First and foremost, BMW is looking at a new factory and expanding the existing facilities to help the growth in the long run. Chief Executive Officer Norbert Reithofer said BMW intends to sell more than 2 million vehicles by 2020. And considering that it sold 1.29 million units last year, it seems like quite an achievable feat.
“The big push in new models, entering new segments comes after 2012,” Reithofer said. “If I look forward to 2020, then we have to think about additional capacity.”
Another accomplishment that BMW wants in its kitty is to have a battery-powered car for city driving as well as more models in its 6-Series and Mini line-up. BMW along with Mini, and Rolls-Royce is putting up a big fight against Volkswagen that boasts of having Lamborghini, Bentley and Audi, and with the VW and Porsche merger, things are only going to get worse. Word has it that Audi has vowed to topple BMW as luxury leader by 2015. BMW snatched the top spot from Daimler’s Mercedes-Benz in 2005.
BMW plans to add a four-door version of the 6- Series luxury coupe after the rollout of the new two-door model next year. Introduction of a new front-wheel-drive technology to the BMW brand is also on the card, with which the company’s exclusive association with rear-wheel powertrains will come to an end. Compact vehicle offerings are also being planned out by the company. “We have plenty of different ideas on how to win new customers” with fresh small-car models, said Reithofer.
Additionally, BMW is planning to develop fuel-saving technology. The battery-powered megacity vehicle, which is due to be introduced in 2013 under a new BMW sub-brand, could eventually become a vehicle family, he said. The Mini brand is also up for an expansion with at least three new models, including roadsters and coupes.
“We have to grow Mini to expand volumes of front-wheel- drive cars and secure the brand’s future”, he said, adding that Mini’s sales of 217,000 vehicles last year are too low.
Audi is bringing in at least a dozen models in 2010, including the five-door A7 Sportback and A1, its smallest car. Audi CEO Rupert Stadler said that the new A7, A1, and A6 mid-sized sedan will provide the company with thrust for growth like never before.
Mercedes Benz will premiere a revamped CLS sports coupe this month, and also plans to increase its small car offerings. The German company is also planning to build electric cars for China with BYD Co.
BMW experienced great sales growth in July and August. The new BMW 5 Series is sold out, resulting in long waiting periods. The company is adding a third shift at its Leipzig factory to meet demand for the X1 compact sport-utility vehicle. BMW is planning to invest about $1.5 billion to boost capacity at plants in the U.S. and China.
“Looking at 2020 and beyond, I could possibly imagine building a new plant” as well as expanding existing facilities in India, Russia, and Thailand, which assemble vehicles from components produced at other factories, Reithofer said.
