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Bloomberg is running a story today that has some very interesting insight as to why there won't be a BMW 1 series in the US and why BMW considers it different than the MINI. Here's an excerpt:
Bayerische Motoren Werke AG,the world's No. 2 luxury automaker, delayed U.S. sales of a new entry-level 1-Series car because the initial hatchback model was unlikely to appeal to buyers, the company's CEO said this week.
“Americans don't like hatchbacks, and we are still deciding what the best model for the next 1-Series should be,” BMW CEO Helmut Panke said in New York. The car's next version will be sold in the United States, he said, without giving a schedule.
…Since 1990, sales of hatchback model cars in the United States have never exceeded 4.7 percent and typically don't top 2 percent, Lexington, Mass.-based Global Insight Inc. reports. Hatchbacks, with two passenger doors and a door, or hatch, in the back, accounted for 225,000, or 1.4 percent, of 16.6 million cars and trucks sold last year, Global Insight said.
…BMW sold 36,000 Minis, also a hatchback, last year and may reach 40,000 by 2005 by adding a convertible this year, Jack Pitney, head of Mini's U.S. unit, said.
MINI sells because Americans don't know it's a hatchback, Purves said. BMW will have a 1-Series U.S. model by 2010 and may be sold in the style of a sedan, coupe and convertible, he said. “The reason there is a question mark about 1-Series is that it takes us back into a size we've been out of. It takes us to a price point we haven't been to in a long time with BMW,” Purves said. “Our view is we can.”
Wow! I know the American car buying public as a whole is fairly uneducated and used to poor products but I can't imagine it's that ignorant. Especially MINI buyers, who as a whole, I'd consider some of the smarter US consumers out there. I wonder how BMW's opinions of the American car buying public will effect the future of the MINI brand? Lord knows the last thing we need is a MINI SUV for the American market.
As an owner of a MINI (hatchback) and a 3 series wagon I'm obviously an American who appreciates these things that BMW obviously thinking can't sell in the US. Knowing the products and the US market I can't imagine, with the right kind of marketing and some product tweaks here and there, BMW wouldn't be able to move a good number of 1 series. Further it's not like it would be near as expensive as the MINI the launch.
The only real issue as I see it is with the value of the Dollar against the Euro BMW may have a tough time selling the 1 series at a price point that makes sense in the US. While this issue isn't touched on in this article it's been mentioned previously a big concern for the automaker.
<p>I wish BMW would just pull their heads out and realize there IS A MARKET FOR A RWD HATCHBACK. BMW could have that market to themselves if they'd just bring the 1. </p>
<p>The 318t didn't fail because it was a hatchback. It failed because it was underpowered and not really viewed as a 3-series (like the Merc hatch isn't viewed as being up to the standards of the C-class). </p>
<p>As for the MINI comment, if the MINI isn't a hatchback, what do they think we think it is? A cleverly disguised sedan?</p>
<p>The MINI is a “Small personal luxury runabout with enhanced luggage compartment access,” not a hatchback!</p>
<p>I've been driving a HATCHBACK?!</p>
<p>:-)</p>
<hr />
<p>Indeed, BMW is being asinine about this; if they want to become a true volume retailer, they're going to need a volume car, and that dries-up over $25k, period. </p>
<hr />
<p>Also, irksome: If they'd brought the E46 Compact with the 2.5L I6, it would've flown off the lot.</p>
<p>I agree. This car would sell well as they'd have the whole market to themselves yet again. This is the same thinking that almost had BMW NOT bring the MINI to the U.S. market. Originally they thought it wouldn't sell well here. This thinking also runs counter to the whole strategy I thought they were pursuing in the first place – available vehicles at every price point for the mass market. I can't see how this vehicle would cannablize MINI sales so what gives?</p>
