BMW hopes

BMW hopes sneak previews to select customers will boost sales of flagship sedan

The new BMW 7 series (shown here as a computer illustration) will have a larger grille than the current model.

BMW is giving selected potential customers a sneak preview of its new 7 series, four months ahead of the redesigned flagship sedan's planned launch.

"We want to create some excitement about this car," BMW spokesman Alexander Bilgeri said.

BMW needs buyers to get excited about the next generation of its top of the line car. Both globally and in Europe, the S class from archrival Mercedes-Benz easily outsells the 7 series.

"BMW needs this model to sell substantially better than its predecessor," said Albrecht Denninghoff, a Frankfurt-based auto analyst at BHF Bank. "BMW is waiting for a hot model that will lift the spirits of the company and catch the imagination of customers."

Denninghoff said BMW design director Chris Bangle's controversial design for the current 7 series might have deterred some customers from buying it.

"It is not uniformly recognized as the most beautiful car in this segment," he said.

The styling of the new 7 series will not change much from the current model. The twin kidney-shaped grilles will be larger than those on the current car. It will also have wraparound headlights, similar on the X5 and X6.

BMW started 7 series previews earlier this month in Frankfurt.

Bilgeri said further showings were planned although he declined to reveal how many or where they would take place.

Sales staff at BMW dealers in key markets in Europe and the United States decide who will be invited to view the new generation of the car.


Paris launch
The 7 series will go on sale in Europe shortly after its debut at the Paris auto show in October.

Consultancy CSM Worldwide expects global sales for the model to peak at 41,289 units in 2010 compared with 44,421 last year. North America will be its biggest market with 20,288 unit sales in 2010, followed by Europe at 14,341.

David Arnold, an auto sales analyst at Credit Suisse in London, estimates that BMW's operating profit margin on the 7 series is 5 percent. That compares with a 7 percent margin for the Audi A8 and a profit margin of 22 percent for the Mercedes-Benz S class.

"The reason for this is that the S class significantly outsells the BMW 7 series and the Audi A8 worldwide," Arnold said.

Walt Madeira, a CSM automotive analyst, said the market for upper-premium sedans is shrinking as some car buyers are becoming wealthier and moving up to brands such as Bentley. Others are choosing crossover vehicles such as the BMW X6.