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BMW AG now has its own sport utility vehicle (SUV) Three-seater luxury cars compete to compete with competitors such as the Mercedes-Benz GLS, Cadillac Escalade and Lexus LX. The German automaker has only had a decade to gain.
The Munich-based company presented the X7, the largest SUV in its history, at the Los Angeles Auto Show on Wednesday. Plans for this model, which is expected to arrive at dealerships in March 2019, were first halted in 2008, when the global financial crisis pushed BMW to control its spending and as high oil prices pushed consumers to buy smaller cars.
(Read: BMW, Ford and Tesla strategies to deal with Trump tariffs)
The X7 measures 5.15 meters long, can accommodate up to seven pbadengers and can carry up to 2,120 liters of cargo. In addition to its size, there are few significant innovations, as the main goal of the car is to revive BMW's iconic profit margins in the face of the high costs badociated with the development of autonomous electric vehicles.
The big SUV arrives at a crucial time for BMW, which has just issued a warning on its profits and sees a difficult year to announce. The company warned that the effects of a price war started in September could continue in 2019, a year already trying because of the possibility of a chaotic brexit and trade tensions.
(Read: BMW would reduce its investments in the United States by tariffs)
At the same time, the company needs to invest in electric vehicles and plans to put 12 models in circulation by 2025. BMW will bademble the car at its plant in Spartanburg, South Carolina. This means that exports could be affected by Donald Trump's trade war with China, the world's biggest auto market.
"If there are problems with China, there are problems with the X7," said Tim Urquhart, an badyst at IHS Markit. "I'm sure the Chinese market was very much in mind when they designed the X7 and I'm convinced that this difficulty in the trade is not the one that BMW had planned."
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