BMW Confirms MINI Sport Activity Vehicle
BMW CEO Norbert Reithofer today confirmed plans to build a MINI Sport Activity Vehicle (Along with the BMW X1) with this quick mention tucked away in his strategy presentation:
>At MINI, we opted for a further model in the sports activity vehicle segment.
As we’ve reported previously, expect the new vehicle to be built outside the Oxford plant and most likely in the US (at BMW’s Spartanburg plant) or in Austria by Magna Steyr. We’ve also now confirmed through sources that this SAV (in BMW-speak) will be MINI’s next model after the convertible is released for the 2009 model year.
Full press release after the jump.
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BMW Group Sets Course for the Future
>The BMW Group has set course for a successful future with its strategic realignment. “We will consistently align the BMW Group to achieve profitability and increase value over the long term,” said Norbert Reithofer, Chairman of the Board of Management of BMW AG, on Thursday when he presented the new corporate strategy in Munich. The Group’s strategic direction up to 2020 is clearly defined: The BMW Group is the world’s leading provider of premium products and premium services for individual mobility.
>Return on sales target of 8% to 10% in the Automobile segment
>The future strategy focuses on ensuring the company’s long-term success and safeguarding its independence. The BMW Group has set ambitious interim targets for the first five years: Automobile retail is supposed to rise to more than 1.8 million vehicles by 2012. During this period, the company plans to increase deliveries in the motorcycle business by 50% to 150,000 units per annum.
>Profitability takes priority over mere volume growth. “We will focus the entire organization on the return on capital,” Reithofer commented. In the Automobile segment, the company plans to achieve a Return on Capital Employed (RoCE) of 26% and a return on sales of between 8% and 10% as of 2012.
>The BMW Group’s strategic targets for the time period until 2020 are equally ambitious: The company intends to increase retail in the automobile business to clearly more than two million vehicles.
>The BMW Group will launch a comprehensive efficiency program that will encompass all of the company’s divisions and will apply to both performance and costs. “It is designed to tap approximately six billion euros in efficiency potential by 2012,” Reithofer emphasized. The new program is based on the principle of EfficientDynamics, a strategy that is successfully applied to the company’s automobiles as well: More output for less input.
>The BMW Group plans to tap additional earnings potential by starting new business activities, among other things. In addition to new products and markets, the BMW Group has identified potential along the vehicle lifecycle and the automotive industry’s value chain. Another positive effect on earnings is to arise from the consistent positioning of the vehicles in the premium segment.
>In addition, the BMW Group has adopted a range of measures that will help achieve significant progress in terms of cost. Besides putting all cost structures to the test, the company will continue to standardize processes. Further targets include a reduction in cost, capital expenditure and capital employed per vehicle in development, production, sales and administration. Cooperation is supposed to lead to economies of scale for components, modules and drive systems. The BMW Group aims for a rise in productivity of at least 5% a year.
>Thanks to the targeted productivity increase, the BMW Group expects to be able to achieve the growth planned for the period until 2012 with roughly the same level of personnel as today.
>Natural hedging and purchasing in US dollars to be expanded
>In order to strengthen independence from currency fluctuations, the BMW Group will strategically step up natural hedging as well as purchasing, primarily in US dollars. By 2012, production capacity of the US plant in Spartanburg will be increased from 140,000 at present to 240,000 units. Plans for the expansion are already underway.
>The BMW Group will also raise the Oxford MINI plant’s capacity to 260,000 units per annum, without making additional investments. In addition, the company plans to take the first step to increasing capacities in China from 30,000 to 44,000 units a year.
>Increase in payout ratio – Significantly higher dividend planned for 2007
>The Board of Management is convinced that the strategic realignment will be successful over the long term. Therefore, the company plans to let shareholders benefit from the company’s success to a greater extent by substantially increasing the dividend payout ratio. As a first step, the Board of Management will propose a significantly higher dividend for the financial year 2007 to the Supervisory Board and the Annual General Meeting.
>The BMW Group will also keep the option of conducting a share buyback. However, in the next twelve months, the company will concentrate on increasing the dividend payout ratio.
>The BMW Group intends to do more for employees as well. In order to safeguard pensions, pension obligations in Germany will gradually be funded out in three phases over the next few years.
>X1, Gran Turismo, MINI SAV, Rolls-Royce Coupe to be launched by 2012
>The BMW Group will continue its product initiative, making use of modular systems for all new models in order to increase synergy effects. A new X1 model will complement the successful X Sports Activity Vehicle lineup, in addition to the BMW Concept X6 presented at the Frankfurt Motor Show. Furthermore, the company will manufacture a four-dour Gran Turismo based on the CS concept study showcased in Shanghai. Another result of the new strategy is that the BMW Group will not build a space-functional concept. Instead, the company plans to introduce a fundamentally altered concept called Progressive Activity Sedan (PAS). This concept will establish an entirely new segment, introducing a unique interpretation of the sedan and offering a wide range of intelligent features.
