Automotive News - February 18, 2008 - (Page 10)

10 • FEBRUARY 18, 2008 Luxury brands push to meet demand in Russia James Franey jfraney@craincom.de Hungry for luxury Russia sales for premium brands 2007 2006 % CHANGE Mercedes was Russia’s top-selling premium brand in in 2007. An S class is shown. Premium automakers want to capitalize on rising demand for high-end cars in Russia by adding dealerships. Mercedes, BMW and Lexus will add stores in Russia this year. Audi promised to double the number of its stores by 2010. Mercedes, Audi, BMW and Lexus all had strong sales growth in Russia last year (see table, right). Klaus Maier, executive vice president of sales and marketing for Mercedes Car Group, foresees “further dynamic growth in Russia.” Mercedes aims to benefit by adding sales outlets in metropolitan areas, he said. Mercedes 15,330 9,316 64.6 Audi 15,313 10,050 52.4 BMW 14,008 9,031 55.1 Lexus 13,148 10,065 30.6 Infiniti 5,540 729 660.0 Source: Association of European Businesses in the Russian Federation Mercedes’ Klaus Maier: Big growth in St. Petersburg and Moscow rapidly year on year, you have to follow up with the service facilities and sales network.” A spokeswoman for MercedesBenz Russia said 10 new dealerships would open there this year. “We need to put more infrastructure in the St. Petersburg and the Moscow areas because that’s where we have exploded,” Maier told Automotive News Europe. “If you grow so Mercedes on top Mercedes was the top-selling premium brand in Russia in 2007. Its sales rose 65 percent to 15,330 units, according to figures from the Association of European Businesses in the Russian Federation. Mercedes rivals BMW and Audi have set ambitious global sales goals over the next decade. BMW wants to sell more than 2 million cars by 2020; Audi aims to sell 1.5 million cars by 2015. Capitalizing on Russian growth will be key if they are to meet those goals. According to the Association of European Businesses, BMW was up 55 percent in Russia in 2007, selling 14,008 cars. Audi grew 52 percent to 15,313 units. BMW CEO Norbert Reithofer said that to keep growing in Russia, BMW wants to go beyond the traditional hot spots of Moscow and St. Petersburg. Christian Kremer, CEO of BMW Russia, said the company would increase the number of Russian dealers to 53, from 42, and boost local production 40 percent to 6,300 cars a year. “We need to be able to react in time to new market trends and be flexible enough to meet the requirements of Russian customers,” Kremer said during a press conference in Moscow this month. Ralph Weyler, Audi board member for sales and marketing, told Automotive News Europe that the automaker would concentrate on key metropolitan areas in Russia. “Eighty percent of our sales volume in Russia comes from Moscow and St. Petersburg,” Weyler said. Audi has 36 dealers in Russia but says that number will double by 2010. A lot of money is buried in your database. G O L D D I G G E R identiﬁes those sales and GOLDDIGGER ident GOLDDIGGER service customers service customers who a “ready-to-buy”. ie t r are We set the appointments for you, send them to your store, and you make the sale that’s money in the BANK! Our detailed ROI reports show you just how much. Japanese are strong, too sells cars, g uarant eed! l s cars guaranteed! ls gu a uaranteed! ed! 866- 450- 5392 We M a ke You r C alls. c om Japanese premium brands also are on the rise in Russia. Lexus and Infiniti made big gains last year. Lexus sales rose 31 percent to 13,148. In its first full year in the market, Infiniti’s volume increased 660 percent to 5,540 cars. A spokeswoman for Lexus Russia said the carmaker would be opening six new dealerships in Russia by the end of 2008. Infiniti Europe CEO Jim Wright said the brand has no plans to add to its three dealerships in Russia. “It takes about 18 months to open a site in Russia. So what do you do? Open some kind of temporary site just to get the cars through but reduce the brand experience for the customer?” Wright said. “We need to maintain a certain level of customer experience because, if not, you will pay for it in the end.” c Bettina Mayer contributed to this report http://WeMakeYourCalls.com

Table of Contents Feed for the Digital Edition of Automotive News - February 18, 2008

