At the BMW gala in Manila, BMW paid the Makati Shangri-La to change its carpets and uniforms in keeping with its party theme. At the Asia-Pacific launch of its longback 7 series, it transformed a lot along Bangkok’s River of Kings into a helipad to be used by journalists who were flown in style from all over the region. And when BMW needed an ambassador to promote its brand, it did not stop short of choosing royalty, a descendant of Ludwig at that, to represent its cars.

“BMW is known to make something out of nothing,” a BMW executive told a group of writers. “When it does so, it always does things in style.”

Couple this style with power in a car and you’ve got the best of German engineering — a global brand that car lovers all over the world have acknowledged to be the most powerful engine there is.

Gilbert: BMW makes sure all expectations of people are not just met, but exceeded

As expected of a global brand with a sterling reputation, the ultimate driving machine easily made its mark in Manila, where it has zoomed to become the undisputed leader in the luxury car segment. At a time when the country is supposed to be clawing itself out of economic straits, Manila’s streets are seeing more BMWs than ever.

Even Mark Gilbert, BMW Philippines President, admits that BMW sales, thus far, have been strong. “We have been happy with our sales in cars, given the tightness of the industry.” Nine months into 2002, BMW has seen car sales surpass its 2001 record. “This is significant in a market that has not increased,” Gilbert notes. Indeed, year-on-year industry sales for cars are down 6% but the company, on the strength of its strong performance, seems insulated from it all.

This robust performance, of course, is by no means an accident. Rather, it is the result of the careful orchestration of moves to ensure the swift uptake of BMW cars even in a soft market.

Heritage of Fine Engineering
BMW’s heritage, it goes without saying, has always worked to its advantage. BMW first emerged in 1916 as a manufacturer of aircraft engines, under the name Bayerische Flugzeugwerke (or Bavarian Aircraft Works). To this day, its emblem — a circle with two white and two blue quadrants — resembles a propeller. As it ventured into the manufacture of automobiles, it was eventually renamed Bayerische Motoren Werke (Bavarian Motor Works). Eighty years from inception, it continues to build on a tradition of quality engineering.

BMW’s evolution into today’s car of choice is a story in itself. While today it has a whole line-up of luxury cars, it started out with a single model that so impressed motoring enthusiasts, they clamored for more of its kind.

To this day, this same sentiment is carried by the rest of the BMW dealerships around the world, including that in the Philippines.

Local Experience
Before BMW officially came to the Philippines, it was already a strong brand locally. People who valued good driving experience took pains to import BMWs. Indeed, Prince Leopold Bayern, an F-3 driver and designated BMW ambassador, stressed that the M stands for motoring and motorsports. “It’s the most powerful M there is.”

Knowing there are enough BMW fans in this side of the world, BMW saw it fit to link up with a Philippine company to service the needs of this market. BMW Philippines Corporation is 70% owned by BMW of Germany and 30% by Jose Alvarez of the Asian Carmakers group.

Under the current setup, Asian Carmakers, which owns the assembly facility, has a contract to assemble BMW cars locally. BMW Philippines, on the other hand, imports car kits and parts and components needed for local assembly.

It is worth highlighting that BMW is the only premium car manufacturer with a direct investment in the Philippines; all others are represented in the country by importers. As a full subsidiary, BMW Philippines carries the requisite parts, supplies, and service to back up its products — something its competitors cannot speak of.

Equating style with success, though, would be selling BMW short.“We are working hard to improve our relationship experience with customers,” says Mark Gilbert. Concretely, this means improving service levels and making sure it has all replacement parts available among its dealers. “Our job is to ensure that dealers deliver on these. Hopefully, it makes a difference.” Part of BMW’s success lies in its ability to understand the psyche of car buyers. Luxury car owners always demand more of their cars and BMW fully understands this. “We make sure that all expectations of people are not just met, but exceeded. We hope to set new standards and establish a lead in whatever area we may be in,” Gilbert stresses.

Of course, BMW is well aware that a good brand not just commands premium pricing, but also means good residual value. It has always taken pride in the fact that even as BMWs change hands, their resale value is always high. Given this, BMW has launched its very own used car program where owners can trade in their cars for a fair price. These cars are then reconditioned and sold as certified pre-owned BMWs with a manufacturer’s warranty.

“These are cars you can buy with confidence from a BMW dealer,” Gilbert explains. Of course, there are exclusions and inclusions. The program, in essence, “rewards BMW owners who look after their cars properly, and tells customers to take care of their cars to preserve its residual value.” It also assures used car buyers of the same quality parts and services that BMW car owners are entitled to.

Despite the strong performance of BMW in the Philippines, Gilbert is aware that the market has yet to live up to its true potential. Among a number of limiting factors, the biggest is the excise taxes imposed on luxury vehicles. These taxes have made luxury car ownership a near-impossibility for majority of prospective car owners, as they considerably jack up prices. “Excise taxes limit opportunities,” Gilbert says.