BMW Pleased With Response to New 5 Series

MUNICH July 23, 2003; Chris Reiter writing for the Dow Jones Newswires reports that Germany's Bayerische Motoren Werke AG is confident of achieving its sales targets for 2003 after a positive initial response to its new 5 series sedan.

"After the reception of the new 5 series we're completely confident that we can achieve what we set out to," Chief Executive Helmut Panke told journalists late Tuesday.

BMW aims to increase car sales for all three of its brands - BMW, Mini, and Rolls Royce - this year.

After a 5.5% fall in sales of BMW brand cars in the first half, the launch of the new 5 series is the company's main hope for resurrecting sales of its core brand.

Mini sales rose 44% year-on-year in the first half, while this year is the first year BMW is offering the Rolls Royce brand.

The 5 series sedan was launched in Western Europe about three weeks ago. Traditionally, the 5 series has been one of the company's key products in terms of volume and profit. BMW aims to sell more than 190,000 of the luxury car in 2004 and more than 1.45 million over its life cycle.

Michael Ganal, BMW's board member for sales, said the company was very pleased with orders of the 5 series thus far and that production is being rapidly ramped up.

He said the company will produce 16,000 of the new cars in July. It aims to reach full capacity of 700 cars a day after three months.

Ganal also said that it plans to consolidate its sales structure in Europe in preparation for new European Union (News - Websites) regulations governing car sales.

BMW will take over the distribution of its products in Greece, Ireland, Denmark, and Luxembourg from importers. BMW said it could better ensure customer service when it is itself present in the markets.

According to the new E.U. rules, which take effect in October, dealers are able to sell cars from multiple carmakers and can sell across borders. They also aren't required to service cars. The new rules are intended to boost competition by opening up the market to new entrants such as supermarkets.

Company web site: http://www.bmw.com