BMW Disappointed With 5-Series GT Sales

[William Maley]

BMW Disappointed With 5-Series GT Sales

William Maley - Editor/Reporter - CheersandGears.com

May 23, 2011

When BMW introduced the 5-Series GT back in 2009, the company said the vehicle was a stylish alternative (their words, not ours) to minivans and crossovers. BMW also hoped the 5-Series GT would appeal to owners of the 5-Series Touring. Well, the 5-Series GT is becoming a disappointment for BMW.

According to Automotive News, BMW of North America CEO Jim O’Donnell said sales of the 5-Series GT in the US have been disappointing. BMW had hoped the 5-Series GT would sell around 4,000 to 8,000 per year, but has only sold 2,848 vehicles in 2010. That's only 497 units above the peak sales of the 5-Series touring in 2005. So far in 2011, BMW has only sold 720 units. So where did the buyers of the 5-Series touring go?

"The disappointment I have is that I thought a lot of our 5-series station wagon customers would go with the GT. In point of fact, that is not happening. We have lost those customers to the competition -- mainly to Mercedes-Benz," O'Donnell says.

The 5-Series has also created another problem for BMW; stealing customers away from the 7-Series. O’Donnell uses the example of Florida, saying that 10 percent of 7-Series buyers have replaced it with a 5-Series GT.

However, there is some good news. O’Donnell says BMW will keep the 3-Series wagon to help keep BMW owners in the fold.

“We are not giving up the 3-series wagon because if you give it up, they will go straight to the competition.”

Asked about the 5-Series wagon making a comeback, O'Donnell says that's unlikely for this generation.

Source: Automotive News

[Drew Dowdell]

I'm shocked. SHOCKED.

[SoCalCTS]

Hatchbacks dont sell in the USA.

Dear Chevrolet, Do NOT make a Cruze hatchback.

[Drew Dowdell]

Hatchbacks dont sell in the USA.

Dear Chevrolet, Do NOT make a Cruze hatchback.

Mazda 3, Scion TC, Ford Focus, Mini-Cooper, even Dodge Caliber as crappy as it is.....

[FAPTurbo]

Ugly, overweight, piggish and all around useless Hatchbacks dont sell in the USA.

Fixed that for you.

[SAmadei]

"The disappointment I have is that I thought a lot of our 5-series station wagon customers would go with the GT. In point of fact, that is not happening. We have lost those customers to the competition -- mainly to Mercedes-Benz," O'Donnell says.

Lesson here... wagon owners want wagons. No wagon, no sale. Same thing for people wanting coupes or convertibles... a sedan is not a substitute for those. No extra body styles, well, you might as well chauffeur your customers to the competition.

The 5-Series has also created another problem for BMW; stealing customers away from the 7-Series. O'Donnell uses the example of Florida, saying that 10 percent of 7-Series buyers have replaced it with a 5-Series GT.

So, there are 3500 5 series GT buyers... there were only 35000 7 series buyers? Sounds odd to me.

However, there is some good news. O'Donnell says BMW will keep the 3-Series wagon to help keep BMW owners in the fold.

"We are not giving up the 3-series wagon because if you give it up, they will go straight to the competition."

The real good news... BMW doesn't need to learn the same lesson over and over again before changing their ways.

GM would immediately build a 3 series wagon that had incredible performance, comfort and style and could cure cancer... then cancel it 6 months later, replacing it with a 3 series GT, as recommended by Dogbert, their consultant. Then a 7 series GT would come out and a Mini Cooper GT would come out.

[Robert Hall]

The 5-Series has also created another problem for BMW; stealing customers away from the 7-Series. O'Donnell uses the example of Florida, saying that 10 percent of 7-Series buyers have replaced it with a 5-Series GT.

So, there are 3500 5 series GT buyers... there were only 35000 7 series buyers? Sounds odd to me.

That was 10% of Florida buyers, not nationwide...

The styling seems to be the big problem the 5 GT..it's painfully ugly from behind, just too thick in profile. I've seen Audi's A5 Sportback and A7, they are much better executions of a premium hatchback bodystyle...

[SAmadei]

The 5-Series has also created another problem for BMW; stealing customers away from the 7-Series. O'Donnell uses the example of Florida, saying that 10 percent of 7-Series buyers have replaced it with a 5-Series GT.

