Lindsay Duffield is president and chief executive officer of BMW Group Canada.

A 47-year-old native of Guelph, Ont., he is the first Canadian-born president of BMW Canada. He joined BMW Financial Services in 1996 as vice-president, U.S. sales and marketing. Before joining BMW Group, Duffield spent three years as director of marketing and communications at Mercedes-Benz Credit Corp. in Norwalk, Connecticut, and 14 years with IBM in Canada and the United States in various sales, marketing, operations and financial services positions.

Duffield holds an MBA from the University of Toronto and an Honours Bachelor of Business Administration degree from Wilfrid Laurier University in Waterloo, Ont. He is married and has two sons.

Vaughan: With an all-time record sales month in October things couldn't be better at BMW Canada. But isn't that when things usually start to go wrong?

For example, everybody knows the new, improved 3-Series is going to arrive here in less than a year and the 3 makes up more than half your total sales volume. My question is: if I want to buy a 3 why wouldn't I wait until the new ones get here? And therefore, how are you going to sell all the old ones that are based on the 1999 model?

Duffield: Yes, times are good and we remain on pace for our 14th consecutive year of increasing sales in Canada.

The 3-Series has been an integral part of that sales growth; in fact, we've sold twice as many of the current-generation 3-Series as its predecessor.

It continues to set the benchmark in its segment.

There will certainly be a rush to be first in line for the new model when it arrives mid-next year. However, the current 3-Series sedan is an incredible car and offers such great value that there is no better time to acquire one, while they're still available.

Vaughan: The Audi A3 2.0T should be in Canada next May. So where's the BMW 1-Series to compete with it?

Why the big delay to 2007? I've read that it's because it was poorly received in Europe because of its rough ride and needs improving.

Duffield: Michael, I am surprised you say this because the car has been extremely well accepted in Europe and Asia by the press and public, with over 15,000 units sold in the first six weeks on the market.

As more engine and body variants are added to the 1-Series lineup, we will choose the model that best suits the Canadian market. Consumers that are interested in the 1-Series can be sure that, when it comes to Canada, it will have all of the hallmark BMW qualities of rear-wheel-drive performance and dynamics, combined with premium quality.

And, in the meantime, I encourage those looking for a premium small vehicle to try a Mini.

Vaughan: What's the state of competition between the German archrivals BMW and Mercedes-Benz? At the moment you have passed M-B as the No. 1 luxury car brand. Are the new rivals Lexus and Infiniti?

Duffield: We always keep a close eye on our competition. Being number one means that all manufacturers from Germany, Japan and America are looking at what makes BMW so successful, and trying to catch up.

To triple our sales volume in Canada in the past seven years, our retailers have focused on providing the ultimate customer experience. And we have combined that with a growing product lineup. As the chairman of BMW Group, Helmut Panke, has said, "We will never let anybody build a better BMW than BMW."

Vaughan: If I order a BMW and you don't happen to have my model and colour and options in stock I'll have to wait about three months for you to get one over from Germany. Surely BMW should be able "build to order" and ship faster than that or, better still, open a car plant in Canada.

Duffield: In Canada, many customers like to pick their car from our retailer stock for immediate delivery. As a result, we've worked hard to provide a better selection of vehicles at our retail stores across Canada.

Of course, for others, the appeal of owning a BMW or Mini is the exclusivity and individuality of their car. As a general rule, made to order takes three months, and for a tailor-made car built to a customer's exacting specifications, that's pretty reasonable.

And for customers acquiring an X5 or Z4 built in Spartanburg, South Carolina, we can have a custom-ordered vehicle from plant to your driveway in as little as six weeks.

Vaughan: Are you going to build any more retail "palaces" like the six-storey one at the foot of the Don Valley Parkway?

Duffield: You and the 100,000 people that travel the Don Valley Parkway daily notice BMW Toronto as a new Toronto landmark and powerful statement of BMW Group's commitment to Canada.

We have no plans to build another such corporate store, and I might add that our investment in this store is only a fraction of what our independent retailers have invested in their facilities across Canada.

Michael Vaughan Live is on at 6 to 7 p.m. Monday to Friday on Report on Business Television.