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Z3 (E36/7) Message Board
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Mod-O-Matic (beta!): Please vote with care. You must be logged in to use Mod-O-Matic Move post to: For Sale | Group Buy | Off Topic | NWS/Adult    Remove due to Spam/Troll | Prohibited       Highlight as: Informative | Success Story
 
Author:  
bmv on 2008-08-28 at 00:07:59(Roadfly member #29003; Roadfly Inner Circle member since 2003-04-28) 
    
Subject:  
You want Push, BMW's resorting to Pull in USA (89 views) 
Message: Looks like the big boys are trying to shake things up after the recent bad news, so now the bad news is on us. Bad news calls for 8100 job cut.

Seriously, Dood...Ya still hung-up on dat? Again, 5,000 of those are temps, i.e., not official BMW employees, so non-event.

I see, you seem to be explaining the Push to Pull change of philosophy:

What you want to see as *strategic*, I see as *tactical*.

-Price Increases
-Buy your car at MSRP only, and wait for delivery.


Which is precisely how, IME, one would expect BMW would respond to the adverse situation of having their products cost-based in euro's, while their revenues are dollar-based.

This is why I referenced BMW's current situation with the MINI...

YOU want an 120d hatchback, because of current high prices of pump gas in the US. Fine. I don't have a disagreement with that, on a functional/operational basis -> BMW's diesels ROCK! However, I do have a huge problem with that, on a commercial basis...From BMW's POV.

At this point, I think we need to remind ourselves that one of the reasons why gas/fuel is more expensive in dollar terms is because the dollar is weaker against other major currencies, particulary the euro & pound.

Your previous links ignored this fundamental aspect.

So, given the US market's aversion to BMW-branded hatchbacks and diesels in general, one might conclude that the MINI d would be an effective interim solution. Yet, that's not what they're doing, is it? No, they're going to Pull.

-Limited production and
X7 cancelled and other SUV production stopped


Personally, I'm skeptical of 'reports' that the X7 was ever seriously considered. The E70 (vs. E53) has 3rd row option. The E71 has its own niche. What other niche could a X7 possibly target? Seems like they're covered at the upper end.

So basically sell less cars for more money, bottom line over sales volume,

See! Your demand that they export the (lower profit margin) 120d here would only excerbate the adverse currency issue. Agreed?

abandon US sales figures.

As of yet, BMW NA hasn't backed down from their forecasts that 2008 will set another record - BMW + MINI.

Looks like Mini is going to get a Peugeot diesel engine?? Boy makes the TDI look better, although it is probably pretty decent.

I'm not sure, but I get the gist that it's not 50-state compliant, like the Toyota(IIRC) diesel application for the 1st-gen MINI.

So I would imagine that they will try to get out a X1 soon, built in S.C. hopefully with diesel option sometime soon??

X1 production will be outsourced to Magna-Steyr in Austria; following conclusion of E83 production there. Production of next-gen X3 will be shifted to Spartanburg.

Here's a funny thought. What if BMW goes on to sell 100K+ X1 2.0d's worldwide, but zero in the US because of ongoing FX conditions??? =8^)

More 2.0D envy:

520d vs Prius Mileage Test - Guess who wins?


Granted, BMW's diesels may be the *right* product, but the US isn't the *right* market *right* now...

As far as VW TDIs (Diesels) sales go, VW only model to get a diesel is the 2009 Jetta and they are currently taking orders, you have to put your money down and then you can get on a waiting list, the first ones are just being delivered now - for those who put money down months ago. There have been no VW Diesel cars for sale since 2006. Probably the only car that I have ever seen appreciate in value! My local dealer said I could probably get a Jetta TDI sportswagen by next summer if I put down 1k now..

What about the Toureag V10 TDI? That seems to be available, per vw.com.

So why did you bring up VW's sales? YTD'08 sales are up ever so slightly, due mainly to cars that, effectively, weren't available (widely if at all), a year ago - R32, Eos & Tiguan.


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~bmv



 
 



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