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.