BMW to boost spending on r and d as automaker pushes to increase sales in U.S.
JENS MEINERS | Automotive News Europe
Posted Date: 11/11/04
BMW AG's r&d spending will rise 10 percent this year as it continues a strong sales push in the United States.
CEO Helmut Panke says that BMW will continue to add products in the United States despite the weak dollar. BMW group's U.S. sales were 242,966 through October, up 7.0 percent from the year-ago period.
"Economic development in the U.S. will continue to be stronger than in Europe," Panke predicted. "We will keep the momentum with new models."
Despite the weak dollar, there are no short-term plans to add production capacity in the United States. But BMW officials say they may buy more parts from U.S. suppliers as one way of counteracting the currency gap.
Panke gave several hints of product plans. He said BMW is likely to give the 7 Series a mid-term facelift in 2005. "We see an upside potential for the 7 Series," he said.
Changes are expected to counter criticisms of the 7 Series. The series will get a somewhat simplified iDrive control system, with the eight-way knob replaced by a four-way knob. It also will undergo cosmetic changes of its front and rear ends.
BMW design head Chris Bangle has been criticized for the bulky rear of the 7 Series.
Panke also spoke about the raumfunktionales konzept, or RFK, a minivan or sport wagon concept vehicle that has not been fully defined.
"We will continue to bring new models, not just the RFK but also other alternatives," he said. "In Europe we need a spacious car, a people carrier. But in America there is a debate whether there should be something like a crossover between SUV, sedan and coupe."
Other models that BMW will develop include two-door and station wagon versions of the subcompact 1 Series, scheduled to arrive in the United States in 2006, as well as the 3 Series convertible, which likely will feature a retractable metal roof.
JENS MEINERS | Automotive News Europe
Posted Date: 11/11/04
BMW AG's r&d spending will rise 10 percent this year as it continues a strong sales push in the United States.
CEO Helmut Panke says that BMW will continue to add products in the United States despite the weak dollar. BMW group's U.S. sales were 242,966 through October, up 7.0 percent from the year-ago period.
"Economic development in the U.S. will continue to be stronger than in Europe," Panke predicted. "We will keep the momentum with new models."
Despite the weak dollar, there are no short-term plans to add production capacity in the United States. But BMW officials say they may buy more parts from U.S. suppliers as one way of counteracting the currency gap.
Panke gave several hints of product plans. He said BMW is likely to give the 7 Series a mid-term facelift in 2005. "We see an upside potential for the 7 Series," he said.
Changes are expected to counter criticisms of the 7 Series. The series will get a somewhat simplified iDrive control system, with the eight-way knob replaced by a four-way knob. It also will undergo cosmetic changes of its front and rear ends.
BMW design head Chris Bangle has been criticized for the bulky rear of the 7 Series.
Panke also spoke about the raumfunktionales konzept, or RFK, a minivan or sport wagon concept vehicle that has not been fully defined.
"We will continue to bring new models, not just the RFK but also other alternatives," he said. "In Europe we need a spacious car, a people carrier. But in America there is a debate whether there should be something like a crossover between SUV, sedan and coupe."
Other models that BMW will develop include two-door and station wagon versions of the subcompact 1 Series, scheduled to arrive in the United States in 2006, as well as the 3 Series convertible, which likely will feature a retractable metal roof.
![[bigcry]](/images/smilies/icon_smile_bigcry.gif "Big Cry [bigcry]"){kind=icon}
$4,200. Ouch. 
