LAS VEGAS -- With more new and updated vehicles to launch this year, BMW is increasing its overall U.S. marketing outlays in 2018.
BMW of North America CEO Bernhard Kuhnt confirmed the overall increase to Automotive News after the brand's make meeting here. He wouldn't disclose the percentage increase.
"Could we always spend more money on marketing? Yes," Kuhnt said. "But we feel the key launches for us are supported appropriately from our point of view. We have enough money to do that."
There is a lot of coming product to push. The new X2 crossover just reached dealerships. Also going on sale this year are the redesigned X4 and X5 crossovers, the new 8-series coupe and the redesigned 3-series sedan. The new X7 large crossover will go on sale in early 2019.
When there is launch after launch after launch, it can be difficult "to make every one as impactful as the other one," Kuhnt said. "You need to be clever as well."
One way Kuhnt has added to the marketing budget is by diverting chargebacks from dealership warranty audits. In 2017, to allay concerns dealers had about BMW's motivation for those audits, Kuhnt agreed to put that money toward a purpose beneficial to both dealers and the company.
That's a "huge win" for dealers, said Patrick Womack, chairman of the BMW National Dealer Forum and general manager of Laurel BMW of Westmont in suburban Chicago. That "diversion of monies will help us going forward."
Dealers continue to press BMW to bulk up its marketing budget, particularly going into 2019, Womack said.
BMW dealers also talked about concerns about dealership profitability. Efforts are underway between brand leaders and the dealer forum to rework several contested policies, such as the Added Value Program, a dealership bonus program. Kuhnt and Womack both said they expect to announce some progress on those efforts at a dealer meeting here in April.
