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.