With gasoline prices now at record highs around the country, there has been a sharp spike in demand for fuel efficient vehicles. Most automakers are scrambling to increase production of their thriftiest models, but BMW is taking another route with its Mini brand.
Mini sales are way up this year – with most dealers only having a 5-day supply – but BMW has no current plans to increase the U.S.’ allotment of Mini vehicles.
The supply problem stems from Mini’s lone production facility in Oxford, England. The Oxford plant is currently running at full capacity and BMW is not ready to commit to a costly expansion. However, that isn’t stopping Mini from lobbying its parent company to boost capacity. “Increased capacity equals cost,†Tom Kowaleski, BMW’s North American vice president of corporate communications, told Automotive News. “It comes down to the accuracy of forecasting.”
Mini sold 26,400 vehicles through the first six months of 2008, an increase of 33.6 percent.
Kowaleski also said that Mini pricing would probably see an increase for 2009 — due to rising raw material costs — but no specific numbers have been set.
