BMW to outstrip U.S. sales growth-executive

BMW (BMWG.DE) expects to increase its U.S. market share and benefit from double-digit growth rates in U.S. auto industry sales over the next two years, North America President Jim O'Donnell said on Wednesday.

"We would expect to at least mirror the U.S. industry. At least," O'Donnell told Reuters in an interview. "We expect to do a little better because we have lots of new cars coming out."

O'Donnell said he is optimistic about the U.S. economy in general and for BMW's sales growth, forecasting at least 10 percent growth for the U.S. industry in 2011 and 2012 from about an 11.4 million vehicle base this year.

"I don't think we're going to have a double-dip (recession)," O'Donnell said. "We're not planning for it."

One key new product for BMW is the redesigned X3 small SUV scheduled to go on sale in January. BMW captured the small SUV market when it introduced the X3 in the United States in 2003, but the segment is now led by Mercedes Benz and Audi.

"I don't think we can ever get back to that dominance because we were virtually unmatched," he said. "I think what we'd like to do is be up there as a serious challenger to the two existing dominant players."

BMW's sales of the X3 were up 16 percent in the first half of the year to more than 3,400, while the brand's sales were up 7.6 percent in the first half of the year overall.

"Now, I think we've got something that we can really compete head-on with them. And I'm comfortable that we'll do at least 20,000 units," O'Donnell said.

BMW said on Tuesday that it was pleased with the first month of sales for its new 5 series sedans.

"The 5 series is, if not the most important, certainly the second-most important product that we have in North America in both volume and in a profit point of view," he said. "It's crucially important to our success. It's what epitomizes BMW in North America. It will be very successful."

The full range of the sedan series cars is not yet available, with an all-wheel drive version among others yet to come. But once the 5 series is fully deployed in showrooms in mid-2011, "we will again become the top dog in that segment."

About half of BMW's sales in the United States are leases, a figure that has been decreasing, he said.

"We're happy with 50 percent," lease rate, he said. "But it seems to be gradually to be going down a bit because people, I think, want to feel the security of owning something."