For decades, BMW has advertised its vehicles as “the ultimate driving machine.” The meaning of that phrase has started to slip. In an age of connected technology, ultimate driving machines automatically brake for their passengers in emergencies or beam content from mobile phones and tablets as much as they may accelerate quickly or handle nimbly.
That puts BMW, the world’s top-selling premium automaker by sales volume, in a difficult position. It must maintain its reputation for driving dynamics while also catering to changing consumer tastes—like better fuel efficiency and more advanced technology. And it is trying to do so with competitors like Audi and Mercedes-Benz nipping at its heals. Brands ranging from Toyota to Hyundai are also trying to sell more premium vehicles.
Last year, worldwide BMW sales rose 9.5% to 1.81 million cars, while Mercedes-Benz deliveries jumped 13% to 1.65 million vehicles. Volkswagen-owned Audi posted an 11% increase to…
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