BMW anounces January 2009 Price Adjustment

[LeMansX5]

Woodcliff Lake, NJ – December 22, 2008…BMW of North America, LLC announced today an average price increase of 0.7 percent for BMW vehicles sold in the U.S. effective January 1, 2009. This action is driven by the ongoing structural and economical changes in the market place. It will ensure revenue generation for the company’s U.S. operations and help to protect the quality of business.
Pricing for the new Advanced Diesel vehicles remain unchanged. The all new 335d and X5 xDrive35d were launched recently and have begun arriving at BMW Centers this month.

In addition, BMW announced pricing for the new 2009 7 Series that debuted recently at the Los Angeles International Auto Show. The base price for the 750i is $81,125 and the 750Li is 85,025 (including $825 for destination and handling). Both models began production in November and will arrive at BMW Centers in the spring.

See attached for new BMW pricing for model year 2009 vehicles.

[AUU 555]

I saw yesterday at the dealer 2009 x5 xDrive48i with all the options including the aerokit and 20'' = $81.000

[jeep]

Glad I got mine earlier, though I don't really know how it will help BMW, 'cause out here the auto market is pretty tough and competition is stiff.

[BGM]

0.7% price increase and 0.9% financing--I'll take that deal anyday.

[JBHorner]

I suppose the rationale for this is that people who are going to buy are not going to mind an increase. The problem, of course, is that even luxury goods have seen a decline.

I've been looking at buying an airplane, and have seen a tremendous amount of change in attitude from the point I first started looking (April). In April I was told by two reps (Cirrus and Cessna) that their prices are pretty much what they are--no discounts. Since that time, I've had substantial discounts and free options presented to me for '08 models. Yet Cessna is raising prices in '09. Go figure.

I think that .7% isn't enough to scare people away, but it seems odd that they will probably add incentives as well. Maybe this is a way to pay for the incentives.

Joel

[Wagner]

Originally Posted by JBHorner

I suppose the rationale for this is that people who are going to buy are not going to mind an increase. The problem, of course, is that even luxury goods have seen a decline.

I've been looking at buying an airplane, and have seen a tremendous amount of change in attitude from the point I first started looking (April). In April I was told by two reps (Cirrus and Cessna) that their prices are pretty much what they are--no discounts. Since that time, I've had substantial discounts and free options presented to me for '08 models. Yet Cessna is raising prices in '09. Go figure.

I think that .7% isn't enough to scare people away, but it seems odd that they will probably add incentives as well. Maybe this is a way to pay for the incentives.

Joel

[jeep]

I think the idea is that by increasing the prices the incentives look more inviting and hence will spur sales. I would expect better than that from BMW.

[BGM]

I think most manufacturers have some kind of increase each year though, right ?

[AzNMpower32]

Originally Posted by BGM

I think most manufacturers have some kind of increase each year though, right ?

Yes. The € is stablilsing but Japanese carmakers are being hit hard with the Yen's strength. It's now like $1 = 90 yen.