Bmw Mini Retains The Success Formula

Masterful - that's how auto critics describe BMWclose to their peaks, certainly in Europe," says Al
in connection with the manner by which it guidesBedwell, J.D.Power Automotive Forecasting
its Mini premium cars to achieve success in theanalyst.
auto market share.Auto analysts affirm that Mini is a big thing in the
From its inception in 2001, Mini has already madeUnited States. "Currently Mini sells in the states
money. The latest lineup of Mini, which will go on(about) the same number as in the U.K. The U.S.
sale this month in Europe to be followed by thesells seven times more cars than the U.K., so I'm
United States, is expected to deliver stable profitconvinced there exists a lot of additional potential,"
chain.says Ferdinand Dudenhoeffer, managing director
According to Dresdner Kleinwort, Frankfurt,of automotive consultants B&D Forecast of
Germany-based investment banker, "Mini earnedBochum.
net income of $148 million in 2003 for its ownersIn addition, auto analysts are saying that BMW
BMW, progressing steadily to $185 million in 2005can benefit from the soaring mix of sales S,
and is likely to reach $260 million in 2007." MiniCooper and basic Mini Ones. Parts Mini are now
started with modest sales target. On its initialbeing enhanced and made more sophisticated to
years, the target was 100,000 per annum. Then,hook car aficionados.
the number drastically grows to 120,000 and"And you are right. Mini is more of a fashion
eventually accelerated to 200,000 last year.luxury item and thus the concept is probably
"They (BMW) started the first Mini with a verybetter comparable to Porsche than to normal car
conservative production approach. After theybusiness. Therefore I also think it is not about
realised the strong demand, they added capacitypracticability, but customers buy the car to make
nearly overnight. So, I'm pretty sure that they'vea statement," says Christoph Dolleschal, auto
again established a process which will allow pushinganalyst with Dresdner Kleinwort. "Profitability wise
production beyond 300,000 cars if the customerthe new Mini should do better than the old one.
demands," says Stephen Reitman, Merrill LynchPricing point is unchanged. However I think they've
European auto analyst.gained experience in production and simply are
Mini is expected to reach higher grounds. "The Miniable to produce the car cheaper than the
has been a phenomenal success, better thanprevious versions," he added.
anyone expected, including BMW, but sales are