Welcome and heartening news after the less-than-stellar global statistics. Because just like nearly every other automaker, the economic crisis has affected BMW. In June sales of the MINI brand were down by 15% over last year, and those of BMW Canada in its entirety were down by 6%.
“Canada benefits from a more stable banking system and a carefully managed economy. That’s why the effects of the crisis are not as bad here as in the U.S. or Germany,” notes Jung, who arrives at a crucial moment for BMW’s Canadian subsidiary. After all, we know it benefited from 18 years of consecutive sales growth.
And since 2004 BMW is ahead of its two Teutonic rivals in Canada. A status that the new head of the company doesn’t want to lose.
For Franz Jung, a strategy is needed to maintain the number one spot. It is based on four goals: maintain the top position for sales of luxury vehicles, lead in every segment where BMW is present, take care of the brand’s clients and reduce the company’s operating costs.
As for operating the company, the Globe and Mail reminded us in its June 19 edition that BMW’s workforce was reduced by 20% last year already. But it was still not enough. The departure of Joe Lawrence, sales manager at BMW who left to become CEO of Porsche Canada in July, created an “opportunity” to refresh the higher echelons of management. New sales managers were named for BMW and MINI. “If you set up new directions, you choose your team around that. And if you see needs or opportunities to change it, you put people in place that fit best those new directions,” explains Jung.
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| According to Franz Jung, the brand’s dealers have to pay more attention to their clients to ensure long-term success. |
“Canada benefits from a more stable banking system and a carefully managed economy. That’s why the effects of the crisis are not as bad here as in the U.S. or Germany,” notes Jung, who arrives at a crucial moment for BMW’s Canadian subsidiary. After all, we know it benefited from 18 years of consecutive sales growth.
And since 2004 BMW is ahead of its two Teutonic rivals in Canada. A status that the new head of the company doesn’t want to lose.
For Franz Jung, a strategy is needed to maintain the number one spot. It is based on four goals: maintain the top position for sales of luxury vehicles, lead in every segment where BMW is present, take care of the brand’s clients and reduce the company’s operating costs.
As for operating the company, the Globe and Mail reminded us in its June 19 edition that BMW’s workforce was reduced by 20% last year already. But it was still not enough. The departure of Joe Lawrence, sales manager at BMW who left to become CEO of Porsche Canada in July, created an “opportunity” to refresh the higher echelons of management. New sales managers were named for BMW and MINI. “If you set up new directions, you choose your team around that. And if you see needs or opportunities to change it, you put people in place that fit best those new directions,” explains Jung.
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| The new head of BMW Canada hasn’t dismissed the possibility of a diesel-powered MINI eventually being added to the lineup. But nothing has been confirmed. |