Sales

BMW is Making Major Cash from SUV Sales

Turns out the Ultimate Driving Machine has a higher ground clearance.

For years BMW was known for building wonderful coupes and sedans. There was also the glamorous M1, which gave rise to the M division. They were cars for people who loved to drive fast as well as on twisty mountain roads. But BMW learned something very significant back in 1999: SUVs bring in tons of money. That’s when the first generation X5 went on sale and since then the German brand has continued to capitalize as much as it can on SUVs and, more recently, crossovers.

And thanks to those models, BMW is now reporting its profits (before interest and taxes) has risen 17 percent so far this quarter. There’s a surging demand for its SUVs, but its electric cars and Mini brand isn’t doing nearly as well. Overall global deliveries of BMW, Mini and Rolls-Royce brand vehicles are up six percent. But it’s BMW branded cars that are doing the best. Thanks to sales of the X1, X4, and X5, BMW sales have risen seven percent while Mini sales have remained flat. More specifically, there’s been a 34 percent jump in demand for the X5.

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