Saying "No" To Suvs: Bmw 323i Sportwagon - Sport-utility vehicles - Brief Article - Statistical Data Included

Automotive Industries,  May, 2000  by Lindsay Brooke

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The Sportwagon buyer realizes that for the 90% of the time that they're not hauling anything, they don't want to be driving a truck.

--Rich Brekus

BMW AG is the latest in a line of mostly European manufacturers to launch a sporty station wagon in the United States. The company's 2000 323i Sportwagon is the third generation 3-Series wagon to enter production, but only the first to make it Stateside.

It arrives at just under $30,000 (with an awd version following this fall) at a time when sporty wagons are getting hot. Audi is selling nearly 300 A4 Avants per month, Volvo's V70 is the force to beat and its smaller V40 is taking off, Subaru and Volkswagen have strong offerings in the lower price levels.

Are sports wagons an antidote to SUVs, or are they a niche unto themselves? We drove the new Bimmer and talked to Rich Brekus, BMW North America manager of product planning and strategy. Following is an excerpt from that interview:

Q: The sports wagon segment has basically doubled in sales in North America in the last few years. Where do you see it going?

A: Yes, there's a lot of growth but I don't think it'll ever become huge. Our sense is that it will mature into a reasonable niche segment. That's why we've brought the 323i Sportwagon in. It's really our second product line in the sport wagon segment; we've had the 5-Series wagon here for a couple of years. We sold about 1,000 540i and 4,000 528i wagons here last year. Ten to 15% of the 528s have manual transmissions.

We saw a small group of customers that appreciate performance with versatility, and that's turned out to be the case. 5-Series wagon sales actually exceeded our expectations by some amount

Q: Do you reckon total 323i Sportwagon volume will better that of the 5-wagon?

A: No, I don't think so. I expect we'll do Audi's A4 Avant volume, not much more. The 5-Series is a big enough car that it appeals to people who truly want a wagon. The new 3-Series is almost as big as the old 5-Series wagon in terms of interior space. It's about the same width and 3 inches shorter. From a utility standpoint it fits nicely. It's much more for young couples, maybe those with small kids who need to throw a stroller in the back, all the junk you carry with small kids, but it's still pretty small as a wagon. The 3-Series wagon really appeals more to people with active lifestyles and the gear they haul around to support that lifestyle.

Q: Where do you see the new Sportwagon fitting in among the explosion of new compact SUVs? Is there any demographic overlap?

A: The small SUVs and the SUV craze itself is more mainstream. The 3-Series wagon is a completely different kind of vehicle. It's truly about haying a great time driving and oh, by the way, bringing stuff. The Sportwagon buyer realizes that for the 90% of the time that they're not hauling anything, they don't want to be driving a truck. And they'll see the 3-Series wagon and know it's the perfect solution to their needs.

COPYRIGHT 2000 Cahners Publishing Company
COPYRIGHT 2000 Gale Group