BMW throws big cash on the hoods of its U.S. diesel offerings

2009 BMW 335d – Click above for high-res gallery
When Chrysler started its new "Double CA$H For Your Old Car" promotion that included up to $4,500 in incentives on select vehicles, we weren't that surprised. After all, there are plenty of Chrysler products with at least that much cash on the hood. News that BMW is following suit with the same $4,500 in rebates on the purchase of a diesel powered 335d or X5 is a bit more surprising.BMW is offering the rebates on the X5 35d and 335d as an "Eco Credit" to supplement Cash for Clunkers. BMW points out that on top of the up to $4,500 in incentives, buyers of the Bavarian diesels are also eligible for tax credits of $900 for the 335d and $1,800 for the X5 35d. And since the oil-burners are so efficient, BMW estimates fuel savings over four years at $2,000 verses comparable petrol-powered luxury rides.
The program, which runs through August 31, is being advertised as a one-time special offer, but it could also signal a lack of acceptance for diesel-powered luxury vehicles in the US. That would be too bad, though, because the diesel Bimmers we've driven were flat-out terrific, and with 580 miles/tank and a 20% reduction in CO2, they're eco-friendly, too. Hit the jump to read the BMW press release. Hat tip to Why not the LS2LS7.
Gallery: Review: 2009 BMW 335d
[Source: BMW]
PRESS RELEASE:
Efficiency may be the buzzword of the moment in the automotive industry, but it's hardly a new concept at BMW. We've always lived by the EfficientDynamics philosophy - less emissions without sacrificing performance.
So when the government recently announced its 'Cash for Clunkers' program to reward Americans for driving more fuel-efficient cars, we were inspired to begin an incentive program of our own. Now through August 31, BMW will give you a $4,500 Eco Credit toward your purchase of a 335d or an X5 xDrive35d - the most fuel-efficient vehicles in their class.
But the savings go beyond this limited-time offer. You'll also receive a $900 tax credit3 on the 335d and $1,800 on the X5 xDrive35d. And like any BMW, both diesel vehicles come with 4 years/50,000 miles of zero-cost maintenance. Plus, its best-in-class efficiency will save you approximately $2,000 in fuel costs over four years.4
The question now is not should you or shouldn't you. Instead, it's simply: Are you in the mood for a sleek, all-new sedan or a versatile Sports Activity Vehicle?



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Reader Comments (Page 1 of 3)
Duncan 6:05PM (7/23/2009)
Step one, of course, is to make people aware that your product exists.
Case in point - I've seen tons of TV ads for the new Audi TDI range, but the BMW diesels have been out for months with no advertising to speak of. (Lots of ads for the usual BMW products, of course - but no diesels.)
To be fair, Mercedes-Benz hasn't been pumping BlueTec very hard either - but then, they already have a half-century's worth of diesel credibility to work with.
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J 6:18PM (7/23/2009)
BMW has diesel credibility in Europe, but I agree that they should really ramp up their marketing campaign in the U.S., particularly with nearly every reviewer raving about the car.
Maybe their advertising could focus on diesel availability, too. I think I've heard them mention it a little, but I'm seriously considering a 335d and my most recent drive from DC-Pittsburgh involved a stop at a rest area where the diesel pump was "go inside and pay first" vs. the credit card gas pumps. I've seen a few stations like that, if they have diesel at all, and I've got to say it's a detractor.
TigerMil 7:22AM (7/24/2009)
Yes...and it sux that there is no 6-speed manual trans for those of us in the US that are not shiftless.
Interestingly, there do not seem to be any demo 335d's available in the Washington DC area that I've been even able to try the automatic.
Mike 8:25AM (7/24/2009)
@Tigermil..
Usually I'm on the bandwagon for wanting Manuals over the autos but with diesels... I'm not convinced.
I've driven many diesels in Europe and the shifting gets very tedious once in semi-city driving.
The RPM range is sooo much smaller (but lower and more usable) than gas. Case in point.. if your driving around at 3000rpm in the diesel it would be similar sound/feel of driving like 4500 in the gas.
It's definately a pain to keep switching everytime the car touches 3000rpm. I think if you want performance and gear switching.. then get the 335gas.
I elected against NOT getting this car after speaking with the dealer and it not being offered in AWD. I realize the awd isn't nearly as good as Audi, but I just wanted something for nice cruising mpg, good handling for the NE Winters here and also a decent amount of performance/luxury.
mkM3 12:53PM (7/25/2009)
Tigermil - I'm pretty sure the 335D is not sold with a manual transmission anywhere in the world. At least, that was the case back when it was released. The 330D is though.
b0nesc 6:10PM (7/23/2009)
Does BMW make any diesel coupes? If that milage per tank is accurate I could go a month between fillups.
