# BMW Group US sales end up down 9.5 percent for 2016



## guyinacar (Jun 26, 2016)

I'll summarize the other thread. BMW lost sales to Tesla. I live in an area with a lot of Teslas. The archetype is a 2.4 child family... Mom drives a Japanese minivan; Dad just traded the BMW 5er for a Tesla Model S.

Forbes offers the record-breaking sales data for EVs:
http://www.forbes.com/sites/peterde...cember-pushing-annual-numbers-to-new-heights/

Tesla's propulsion warranty (including battery) is 8 years, unlimited:
https://www.tesla.com/support/service-plans

It's simple, BMW lost margin to Tesla. Put differently, many (most?) of Tesla's new customers are potential BMW customers who didn't pull the trigger (again?) with BMW, despite BMW's credible PHEV offerings.

The main difference, from an ownership perspective, is that Tesla's propulsion system, in the 100,000 mile to 200,000 mile range, is guaranteed to be free. BMW's, by contrast, is guaranteed to be expensive.

Again, BMW needs to put its money where its mouth is, and back the PHEV powerplant with a credible warranty. That BMW USA has figured out how to sell PHEVs with a comparatively short warranty is a Pyrrhic victory. They're losing sales. The numbers show it.


----------

