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BMW to raise prices 1%
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Sweet Gsus
BMW to raise prices 1%
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on:
May 27, 2008, 12:59:21 PM »
I believe we've already talked about Toyota-Lexus doing this, so now its BMW's turn.
Bayerische Motoren Werke AG, the world's largest maker of luxury cars, plans to raise prices in the U.S. by 1 percent because of the weak dollar.
The increase for cars such as the X5 sports-utility vehicle and 5-Series luxury sedan will take effect on June 1, Markus Sagemann, a spokesman for the Munich-based company, said today.
``It's a moderate price increase that reflects the conditions in the market,'' Sagemann said in a telephone interview, adding that the last U.S. increase was in March 2007.
The dollar's drop hurts BMW because the company gets fewer euros for every car it sells in the U.S. The dollar has fallen about 8 percent against the euro this year. This means that for a car like the 5-Series, BMW gets more than 2,000 euros ($3,150) less now for each one it sells than it did at the beginning of the year.
The carmaker took a first-quarter charge of 236 million euros because of bad debts and lower values on cars it sells in the U.S. after leases expire. BMW, which sold 22 percent of its cars in the U.S. in 2007, raised lease rates by about 3 percent on May 1. Higher new car prices typically boost used car values.
The first-quarter charge led to a 17 percent drop in BMW's net income for the first three months. Four-month U.S. sales fell 4 percent to about 100,000 cars as the financial crisis sours consumers' desire to make purchases.
Source: Bloomberg.com
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09M35 (yes)
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Re: BMW to raise prices 1%
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Reply #1 on:
August 18, 2008, 09:48:44 PM »
1 percent is nothing. A 328i coupe decently equipped is already $40K.
What's $400? That's not even good for spinkles or walnuts on the option package, lol.
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Re: BMW to raise prices 2.1%
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August 26, 2008, 11:58:35 PM »
Update:
Quote
BMW has announced an average 2.1% price increase for the U.S. market across its 2009 model year range as a response to rising raw materials costs and exchange rate pressure. The price rise will affect those models that go on sale from October as well as a number of their related options and packages. The latest price increase is BMW’s second rise in the U.S. since June, when it raised prices on its 2008 lineup by a single percent.
“The significant structural and economic changes in the marketplace are prompting all automakers to further refine actions to respond to these pressures,” Jim O’Donnell, president of BMW of North America, said in a statement. “At BMW, we’re responding with a number of internal efficiency improvements to offset our increased costs so that we can keep this price increase modest.”
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09M35 (yes)
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Re: BMW to raise prices 1%
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Reply #3 on:
August 27, 2008, 09:45:01 AM »
Which turns into a 3.121% increase since the beginning of the year. I also read the lease offerings are nowhere near as good as they were either, as they've adjusted residuals and rates.
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Re: BMW to raise prices 1%
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August 27, 2008, 10:47:29 AM »
Thanks, I meant to post that as well, but neglected to do so. 3% adds up when you're talking the price of a car. I believe in this state sales tax is around 3% so its a substantial increase.
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Re: BMW to raise prices 1%
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August 27, 2008, 04:06:19 PM »
More of a reason not to get a BMW... Thanks brandon, just make it even worse!!!
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Re: BMW to raise prices 1%
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August 27, 2008, 07:33:57 PM »
actually there is a thread about it... but most of the foreign car companies have raised prices (toyota I believe is what is in the thread title) in response to the weakening strength of the dollar lately.
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