At MotoringFile we receive quite a few MINI dealer specific news releases that we don’t share with our readers. Whether it be relatively boring material or even sensitive company information, we tend to pass on posting a lot of what we get in our inbox. However we received one recent sales related dealer newsletter that offers some interesting insight into MINI sales, the 2008 Convertible and what’s ahead for the Clubman. Naturally we just had to pass it along…
>As we wrap up the summer vacation period, and start to enjoy the cooler days that come with September, we would be remiss if we did not take a moment to celebrate our continued success.
>With the strong finish we experienced for August, we ended the month with 4,077 sales, the 4th consecutive month that MINI dealers in the US sold over 4,000 cars. Let’s take a moment to reflect upon that. Since MINI launched in the US, there have been seven months in which MINI dealers delivered over 4,000 cars in one month. The first three were a while ago – December, 2003, March, 2005, and April, 2005, where 4,310 retails remains the one month record for MINI. However we had never before sold over 4,000 MINIs in three consecutive months much less four. In August, MINI sales were up 25% vs. the previous August, in an industry where overall sales were actually down 1%. A pretty impressive performance! And, over the past 4 months, MINI sales are up over 17% vs. the same period in 2006.
>So what’s ahead of us for the remainder of the year? Availability will drop over the next 90 days as we transition from 2007 to 2008 Model Year. 2008 Convertibles are already rolling out the back door of the factory, and will begin to arrive at your dealership this month. The 2008 Hardtop and Clubman will begin (US) production in December. Having had an opportunity to drive the Clubman in both race track and real world environments, I am confident we have another winner on our hands. The Clubman will appeal to the loyal MINI owner and also make MINI ownership a viable consideration for those who up until now might have considered a MINI, but needed a slightly larger vehicle and made another choice.
>We have aggressively moved to cut 2007 hardtop production in the Sep-Nov. period. We have also been proactive in requesting December production – we will build over 4,500 2008 Model Year cars in December for the US, including over 600 Clubman. As usual, all of the details of our production plan are available on WebTrain.
>And we’ve learned from R56. We will build fewer R55 HEAs (pre-specced cars) at launch, and focus on giving you the opportunity to specify the right cars for your dealership. And we’ve got a couple of surprises up our sleeve to further support the launch, along with some Marketing that we know will create interest in Clubman.
MF Analysis: It would appear it’s a story of “so far so good” for the launch of the 2007 MINI Coupe in the US. The only potential issue is number of cars on the lot, partly due to those poorly specced launch cars from last winter. However as supply dwindles in the coming months, dealers will at least have the opportunity to move this excess inventory. The change in pre-specced cars for the launch of the Clubman (which we reported on a few months ago) will be welcome news to dealers who’ve had a hard time selling these pre-specced stripped down models to customers eager for options. Allowing the dealers to spec their own cars based on what sells in their market will surely help with the Clubman. Otherwise it would appear 2007 has been a stellar year for MINI USA and dealers in terms of sales.
Between the lines, sounds like there may be a Special Editon Clubman planned, maybe for MTTS deliver?
<strong>We have aggressively moved to cut 2007 hardtop production in the Sep-Nov. period. We have also been proactive in requesting December production – we will build over 4,500 2008 Model Year cars in December for the US, including over 600 Clubman.</strong>
A wise move. They have been overproducing the car and demand has finally leveled off with supply. The only way they can end discounts and financial incentives to move the metal is to cut back production.
There is no glut….
There is no glut…
There is no glut…
Pre-specced cars tend to be loaded with pricey options. Actually, budget conscious customers (The vast majority of MINI owners) are not ëager”to drop over $30K on a new MINI.
Reading between the lines of this article, the bottom line is that MINI simply overproduced the R56 and now they have over 20-30 days supply sitting at dealer lots.
In the R53 era, dealer lot supply used to be 9-11.
days, tops…
The Clubman will be a good seller and it could surprise R56 coupe sales in unexpected ways…
Just had a thought – any word on if there will be a Clubman convertible?
