BMW sells plenty of automobiles within the U.S. as of late. Actually, finally depend, the marque moved 371,346 automobiles and SUVs final 12 months. It didn’t occur in a single day; fifty years in the past, BMW of North America’s inaugural 12 months, the model solely offered 19,419 automobiles. One of many greatest velocity bumps on the model’s journey to promoting that many automobiles got here within the late Nineteen Eighties. Issues started because the U.S. greenback to Deutschmark alternate fee 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 best fanatic choices by no means made it to our shores due to them. Then, lastly, within the closing 12 months 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 objective 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 offered 96,759 automobiles in 1986, 1991 noticed that quantity fall to a painful 53,343. “What was clear was that our mannequin vary merely didn’t reside as much as ‘The Final Driving Machine,’” mentioned Vic Doolan, then newly appointed as BMW AG Head of Gross sales and Advertising and marketing. “We knew that to compete we needed to excite and please the BMW proprietor.” The unstated fact? Lexus was profitable market share by advantage of its highly effective and clean V8 engines, glorious consolation and facilities, and perceived reliability because of its Toyota ties.
BMW Battles Again
So, BMW started engaged on one thing Lexus had demonstrated was a buyer want: larger and badder V8 engines. The 5 and seven Sequence grew to become extra interesting to U.S. prospects, 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 spite of everything, they needed to with the intention to compete with Lexus’s newly-earned fame. “Our supplier community was demotivated and unprofitable,” Doolan mentioned. “Poor supplier service was the outcome.” Doolan applied complimentary scheduled upkeep and improved technical coaching to make sure a greater service expertise.
Huge adjustments additionally occurred to how folks purchased BMWs within the mid-Nineties. BMW Monetary Providers was launched in 1992, which provided higher charges and elevated flexibility for purchasers 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 12 months. By 1999, Lexus had offered 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 plenty of different rivals — within the market. By 2000, BMW had introduced the E39 M5 and all-new BMW X5 SUV to market. The latter, notably, 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, alternatively, offered 96,886. As shut as ever, so it might appear. As an enormous fan of each manufacturers — and proprietor of each a GX 470 and “clown shoe” M Coupe — it’s superb to see the dividends that good competitors paid.
Supply: BMW USA
