Can MINI USA Survive as Small Car Sales Fall in the US?

Small car sales are drying up in the US and MINI is feeling the affects in sales numbers. As recently pointed out by Evan in our comments, the amount of small cars leaving the US market is alarming to say the least. How bad is it? Here’s a quick (and non-exhaustive) list and what’s dying or about to die:
– Honda Fit – To become a CUV in 2020
– Chevrolet Sonic – Cancelled
– Chevrolet Cruise – Cancelled
– Chevrolet Volt – Cancelled
– Ford Fiesta – Cancelled
– Ford Focus – Cancelled
– Chevrolet Spark – Cancelled
– Toyota Yaris – To become CUV in 2020
– Fiat 500 – FCA is considering pulling the entire brand
– Smart EQ Fortwo – Sold 83 cars in January
– VW Beetle – Cancelled
– VW 2 Door Golf/GTI – Cancelled
Through it all MINI USA has soldiered through with sales that are generally higher than the rest of the small car industry. The product line-up is the best it’s ever been (the Countryman was just named a top pick by Consumer Reports in the small premium crossover segment) and quality is up dramatically over earlier models. Yet the brand is still being battered by the onslaught of trucks and crossovers. Last month was the worst January in terms of sales for MINIUSA since 2010:
– MINI Countryman – Sales surprisingly down 41%
– MINI Clubman – Relatively flat
– MINI Cooper 5-Door Hatch – Up vs hatch and Countryman – is it availability?
– MINI Cooper Convertible – Sales were up last month but rumors point it dying in a few years
– MINI Cooper 3-Door Hatch – Sales down 20%
Where does MINI go from here? We’ve heard from executives that BMW is committed to the brand in the US (once its largest market) and seeing trends like this as cyclical. But when do we expect it to come back? What role will the economy and gas prices play? These are all things we’ll be watching in the months ahead. In the meantime our thoughts go out to the MINI sales staff who are selling (on average) less cars then they did 5-6 years ago. Despite the fact that they’re better cars with higher quality, they’re still at times, a tough sell.
16 Comments
<p>I’d be curious to see how compact vehicles with all wheel drive are holding up to this trend. It may not simply be an issue of size, but also an issue of perceived all-weather usability to the average consumer. Of course, front wheel drive with snow tires will outperform awd with all seasons, but that’s not something everyone is willing to consider. It may mean taking a serious look at offering an All4 3 door hatch version, even if it will cause some backlash from the purists.</p>
<p>MINI did build 2 prototype AWD 2 door Hardtops with a Quaife/Getrag transmission and drive train. If I remember correctly this was around 2005 or 2006. The prognosis at the time is it would cost too much and not sell enough.</p>
<p>I think an AWD MINI 2 door might become a reality as the new President of MINI has confirmed the 300 hp Countryman/Clubman. I would love to see an All4 S Hardtop and All4 JCW Hardtop with that 300 hp motor to give some excitement and halo car option that could give serious performance drivers an alternative to the Focus RS and the Civic Type R.</p>
<p>my impression here in the southern Midwest is that people are not especially interested in all-weather handling (even if they should be) — it’s more like they 1) have zero interest in the driving experience 2) want something big and intimidating on the road for reasons of social dysfunction 3) couldn’t park a scooter much less the trucks they are driving and don’t care to learn (again completely lacking the normal ‘shame’ factor of taking up two spaces at the grocery or whatever — social dysfunction) 4) there are so many tall SUVs and trucks all over the road that they can’t see around the cars in front of them so they go big defensively 5) are as short-sighted as an infant swiping at a toy dangled in front of them about gas prices.</p>
<p>When I lived in Montana EVERYBODY drove all-wheel drive cars. There were basically 3 different types of cars on the road: awd trucks or suv’s / Subarus / awd Audis. That was seriously probably 80% of the cars on the road right there. I think that is the same all over the Northwest including Seattle and Portland to some extent. Those drivers are purposeful with their transportation. The Midwest — not so much.</p>
<p>Yeah I live in Massachusetts and it’s similar to your experience in Montana. I do see some FWD or RWD cars here, but the amount of them that I see on the road noticeably drops during the winter.</p>
<p>They won’t unless they can get the American public to change their perception of the car. We have owned the Mini Countryman since 2012 and I have lost count how many times I have had people ask me to look at the car or sit in it. They all leave with what I now call the Mini shake. Everyone always wriggles their legs whether they are in the back or front and say wow there is a lot more space in here than you think. I have had a dresser, 2 by 4, sheetrock and a cousin who weighs 300 pounds in the car no problem — the car is practical. No one knows that, so it does not matter. As cars on the road all become SUVs and CUVs putting the Mini next to these vehicles in a parking lot the idea of buying these cars does not make sense for most.</p>
<p>Then the price becomes an issue. We bought ours for close to 40. Do you know how much car you can get for that. We don’t regret getting the car at all its worth the sticker price. Plus, every time you go around a bend and the sensation of speed you get in the bad boy is worth every penny. That’s before you go to the gas station and feel like a winner. I won’t even go into depth about how its a premium car in America — people can’t wrap their head around that idea because it is small.</p>
<p>I will stop there and say no they won’t survive unless they make the Mini as big as other cars on the market in America at least. Or change the perception of Min being an impractical small car.</p>
