BMW ute possible

BMW's opposition to building a ute could be softening.

Only last year BMW's Asia, Pacific and South African chief, Hendrik von Kuenheim, told carsales.com.au that BMW would "definitely not" build a ute, despite arch-rival Mercedes-Benz announcing it would move into the ute or pick-up market in 2018.

But now his subordinate, BMW Australia's Managing Director, Marc Werner, has told carsales.com.au that a BMW ute is actually possible.

"Never say never," said Werner at this week's BMW M3/M4 Competition launch in Queensland.

"We're watching the space closely," responded the BMW Australia MD when quizzed about BMW's attitude towards the new Benz ute.

As guarded as Werner's comments were, they are significant because he was at the Melbourne media briefing in May 2015, where von Kuenheim made his emphatic declaration.

For Werner to soften from his boss's hard line suggests the German company's attitude towards venturing into the ute market is thawing.

Not that Werner was being optimistic or predicting something happening soon.

"It's easier for Mercedes [to bring a ute to market] because they have commercial vehicles and trucks and vans. We do not."

"And perhaps it's easier for Audi. Just take the Amarok, why not?" said Werner, suggesting that the Volkswagen ute could be rebadged and upgraded with DNA from VW Group's luxury brand.

The lack of a commercial division is an obvious impediment for BMW but it already has a strong relationship with Toyota, with which it's currently co-developing high-end sports cars.

Could the Toyota HiLux be a donor vehicle for a BMW ute?

BMW has shown off some quirky ute concepts in the past, such as the BMW X3-based ute from 2014 and the classy April Fools joke from 2011 that transformed a V8-powered M3 (pictured) into a you-beaut ute.

And if BMW did green-light a ute, it wouldn't be the first promise the company has broken. Indeed, it adopted front wheel drive vehicles in recent years after swearing it would only ever build rear-drive vehicles to retain its "Ultimate Driving Machine" status.

BMW also has the option of developing a high-performance 'lifestyle' oriented ute like the Hyundai Santa Cruz, which is aimed squarely at the US market – a market that BMW would no doubt want to tap.

The pick-up market in the US is incredibly lucrative and would add strength to a business case for a BMW ute that would targets regions such as Australia, South East Asia and South Africa, where utes sell in droves.

Werner agreed that demand for top-spec utes in many key global markets is expected to grow.

When Mercedes-Benz’ new ute or pick-up truck hits the road in 2018, possibly named the GLT-Class, it'll redraw the battle lines in the segment by offering a high-end, luxury vehicle with towing and load lugging capabilities.

The BMW Australia boss, who argued the Mercedes ute was just a rebadged Nissan, has presided over a prosperous period at BMW over the last two years. The first-half of 2016 has been particularly positive for the Australian importer, with sales up by a whopping 25 per cent for the first half of the year, to 15,754 sales up from 12,602.

Roughly half of BMW's local sales are accounted for by SUV or 4WDs, but as Werner explains getting a ute across the line will be very challenging.

"Yes it's harder for us but we'll be watching how Benz goes."