MINIs could soon come with bigger price tags

BMW Group's MINI brand is changing its corporate strategy.

The brand has experienced a fair amount of success since its relaunch more than a decade ago.

However, in recent years, the company has struggled to find solid ground in the ultra-competitive compact car segment.

As a result, MINI has decided to make a move upmarket to the premium compact segment.

In addition, Bloomberg's Elisabeth Behrmann reports that the brand will eliminate three of its current models - the Coupe, Roadster, and Pacemen crossover.

"We will concentrate in future on five core models with strong characters," BMW and MINI executive Peter Schwarzenbauer said in a statement.

"We are expanding our offering into the premium compact class, which will attract new customers and avid MINI fans. I firmly believe that this comprehensive realignment will enable us to continue the MINI brand's unique success story."

MINI's justification for this shift upmarket is the company's belief that the segment's 4% annual growth rate offer the brand the best opportunity to grow successfully. According to MINI, the premium compact segment will account for 27% of all cars sold in the world by 2020.

That being said, the road for MINI will not likely get any easier. Currently, this sector of the marketplace is dominated by such industry heavyweights as the Mercedes CLA, Audi A3, and BMW's own 2-Series.