38% of German BMW Dealers are in the Red
05-24-2006, 10:23 AM
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According to 5/15 Automotive News, more than a third of German BMW dealers are operating at a loss and are asking for fatter margins (read: higher MSRP or share some of the manufacture's markup). BMW has told the dealers that they could remedy this by not discounting prices to make a sale.
However, the article also notes that in Germany, BMW cars do not have the cache they enjoy in this country, so getting near-sticker is harder.
Sounds to me like how Audi is perceived and sold in this country--at a discount.
Cheers,
Ray Hull
However, the article also notes that in Germany, BMW cars do not have the cache they enjoy in this country, so getting near-sticker is harder.
Sounds to me like how Audi is perceived and sold in this country--at a discount.
Cheers,
Ray Hull
05-24-2006, 10:34 AM
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I read the same thing about BMW factory sub contractors.
BMW is THE brand in the automotive industry right now.
With a BMW reputation a company can sell a lot parts to
lower brand manufactures and hopefully some Mini's.
The tough business world is all around us.
PS. As an old Detroit, resident...
BMW is THE brand in the automotive industry right now.
With a BMW reputation a company can sell a lot parts to
lower brand manufactures and hopefully some Mini's.
The tough business world is all around us.
PS. As an old Detroit, resident...
05-24-2006, 12:14 PM
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There are so many BMW on the street now.
If they can't money like this, they shouldn't do any business, period.
If they can't money like this, they shouldn't do any business, period.
05-24-2006, 12:27 PM
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With BMW sales at a record level along with their profits what are these dealers doing? 
Silly question as answer obvious - crap after sales service so detering repeat buyers 
Silly question as answer obvious - crap after sales service so detering repeat buyers
05-25-2006, 09:01 AM
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I believe a possible problem for these German dealers is financing. The lease, I believe has lead to a huge explosion is the luxury car market, especially with BMW. The fact that Bimmers hold their values better than any other brand, maybe honda when you talk percentages, is a big plus to the leesor and leesee.
Also true for whatever reason, and not just in Germany but throughout Europe, Audi sells. All-wheel drive is huge becuase of the terrain and weather.
Also true for whatever reason, and not just in Germany but throughout Europe, Audi sells. All-wheel drive is huge becuase of the terrain and weather.
05-25-2006, 09:57 AM
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Originally Posted by 545BLK-on-BLK' post='287626' date='May 25 2006, 08:01 PM
Also true for whatever reason, and not just in Germany but throughout Europe, Audi sells. All-wheel drive is huge becuase of the terrain and weather.
05-25-2006, 10:25 AM
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Originally Posted by Ray Hull' post='287128' date='May 24 2006, 01:23 PM
According to 5/15 Automotive News, more than a third of German BMW dealers are operating at a loss and are asking for fatter margins (read: higher MSRP or share some of the manufacture's markup). BMW has told the dealers that they could remedy this by not discounting prices to make a sale.
However, the article also notes that in Germany, BMW cars do not have the cache they enjoy in this country, so getting near-sticker is harder.
Sounds to me like how Audi is perceived and sold in this country--at a discount.
Cheers,
Ray Hull
However, the article also notes that in Germany, BMW cars do not have the cache they enjoy in this country, so getting near-sticker is harder.
Sounds to me like how Audi is perceived and sold in this country--at a discount.
Cheers,
Ray Hull
My take. BMW has greater competition in Germany, as the common preception has it ranking equal to MB and Audi. Believe it or not, Audis are viewed very favorably by many Germans. As a German train commuter said to us in Munich, Vhy didn't yu chose Auudi? Eng good car! Nein? Inglostadt was a 15 minute drive away.
AWD and safety are very important features in Germany. While being there in February, nearly every 5er was equipped with AWD. Saw tons of A4 Avants and A6s. MB and Audis are heavy, strong, and safe.
U.S. market has been fascinated with the BMW brand. No doubt because of the sportness, the RWD, and the performance heritage of U.S. autos that baby boomers remember from the late 50s and entire decade of 60s muscle. Our auto writers have no doubt played a part. I also think BMW has paid more attention to our market and this has payed off. Much the same can be said of Porsche.
Just my little nickel,
CVT Benhogan
05-25-2006, 11:13 AM
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Originally Posted by CVTBenhogan' post='287663' date='May 25 2006, 02:25 PM
My take. BMW has greater competition in Germany, as the common preception has it ranking equal to MB and Audi. Believe it or not, Audis are viewed very favorably by many Germans. As a German train commuter said to us in Munich, Vhy didn't yu chose Auudi? Eng good car! Nein? Inglostadt was a 15 minute drive away.
AWD and safety are very important features in Germany. While being there in February, nearly every 5er was equipped with AWD. Saw tons of A4 Avants and A6s. MB and Audis are heavy, strong, and safe.