>The next MINI model will be a Sports Activity Vehicle. The Rolls-Royce model portfolio will be expanded as well: A Coupe will be launched as the third variant of the Phantom. An additional Rolls-Royce model is in the pipeline; it will be positioned below the Rolls-Royce Phantom in terms of both price and size. Furthermore, the BMW Group will continue to extend the product portfolios under the BMW Motorrad and Husqvarna Motorcycles brands in the years to come.
>Dr. Reithofer: In principle, acquisitions will be kept on the agenda
>The BMW Group explored all of the options for future growth during the strategic review, including potential acquisitions or the creation of a fourth brand. However, this would require the new automotive brand to be a perfect fit for the company and its strengths. Moreover, rising unit figures would have to result in a decline in unit costs and thus lead to economies of scale. The new brand would have to at least make the same positive contribution to earnings as the existing automobile business. However, an in-depth analysis found that none of the evaluated automotive brands currently meets these requirements.
>Nevertheless, the BMW Group does not generally rule out further acquisitions. Accordingly, the successful acquisition of the tradition-rich Husqvarna brand and its sporty profile have enabled the BMW Group to attract new and younger target groups in the Motorcycles segment.
“In principle, we will keep acquisitions on our agenda. We defined clear criteria for potential acquisitions within the scope of our strategic review. This will allow us to act swiftly whenever necessary,” according to Reithofer.
>As always, the BMW Group will focus on its inherent strengths and thus on the market for premium vehicles and services, a segment that will continue to grow much faster than the mass market. The company expects the premium segment to increase by about 40 percent between 2005 and 2019, compared to an increase just under 20 percent for the mass segment.
>The BMW Group will continue to invest heavily in future technologies with a view to developing entirely new individual mobility solutions, thus guaranteeing the company’s innovation leadership for the next decade as well. With its EfficientDynamics development strategy, the BMW Group has gained a significant edge over competitors, for example in reducing carbon emissions.
>”I am firmly convinced that this strategy will lead us to continued business success,” Reithofer stated.
Nice. Looking forward to seeing what they come up with. If it looks like the 4 door illustration we saw a while back, I’d be interested in it.
A modern Meyers Manx?
Always seems to be something new and exciting happening on Planet MINI!!
As I have stated on the,”Winding Road”,website,I look forward to the MINI SUV.
Also the same website has photo/photoshop version of the MINI/SUV.
I closing,Gabe,I was wondering if you have any photo/photoshop pictures that you’ll be posting anytime soon?
Yikes! I meant to type the following,”…In closing…”,instead of,”…I closing…”.
Hands down the worse direction Mini could have taken, I admit without a second of hestation that I hate this choice they have made. Would love to see a poll of Mini drivers, how many people are interested in performance in our cars versus those looking for more room. seems that ever more Mini/BMW is only interested in providing larger cars.
Good point though is you guys can make a soccer ball for all the soccer moms just waiting for a larger Mini.
The day this comes out is the last time draw a direct line relating to my future purchases of Mini’s. I will also never accept a SAV as a Mini. If it were a Moke I would give them credit but this is going to not be a minamalistic vehicle its going to be yet just one of dozens of others small SUV’s.
‘We’ve also now confirmed through sources that this SAV (in BMW-speak) will be MINI’s next model after the convertible is released for the 2009 model year.”
Before the JCW factory car? Please say it’s not so.
Unfortunately no provision for “Forth Brand” article commentary so I’ve decided to post here.
It is readily apparent that BMW may now be scoping the not-so-distant U.S. micro-car horizon. Given the prevailing momentum of environmental and natural resource concerns and next year’s MB Smart Car premier, it is concievable that the Japanese, Korean and European brands like Renault, Fiat, Citroen, and others may reappear on U.S. shores. Thus the MINI may not provide BMW with a viable and potentially lucrative piece of the micro pie, hence either the resurrection of the once famous Isetta (as pictured) and Messerschmidt brands or a new “from scrath” ispired derivative. If this market takes off Harley Davidson with the cooperation of Porsche could also enter the fray. Exciting times, they are a comin’
I thought Porsche was crazy for introducing an SUV, but it worked for them. I think the last thing this planet needs is yet another SUV, but some people still buy them. Lotus doesn’t have an SUV, does it?
