Atlas F1 Magazine: On The Road: News and Reviews for the Petrolhead

ATLAS F1 - THE JOURNAL OF FORMULA ONE MOTORSPORT

On The Road
Automotive News and Reviews for the Petrolhead

By Garry Martin, England
Reuters Motoring Commentator

In this week's issue:

Sales Jump Helps BMW to Record 1st Half
Car Briefs

Sales Jump Helps BMW to Record 1st Half

BMW had a record first half in 2004 after reporting a 17.4 percent rise in June sales to 113,886 cars, the German luxury carmaker has said.

Analysts said the robust performance boosted prospects for higher profit margins at the group, helping its stock advance.

Deliveries of its core BMW brand cars rose 19.7 percent last month to 97,865 units, while those of its Mini brand grew 4.8 percent to 15,972 units. For the first half, group sales rose 8.5 percent to a total of 590,983 vehicles - including 319 Rolls-Royces.

"This is the most successful first half in the history of the BMW group," the company said in a statement.

BMW had a record first half in 2004 after reporting a 17.4 percent rise in June sales to 113,886 cars Sales of its new BMW X3 compact sports utility vehicle and its 6-series luxury coupe and cabrio amounted to 33,275 and 10,575 respectively in the first six months. Together with a 51 percent rise in 5-series deliveries, the new models helped compensate for double-digit percentage dips in 7-series and 3-series sales.

"We will also grow significantly in the second half of the year," BMW sales and marketing head Michael Ganal said in a statement.

BMW group deliveries for the first half even eclipsed those of its biggest rival, Mercedes Car Group. DaimlerChrysler's luxury division reported on Tuesday that first-half sales for its Mercedes-Benz, smart and Maybach brands slipped 3.4 percent to 584,800 units.

"They (BMW) are the most amazing marketing machine," CSFB analyst Harald Hendrikse said. "They are managing their sales this year astoundingly well."

Following a flat first-quarter pre-tax profit margin of 7.6 percent at its core automotive division, BMW disappointed the market by saying auto margins would not improve in 2004 and that core earnings would simply grow in line with sales volumes.

"With currency risks expected in 2005, investors haven't been tempted to buy shares without an improvement in profitability and an upgrade to 2004 earnings guidance," Ellinghorst said.

"Equipped with these strong second-quarter sales volumes, though, I expect BMW can deliver a pre-tax margin of 8.3 percent for its auto division versus eight percent in the second quarter of 2003, and boost its full-year margin to 7.6 percent from 7.2 percent from a year ago," he added.

Best Sales Ever In 2004

BMW is targeting record vehicle sales for all three brands in 2004 thanks to the biggest product offensive in its history. In 2004, the company will have launched the new 6-series, the X3, the 5-series estate, the Mini Cabrio and its brand-new addition to the compact class - the 1-series hatchback.

Chief Executive Helmut Panke said in May he expected sales of BMW brand cars to grow by a high single-digit percentage in 2004. The company has also said it expects to boost Rolls-Royce deliveries to 1,000 from the 300 it sold last year. A BMW spokesman confirmed the goal, which means the brand would have to more than double sales in the second half.

The group predicts deliveries of all three brands will rise to 1.4 million vehicles by 2008.

Car Briefs

Two 4wd Alfa 156 Models

Alfa Romeo is to launch two new 156-based four-wheel drive models in October. Alfa has dabbled with four-wheel drive before: the 33 and 155 were both available with it, and Alfa even made a few amazing 164 3.0 4x4 models (imagine a jumbo-sized Lancia Integrale). This time, though, Alfa is serious about breaking into the so-called crossover market (think Volvo XC70 or Audi Allroad), and is launching the, er, Crosswagon. It is 6.5 cm higher than the standard car and receives an off-roading bodykit with the usual quotient of extra body protection.

For those who like the idea of four-wheel drive without the extra height, there will be a Sportwagon Q4. This has the same mechanicals as Crosswagon, but the body of the standard 156 estate. Alfa is promising "all the agility of a true Alfa Romeo" but with the added security of permanent four-wheel drive. A 156 without the font-drive torque steer certainly sounds like a good idea...

Honda Announces FR-V

Honda is launching a new compact MPV to compete against the Ford Focus C-Max and VW Touran. Its main distinguishing feature is its seating configuration: two rows in a three-plus-three arrangement, just like the Fiat Multipla.

Safety features include full-length curtain airbags, twin dual-stage airbags in the front facia and side airbags in the outside front seats; three-point seat-belt fixings, three ISOFIX child-seat mounts, front seats pre-tensioners and load limiters. Plus the central front seat moves 270mm further back than the outer pair for greater child safety.

Launching in 1.7 and 2.0 litre petrol engines, with a 2.2 litre i-CTDi turbo diesel to follow in 2005.

Prices for the Honda FR-V will be announced closer to its November launch.

New Renault Modus

Renault has announced details of its new supermini MPV, the Modus, which goes on sale in September and will compete with models such as the Opel/Vauxhall Meriva and Ford Fusion. As with all such cars, the idea is to provide lots of interior space within a compact overall size, but Renault has tried to go a bit further with some innovative packaging. This includes the "Triptic" rear bench whose middle seat can be folded up to allow the seats to be moved fore and aft through 170mm to create limousine-like legroom in the rear, or else left in place to give three full seats with individual headrests.

Another seating innovation is a new stowage facility whereby the front passenger seat cushion folds up to leave a hollow underneath in which drivers can place objects like sunglasses safely while on the move. A final packaging trick is the "boot chute". Apparently penned after a Renault designer couldn't load items into his hatchback in a tight parking space, this is a flap within the hatchback that allows items to be dropped securely into the boot in confined city spaces.

As with all new Renaults, safety equipment is abundant and includes front seat belts with load limiters and double pretensioners plus a third-generation System for Restraint and Protection (SRP3). Renault says that the car is expected to set a new class benchmark at the Euro NCAP crash tests when it is tested later this month.

Written by Verdict On Cars

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