May 12, 2008 – BMW aims for huge growth, new segment

In his first public address, the new BMW Motorrad president outlined the company’s future two-wheel agenda, including an ambitious goal to grow worldwide sales by 50 percent by 2012.
New President Hendrik von Kuenheim says BMW will accomplish this retail sales goal with a two-brand strategy, which includes newly purchased Husqvarna, and by entering new motorcycle segments, including the supersport class.
“To meet this objective, we are making BMW Motorrad even more sporty and dynamic,” von Kuenheim said in a speech he made to the Munich media in mid-April. “This means that we are specifically entering market segments where BMW Motorrad was not represented so far.”
One of those segments is the 1,000cc sport segment, a market that amounts annually to 100,000 units worldwide and one that is currently dominated by Japanese OEMs, BMW reported.
The German manufacturer unveiled photos of its new supersport bike, the S1000RR, a motorcycle that is expected to reach dealers by early 2010. The bike features traction control and a four-cylinder engine, all of which are created and designed solely by BMW.
“Let me add that we will be presenting further surprises at the major motorcycle shows in Cologne and Milan,” von Kuenheim said of other bike models in the works.
The new BMW president also addressed the company’s sales goals, noting BMW is seeking to increase worldwide retail sales 50 percent to 150,000 units annually by 2012. Looking specifically at this year, von Kuenheim says BMW is seeking a 30 percent increase. However, the company’s sales were down approximately 11 percent through its first quarter.
“Considering that motorcycle markets show a rather irregular and inconsistent development, this is and remains a very demanding target,” von Kuenheim said of the company’s sales goals.
The company’s recent purchase of Husqvarna will play a crucial role in BMW reaching its sales targets.
“With Husqvarna’s very sporty machines, we are able to expand our product range even faster to new groups of purchasers throughout the entire off-road and supermoto segments than we could with BMW alone,” von Kuenheim said.
Husqvarna has had success in off-road markets in the United States, Southern Europe and Australia, the company notes.
After purchasing the brand, BMW made changes, including re-organizing its parts business.
“We have solved our former problems in the supply of spares,” von Kuenheim said. “At the same time, we have launched special programs and activities for the further improvement of product quality.”
Of course, the biggest launch that the new BMW president addressed was the company’s entrance into the supersport category, including in the world racing scene. BMW will be a presence in the Superbike World Championship starting next year.
“We naturally realize that we are taking on a great challenge,” von Kuenheim said of the supersport class. “Particularly the Japanese are some 20 years ahead of us in this class and have lots of experience. But even so, the spirit of this competition alone encourages us in our efforts.”
BMW released few details about the S1000RR, although von Kuenheim noted the engine will have four cylinders and “offer a number of special features, especially on the cylinder head.” He also said BMW has decided against a Duo-Lever on the suspension, noting “this kind of front-wheel geometry would have presented disadvantages with the very compact structure of BMW’s new superbike.”