BMW Still The Ultimate Driving Machine, Not That It Ever Wasn't

BMW of North America has revived – make that reinforced – its famous tagline, “The Ultimate Driving Machine.”

A recent TV ad says, “We don’t make sports cars. We don’t make SUVs. We don’t make hybrids. We don’t make luxury sedans. We only make one thing. The Ultimate Driving Machine.”

That’s stating the obvious. The Ultimate Driving Machine has been BMW’s unforgettable identity since the 1970s.

 

 Yet the tagline is a touchy subject inside BMW. BMW came up with what eventually became a worldwide ad campaign called “Joy,” in time for its sponsorship of the 2010 Winter Olympic Games in Vancouver, Canada.  The idea was to reinforce the user benefit of owning The Ultimate Driving Machine.

BMW never entirely abandoned “Ultimate Driving Machine,” but the “Joy” campaign started a public uproar that BMW was turning its back on one of the best taglines ever.

Dan Creed has been vice president, marketing for BMW of North America LLC, since October 2010. He’s spent much of that time stoutly maintaining that BMW never, ever dropped the old tagline. The following are edited excerpts from an interview earlier this spring:

What’s up with “Ultimate Driving Machine?”

It’s The Ultimate Driving Machine whether it’s the 3, the 5 or the 7, and as we look at other segments, like smaller cars, like front-wheel drive, it will be there, too. We have great confidence in the product.

Is there a danger that more fuel-efficient cars aren’t seen as high-performance?

When you’re a premium brand, it all comes down to authenticity and credibility. Because with a smaller car you run the risk that “efficient” is at the expense of “dynamic.” But I think we have a lot of credibility for doing that.

So Ultimate Driving Machine is back?

We never got rid of Ultimate Driving Machine. We had a campaign called the “Joy” campaign, but Ultimate Driving Machine, we never ever, never ever, moved away from it. The idea of the Joy campaign was that if there was one group that was not always our strength, but that we could do better with, it was women. “Joy” would warm the brand up and make it approachable. And it did that. The brand is still seen as dynamic, it’s still The Ultimate Driving Machine, but “Joy” is still at the center of the experience.

The Ultimate Driving Machine, for us, I think, is something that’s got legs of its own – but yes, we are back.

BMW Still The Ultimate Driving Machine, Not That It Ever Wasn't

BMW of North America has revived – make that reinforced – its famous tagline, “The Ultimate Driving Machine.”

A recent TV ad says, “We don’t make sports cars. We don’t make SUVs. We don’t make hybrids. We don’t make luxury sedans. We only make one thing. The Ultimate Driving Machine.”

That’s stating the obvious. The Ultimate Driving Machine has been BMW’s unforgettable identity since the 1970s.

Yet the tagline is a touchy subject inside BMW. BMW came up with what eventually became a worldwide ad campaign called “Joy,” in time for its sponsorship of the 2010 Winter Olympic Games in Vancouver, Canada.  The idea was to reinforce the user benefit of owning The Ultimate Driving Machine.

BMW never entirely abandoned “Ultimate Driving Machine,” but the “Joy” campaign started a public uproar that BMW was turning its back on one of the best taglines ever.

Dan Creed has been vice president, marketing for BMW of North America LLC, since October 2010. He’s spent much of that time stoutly maintaining that BMW never, ever dropped the old tagline. The following are edited excerpts from an interview earlier this spring:

What’s up with “Ultimate Driving Machine?”

It’s The Ultimate Driving Machine whether it’s the 3, the 5 or the 7, and as we look at other segments, like smaller cars, like front-wheel drive, it will be there, too. We have great confidence in the product.

Is there a danger that more fuel-efficient cars aren’t seen as high-performance?

When you’re a premium brand, it all comes down to authenticity and credibility. Because with a smaller car you run the risk that “efficient” is at the expense of “dynamic.” But I think we have a lot of credibility for doing that.

So Ultimate Driving Machine is back?

We never got rid of Ultimate Driving Machine. We had a campaign called the “Joy” campaign, but Ultimate Driving Machine, we never ever, never ever, moved away from it. The idea of the Joy campaign was that if there was one group that was not always our strength, but that we could do better with, it was women. “Joy” would warm the brand up and make it approachable. And it did that. The brand is still seen as dynamic, it’s still The Ultimate Driving Machine, but “Joy” is still at the center of the experience.

The Ultimate Driving Machine, for us, I think, is something that’s got legs of its own – but yes, we are back.

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BMW Seeks Sales Growth, Lower Margins as New Models Hit Market

Bayerische Motoren Werke AG (BMW), the world’s largest maker of luxury vehicles, predicted record sales and profit in 2012 boosted by eight new and updated models.

The maker of the Z4 roadster stuck to its target of beating last year’s record earnings on higher deliveries and the auto unit generating a margin at the “upper end” of a range of 8 percent to 10 percent, Chief Executive Officer Norbert Reithofer said today. The Munich-based company reported earnings before interest and taxes of 11.8 percent from vehicle sales last year.

