There were many factors that influenced BMW decline of unit sales from 96,000 in 1986 to 53,000 in 1991 in the US market.
The entrance of Japanese manufactures in the US luxury car scenario in 1989 selling reliability with price competitiveness, an old fashioned positioning relating BMW's brand only to luxury/performance business and some economical and political events contributed to a loss of market share and image.
Environmental Analysis
Sales in US declined from 1986 peak of 96,000 units to 53,000 in 1991. By 1991, it had declined by 24% due to the Tax Reform about 10% and the Stock Market Crash of October 1987, both an economic and emotional blow to the luxury car market.
In general there was a change in social values and consumer behavior. The "conspicuous consumption" of the early 1980s gave away to a more value-oriented purchasing.
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