Hot European sales delay U.S. launch of the BMW X1 possibly until 2012

BMW won't launch the X1 small crossover in the United States before late this year, and the vehicle may not arrive until 2012 because of hot demand in Europe.

"We are supply constrained," said Jim O'Donnell, CEO of BMW of North America. "As long as they keep selling them, I do not know when we are going to get it."

The decision to delay U.S. sales was made late last year. The X1 went on sale in Europe in November 2009 and demand has outpaced supply.

"It surprised everybody," said Ian Robertson, BMW board member for global sales and marketing. "It hit a sweet spot, and, given all the other things, it arrived at the right time. It sold out in every single market."

O'Donnell said BMW will review X1 availability in April, which means that the earliest it could arrive in the United States is September. O'Donnell said the delay does "not worry me at all" because BMW is currently launching its higher-volume, redesigned X3 crossover in the United States.

O'Donnell said the X1 will be a low-volume vehicle in the United States, similar to the 1-series coupe and convertible. But, he added, "we need to get a minimum for a full year of 8,000 to make it worthwhile."

After peaking at 34,604 in 2004, U.S. sales of the previous generation X3 dipped to 6,075 last year. BMW has high hopes for the new and larger X3, which is the size of the first generation of the X5 crossover.

By Diana T. Kurylko- Automotive News