<p>Harry has it right…”I've been driving a hatchback”?</p>
<p>As for me…well, that explains all the comments on how nice my brand new Pacer looks.</p>
<p>Trying to get one over on us Tom Purves, eh? How dare you!</p>
<p>If that's BMW's thinking on the MINI and Americans lack of perception, can you imagine what the behind closed doors rationale is for shoving iDrive down our throats? Like maybe we won't know it's really a old Commodore 64 with updated graphics and fancy controller knob? Wake up, BMW. Even us stupid Americans aren't buying into the new 7 (technological and styling disaster) or the new 5 (less technologically and stylistically challenged but no less awful). And now with the dollar headed south and BMW prices headed north, guess what? The higher prices won't make your cars more exclusive or more of a “must have” for the elite few who need to show off something. There are better choices.</p>
<p>BMWs Panke may have been a nuclear scientist at one time, but right now BMW could use a rocket scientist to right their thinking and help them get back on track.</p>
<p>Their arrogance is going to cost them dearly in the end.</p>
<p>I'd have to disagree on both the 7 series and the 5 series opinions. Both have generally been selling better than their predecessors and having driven both I can also say they are much better cars as a whole. Also I personally love the styling of the current BMWs – especially the new 5. </p>
<p>But lets not lose focus on the issue at hand – BMW not believing there is a market, or should I say, not a savvy enough market for the 1 Series in the US.</p>
<p>I think the 1-Series would be a great ride — small RWD BMW hatchback — I'd go there. I had not owned a hatchback before the MINI, not because of a bias against hatchbacks, but just because that's the way it worked out. I am impressed with the practical utility that is afforded by the hatchback layout, as well as the superior space efficiency over the sedan layout. I've gotten things in the back of my MINI that I could never have gotten in the trunk of the Passat sedan I used to have.</p>
<p>Unfortunately I have a feeling that BMW is right about the lack of demand for hatchbacks in the U.S. I think that the MINI sells despite being a hatchback, not because of it. I think it's also pretty clear that the MINI buyer has a bit of a different attitude and point-of-view from the average American car buyer.</p>
<p>It seems like all the good hatchbacks that have come out lately have been niche players: The MINI, the Mazda Protege MP5 (which has been discontinued), the VW Golf/GTI (sells nowhere near as well as its mechanical twin the Jetta), etc. Even long-time hatchback stalwart Saab has moved to a sedan layout in hopes of increasing its U.S. sales (I had a neighbor with an old Saab 900 hatchback — the cargo space in that car was absolutely amazing).</p>
<p>I think it will be interesting to see how the new Mazda 3 hatchback does here as well as the Chevrolet Malibu Maxx. Pretty unusual for GM to put out a mainstream mid-size hatchback.</p>
<p>I have no doubt there are quite a few BMW enthusiasts here in the U.S. who would love to get their hands on a 1-Series hatch, but the question is if that group is large enough to justify bringing the car here. I suspect they've already done the math and decided that it's not likely to make economic sense for them, which is unfortunate.</p>
<p>Hot daing! My MINI is a hatchback. I didn't know! Can I use that as an excuse to trade it back in??
BTW 'Americans not liking hatchbacks' apparently also don't realize that the Golf is a hatchback. Has NE1 told Golf owners what they are driving?</p>
<p>I love hatchbacks and will never opt for a trunk again. We drive a SAAB 9-5 wagon and of course a MINI. I have no need for a truck because of this. I traded a SAAB 9-5 sedan for the wagon because I got tired of never being able to put large items through the trunk opening. Not a problem in the MINI or wagon. I guess, according to BMW, I am the only one that feels this way. Oh well I never did fit into the American mold!
