• May 27, 2008
Most would argue that BMWs already flirt with being overpriced, though Munich would argue with you. The dollar's drop has hurt BMW's ability to earn a margin on each vehicle it sells in the United States, so prices will be bumped by one-percent beginning in June. BMW has taken a 17-percent whack in income for the first three months of 2008 as sales have slowed, the dollar weakened, low resale values, and bad debts have cost the luxury automaker. Though it's facing a slight slowdown due to those factors, a one-percent price increase is relatively modest, and shouldn't cause much consternation when it comes time to sign on the dotted line, though it makes the 135 that much more rareified. As long as it keeps vehicles like the M3 coming, we'll gladly let you pay more for your X6 -- we weren't getting one, anyway.
[Source: Bloomberg]


I'm reporting this comment as:

Reported comments and users are reviewed by Autoblog staff 24 hours a day, seven days a week to determine whether they violate Community Guideline. Accounts are penalized for Community Guidelines violations and serious or repeated violations can lead to account termination.


    • 1 Second Ago
  • 29 Comments
      • 6 Years Ago
      "we'll gladly let you pay more for your X6 -- we weren't getting one, anyway." Classic!
      • 6 Years Ago
      They should just install a fuel efficient and money saving in line 4 and charge a starting price of $23.000.
      It is ridiculous to put in the same engine as 3 and take away its sales. Who want to pay so much and pay more for oil. An economic engine in the U.S. will show people that the Germans are not total pecker heads.
      • 6 Years Ago
      So let me get this straight. They want to increase the price of their cars when the economy isn't doing so well and aggressively priced cars like the G8 and Genesis are around the corner. Great planning guys.
        • 6 Years Ago
        Most people who are buying a BMW see no other competition beside which BMW they should buy. a 1% price bump will not even be noticed
        • 6 Years Ago
        I was hoping they'd raise prices more - BMW's are rarified air esp the new X6 and 135i coupe/conv.
        • 6 Years Ago
        Be serious, please. The price of a G8 is irrelevant. Same with the Hyundai. Caddy's should do well tho.
      • 6 Years Ago
      Buddy of mine bought an 05 745 for 36k with like 30k miles. So in less than 3 years the car lost about $40,000+ ouch!! I do not pretend that other luxury cars do not faces the same fate, but these numbers were shocking. For 5 grand more, instead of my Mustang GT, I could have had a 745..
        • 6 Years Ago
        And a whole lot more problems to boot.
      • 6 Years Ago
      not to worry, when the dollar bounces back and equals the euro, i am sure BWM (or any other car maker) will lower the price of their cars... I mean look what happened in Canada!
        • 6 Years Ago
        @Vintage:

        I believe that is called "sarcasm".
        • 6 Years Ago
        And when is that happening?
      • 6 Years Ago
      As the man in his new Corvette drives by and laughs. Knowing for a true driving machine he couldn`t do better for less than $250,000.
      MrZip
      • 6 Years Ago
      I'll be buying my 06 Z4 at the end of the lease - I plan to CPO it and get the extended warrenty - CPO is the way to go. For tax reasons buying a BMW new only makes sense if there are good lease incentatives
      • 6 Years Ago
      Speaking from Canada, what "aboot" the other 28%?
      • 6 Years Ago
      "Most would argue that BMWs already flirt with being overpriced"

      Most Audi models are much, much worse when it comes to bang-for-the-buck amongst luxury car brands.
        • 6 Years Ago
        Yacoub: You said - "Most Audi models are much, much worse when it comes to bang-for-the-buck amongst luxury car brands."

        If you look at lease prices (which most Americans do since they like to live beyond their means) yes that is true. Audis aren't subsidized nearly as much as BMWs. For that, they are more profitable. Generally speaking though, the three German makes have relatively closely prices vehicles in their respective segments. You can still get an A4 /3 series/ c-class for under 30k if you dont check off many options.
        • 6 Years Ago
        Oh, I don't know about that. Audi in that past has typically priced about 5% lower than a BMW, which is typically priced about 5% lower than a Mercedes.

        Audi is usually considered somewhat of a bargain compared to the other German marques.

        And hmm, Yacoub... Egyptian?
      • 6 Years Ago
      The X6, M3, and 1 series are not getting this price increase, their prices are already adjusted. Only previously existing models will receive the price increase. I saw this news a couple weeks ago on another site, and I have known of this price increase since last year, my dealer friend told me. I thought the price increase was going to be higher so this is actually a welcome surprise for me. I stress the words FOR ME just so no one gets defensive here.
      • 6 Years Ago
      Interesting...is it arrogance to think that increasing ones price would counter the losses of people not purchasing BMWs as they are already overpriced.

      Leave it to the Germans to think the laws of supply and demand dictating prices would not apply to their products. Especially in a depressed market.

      Simply put if the consumer is not buying your product then there is either a problem with the quality of your product (which is not the case with BMWs) or you have priced yourself out of the current market. My bet is they will continue to lose sales and money in the US and will counter act that with further price increases.
        • 6 Years Ago
        I won't disagree that it can signal quality to some buyers. And the only thing that is certain in any economy is the uncertainty of the consumers. Consumers can do odd things that are not explained by any rational economic theory.

        Sure $500 on $50,000 may be insignificant, however an educated consumer would say what has changed in quality between the release of the 08 model on the current 08 model that I am buying. Truthfully nothing. But again assumes consumer education.

        As far as I am concerned the US has bargain deals on BMWs for the same M3 in Canada we pay significantly more.
        • 6 Years Ago
        This is true. Mercedes did exactly the same thing in the 1970's.

        The S-class at one point was priced very similarly to a Cadillac or Lincoln. Then with inflation and exchange rates, the S class became far more expensive, virtually overnight.

        And Mercedes has pretty much kept that price disparity ever since. And I don't think it has hurt them all that much...
        • 6 Years Ago
        Actually, there are several approaches to pricing in a difficult market. Of the different approaches, raising the prices is a legitimate option.

        The 1% increase is negligible and probably won't do a whole lot for their bottom line, nor will it significantly affect buyers. However, raising prices is often perceived by the market as a signal of quality. In other words "We know the economy is bad and everyone is offering cars at cut rate prices but, our cars are sooo much better that we'll raise prices." An insignificant 1% raise in prices can deliver this quality signal.
      • 6 Years Ago
      does that mean I can get my made in Spartanburg, SC BMW cheaper since it should cost BMW less to manufacture?
    • Load More Comments