Sports Activity Vehicle? Please. As if X5 owners ever run them over dirt trails with fish bait sloshing about in the back.
<blockquote>Before the JCW factory car? Please say it’s not so.</blockquote>
2008
ack. 2008 less than 2010. the formatting got messed up with the
My main problem isn’t that this won’t sell for Mini (after all people buy Explorers so no surprise there), rather I consider it a complete sell out by Mini on the last many years worth of the brand image.
Wake up BMW/Mini, notice that every time a performance topic comes out on Motoringfile it has more people interesting than even your Clubman. I have yet to meet every Mini driver but a huge percentage is driving their car for the way it performs and that its much different than most everything on the road. By making a SAV they are joining the ranks of a great many manufacturers that are already building small SAV’s.
note From Mini Corporate offices:
Dealers and owners please return all “large is no longer in charge” advertisement to your Mini dealership so it can be replaced with “Larger is now in charge.”
I can’t imagine a large vehicle is in the cards – wheels on a Hindenburg is more like something from the domestics. Small like a Zuk LJ would be nice, or even a mildly off-pavement Clubman derivative would be acceptable. Let’s face it, most MINI owners do not track their cars, so comparing how serious an SUV driven for groceries is to the average ‘S’ isn’t exactly bragging rights for either side’s intentions, just the MINI’s better design. I’m sure BMW is thinking small.
Also using us as a group to determine how people will react to a new version isn’t exactly scientific. We are here because we like the regular sized MINI. If we were people who wanted a larger MINI than is available now we wouldn’t be here to comment on it.
…holy crap folks…
…please wait until you see the damn thing before you cast MINI to the fifth pit of hell…
…it could be really cool, if it stays with the maximum utilization on minimal space theme, what’s the problem?!!?
…Mini/Austin/whatever made all kinds of variants in the past, some of them were trucks and panel vans…
…sure they were all small, but this SAV will probably be small too…
…besides it will allow MINI to make more money and therefore make the coupe better and better…
…i will always have my MCS but i would love to have a MINI branded/styled SAV for my wife and hopefully kids…
…and screw soccer, we’ll take it for family road trips…
It’s true most Mini’s don’t get to the track, although a large number of them get performance modifications. It’s also true that a large percentage of time every “performance” related stories come along on Motoringfile they gather much more interest than most stories related to the Clubman and much more than any SAV story.
Bleh to SAV’s and just plain sad that Mini is so uncreative as to create just another example of a SAV to join in with the large industry of current micro SUV/SAV companies. Hate hate hate SUV’s they are the bane of public roads imo.
I personally think this is a fantastic opportunity…Really, think about it: a “MINI” SUV…just big enough to get the job done, still 1/2 the size (or less) of an Escalade…and 3 times more efficiant. All that’s left is to keep the MINI vibe intact.
Picture This — The Clubman; add just a few inches and two full rear doors, lift it 1-2″ and throw in in some beefy wheel flares/bumpers. Are you gonna confuse it with a Hummer? Land Rover, Navigator? RAV4? Nope, It Would be MINI. Hey, Better yet – Go boxy, Go MOKE!
The problem I see with this trend is that it really doesn’t have a stopping point. With BMW/Mini’s current vision what is stopping them from seeing a market for yet another slightly larger yet vehicle, or maybe a third row of seats etc etc.
I will personally never accept a SUV as being a Mini. Don’t get me wrong I have seen just about every make of original Mini and they all share the same basic concept, they are minimalisict vehicles. Not my worry though as once this vehicle comes about I will be ending my association with the brand.
Jon – whether or not current MINI owners like the new utility concept is somewhat (although not entirely) irrelevant as the new model will be designed to GROW the MINI’s marketshare (attract new buyers) not retain their existing buyers.
I will reserve judgement until I see the thing but it does have the potential to go in teh wrong direction. Then again, if they truly let the designers do something cool, it could be pretty cool.
Interesting about it being built here. I just read in teh paper this AM that they are going to increase production in Spartanburg to 240,000 per year from the current 140,000.
I think this could be pretty cool, especially the owners like me that live in snow. We could now drive a MINI during Winter and not worry about it.
Who knows. This may lead to a new line of half ton pickups. Move over Tundra.
Another thing that kinda makes me wonder if how long the Mini community will be like it currently is. While its true that in the classics owner circles that Travellers, Clubmans, pick-up are all included in the community I believe this is largely because of them being very limited in numbers.
