a quick spot check of the R56 inventory situation around the country:

MINI of St. Louis

R56 S = 14 R56 MC = 14

Motorwerks MINI (Minnneapolis)

R56 S = 8 R56 MC = 15

Global Imports (Atlanta)

R56 S = 30 R56 MC = 33

Flow MINI (Winstom Salem, NC)

R56 S = 20 R56 MC = 24

MINI of Charleston

R56 S = 15 R56 MC = 7

Knauz MINI (Chicago)

R56 S = 19 R56 MC = 29

Patrick MINI (Chicago)

R56 S = 11 R56 MC = 18

Cincinnati MINI

R56 S = 20 R56 MC = 13

Rasmussen MINI (Portland, OR)

They do not report online inventory but a message states: “We have quite a few R56, no wait, immediate delivery, great prices)

MINI of San Francisco

R56 S = 23 R56 MC = 21

MINI of Mountain View (Bay Area)

R56 S = 10 R56 MC = 20

Long Beach MINI (Los Angeles area)

R56 S = 22 R56 MC = 16

MINI of Dallas

R56 S = 17 R56 MC = 22

Lauderdale MINI (Ft. Lauderdale, FL)

R56 S = 13 R56 MC = 20

This is just a brief snapshot.

Oh yeah, and there is no glut….

Skiploder Jun 6th, 2007 Link

Let’s be fair. It’s probably less a case of miscalculated distribution and more a case of miscalculated demand.

They’ve sold around 9,400 R56s since it’s introduction here – right? That’s as good or better than any combined R53/R50 comparable period (don’t count the convertibles).

The problem is that maybe they’ve imported another 1,500 to 2,000 cars that haven’t sold.

Maybe the R53/R50 would have had the same issue had they produced it in similar numbers. Maybe there would have been no demand for that car either. At this point, we’ll never know.

It’s too easy to figure out what they have in inventory Lava, I can find out today. The fact is that they aren’t selling their allotment of these cars. The fact is that if this continues it will affect resale prices.

Enjoy your car, Lava. Just because I don’t like the way it looks, or Slag, or Ottoman, or Jnky doesn’t mean that you don’t have to enjoy yours.

lavardera Jun 6th, 2007 Link

I am, and I will – thanks for all the research.

skiploder Jun 6th, 2007 Link

I live to give.

Nigel Jun 8th, 2007 Link

Skiploder, have you been able to get a hold of the inventory reports?

Here is what I think is the real story teller: How many days supply MINI currently has in inventory for the R56?

What was the typical number of days supply during the R53 days?

That will be the key to settle this debate once and for all.

-Nigel

Gabe Jun 9th, 2007 Link

Wow – nice to see how this has devolved into a pissing match.

And I see above someone (with some obvious time on their hands) took inventory figures off of dealer websites to try to prove a point. It’s common knowledge in the industry that MINI dealers don’t list actual cars on the lot but cars on the lot and in any state of the order process. So that basically means you’re looking at 3-4 times more cars than are physically at the dealer. This is a common practice at MINI dealerships since they (speaking in reality here) often don’t have more than 5-15 of all models of new MINIs to look at.

And I can actually verify (as of three days ago) that the Chicago numbers at two of the three dealerships (I only visited two) are laughably high compared to what is actually on the ground.

We’re shutting down this thread per the warning that was given a week ago.