Hey anyone remember the 88 Mazda 626 turbo hatchback? A 4-door hatchback that could eat Mustangs! Never mind the huge torque steer that could rip your arm off! 🙂 God I loved that car! Super fast and the backseats folded down, it was a super prom night car! ;)</p>
<p>Probably the statement in BOLD was an unfortunate choice of words on Purves' part. I'll bet what he meant was Americans buy the MINI not because it's a hatchback but because of other reasons (styling, image, marketing, fun-factor, etc.). While I happen to like hatchbacks, for the vast majority of American buyers hatchbacks and wagons are still saddled with too much of a “practicality” image (like that hand-me-down Country Squire wagon or diesel Rabbit we all got in high school) or other stigma to make them desirable in large enough numbers. Go ahead, conduct your own informal poll and see what the general reaction to the idea of buying a hatchback is. And don't ask just your fellow MINI drivers. I'm sure that companies like BMW will conduct their own polls before betting hundreds of millions on the American market.</p>
<p>I think that the problem is that many of us Americians think that 'hatchback' = econo car. Yes, there are quite a few hatchbacks on the road (mine included, but I thought it was a Boot-Back…), but the majority of them are cheaper, more economy class cars. A MCS at (appx) $20,000 seems like a heck of a lot of money for a small hatchback for most people. A 'luxury' hatchback is just not something that I think that we'll see in the US market for some time. But maybe with the new Kappa platform, opinions might change about thoes small econoboxes with a hinged rear.</p>
<p>Purves is dead wrong, as usual….</p>
<p>These are the same people that continue to cover the sun with one finger and pretend that the overly grotesque Chris Bangle designs are something that people “will get used to” when it comes to fully accepting them.</p>
<p>Sorry but Purves either lives in another planet or is a total moron. Hatchbacks are selling weel in this country including their very own MINI, which is a 3 door hatchback in case he hasn't realized it.</p>
<p>I am dissapointed to hear Purves comments. This man must be removed from the helm of BMW USA as one clueless individual. If it weren't for Jack Pitney and company, the MINI would have never arrived to our shores.</p>
<p>Is this Purves clown, the same one that came out to say that the “Rear fog lights” were illegal for new MINIs in the USA?</p>
<p>Shame on you Purves!</p>
<p>Gabe, unfortunately the 7 series has been a market disaster for BMW. This car has had abysmal reliability due to its complexity and poor choice of electronics including the i-drive balooney.</p>
<p>BMWs are all about the “DRIVE” not trying to decipher gizmos and computer screens on a 7 series just to be able to shift out of park..this is a car not a 747 Jet!</p>
<p>I love BMW, but the current 7 series needs to go, so does i-drive, so does Chris Bangle and our friend Tom Purves. These products/people are running BMW to the ground!</p>
<p>This is not only my opinion, but the view of many in the automotive press and the industry at large.</p>
<p>The main reason BMW NA does not want to bring the 1 series hatchback here is because they “fear” that the 1 will cannibalize on MINI sales…that is the only reason, plain and simple.</p>
<p>Is this fear with merit? I don't think so, but Mr. Purves must believe it.</p>
<p>One more thing to add to the mix.</p>
<p>A fair number of people are on a 3 – 4 year buying cycle for their cars. Thus, people who purchased MINIs would be in the market for a new car about the time the 1 series would hit the market (though I know some are going to hold onto it forever).</p>
<p>At any rate, assuming the 1 series isn't marketed in the U.S., where does BMW expect those customers to go? From a MINI to an ever larger 3-series at $35,000+? </p>
<p>If the 1-series is brought to the U.S. market, then it fills that gap between the MINI and the 3 quite nicely.</p>
<p>The MINI is BMW's entry car in the US market. BMW does not want folks to upgrade to a marginally more expensive car like the 1 series but instead to the 3 series. The problem for me is that the new 3 series will occupy what used to be the 5 series slot in terms of size and price. I think a lot of us would love the 1 series, hatchback or not. Unfortunately I think BMW is becoming a victim of its own success. Give us what we want, BMW, not what you think we should want!</p>
<p>Interesting thought about the buying cycle, Dave.
However, after my experience with the quality of my MCS, I will never ever buy another brand new car design, before it has not been out and tested for at least 3-4 years.
I'd consider another MCS over a 1-series any day, in the hopes that MINI has finally sorted out most of the quality glitches.</p>
<p>Oh, let's not start that fight over the 5- and 7-series styling again … oh man, but … I can't resist … ok, I can live with the 7-series but who the heck thought up the 5-series? It's like the designer couldn't make up it's mind which car it was supposed to be or where all the lines and angles were supposed to go so they tried to cover everything and ended up with nothing. Sure it drives great, but who wants to be driving around in a vehicle whose only big feature is a set of Subaru-like “angry eyes” for the head and taillights? I shudder to think what's being “Bangelized” for the 3-series at this moment.</p>
<p>on focus… on focus…</p>
<p>I bought the MINI and I live with the hatchback because the hatchback is part of what makes a MINI a MINI. If I were shopping for a BMW, there's no way I'd buy a hatch version. Just my personal viewpoint.</p>