<blockquote>no they won’t survive unless they make the Mini as big as other cars on the market</blockquote>
<p><b><i><em>hiss</em></i></b>
?_?</p>
<p>I’m not concerned about the near term future of the MINI brand. Yes, sales in the US are down, however sales in Europe and other markets are at record highs. As long as MINI remains profitable, they will continue to sell them in this market.</p>
<p>The bigger impact is on dealerships. Not enough sales to sustain the current dealer network in the US. Several dealerships have recently closed their doors, while are moving back into shared facilities with BMW to reduce overhead and increase showroom traffic.</p>
<p>But if the Porsche Cayman can survive on 200 US sales per month, the good people at MINI and MINI USA can figure it out too.</p>
<p>January sales generally are a poor barometer for the year ahead. Nonetheless:</p>
<ol>
<li>America has never really liked small cars.</li>
<li>Fuel prices are at a near record low.</li>
<li>Small cars cost virtually the same to make as big cars and make less profit.</li>
<li>Convertibles are no longer perceived as being cool.</li>
<li>SUV/CUVs are the new sports cars.</li>
<li>Global demand for two door cars with 4/5 seats is declining fast.</li>
<li>By 2025 EVs will cost the same as ICE cars.</li>
<li>Third gen BMW 1-series FAAR based Hatch will be 5-dr only and front drive.</li>
<li>Next generation Countryman, Clubman and 5-dr Hatch will share FAAR platform.</li>
<li>BMW and MB might co-develop future small car platform from 2025*</li>
</ol>
<ul>
<li><a href="https://europe.autonews.com/automakers/bmw-mercedes-could-develop-compact-cars-together-paper-says" rel="nofollow ugc">https://europe.autonews.com/automakers/bmw-mercedes-could-develop-compact-cars-together-paper-says</a></li>
</ul>
<p>Here’s a thought. So not everyone wants a truck. Not everyone wants a minivan. Not even everyone wants an suv. It is a fact that not too many people are buying smaller cars. It is also a fact that many car manufacturers are killing off their smaller cars.
However if there are less smaller cars available, wouldn’t it fall to reason that there would be more demand albeit the people buying smaller cars are less?</p>
<p>This is how MINI USA hopes to survive. Theoretically it should be a good thing for MINI to hang around and pick up some of the demand, albeit shrinking, for small cars in a market that has fewer offerings than in years past. But it will take a marketing push of epic proportions to “re-educate” the buying public about the many positives of the MINI brand – not the least of which is a vastly improved reliability. I’m on my second F56 JCW in 3 years and they have both been the most reliable, best built MINIs of the eight I’ve owned since 2003. I seriously don’t think cost of the car is a big a factor many people are making it out to be. I recently helped my in-laws find a new car and after looking at everything from Honda to Hyundai to Kia, they ended up with a new Countryman “S” because the cost was virtually the same and the quality of the MINI and driving experience was well beyond the other brands. Your experience may vary, but I can confidentially support the concept that MINIs are a good value.</p>
<p>You can certainly testify that it is the second generation that dealt a fatal blow to MINI, diverting thousands of disappointed owners (rightly, random reliability).
Now that MINI has never been better, and we are many multiple owners to think so, it will be difficult to reverse the situation</p>
<p>Pat McKenna, MINI USA Head of Marketing, acknowledged that, “If we were truly looking at the America market we would undoubtedly go bigger. But the reality is that the portfolio is rightsized for Europe and Asia – I don’t see the portfolio changing all that much”. Nonetheless, with the all-new FAAR platform coming on stream soon, the next generation of MINIs will likely be larger.</p>
<p>The new FAAR platform makes its first appearance underpinning the all-new BMW 1-series 5-door Hatchback this September. The technically sophisticated FAAR platform has been designed to accommodate front-wheel drive, four-wheel drive, ICE, Hybrid and all-electric powertrains, and will underpin the next generation small BMWs and the next generation Countryman, Clubman replacement and MINI 5-door Hatchback.</p>
<p><a href="https://www.motor1.com/news/279189/2019-bmw-1-series-spied/" rel="nofollow ugc">https://www.motor1.com/news/279189/2019-bmw-1-series-spied/</a></p>
<p>Not to be overlooked, is the proposed joint venture between BMW and the Chinese EV maker GWM to co-develop an all-electric City Car – the much rumored MINI Metro – said to be the size of the Rocketman Concept. It is targeted for production in 2023, and will benefit from the next generation smaller and more powerful batteries. It could be a very exciting successor to the F56, but would Americans buy it?</p>
<p>I’m just testing something. Please ignore this comment.</p>
<p>Has there been a lot of discussion about the current design direction of MINI? Could this be a factor as well? Personally, I find the current models to look bloated and has really turned me off to the brand. I really like what they have done under the hood, however. This is coming from someone who obsessed over the MINI brand since before they were part of BMW group.</p>
<p>From all over the world except this country sales are growing up, so the design is globally more appreciated than you think…</p>
<p>I don’t think they have much to be worried about, as they’ve pretty much stopped making small cars altogether. It’s frustrating to me, as I’m now not certain what my next car will be (if I remain in the US). I’m not on the big car bandwagon and never will be. If MINI doesn’t make the Rocketman or Superleggera, or something similar before my Coupe dies, it’s uncertain if I’ll be able to maintain my loyalty.</p>
<p>I have no kids. I have no dogs. I have nothing to haul. I’m not over 200 lbs. I don’t need a family car or SUV, let alone rear seats. I prefer small, economical and easy-to-park.</p>