BMW wants to continue making sedans despite U.S. tariff pressures on German imports and much higher sales of sport utility vehicles, said Sebastian Mackensen, the company’s head for North America.
Mackensen made the comments in an interview Tuesday, a day before BMW unveils an updated version of its 7 Series full-size sedan, which includes a host of design and technology features that BMW originally developed for its electric vehicles.
The 7 Series vehicles will be the first without an electric powertrain to be equipped with the new technology, which includes a panoramic head-up display in the windshield and a voice assistant using artificial intelligence. Other upgrades include an enlarged drop-down screen that, when paired with a set of 36 speakers, can essentially turn the rear seats into a small theater room.
Called “neue klasse” – German for “new class” – BMW had planned for its electric vehicles to merge futuristic designs with a software-driven vehicle platform, following the lead of electric vehicle makers such as Tesla, Rivien, Lucid and Chinese brands.
“There are already so many innovations that have come to fruition that the company decided we need to integrate these innovations across our entire line,” Mackensen said.
The 7 Series currently starts at over $99,000 for the base model and hits a starting price of $168,000 for the high-performance i7 M70 EV.
“I would say it’s really at the top of our product portfolio,” Mackensen said. “It’s the pinnacle of what we produce in terms of luxury, but obviously always, always performance.”
However, since 2018, another full-size BMW, the X7, has surpassed the 7 Series in the United States in sales. In 2025, BMW sold nearly twice as many full-size X7 SUVs as full-size sedans, when combining sales of the 7 Series with the similar two-door 8 Series.
This reflects an industry-wide trend, with SUV sales having far outpaced those of sedans.
The X7, on the other hand, is manufactured in Spartanburg, South Carolina, while the 7 Series, like all BMW sedans, is imported. Vehicles shipped from Germany to the United States are subject to a 15% customs duty.
“That’s definitely going to come into play,” said Robby DeGraff, manager of product and consumer insights at AutoPacific. “I don’t see BMW reallocating production of the 7 Series to the United States, so the automaker is going to have to carefully monitor demand and actual sales, to see how long it will be worth importing the 7 Series.”
He added that the i7 is at even greater risk, given the decline in electric vehicle sales in the United States.
“A centerpiece”
Although some of BMW’s closest rivals, such as Mercedes-Benz and Porsche, still offer full-size sedans, several premium and luxury automakers have pulled theirs from the U.S. market in recent years.
Swedish automaker Volvo stopped importing its S60 and S90 sedans in 2025. Lexus will discontinue the LS full-size sedan in the United States after the 2026 model year. German rival Audi announced it would stop making the A8. It has been several years since the American brand Lincoln no longer manufactured sedans of all sizes.
Mackensen said that means the 7 Series sedan has a lot of potential.
“We obviously have a successful SUV lineup,” he said. “But we have always been a very successful sedan brand. We have a significant share of sedans in our overall sales. And we like sedans. A lot of BMW customers like sedans, and we have no plans to stop offering sedans as well in the future.”
By some metrics, sedans don’t have as strong a business case as SUVs, said Stuart Pearson, head of automotive and mobility research at Oxcap Analytics.
“If you were purely economic and didn’t think about image and brand, just saying, ‘Well, is this model worth the return?’ “You might say no,” Pearson said.
Pearson added that BMW sells many sedans at low prices. The 7 Series shares bases with some of these, like the smaller 5 Series, so the cost of production is progressive. And, he added, the 7 Series is a technological flagship.
“I think they’re building lately, more to prove they can than anything else,” said Sean Tucker, editor of Kelley Blue Book. “The fastest version of the 7 Series currently has a 0-60 time of 3.5 seconds. That’s absurd for a car this size. The rear seats are as luxurious as the front seats. … It’s all BMW can build. It’s a showpiece.”
A significant portion of customers still consider sedans as a whole. According to an AutoPacific survey of 18,000 Americans who plan to buy or lease a vehicle in the next three years, 45 percent of potential BMW customers said they were most likely to purchase a four-door sedan. This percentage is very similar, if not identical, to that of Mercedes-Benz and Audi.
“I don’t think we’ll see BMW pulling the plug on its 7 Series anytime soon, or Mercedes-Benz killing off the S-Class in the near future,” DeGraff said. said. “For me, it would be a shock. These two brands really know their target audiences. Once again, consumer choice is king in luxury.”
The United States alone accounts for about 30% of BMW’s profits, according to Pearson., and this has only increased as automakers face increasing pressure from Chinese automakers.
“The United States is a crucial market for BMW,” Pearson said. “It’s always been one of the most profitable markets.”
The brand has set “ambitious” overall U.S. sales targets for 2026, Mackensen said – although he did not share specific numbers. In 2025, BMW was the best-selling luxury brand in the United States, according to Kelley Blue Book.
“We are optimistic about BMW’s performance in the United States,” he said.