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Originally Posted by dms
Well, it also depends on the number that BMW decides to build. I think that they were caught a little flatfooted and built way too many 08s, resulting in the oversupply and therefore soft prices. I'm pretty sure that production rate is set far in advance with supplier contracts, and and BMW didn't have the option to really slow down.
If I were the product planner at BMW, I would revise my 09 supplier contracts to make it less likely I'd build too many. Prices for 09s next summer might be less soft.
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I agree with this. My dealer reminded me that BMW is not Chevrolet. They will not go on with the types of discounts they had this summer. Dealers will order less SUVs and stock fewer. I'd expect BMW to pull way back on production unless there is a dramatic decrease in fuel prices. BMW risks harming their brand if they end up with $5500 discounts and 0.9% financing as the norm.