BMW targets more retail sales, marketing

Boosting profit margin and marketing are key items on the agenda of BMW's dealer board as the auto industry emerges from the coronavirus pandemic.

Last year presented challenges from pandemic-related supply issues, but a surprise recovery in demand in the second half

of 2020 lifted profits for the brand's retailers, BMW National Dealer Forum Chairman David Sloane told Automotive News.

"The focus had been on putting as many cars in customer driveways as possible, and BMW provided the right programs and strong support so we could take advantage of the demand in the market," said Sloane, president of Sloane Automotive Group in suburban Philadelphia.

Tight inventories also boosted return on sales.

"We need to continue to discuss sales objectives, facility upgrade demands and other drivers that impact dealer margins and overall profitability," Sloane said. "As a brand, we are looking to retail more cars in 2021 than in the previous two years."

Dealers would like the factory to boost its marketing presence this year as BMW prepares an ambitious move into electrification.

"We're entering new product segments with the EVs BMW has coming," Sloane said.

"There needs to be plenty of awareness of these new products."

By the first half of 2022, BMW will debut two battery-powered models in the U.S.

— the four-door i4 coupe and the iX midsize crossover. Globally, BMW Group expects to have 25 electrified models on the roads by 2023.

With the new lineup and an expected increase in sales targets in 2021, dealers want to make sure there's ample marketing to support it, Sloane said.

"In the dealer's eyes, there can never be too much Tier 1 marketing," he said.