BMW to raise prices by 1% to counter weak dollar
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]
Reader Comments (Page 1 of 2)
PaulPaul 9:09AM (5/27/2008)
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!
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Vintage 9:26AM (5/27/2008)
And when is that happening?
Mel. R 9:39AM (5/27/2008)
@Vintage:
I believe that is called "sarcasm".
Tool 9:19AM (5/27/2008)
No problem, BMW. When the dollar bounces back (assuming that it does), we'll be looking forward to you reducing prices 1%.
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sk 9:36AM (5/27/2008)
Compared to the Euro the dollar lost 20% over the last year.
tom 9:26AM (5/27/2008)
"we'll gladly let you pay more for your X6 -- we weren't getting one, anyway." Classic!
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geo.stewart 9:41AM (5/27/2008)
does that mean I can get my made in Spartanburg, SC BMW cheaper since it should cost BMW less to manufacture?
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yacoub 10:03AM (5/27/2008)
"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.
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Bill Montgomery 6:18PM (5/27/2008)
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.
rip 3:41PM (5/28/2008)
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?
sw 10:05AM (5/27/2008)
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.
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pmiddle5 10:52AM (5/27/2008)
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
jg 12:07PM (5/27/2008)
Be serious, please. The price of a G8 is irrelevant. Same with the Hyundai. Caddy's should do well tho.
Robert 12:38PM (5/27/2008)
I was hoping they'd raise prices more - BMW's are rarified air esp the new X6 and 135i coupe/conv.
Chris 10:06AM (5/27/2008)
Funny, what about cars they already make in the US. Do those get jacked up too?
As to another's comparison with Audi - damn and I though BMW was silly in their pricing but the Audi dealer in Marietta takes the cake. Explains why they always have super lease rates on banners - people choke when seeing the prices.
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LMBVette 10:21AM (5/27/2008)
I stopped by a BMW dealer last week. I was absolutely shocked by how much the cars on the lot go for. It's one thing to see the base price, but the cars on the lot were priced through the roof with the options they put on there.
They had about a dozen M3 coupes and sedans. Most were 65k and higher...oh...then there was something called "AMP" on the sticker as well. I'm guessing that stood for "Adjusted Market Price".
They had a 335i convertible there that was 60k. Huh?
They had a 135i convertible that was 54k. I'm sorry....what was that.....54k? Bahahahahahaahaha!!!
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Chris 11:22AM (5/27/2008)
Yep loaded my 335i convertible was $59k. Good luck finding a great hard top convertible with the performance and technology found my BMW.
The Other Bob 12:21PM (5/27/2008)
"Good luck finding a great hard top convertible with the performance and technology found my BMW."
You keep telling yourself that.
Chris 12:21PM (5/27/2008)
sorry Chris, you can justify over paying for any car you want but it still doesn't make it right.
I don't know of anyone who paid MSRP or higher for their BMW... and if they were so great BMW would not have such sweetheart deals on the leases
Mondo 12:52PM (5/27/2008)
+1 on not paying MSRP for a bimmer.