“These targets are based on the assumption that the underlying economic conditions remain stable,” Reithofer said in a speech at the company’s annual shareholder meeting. “The high level of public debt in some countries and the euro crisis harbor ongoing risks for the global economy.”

The car and motorcycle manufacturer is expanding to fend off efforts by Volkswagen AG (VOW)’s Audi and Daimler AG’s Mercedes- Benz to grab the sales lead in luxury autos by the end of the decade.

The maker of BMW, Mini and Rolls-Royce models expects higher sales at all its brands, pushing pretax profit higher, Reithofer said today. First-quarter profit beat analyst estimates, with ebit climbing 19 percent to 2.13 billion euros, BMW said May 3.

The company is rolling out a 3-door version of the 1-series compact, a new derivative of the 3-Series, as well as updating the X1 compact sport-utility vehicle, X6 luxury SUV and 7-Series sedan in 2012. These models will add to the Mini Roadster, which hit the market earlier this year, and coupe and convertible versions of the high-performance M6.

Sales of the 1-Series compact, which was revamped late last year, climbed 20 percent in the first quarter while the X3 SUV surged 55 percent, lifting total sales to 425,528 vehicles. BMW is counting on demand for a new generation of the best-selling 3-Series sedan, which was introduced in February, to boost deliveries further and offset development costs for the i3 battery-powered city car, which will be rolled out in 2013.

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BMW Pushes Solar Power With New Partnership

BMW has taken another step in what is shaping up to be a multifaceted electric vehicle initiative that focuses on spurring infrastructure and lifestyle changes among consumers, as much as touting the vehicles themselves.

A new partnership between BMW and Real Goods Solar, a Louisville, Colo.-based provider of residential and commercial solar technology, will allow owners of current BMW ActiveE experimental electric vehicles and future buyers of the i3, BMW’s first full-production EV scheduled to launch in 2013, to buy solar panels for their homes at up to a 35% discount. They must live in California, Connecticut, New Jersey, New York and Massachusetts.

They will have the option to purchase or lease the equipment, which Real Goods Solar will install and service. The company’s website lists two 20-year lease options, one with zero down that amortizes equipment costs over the term of the lease, and another where owners pay $5,269 upfront and forgo a monthly payment. The website says the zero-down option has the potential to save ConEd customers in New York $71,036 over 20 years in avoided gas and utility costs, while the prepaid option could save up to $84,599. (Go to the Real Goods Solar website to see how it calculated those savings.)

The savings are potentially so large because the solar array wouldn’t just recharge electric vehicles. It would provide energy to the whole house for air conditioning, appliances and heating water, for example.

This announcement builds on BMW’s previous partnership announced earlier this year with Tendril Inc. The Boulder, Colo.-based firm provides software infrastructure to connect homes to the electrical grid and optimize energy usage. These so-called “smart homes” can communicate with the “smart grid” to charge up vehicles when electricity demand is low, which not only saves consumers money, but also keeps the grid from getting overtaxed.

The fact that BMW’s approach to selling electric vehicles is more holistic than efforts by other automakers thus far is encouraging, because the changes that need to occur for EVs to reach significant adoption go way beyond simply swapping a gas engine for an electric motor in each car.

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BMW Primps X1 Crossover for U.S. Launch

BMW AG revealed additional details about the latest X1 compact crossover vehicle it introduced last month at the New York International Auto Show. The X1, which has been available for some time in other countries, underwent a number of changes in preparation for its U.S. release, largely to lengthen its list of luxury and safety features.

The vehicle includes BMW’s EfficientDynamics technology – essentially a long list of mechanical, electronic, hydraulic and aerodynamic elements that incrementally improve overall efficiency and fuel economy.

But the X1′s most striking feature may be its price relative to other BMWs. With a sticker starting at $31,545 the X1 becomes the new entry-level for the German car maker. It also could end BMW’s identity in the U.S. as a ”car” company instead of a “maker of cars and trucks.”

Because the compact-crossover market is quickly gathering momentum in the U.S., the X1 is a critical component in BMW’s sales strategy. It could also redefine BMW’s approach to entry-level customers who in the past were introduced to the brand through sporty cars like the 3 and 1 Series.

All X1 models will have Brake Energy Regeneration, similar to a feature found on hybrid and electric vehicles that uses the brakes as generators to produce extra energy. The sDrive28i and xDrive28i versions of the X1 are available with an automatic start/stop system that shuts off the engine at stoplights and during other halts, and an ECO PRO mode that adjusts engine and transmission management to save fuel.

BMW said it will build U.S.-bound X1s in Leipzig, Germany. The car maker said demand for the X1 around the world has been strong enough to warrant additional production. Vehicles for the rapidly growing Chinese market will be built at BMW’s new plant in Shenyang Province, China.

The new 2013 BMW X1 will arrive in U.S. showrooms this fall.

 

Source:Wall Street Journal

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