BMW shifts gears, increases prices, shifts allocations
08-02-2008, 08:21 AM
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Originally Posted by JSpira' post='637923' date='Aug 2 2008, 07:59 AM
Click here for an in-depth analysis
the European cars will increase in price and a lot.
One Euro buys about 1,6 dollars today. It used to be $0,95 for one Euro some time ago!
Oil is sold in dollars so we Europeans love it.
The US of A is now for sale - cheap.
The Arabic countries, China and the Russians has already noticed it.
From where did you think the money came from to save the US banks?
08-02-2008, 01:33 PM
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Seems they are still having a sale on 5-series ... just look at M5 prices. The new models are where the new strategy is being played out. I haven't seen many new 1-series, X6's, or M3's floating around.
08-02-2008, 11:34 PM
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Originally Posted by pennetta' post='638043' date='Aug 2 2008, 03:59 PM
BMW hedges currency futures for many year into the future, so they don't need to charge increases in lockstep with the deflated dollar.
"Foreign exchange rates, namely the U.S. dollar, British pound, and Japanese yen, continue to adversely impact profitability."
Reading between the lines it seems that BMW are taking stock of the lack of profitability from US sales, with references to "Driving off the lot" sales and...
"BMW has used discounting and subsidized leases to increase market share, in particular in the U.S."
I think anyone who bought an E60 in the US in the last couple of years got a great deal - and it cannot all be explained by taxes.
08-03-2008, 12:13 PM
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Originally Posted by Lancaster' post='638471' date='Aug 3 2008, 03:34 AM
From the OP's linked article...
"Foreign exchange rates, namely the U.S. dollar, British pound, and Japanese yen, continue to adversely impact profitability."
Reading between the lines it seems that BMW are taking stock of the lack of profitability from US sales, with references to "Driving off the lot" sales and...
"BMW has used discounting and subsidized leases to increase market share, in particular in the U.S."
I think anyone who bought an E60 in the US in the last couple of years got a great deal - and it cannot all be explained by taxes.
"Foreign exchange rates, namely the U.S. dollar, British pound, and Japanese yen, continue to adversely impact profitability."
Reading between the lines it seems that BMW are taking stock of the lack of profitability from US sales, with references to "Driving off the lot" sales and...
"BMW has used discounting and subsidized leases to increase market share, in particular in the U.S."
I think anyone who bought an E60 in the US in the last couple of years got a great deal - and it cannot all be explained by taxes.
There is no question that U.S. purchases of an E60 or any new BMW for that matter have gotten a good deal. My car, when I build it on bmw.de and then convert the price back to US$ minus MWSt., is well over $100,000. I don't think the list price for a U.S. purchase for my car would be over $80,000.
08-03-2008, 01:17 PM
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Originally Posted by JSpira' post='638785' date='Aug 3 2008, 04:13 PM
First, to clarify, it's my article I linked to but the problem of foreign exchange rates is something brought up by both Dr. Ganal and Dr. Reithofer.
There is no question that U.S. purchases of an E60 or any new BMW for that matter have gotten a good deal. My car, when I build it on bmw.de and then convert the price back to US$ minus MWSt., is well over $100,000. I don't think the list price for a U.S. purchase for my car would be over $80,000.
There is no question that U.S. purchases of an E60 or any new BMW for that matter have gotten a good deal. My car, when I build it on bmw.de and then convert the price back to US$ minus MWSt., is well over $100,000. I don't think the list price for a U.S. purchase for my car would be over $80,000.
08-03-2008, 01:43 PM
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Originally Posted by pennetta' post='638820' date='Aug 3 2008, 05:17 PM
Pricing is all supply and demand and the competition. BMW and MB may make less money here but we are their single largest market by country.
08-03-2008, 01:50 PM
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Originally Posted by pennetta' post='638820' date='Aug 3 2008, 02:17 PM
Pricing is all supply and demand and the competition. BMW and MB may make less money here but we are their single largest market by country.
08-03-2008, 02:09 PM
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Originally Posted by calpalmer' post='638838' date='Aug 3 2008, 05:50 PM
... AND achieving the shareholder returns expected by the investors... BMW AG is going for less share and more price going forward, and based on the results quoted above you can see why. Typically a dominant share company will make assertive price moves, and competitors will follow to some degree so that market positions equilibrate more or less where they were with everyone making more money than if the PI weren't made. Cal
The US is a tough market to get your arms around, an example is if we didn't buy BMW's the rest of the world would cut back as well because it would no longer be chiche to have one to some degree. The US market is an image thing.
The investor returns are being bolstered up by the profits from other countries where the margins are higher so the average returns may still be good. BMW and MB have expanded their product lines to increase market share and are building cars in the US to help mitigate currency costs and pricing.
BMW starting offering customer loyalty leasing recently which also cuts into profits, but they did it.
08-03-2008, 02:24 PM
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My Ride: 2008 535i: June 6th start build, complete June 17th, at NY Port July 5th, at dealer July 10th, took delivery Friday July 13- Plantimum Bronze/Natural Brown Leather/Light Poplar, Sport Package, Sport Auto, Active Steering, Premium Package, CWP & PDC. Dinan Performance Software 384hp & 421 ft/lbs.
BMW AG
Then hit tab "Facts and Figures" and select BMW Group 10 yr comparison.
Above is BMW AG 10 year comparison of financial position. 2007 has been the highest number of car sold, its highest revenues, highest assets, highest net profit, lowest capital expenditures, and the highest dividend to investors ever.
Did someone say BMW was having problems?
Then hit tab "Facts and Figures" and select BMW Group 10 yr comparison.
Above is BMW AG 10 year comparison of financial position. 2007 has been the highest number of car sold, its highest revenues, highest assets, highest net profit, lowest capital expenditures, and the highest dividend to investors ever.
Did someone say BMW was having problems?
