BMW Sebastian Mackensen, head of the company’s North American division, said the company wants to continue producing sedans despite U.S. tariff pressure on German imports and a significant increase in sales of sport utility vehicles.
Mackensen made the comments in an interview on Tuesday, the day before BMW unveiled the latest version of its full-size 7 Series sedan. It includes many design and technology features originally developed by BMW for electric vehicles.
The 7 Series cars will be the first vehicles without an electric powertrain to feature new technologies such as a panoramic head-up display in the windshield and a voice assistant using artificial intelligence. Other upgrades include an enlarged drop-down screen that can turn the back seat into a small movie theater, along with a 36-speaker array.
Dubbed “Neue Class” (German for “new class”), BMW intended its EVs to combine futuristic design and software-driven vehicle platforms, following in the footsteps of EV manufacturers such as: tesla, Rivian, clear And Chinese brands.
“There are so many innovations already in place that the company decided they needed to incorporate them into our entire lineup,” Mackensen said.
The 7 Series currently starts at more than $99,000 for the base model, with starting prices up to $168,000 for the high-performance i7 M70 EV.
“This is right at the top of our product portfolio,” Mackensen said. “This is the pinnacle of what we produce in terms of luxury, but obviously always, always performs.”
But since 2018, another full-size BMW, the X7, has overtaken the 7 Series in sales in the United States. In 2025, BMW sold about twice as many full-size X7 SUVs as full-size sedans, combining sales of both the 7 Series and similar two-door 8 Series.
This reflects industry-wide trends, with SUVs significantly outselling sedans.
The X7, on the other hand, is manufactured in Spartanburg, South Carolina, and the 7 Series, like all BMW sedans, is an import. Vehicles shipped from Germany to the United States are subject to a 15% customs duty.
“This is definitely going to have an impact,” said Robbie DeGraff, AutoPacific’s manager of product and consumer insights. “It is unlikely that BMW will reallocate production of the 7 Series within the United States. Therefore, BMW will need to closely monitor demand and actual sales to determine how much it is worth importing the 7 Series.”
He added that the i7 is at even greater risk given the slump in U.S. EV sales.
“Show show”
Some of BMW’s closest competitors, such as Mercedes-Benz and Porsche, still have full-size sedans, but several luxury and luxury automakers have pulled sedans from the U.S. market in recent years.
Swedish manufacturer Volvo has stopped importing the S60 and S90 sedans in 2025. Lexus will discontinue production of its full-size sedan LS in the United States after the 2026 model year. German rival Audi has announced that it will discontinue production of the A8. It’s been several years since the American brand Lincoln produced sedans of all sizes.
Mackensen said this means the 7 Series sedan has a lot of potential.
“We clearly have a successful SUV lineup,” he said. “But we’ve always been very successful as a sedan brand. Sedan represents a fairly high percentage of our total sales. And we like sedans. Many of BMW’s customers like sedans, and we don’t intend to stop offering sedans in the future.”
Stuart Pearson, head of automotive and mobility research at Oxcap Analytics, said that by some metrics, sedans don’t have as strong a business case as SUVs.
“If you weren’t thinking about image or brand and were thinking purely economically, you would just say, ‘Is this model worth returning?’ You might say no,” Pearson said.
Pearson added that BMW sells many low-cost sedans. The 7 Series shares its underpinnings with some models, such as the smaller 5 Series, which increases production costs. He added that the 7 Series is a technological flagship.
“I think these days they’re making these things more to prove what they can do than anything else,” said Sean Tucker, editor-in-chief of Kelley Blue Book. “The fastest version of the 7 Series to date has a 0-to-60 time of 3.5 seconds, which is ridiculous for a car this big. The back seats are just as plush as the front seats. … This is everything BMW can build. This is a showpiece.”
Overall, a significant percentage of customers are still considering sedans. According to an AutoPacific survey of 18,000 Americans planning to buy or lease a car in the next three years, 45% of prospective BMW buyers said they would most likely buy a four-door sedan. This percentage is very similar, if not identical, to that of Mercedes-Benz and Audi.
“I don’t think BMW will drop the 7 Series or Mercedes-Benz will discontinue the S-Class in the near future,” De Graff said. “That’s shocking to me. These two brands understand their target audience very well. Again, consumer choice is important in the luxury space.”
The United States alone accounts for about 30% of BMW’s profits, Pearson said, and those profits will only grow as the automaker faces increasing pressure from Chinese manufacturers.
“The United States is an important market for BMW,” Pearson said. “It’s always been one of the most profitable markets.”
Mackensen said the brand has set “ambitious” overall sales goals for the U.S. in 2026, but declined to provide specific numbers. According to Kelley Blue Book, BMW will be the best-selling luxury brand in the United States in 2025.
“I’m bullish about BMW’s performance in the U.S.,” he said.