<p>I hated the new 5 styling when it came out, but really, it's grown on me a lot. As a lot of good designs do, it took a bit of 'getting into'.</p>
<p>As for the rear fog light thing. I don't think Americans get the rear-fog light thing, because so many Euro-cars with them drive around here in Miami when it's not foggy. Just dark… And they burn out my retinas! Maybe we just need much better dash-indicators to show when they are on, and educate people to not use them as regular tail lights. It does seem a real shame to stick that 'orrible plastic plug in there though. Where are the rear-fogs on the current MINI?</p>
<p>-James.</p>
<p>I know, Gabe, I shoulda focused. The thing is, I like the look of the 1-series, especially the hatchback. I wish it was coming to the U.S.</p>
<p>Typical marketing-speak from BMW is disapointing, not to mention a little disingenous – they make a niche car, the MINI, that has re-defined that niche, and they can't make a sale on the 1 Class? Hardly. We're not clueless rubes here in the States, and that is what the underlying message of this article is implying. Not encouraging at all for us living far from Yurp. Then again, there's more here than meets the eye, IMHO, and obviously, BMW has decided to play its cards close. It would call for some serious cojones to take another risk like they did on the MINI, (indeed, this one would be even greater), so I hope they haven't taken the “Play Safe” route, if you'll allow another poker metaphor, and continue taking risks, and mostly winning, on the inside straights of the car biz. As much as I'm not enamored of certain aspects of some recent BMWs, I have enormous respect for their cars in general, and maybe they'll see the the light on this one. Nature, and the automotive business, abhors a vacuum, and if they don't do something about it, some one else will.</p>
<pre><code> BCNU,
Rob in Dago
</code></pre>
<p>Americans don't know it's a hatchback? That's the dumbest remark I've heard..today</p>
<p>People, people. Such passionate remarks villifying BMW management. As we're spewing venom at BMW, BMW USA, Chris Bangle, Tom Purves and others, let's keep in mind this: the new 5 and 7 are selling better than their forebears by a healthy margin, and although some may think these people are inept, the BMW board of directors (who have been around long before the “Bangle Butt”) keep them around for one good reason: this management team continues to keep BMW as one of the most profitable independent car companies on the planet.</p>
<p>As much as we may hate to admit it, BMW is not in the car business to make cars that you or I think they should. BMW is in the car business to make money. Plain and simple.</p>
<p>Well said GAJ.</p>
<p>Maybe BMW has it partly right… if they are worried about cutting into MINI sales with the Series 1. I'd trade the MINI for a Series 1 with a hatch and four doors. Love hatches but then I'm an old SAABer. The MINI's a great flirt but not sure she has what I want in a long term relationship.
I remember when noone considered a sedan (let alone a four door) to be very sporty. Had to be a two door coupe or a convertible. Seems like the U.S. demographics are large enough to support a styling hatchback. Market share might currently be low partly because there isn't a whole lot available in a hatch that is very interesting. That Mazda 5 looks fine and quite Bimmer like as in M coupe.
Wonder how these obviously intelligent managers can make such poor marketing decisions…surely General Motors doesn't now have their finger into BMW also.</p>
<p>Okay people, the MINI is NOT a hatchback…it is a “vertically-truncated two-door coupe”. Let's get it right. ;)</p>
<p>My calculations are that when you compare the E60 versus E39 in the same period, the total sales difference is 5.8%. The current E66 is selling worse this year then last year in the same period of time by 3.3%. YTD the E60 is outpacing the E39 by 8.8%. I am not sure that can be attributed to the car styling but more to the economy doing better. Plus, people buy what's available and if that's all that's available and they have to have the nameplate..</p>
<p>But what do I know..and this is off topic so nevermind.</p>
<p>I think this corrspondence missed something. If a model imported into the US is available in several body styles but substantially identical mechanically, then it costs little extra to the manufacturer and distributors to include the hatchback version (the 1970s Golf/Rabbit and Jetta were identical in this sense, with a common service manual). They don’t even need to stock them everywhere, merely make them available to special order. Thus the BMW man’s remarks don’t stand up; if there is a demand, passsionate even if small, and failure to meet it means that a small proportion of the potential customers goes elsewhere, that is lost custom, perhaps for ever. I speak personally, having owned a 318ti since 1996 and unable to replace it with a similar BMW; I shall have to turn to Mercedes or VW, or even Scion.</p>
I’d been searching the web about this 1 series hatchback and i highly disagreeing what they
thought the hatch wont sell here in the U.S.
i owned a hatch before and i loved it and looking
forward to own another one esp BMW.
Have they realized what mazda did look at their
sales now, you can find their wherever you go.
I own a 5 series now and if they will ship the 1 series here in the U.s. they can count me in and if they rquired to fill up a reservation or something am doing it.