Ford cuts equipment combinations on '09s Lenders shun subprime market Toyota dealers test satellite service centers Despite cost, more carmakers use laminated glass Merger produces turnaround firm Chrysler would shut to move Plastech work Jeep accessories: Mo' for Mopar Auctions: Repos are rising Automakers face more child safety rules Supplier Personnel Family-owned stores could be tough sell for consolidation What would lineup be with brands under single roof? Mercedes will pay $9.5 million to settle suit Beru revamps strategy to boost profits, growth Jaguar: Dealers take 10,000 customer deposits for XF sedans Chrysler exec: Performance segment will survive Mahindra to offer hybrids in U.S. Mazda ad agency hires VW and Mini creative whiz Icy weather and perhaps boredom chill roadster sales GM, Saturn: What's after Reynolds? Ford: Mid-sized model year for mid-sized cars Kia's new American boss: Let's boost sales Rolls gets sporty Luxury brands push to meet demand in Russia Dealer is makers' best voice in D.C. Get real, Kia, Hyundai Face it, Detroit: Trimming dealers will be expensive GM has confidence in the Chevy Volt It's no wonder auto sales are declining A workable idea: GM dealer buyouts It's deja vu again with reborn 2CV Nothing beats face to face There's a person behind that e-mail Buying cars online makes perfect sense Bush seeks to save 2008-11 CAFE rules Personnel Lear investor: No regrets about blocking buyout GM CFO is mum on more aid to Delphi Dealers Road to tomorrow is paved with plastics Council aims to keep Ford current on environmental issues VW ponders Phaeton's U.S. flop, may try again McGuffie is Covisint's president In hydrogen race, Mazda seeks quicker route Suit seeks to enforce title-washing remedy Suppliers to the 2008 Buick Enclave Mercedes, Audi warn dealers: No sales for export Sykora wants CAFE flexibility Minority dealers see tough times in 2008 Arlena Sawyers Toyota goal: Create stress-free store NADA's Taylor predicts 15.7 million U.S. sales this year Honda widens support for dealer ad groups Jay's jabs Survival 101: Get lean, work harder Microsoft will test dealership system Farley wants market-by-market sales strategy Entertaining the troops Report: Detroit 3 cutbacks curb rental-fleet sales Dilts: High interest rates hurt industry GM asks for dealer assistance on quality On the Record Fisker: We're close to making plug-in car J.D. Power exec: Internet leads are slipping away Minority auto group nears 2 deals Garmin makes navigation technology deal Tenneco wins Ford work B-P-G focuses on new product push Volvo offers cash to thin the herd Cadillac challenges dealers to boost sales Chevrolet can stay No. 1, if it will fight GM will push a green marketing message Saturn is expected to be GM's growth brand Certified used sales help Honda dealer profits Hummer counts on pickup to perk sales Mazda will boost marketing budget, unveil Mazda6 Saab dealers to get new vehicles Toyota wants even better customer loyalty Infiniti stresses profits and customer satisfaction Mitsubishi CEO sets tough U.S. sales goal Nissan exec: New models will boost per-store sales Suzuki dealers cheer return of incentives Ford to boost dealer margins Jag dealers anxiously await the XF Ford executives vague about Mercury future Subaru dealers want diesels, hybrids Acura upscale shift inspires 'great faith in the future' BMW readies national loaner-car program Land Rover: Future upbeat, unclear VW dealers get vehicles on wish list Chrysler dealers OK with consolidation plan Mercedes pushes dealership standards Porsche shrinks as luxury segment lapses Large Hyundai dealers get more room to roam Execs' exit stuns Kia dealers Ford recalls 180,000 trucks over door part, fuel hose GM posts massive loss; eyes N.A. profits by 2011 Big-truck sales fall 33.5% in Jan. WTO rips China's tariffs on imported auto parts Fiesta will rejoin the party in the U.S. UAW's Valentine to Delphi: Hands off our pensions Rx for dealership flux: NFL draft + Mideast bazaar Toyota gets the boot in Mexico Nissan triples female managers Silverado hits a million, rolls on

Automotive News - February 18, 2008

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