Mercedes-Benz and BMW have more in common than just a bitter rivalry and the Fatherland — they both feel the need to get more crossover vehicles into North America.
Despite being known largely for their rich heritage of premium sedans and coupes, Bavaria’s Motoren Werke and Daimler’s Three-Pointed Star want to see utility vehicles replacing more of the cars they ship to the United States.
Last year, crossovers and SUVs comprised 42 percent of BMW’s sales in North America — an almost ten percent increase from 2015. Mercedes-Benz also saw an increase in truck sales. Sport utility vehicles now account for 47 percent of its passenger vehicle volume. However, both companies are anticipating a balanced ratio right around the corner.
“In the part of the market that we’re in, obviously 50 percent would be a good place to be,” Ludwig Willisch, CEO of BMW of North America, told Automotive News. “Right now we are a little over 40, so that gives you a clear indication where we need to be in the future.”
Last year was the X3’s best year on record, with 49,613 units sold in North America, but it would have been better had the SUV been more readily available.
“The X3 in this generation has been supply-constrained,” said BMW’s sales and marketing chief Ian Robertson. “We are expanding capacity quite dramatically. So we’re localizing that car in China, we’re localizing it in South Africa, as well as increasing our capacity in Spartanburg for it. I think we’re going to see a good lift out of that.”
BMW is also adding capacity at its Spartanburg plant in South Carolina to produce the incoming X7 giga crossover. Even the not-so-popular X6 crossover has enjoyed steady sales since the rise in CUV popularity.
Mercedes-Benz says it also plans to increase its utility vehicle output this year. GLS-Class sales have grown for the last three years and the GLE turned out to be even more popular than when it carried the M-Class name. That said, Benz plans to proceed cautiously while it gently shifts its production focus.
“On the one hand, it’s always terrible if you lose sales because you don’t have enough inventory,” Dietmar Exler, CEO of Mercedes-Benz USA, told Auto News. “On the other hand, if your product is in that much demand — you want it to be in demand. Ideally with some of the niche cars, you want to have one less than the market demand. But not hundreds less. Just one less.”
[Image: BMW Group]
All of them need convincing large SUVs… outside of the S-Class all of their large sedan sales are in free fall. I think people are more willing to drop six figures on a big SUV than a big sedan. Big sedans are pretty old hat now.
Even badge whores reject LCCs.
Cue the tears from the “enthusiasts” lamenting the “death” of the car.
This is what people want now. Automakers are in the business of making money. If they don’t sell it, their competitor will.
If only the regulations would man-up and stop counting CUV’s as “light trucks” the market would not have gotten as distorted as it is.
How effective are you typically at yelling ‘MAN UP!’ at regulations?
If people bought according to their needs instead of following fashion and trends, SUV (and the huge profits they generate) would DIE.
If people bought according to their needs instead of following fashion and trends, we would all have Trabants, and the global economy would probably collapse.
Same with trucks, most people don’t actually *need* them, they just like riding high.
Me personally, I hate it, so yeah.
There’s nothing fashionable about a CR-V. It’s a compact minivan with hinged rear doors. People are buying according to their needs, which is why crossovers are replacing sedans.
I never thought I’d see the day folks would pine and lament the death of something like a Ford Taurus being the automotive civilian’s car of choice.
@sportyaccordy
CR-V purchases are purely fashion/trend based. The Accord can do most of what a CR-V can, for less money and much better driving dynamics. The major difference is AWD, which most people don’t really need anyway.
mleclerc,
Thanks for lecturing us on your positions about what other people really need. But if you don’t mind, we’ll continue to allow them to make buying decisions for themselves.
If the Accord (still) came as a wagon then I’d agree. As a single vehicle owner a sedan is useless to me, I need the utility of hatch much more often than I need 4 doors.
These days AWD is pretty much sold as a safety gimmick as much as 10 airbags; something that is good to have but will probably never be needed.
“CR-V purchases are purely fashion/trend based.”
I know just where to kick you, just one time, to give you a three-week experience of another viewpoint.
But that would just be rushing things cuz you’ll find out soon enough.
I’m surprised BMW doesn’t yet have an X7 SUV, to slot above the X5 and X6 size-wise. The X5 isn’t a serious three-row SUV, and the third row isn’t standard, anyway.
I think that one’s on the way.
Hey, the bigger, the better, I say. Don’t worry about efficiency; we’ll be drowning in cheap Russian crude before you know it.
If you can drop $50k to $75k on one of these things, the difference between 15 MPG (big truck) and 25 MPG (car) isn’t going to amount to much.