BMW Surpasses Rival Volkswagen in 2004 U.S. Sales

BMW has reported that its sales in the U.S. for December rose 22%, while total car sales for the 2004 year have surpassed rival German automaker Volkswagen for only the second time since 1949. Volkswagen reported December sales rose 19%. Total 2004 sales of all european model vehicles in the U.S. declined 3.7% to 1.15 million cars and trucks.

BMW has made gains in U.S. sales through attracting buyers looking to switch to models that cost $35,000 or more, while at the same time, fewer consumers are attracted by Volkswagen's less expensive cars yet haven't demonstrated an affection for more expensive Volkswagon models such as the VW Phaeton sedan. Volkswagen reported that they are now offering a year's free insurance to buyers of some models in Wisconsin and Illinois.

"BMW expects to maintain market share or 'maybe even do better'' in the U.S. in 2005, remarked Tom Purves, head of BMW's North American operations. "BMW is planning to introduce a version of its BMW 7-Series model that can be powered by hydrogen or gasoline in about three years," he continued.

Auto industry analysts reported that BMW has been increasing sales by expanding versions of its BMW 3- Series, 5-Series and 7-Series sedans while simultaneously adding vehicles in niches, such as the BMW X3 and X5 SUVs.

Volkswagen will be replacing the VW Jetta in March this year and the Passat in the fourth quarter of 2004. They will introduce the new Golf GTI at the end of 2004, the company said.

Annual sales of BMW increased 8% to 260,079 units and its Mini brand sales remained nearly unchanged at 36,032 Mini Cooper sales. Volkswagon's full 2004 results for the year plunged 15% to 256,111 vehicles. The luxury brand Audi, owned by Volkswagen, reported that sales dipped 9.8% in 2004 to 77,917.

Beckham's BMW M3 Convertible Reported to be Listed on eBay

A 1997 BMW M3 Convertible, that is reported to be formerly owned by soccer star David Beckham, has sold for more than U.S.$170,000 on eBay. The BMW M3 convertible, is rumored to have been bought by Beckham during his first full season at Manchester United in 1997.

A bidding war on the eBay auction site is reported to have developed. One previous owner said he had spoken to several car car dealers who told him the blue BMW M3 wasn't worth much more than book value, despite Beckham as the former owner.

The same owner stated that he had opted to sell the car to the first person who came up with cash. "I'm pretty annoyed. If I'd have known, I would never have let it go for that amount. You just have to learn from these things," he added. "I will follow my own instincts in the future. I have written that BMW dealer off my list, that's for sure."

BMW H2R Shown as Example of BMW's Commitment to Hydrogen as Alternative Fuel for the Future

With anticipated record sales for 2004, BMW announced again its planned commitment in hydrogen as a future performance fuel. At the 2005 Los Angeles Auto Show BMW presented the speed-record setting BMW H2R liquid hydrogen car for the first time in North America.

"BMW is the world leader in the development of hydrogen cars with internal combustion engines," stated Tom Purves, chairman and CEO of the U.S. BMW Group. He added that "We believe that in the output range of about 140 horsepower, there is still no other clean, practical alternative to hydrogen. The H2R concept car is more than a mere exercise. BMW will offer customers a production car with a hydrogen combustion engine during the production period of the current BMW 7 series."

Ahead of the 2005 launch of a new generation BMW 3 Series, the company revealed a competition package version of its M3 performance sedan. The special M3 will cost an extra $4,000 and include 19-inch wheels, quicker steering and other modifications, the company said.

BMW Reports Unconcern for Rise in Euro

German company BMW has acknowledged that it can withstand the euro's gain on the dollar. Contributing to this position by BMW is the protection against currency swings, which BMW says will allow them to benefit from another year of export growth.

BMW also expects the euro to be close to its current value of $1.36 against the dollar at the end of 2005. This is in line with several other large European Operations' forecasts for 2005.

"Exchange-rate risks can be minimized with hedging contracts as well as producing and purchasing abroad,'' said BMW spokesman, the world's second-largest maker of luxury cars, which manufactures the BMW Z-4 Roadster and BMW X-5 luxury SUV in Spartanburg, South Carolina. BMW also said it currently "doesn't engage in additional hedging because we consider the dollar to be undervalued.''

Falling oil prices have also contributed to BMW's unconcern about the effect of the euro's current rise.

BMW Recalls 75,000 5 & 7 Series Cars Worldwide

Officials from BMW announced a recall of 75,000 of its BMW 5 Series and 7 Series model cars worldwide due to potential problems with their seat heating systems.

A BMW spokesperson stated more specifically that the heating mats in the seats could damage driver and passenger clothing and theoretically even lead to burns. The models affected were built between February 2003 and June 2004. BMW said it was writing to the cars' owners and asking them to take the cars into BMW garages to remedy the problem with the 5 and 7 Series seat heating systems.

The recall is estimated to cost BMW around $22million, the German maker of luxury cars said.

BMW to Possibly Supply Engines to Second Formula One Team in 2006

BMW is rumoured to be considering supplying BMW engines to a second team when the 2.4 litre V8 Formula One rule is enforced in 2006. BMW said such a decision would in no way impact its currently stong relationship with the Williams racing team.

"From the capacity point of view it would be possible to give engines to another team beyond 2005, but there is no decision about that yet," BMW Motorsport head Mario Theissen said. "If such a decision has been taken, we would announce it."

Through supplying BMW engines to a second team, it is thought that BMW could benefit from the additional data they could collect as restrictions on testing become more prevalent. BMW currently produces one of the most powerful engines in Formula One.

New Internal BMW Bike Rack to be Promoted Jointly by Pro Cyclist Chris Hoy & BMW-Williams Driver Mark Webber

Scottish gold medal cyclist in Athens, Chris Hoy, and BMW powered Williams Team driver, Mark Webber, are reported to be negotiating with BMW to work together in promoting a new internal BMW bike rack on a 2005 model BMW yet to be officially launched by the company.

BMW Unveils New BMW M6; Their Fastest Accellerating Model Ever

BMW has recently announced the new BMW M6. BMW sources state that the M6 will be the quickest-accelerating road car it has ever manufactured. The BMW M6 uses the two-door bodyshell of the latest 6-series and the aggressive 500bhp 5 litre V10 engine of the new BMW M5. BMW has not offered a high-performance coupé in this class since the M635 CSi of the 1980s.

The new M6 is lighter and faster than the BMW M5. This new coupé accomplishes 0-62mph in 4.6sec, outclassing the latest, similarly-priced, Porsche 911 Carrera S. In will be delivered with a top-speed limiter set at 155mph, but is reported to achieve 200 mph.

BMW also noted that a seven-speed sequential manual gearbox (SMG) has the option of steering-column paddles the driver can use to change gear. A power button by the gearlever also allows the driver to choose maximum engine output of 400 or 507bhp.

In an effort to minimize weight the BMW M6 uses techniques used in the BMW M3 CSL — lightweight body panels in aluminium and plastics and a carbon fiber roof. And the M6 weighs in at 3,770lb — 100lb less than the M5.

Apart from Porsche, the BMW M6 coupé is also able to compete with the AMG version of the Mercedes CLS, which outputs 476bhp.