U.S. market has been fascinated with the BMW brand. No doubt because of the sportness, the RWD, and the performance heritage of U.S. autos that baby boomers remember from the late 50s and entire decade of 60s muscle. Our auto writers have no doubt played a part. I also think BMW has paid more attention to our market and this has payed off. Much the same can be said of Porsche.
Just my little nickel,
CVT Benhogan
AWD and safety are very important features in Germany. While being there in February, nearly every 5er was equipped with AWD. Saw tons of A4 Avants and A6s. MB and Audis are heavy, strong, and safe.
U.S. market has been fascinated with the BMW brand. No doubt because of the sportness, the RWD, and the performance heritage of U.S. autos that baby boomers remember from the late 50s and entire decade of 60s muscle. Our auto writers have no doubt played a part. I also think BMW has paid more attention to our market and this has payed off. Much the same can be said of Porsche.
Just my little nickel,
CVT Benhogan
Btw., I love you fake german accent......
05-25-2006, 11:29 AM
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Originally Posted by CVTBenhogan' post='287663' date='May 25 2006, 07:25 PM
My take. BMW has greater competition in Germany, as the common preception has it ranking equal to MB and Audi. Believe it or not, Audis are viewed very favorably by many Germans. As a German train commuter said to us in Munich, Vhy didn't yu chose Auudi? Eng good car! Nein? Inglostadt was a 15 minute drive away.
AWD and safety are very important features in Germany. While being there in February, nearly every 5er was equipped with AWD. Saw tons of A4 Avants and A6s. MB and Audis are heavy, strong, and safe.
U.S. market has been fascinated with the BMW brand. No doubt because of the sportness, the RWD, and the performance heritage of U.S. autos that baby boomers remember from the late 50s and entire decade of 60s muscle. Our auto writers have no doubt played a part. I also think BMW has paid more attention to our market and this has payed off. Much the same can be said of Porsche.
Just my little nickel,
CVT Benhogan
AWD and safety are very important features in Germany. While being there in February, nearly every 5er was equipped with AWD. Saw tons of A4 Avants and A6s. MB and Audis are heavy, strong, and safe.
U.S. market has been fascinated with the BMW brand. No doubt because of the sportness, the RWD, and the performance heritage of U.S. autos that baby boomers remember from the late 50s and entire decade of 60s muscle. Our auto writers have no doubt played a part. I also think BMW has paid more attention to our market and this has payed off. Much the same can be said of Porsche.
Just my little nickel,
CVT Benhogan
Valid but BMW market share in Germany and across Europe is rising fast along with Audi and BMW have overtaken Mercedes (falling market share due to a perception of poor quality) in the 5 series segment.
This explosion in BMW sales is at odds with the dealer losses. Hence my earlier post as people will avoid crap service and go to a dealer they can trust.
05-25-2006, 11:50 AM
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We are talking about long time marketing, in EU and in the US.
But they are very separate market areas and I have to say that
far east markets cannot be forgotten.
BMW has intoduced the x and it's doing really great.
But Audi has advertised the Quattro for some 25 years now.
Audi has also gone more for the interiour and BMW for RWD and tradition.
Mercedes has made a lot of big mistakes, starting from not only buying but
making the good old MoPar (Chrysler Division) to an German brand.
I'm sure old fashioned Americans did not buy that taught.
Mercedes also started to build their cars cheaper - the E series rust (!) and
thats a big laughf.
The E series is then most important car for Daimler-Chrysler as is the E60 for BMW.
BMW is the only car brand except for Honda that only produces cars and MC's.
VW/Audi/Skoda/Seat/Bugatti is a mass producer, but what about the Skoda brand.
If BMW really listens to its customers (BMW(also MC's)/Mini/Rolls-Royce and builds
premium cars for most demanding customers they will survive as winners...
But they are very separate market areas and I have to say that
far east markets cannot be forgotten.
BMW has intoduced the x and it's doing really great.
But Audi has advertised the Quattro for some 25 years now.
Audi has also gone more for the interiour and BMW for RWD and tradition.
Mercedes has made a lot of big mistakes, starting from not only buying but
making the good old MoPar (Chrysler Division) to an German brand.
I'm sure old fashioned Americans did not buy that taught.
Mercedes also started to build their cars cheaper - the E series rust (!) and
thats a big laughf.
The E series is then most important car for Daimler-Chrysler as is the E60 for BMW.
BMW is the only car brand except for Honda that only produces cars and MC's.
VW/Audi/Skoda/Seat/Bugatti is a mass producer, but what about the Skoda brand.
If BMW really listens to its customers (BMW(also MC's)/Mini/Rolls-Royce and builds
premium cars for most demanding customers they will survive as winners...