As Mini continues to grow their brand I think we may find more fractures in the Mini community. As an example of this look at the BMW community. Guess one of the things that makes me unhappy is day by day I see more Mini drivers that are oblivious of other Mini’s. As the brand grows I see this as an increasing trend. While I have no doubt that the vehicle will do well with sells, I think we will see further growth with the numbers of people that own a Mini but are not part of the Mini community.
JustJAY… you can drive your <strong>existing</strong> MINI in snow and not worry about it! I do! Dominate the winter! 🙂
MINI + Snow tires = awesomeness 😀
I swear I saw something slightly larger than a Clubman, under cloth wrap in the MINI plant when I toured it this past May. Looked like a body in white, next to a Clubman body in white. Back in the “green room” in the first building on the tour.
Also saw a few Clubman bodies in white, as well as lots o’ Clubman parts–from test production, I assume.
What is it with the Germans infatuation with SUV’s? I think it is a bandwagon that MINI doesn’t need to climb on. I don’t think the Cayanne has been as successful as the spin-meisters in Stuttart have been marketing. It was maybe successful in the short term when it was the flavor of the moment, but now all those people have moved on, so where is it now? Plus now Porsche has to deal with the dilution of its brand that the ugly overweight overwrought monster has brought upon it. Those ads trying to tie that ugly truck to Porsche’s Le Mans heritage made me sick. MINI needs to stay true to its brand. Why does it need to become all things to all people. Just keep concentrating on what MINI does best. Issigonis must be spinning in his grave.
I understand the argument that stupid cars sold to the masses can help fund good cars sold to smart people.
Yes, the pragmatists win, but devotion to a brand is weakened with every iteration that you have to defend, explain and apologize for.
I’m still trying to figure out what a BMW X6 is for. Now, the MINI folks join the fray.
People, the term is “selling out.” In 2007, it just doesn’t mean as much because everyone’s doing it.
It could be argued that BMW sold out in the first place by producing the front-wheel-drive MINI…
…As for Sir Alec (Issigonis), I’ve read he actually was not really all that fond of the Mini…it was a design of practicality, not love.
Would love to get the insight of anyone of the Mini management to explain why this move is being made. I would have to say that each “new” version the Mini community looses a lot, back in 03 I remember just about every Mini on the road was driven by a Mini fanatic, day by day and model by model Mini is moving away from the feeling of the early days to that of the Ford community. I think the number of enthusiast in the Mini ranks will grow but the percentage in of enthusiast in the community will continue to shrink.
Still can say I will never accept a suv/sav as being a Mini. After spending years dealing with the effects of large vehicles I hate seeing Mini go down this path.
…jon, i understand what you are saying on one level…
…i understand that the original ‘new’ MINI is/was a wonderful happy phenomenon that for me especially re-newed my lifelong love of cars…
…i lined up for one in 2002 and one by one dragged all my family and friends to test drive one…
…hell the MA at MINI St. Louis deferred to me in the showroom for one customer because i knew more about the car than he did, and he got the sale…
…i flipped out when they went to double reverse lights and eliminated the two spoke steering wheel, but it really wasn’t that i hated those decisions, it was because i loved my cooper for what it was, i didn’t want change…
…personally, i still hate the new (07) front end but that’s why I grabbed an 06 MCS to keep forever…
…but i disagree in that i believe the only thing that really dilutes the brand is lack of innovation and lack of passion…
…you have passion for this brand so don’t give in to hate…
…for hate leads to the darkside….
Unless they increase the mini dealership, I don’t see how they can increase the cars that they want to sell. Many people won’t buy, just because the dealership is too dam far.
Messing with the design was going to happen, so the R56 I didn’t have much trouble with it. As a matter of fact I do like some things about it better than my R53.
But going down this path of Mini trying to cover the needs of more people, the fact is in my view all this does is dilute the entire brand. I have the feeling that the path Mini is on will lead to factions within the community and over the long term we will see lower percentages of Mini drivers that attend events, join clubs or enter into the Mini community.
Just give me an R56 with AWD, and I’ll be delighted. Thats all the SAV I need.
The new Mini Moke is finally confirmed. Delve back into Mini history and find out how the Moke was evaluated by the US military. Minisport.com is selling new Moke bodies right now.
My fear is that MINI will keep getting bigger in body size like all other BMW models.
All the old Mini derivatives didn’t do any harm to image or sales.
The base fact is the new SAV is a world away from the Moke, the Moke is a minimalistic vehicle. The new SAV is going to be a heavier slower and n.on-Mini vehicle. Go to a autocross with a Moke and you will see a car that will blaze with the best of the other Mini’s. Jump forward to the new bloated beast and you will find that its not a evoution of the Moke its a toy crafted because bigger is better. Or so it would see that BMW/Mini believes these days.