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Despite intense competition, BMW's 3 series continues to lead the compact luxury pack
DIANA T. KURYLKO | Automotive News
Posted Date: 10/26/05
It's the target of every new or revamped entry into the compact luxury car segment, but nothing has caught up with the BMW 3 Series.
Nearly six months into sales of the fifth-generation 3 Series, BMW is again blasting the doors off the competition.
The 3 Series outsold its competition in the United States in September, moving 8,693 units, most of which were the new version. Its nearest competitors were the Acura TL, with 6,228 units sold; Infiniti G35, with 5,472 units; and Mercedes-Benz C-Class, with 5,050 units.
"BMW deserves a huge amount of credit. That car has been at the top of that segment forever," Tom Libby, senior director of industry analysis for the Power Information Network in Troy, Mich., told Automotive News. "It has an extraordinary reputation and that has been built up over decades. There aren't many models that have that history."
Rolling out lineup
The sedan version of the replacement 3 Series went on sale in May. A station wagon and an all-wheel-drive model reached showrooms this month. The coupe, convertible and M3 high-performance model will be rolled out over the next 18 months.
U.S. sales of the 3 Series peaked at 115,428 cars in 2002; none of its competitors has sold more than 100,000 units a year in the United States. With the competition growing and the run-out of the predecessor, 3 Series sales settled at 106,549 units last year.
Ken Bracht, 3 Series brand manager for BMW of North America, says the 2006 3 Series sedan alone will sell at least 50,000 units this year. When the full 3 Series lineup is in place, BMW expects sales to equal the peak, he says.
The 3 Series has a base price of $31,595, including shipping. The average transaction price on the 3 Series is $38,245 -- higher than competitors and $4,860 above that of the Mercedes-Benz C-Class, according to Power Information Network data.
Bracht says BMW's mix has improved, with 34 percent of buyers opting for the more expensive 330i compared with 17 percent for the prior generation. He attributes that to pricing.
For the previous generation, it cost about $4,000 to move up from the 325i to the more powerful 330i. With the model changeover, BMW has made the jump cost $2,700.
1977 debut
The BMW 3 Series debuted in the United States in 1977 as the 320i, a spry European sports car that was nimbler, lighter and different from domestic or other import models. Although the car has gotten larger and more sophisticated over the years, the basic concept hasn't changed in nearly three decades, says Tom Purves, CEO of BMW of North America.
"We've sold 1. 2 million of them since then," he says, "and it's the iconic BMW."
Bracht says the major competitors for the 3 Series are the Mercedes-Benz C-Class, Audi A4, Infiniti G35, Acura TL, Lexus IS and Cadillac CTS.
Although the C-Class is a key competitor, it is no longer the archrival. Bracht says as Mercedes-Benz has moved upscale and expanded its range, the market perception is that "Mercedes is more of an S-Class company."
He says: "A lot of people think of BMW as the 3 Series (company) -- this is where we banked our reputation."
DIANA T. KURYLKO | Automotive News
Posted Date: 10/26/05
It's the target of every new or revamped entry into the compact luxury car segment, but nothing has caught up with the BMW 3 Series.
Nearly six months into sales of the fifth-generation 3 Series, BMW is again blasting the doors off the competition.
The 3 Series outsold its competition in the United States in September, moving 8,693 units, most of which were the new version. Its nearest competitors were the Acura TL, with 6,228 units sold; Infiniti G35, with 5,472 units; and Mercedes-Benz C-Class, with 5,050 units.
"BMW deserves a huge amount of credit. That car has been at the top of that segment forever," Tom Libby, senior director of industry analysis for the Power Information Network in Troy, Mich., told Automotive News. "It has an extraordinary reputation and that has been built up over decades. There aren't many models that have that history."
Rolling out lineup
The sedan version of the replacement 3 Series went on sale in May. A station wagon and an all-wheel-drive model reached showrooms this month. The coupe, convertible and M3 high-performance model will be rolled out over the next 18 months.
U.S. sales of the 3 Series peaked at 115,428 cars in 2002; none of its competitors has sold more than 100,000 units a year in the United States. With the competition growing and the run-out of the predecessor, 3 Series sales settled at 106,549 units last year.
Ken Bracht, 3 Series brand manager for BMW of North America, says the 2006 3 Series sedan alone will sell at least 50,000 units this year. When the full 3 Series lineup is in place, BMW expects sales to equal the peak, he says.
The 3 Series has a base price of $31,595, including shipping. The average transaction price on the 3 Series is $38,245 -- higher than competitors and $4,860 above that of the Mercedes-Benz C-Class, according to Power Information Network data.
Bracht says BMW's mix has improved, with 34 percent of buyers opting for the more expensive 330i compared with 17 percent for the prior generation. He attributes that to pricing.
For the previous generation, it cost about $4,000 to move up from the 325i to the more powerful 330i. With the model changeover, BMW has made the jump cost $2,700.
1977 debut
The BMW 3 Series debuted in the United States in 1977 as the 320i, a spry European sports car that was nimbler, lighter and different from domestic or other import models. Although the car has gotten larger and more sophisticated over the years, the basic concept hasn't changed in nearly three decades, says Tom Purves, CEO of BMW of North America.
"We've sold 1. 2 million of them since then," he says, "and it's the iconic BMW."
Bracht says the major competitors for the 3 Series are the Mercedes-Benz C-Class, Audi A4, Infiniti G35, Acura TL, Lexus IS and Cadillac CTS.
Although the C-Class is a key competitor, it is no longer the archrival. Bracht says as Mercedes-Benz has moved upscale and expanded its range, the market perception is that "Mercedes is more of an S-Class company."
He says: "A lot of people think of BMW as the 3 Series (company) -- this is where we banked our reputation."
Things will be interesting w/ the new C in the wings to take flight in 08', and the current C350 comes close to the 330, w/ ten more hosies and an even quicker 0-60mph time. The 335 will be even more interesting. 
