In the past years, Mercedes has been one of the top luxury cars in the market. Now, BMW wants to get that crown from Mercedes after it lost sales to the well-known brand.
The company is eager to do this as it is currently conducting the biggest rollout of upgraded models in car history. They will be unveiling 40 cars in the market in the next two years that includes the new X2 compact sport utility vehicle and a full-sized X7 SUV, reported The Economic Times.
Herald Krueger, BMW Chief Executive Officer, said that the company is increasing its profitability after it experienced its sixth year low last year. Its sales had a decreased below Mercedes sales for the first time in a decade.
According to Bloomberg, its revamped 7-series Sedan did not challenge the Mercedes S-Class. In addition, its 5-Series also did not help the company's sales either.
Because of this, the company decided to focus on its profitability rather than its sales. Its new goal is to focus on self-driving electric vehicles like the iNext, the company's first ever battery powered car that will be released in 2021.
Krueger explained that BMW is launching its biggest offense move. The company will be transforming its cars unlike anything the company has done before.
BMW is going all out in the upcoming years as it will invest more than 5.5 percent of its revenue in the research and development of new cars. The company is confident to do this because it believes that there will be a slight rise in its profits and revenue this year.
BMW plans to spend around $10.8 billion dollars on new models. However, this is still smaller compared to the $17.5 billion that Mercedes has invested in its cars.
Nevertheless, the company is planning to boost the promotion of its 7-Series Luxury cars to have more customers. Its ultimate goal is to challenge Mercedes and become the strongest luxury brand.
With BMW's unrelenting eagerness, Mercedes might not be the top luxury brand in the market in the upcoming years. It is too early to tell if the company will succeed but one thing is sure, customers have an interesting year ahead of them.