So, there are 3500 5 series GT buyers... there were only 35000 7 series buyers? Sounds odd to me.

That was 10% of Florida buyers, not nationwide...

Still doesn't make sense... divide by 50. Or 10, as I'm sure Florida is in the top 5 US States for 7 series... "350 5 series GT buyers in FL... there were only 3500 7 series buyers in FL?" Florida has to have 10x as many E65 7 series, I would think.

[Robert Hall]

The 5-Series has also created another problem for BMW; stealing customers away from the 7-Series. O'Donnell uses the example of Florida, saying that 10 percent of 7-Series buyers have replaced it with a 5-Series GT.

So, there are 3500 5 series GT buyers... there were only 35000 7 series buyers? Sounds odd to me.

That was 10% of Florida buyers, not nationwide...

Still doesn't make sense... divide by 50. Or 10, as I'm sure Florida is in the top 5 US States for 7 series... "350 5 series GT buyers in FL... there were only 3500 7 series buyers in FL?" Florida has to have 10x as many E65 7 series, I would think.

3500 7 series in FL in one year sounds high..the 7 series is a low volume car. If they sold 2000 7 series in Florida last year, then maybe about 200 5 series GTs...or something approx like that.

(I wonder what the top states for 7 series sales are..probably California, then New York, Illinois, New Jersey...)

Edited May 23, 2011 by Cubical-aka-Moltar

[SAmadei]

3500 7 series in FL in one year sounds high..the 7 series is a low volume car. If they sold 2000 7 series in Florida last year, then maybe about 200 5 series GTs...or something approx like that.

Who said one year? These are previous 7 series buyers... who happen to be in the market for a new car... who replaced it with a 5 series GT. There are a lot of E65 7 series out there and a lot more dating back to '77. He never specifies if the other 90% bought anything at all. Its a misleading, oddball number that in the end seems to be meaningless.

(I wonder what the top states for 7 series sales are..probably California, then New York, Illinois, New Jersey...)

I imagine Cali is tops... followed roughly by NY, NJ, FL, TX. Prob MA and IL next. Just my guesstimate... would be interesting numbers to see.

[Paolino]

I'm shocked. SHOCKED.

http://www.youtube.com/watch?v=ggXmKPMaHMo

[smk4565]

This thing is too big and heavy, not to mention ugly. Wagons don't sell in the USA, but this is worse than a wagon. It looks like a wagon but has SUV weight and handling, so it is like the worst of both worlds. I would guess the Honda Crosstour is a sales dud also. A 5-series wagon would sell better than this. And the 5-series sold well for years by being agile and the ultimate driving machine, they broke what worked. Maybe the product planners at BMW will get rid of garbage like this and the X6 and get back to 3-series, 5-series, 7-series and perhaps an 8-series coupe.

On a side note, I like when automakers do what they know how to do. Porsche building an SUV bothers me, yet it is one of their top sellers so I know why they do it. I don't get why Lincoln needs a pick-up, Buick needs a minivan, Mini needs an SUV, BMW needs a 5-series Malibu Maxx, etc. IT is product planners getting greedy, rather than making your core products better. The 5-series GT is Crystal Pepsi, no one asked for it and no one wants it.

[Drew Dowdell]

If BMW is disappointed with the 5-series GT sales, imagine what Acura is thinking. The ZDX is the worst selling model in production of all mainstream luxury nameplates. Even some out of production luxury nameplates are outselling it! (STS, Town Car)

[vonVeezelsnider]

Quite frankly I'd have a 5-GT before I'd consider it's ridiculous stilt-wearing X6 stablemate. Just as pointless as the ZDX, think I've only seen one on the street in the years it's been out.

[smk4565]

ZDX is really terrible, even worse than the X6. The ZDX not only looks bad, but it doesn't have utility or cargo space. So you get small car space but SUV handling. But Acura is lost and since everything they make is basically $30-40k, they have to do odd stuff like the ZDX to find 5 models, because really they are all the same dumb car. Gimmicks don't last long, if you try to survive on that you are in trouble.

[G. David Felt]

I disagree with BMW that their loss of sales went to Mercedes Wagon purchases. If a person wants a wagon, the CTS Wagon is excellent and far better. If they want a Wagon on steriods, then the CTS Wagon V is the ultimate hot rod that kills the rest.

Either way, Many of BMW's auto's have become butt ugly.