Yeah it’s pretty straight-forward what MINI is doing here. They want to clear out inventory so there’s little chance of ’07s sitting on lots as the ’08s come in. Of course this is all possible due to BMW’s 200 million dollar investment into the plant which allows for huge product increases we’ve seen over the last year. That expansion was mostly meant for the Clubman so don’t look for the R56 to be produced in such high numbers next year.
I will disagree with you on the word glut however. Glut is 200 Hummers sitting secretly in local parking lots. 20 cars sitting in plain view is what most sales people would consider “normal”.
And budget conscious consumers must be a local thing for you Nigel/Frank. If you look at most the cars coming off the floor in cities like Chicago or the NYC area they appear to be very well specced. This disparity is another argument for dealer’s speccing their own cars I suppose.
Car buyers here tend to purchase their cars with every option on the list and that is not limited to MINIs. However when I said that the vast majority of budget conscious buyers are not readely interested in pre-specced MINIs is for a number of reasons. Namely cost, options that do not fit their needs/wants, colors, interiors, etc. Some dealers here order cars with the Cold Weather package. Who needs seat warmers in 90F + degree weather?
Some customers like the ability to customize and order the MINI that better suit their tatstes and wallet. Isn’t that what MINI is all about after all? You-i-fication?
Unless you are the type of customers that needs/wants a car right away and is not willing to wait, then a pre-specced car sounds like a fair compromise. A friend of mine traded his ’03 BRG/W R53 S for a new ’07 R56 S Mellow Yellow/Black. He did not want to wait the 6+ weeks for a custom built car, so he took that one off the dealer lot. He doesn’t like yellow cars, but he took a discount, so he is obviously happy with his choice.
Maybe for some paying big money for a MINI is not a problem. For those of us that enjoy custom building our cars to our tastes/budget, ordering is still the way to go if circumstances allow.
And finally, in the realm of MINIs a 20-30 day dealer lot supply is glut. In the R53 era dealers were lucky to keep 9-11 day supply of cars in inventory. Hummers are a lost cause. They have a 150+ days inventory of unsold vehicles. No comparison there.
A Clubman covertible, huh? That would look like miniature gangster’s Lincoln from the twenties, I bet.
😉
Any idea when will these 2008 models hit the dealer lots ?
Any idea when the MINIUSA.com configurator switch to 2008 ?
Can’t wait no more ! 😉
Thanks !
“Reading between the lines of this article, the bottom line is that MINI simply overproduced the R56 and now they have over 20-30 days supply sitting at dealer lots.”
I can’t find that between the lines or anywhere else. Four months in a row of sales over 4000 units does not translate to a lot of unsold cars sitting around. The R56 continues to set sales record after sales record, and the Clubman will only improve things.
I have to agree with Gabe in regards to people buying well specced MINIs. With the changes made to the hard tops it seems easier for people to spend upwards of 30k. The combination of a more refined look, better fit and finish, and improved options take the MINI to another level and people feel more comfortable spending the money.
So much for the idea that the R56 was a dog and no one would want to buy one. Now, I suppose, the Clubman fans, will have to go through the same thing all over again.
Let’s not forget that a stripped_to_the_bone MINI still has things that are options for many other small cars: A/C, power windows, power locks, CD player…
>And finally, in the realm of MINIs a 20-30 day dealer lot supply is glut. In the R53 era dealers were lucky to keep 9-11 day supply of cars in inventory.
In the R53 era MINI didn’t have a choice – they simply couldn’t produce cars in the number they can today after the plant expansion.
Wasn’t plant Oxford expanded like 2-3 years ago?
The additions came online late last year.
The R56 production reduction is a result of the reduced amount of spots for Coupes as MINI begins manufacture of MINI Clubman. There wasn’t a new plant opened for production of the new model, so the only option available is to reduce production of the other cars to make room for the new model.
Will this cause there to be fewer R56 Coupes to be built (and purchased)? Absolutely. Will there be fewer MINIs built (and purchased)? Not a chance.