BMW sells plenty of vehicles within the U.S. as of late. In truth, ultimately rely, the marque moved 371,346 vehicles and SUVs final yr. It didn’t occur in a single day; fifty years in the past, BMW of North America’s inaugural yr, the model solely bought 19,419 vehicles. One of many largest pace bumps on the model’s journey to promoting that many vehicles got here within the late Nineteen Eighties. Issues started because the U.S. greenback to Deutschmark trade charge fell, which sadly made BMWs extraordinarily expensive within the U.S. (and elsewhere). Including to the model’s U.S.-based woes have been more and more stringent emissions requirements. Arguably, a few of BMW’s biggest fanatic choices by no means made it to our shores due to them. Then, lastly, within the remaining yr of the Nineteen Eighties, BMW had another reason to lie awake at evening: Lexus.
Lexus Challenges BMW
In 1989, Toyota formally launched the Lexus model. Its aim was to focus on the BMW/Mercedes-Benz purchaser with luxurious autos and a watch to customer support; traditionally, a single buyer grievance launched a brand-wide service marketing campaign, which drew plenty of optimistic consideration. In 1991, Lexus made landfall, and it was painfully clear for anybody taking a look at BMW’s gross sales numbers. Whereas the model bought 96,759 vehicles in 1986, 1991 noticed that quantity fall to a painful 53,343. “What was clear was that our mannequin vary merely didn’t dwell as much as ‘The Final Driving Machine,’” stated Vic Doolan, then newly appointed as BMW AG Head of Gross sales and Advertising. “We knew that to compete we needed to excite and please the BMW proprietor.” The unstated reality? Lexus was successful market share by advantage of its highly effective and clean V8 engines, glorious consolation and facilities, and perceived reliability due to its Toyota ties.
BMW Battles Again
So, BMW started engaged on one thing Lexus had demonstrated was a buyer want: greater and badder V8 engines. The 5 and seven Sequence turned extra interesting to U.S. clients, in line with BMW, and a brand new product line within the Z3 roadster additional bolstered the lineup. Modifications began occurring on the dealership stage, too. In any case, they needed to so as to compete with Lexus’s newly-earned popularity. “Our supplier community was demotivated and unprofitable,” Doolan stated. “Poor supplier service was the consequence.” Doolan applied complimentary scheduled upkeep and improved technical coaching to make sure a greater service expertise.
Huge adjustments additionally occurred to how individuals purchased BMWs within the mid-Nineteen Nineties. BMW Monetary Companies was launched in 1992, which provided higher charges and elevated flexibility for patrons and sellers. Buyer loyalty elevated, whereas sellers had enhanced entry to pre-owned BMW autos. By 1996, BMW managed to publish gross sales of 105,761 for the yr. By 1999, Lexus had bought its millionth car after lower than a decade of existence. Thus, the battle continued.
As we all know at present, there was room for each manufacturers — and lots of different rivals — within the market. By 2000, BMW had introduced the E39 M5 and all-new BMW X5 SUV to market. The latter, significantly, was an ideal foil for the blossoming Lexus portfolio, which added the Land Cruiser-based LX 470 SUV in 1998. As a little bit of a “the place are they now,” Lexus moved 91,609 autos in Q3 2025. BMW, however, bought 96,886. As shut as ever, so it could appear. As an enormous fan of each manufacturers — and proprietor of each a GX 470 and “clown shoe” M Coupe — it’s wonderful to see the dividends that good competitors paid.
Supply: BMW USA