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sparrk 7:04PM (7/23/2009)
they make diesel coupes. 1,3 and 6 series diesel coupes.
Mirko 1:53AM (7/24/2009)
To be more precise, they make 118d, 120d, 123d, 320d, 325d, 330d, 335d and 635d coupes.
Franz 6:16PM (7/23/2009)
I'd love a 3 series diesel, but the 335d is too pricey IMO. I wish they sold the 320d in the US... my cousin has one (M Sport Touring) and I flat out love the car. It would make a perfect commuter car for me. I swear, if they sold that car here with a $30k-ish price tag, I'd be one of the first in line.
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zamafir 6:24PM (7/23/2009)
Or they could actually offer 'big' cash. I picked up my last vw $5,000 off MSRP. That's a discount i'd qualify as big. Under $1,000? Not so much. I’d like to hear from BMW owners (recent) who think a $900 drop in the price of their car would be a deal breaker.
As mentioned, BMW needs to take a VW sort of approach and inform consumers of their diesel models and dispel all the rumors about diesel the American automotive press likes to tow about as the excuse for no domestic diesels being offered.
Seminole 7:42PM (7/23/2009)
zamafir,
I think you misunderstood the article. I had to re-read it a few times to completely understand it.
On top of the $4,500 cash for clunkers credit BMW is offering an ADDITIONAL $4,500 of their own. Plus, you also qualify for a $900 tax credit. So you get a total discount of $9,900 assuming you qualify for CFC.
Ken 6:22PM (7/23/2009)
Biggest issue I have with this car is...the price. While there are plenty of performance diesel buyers (especially in Europe), this thing needs a smaller engine and less features to bring the price to that of the 328i.
For reference:
328i - $33,600
335i - $40,300
335d - $43,900
Problem is, they are trying to sell this on an economic platform - ummm, I could buy a 328i for $10,000 less. That is a lot of fuel, and more importantly, less up front cost (that IS important). The sort of person who would be able to spend $43k on a small sedan is probably also going to be willing to spend the extra money on fuel.
Make this the 'fun' diesel alternative vs. the luxury diesel (that can be on the 5 Series). Someone who wants to get 30+ MPG all day long, but still wants a fun, semi-affordable car.
Obviously, this car also needs a 6-speed manual vs. the automatic-only we have here.
(Yes, I realize part of the allure of this car is the wall of torque, but you are paying a dear price for that).
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akboss302 6:33PM (7/23/2009)
Excellent point. These cars/SUVs are not directly comparable to the Euro market because Europeans get a lot of entry-level diesels, whereas ours are only in the highest of the range.
Mirko 11:52AM (9/03/2009)
In Europe, the 320d is the top seller. It's price tag is about 75% of the 335d's. Would that work?
John 6:29PM (7/23/2009)
Hmmm.. while at an MSRP of $43,900 the 335d does qualify for Cash for Clunkers (albeit barely)... The X5 35d has a starting MSRP of $51,200 and therefore would not qualify for the CARS program considering one of the requirements is the car being purchased having an MSRP of under $45,000.
Although, just as a rebate $4500 is damn good on an X5 35d.
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Greg 6:41PM (7/23/2009)
Truly the best selling point of the X5 35d, is the fact that you approach V8 performance with fuel economy that exceeds the I6 petrol motor. Add to that, the rebate and the tax break and a thinking man/woman should take note.
Greg 6:29PM (7/23/2009)
I hope this puts people in the seats. The BMW diesels are excellent high performance vehicles that happen to get great mileage.
High cost and perceived lack of performance have held back sales to all but a very few diesel fanatics. Unlike Hybrid buyers who seem to crave -- in your face smugness-- without regard actual cost of ownership, diesel buyers think and want payback.
The cost has been a major factor in BMW diesel's slow sales. I've heard of dealers who have yet to sell their first one. If prospective customers see value they may open their minds to a test drive the X5 and 335d. Once in the seat the inherent virtues will become obvious.
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seanleeforever 7:04PM (7/23/2009)
the 335i is faster than 335d, by a huge margin (4.9 sec vs 6 sec). i don't understand why would anyone pay a preminum for something that's inferior.
sparrk 7:10PM (7/23/2009)
@ seanleeforever, because all you do all day is going from 0 to 60, right ?
Greg 7:21PM (7/23/2009)
Seanleeforever: Comparably equipped the 335i is $3,025 more expensive than the 335d after rebates and tax break. Add in the extra mpg and quicker response to 30 mph and the economy vs. performance argument is not so clear...is it?