Looks like the diese X5 promotion was successful

[Penguin]

On CNBC this morning they interviewed the head of BMW NA for a few minutes. A few things I noted (a) their diesel sales in the US have been very disappointing until August, (b) the sales promo was very successful, and they have added about 1,000 diesel X5's to the production schedule for the remainder of the year, and (3) he thinks in the long-term diesels will be in about 30% of U.S. X3 and X5 vehicles.

[Full Speed]

I was going to buy one anyhow, but the $4500 incentive was the icing on the cake.

[wch X5]

Originally Posted by Full Speed

I was going to buy one anyhow, but the $4500 incentive was the icing on the cake.

Me too.

[Penguin]

Originally Posted by wch X5

Me too.

Careful... if BMW NA sees too many posts like this, they may never offer another incentive!

[Edge647]

I think Canadians would buy more if we had that deal too!

[wch X5]

Originally Posted by Penguin

Careful... if BMW NA sees too many posts like this, they may never offer another incentive!

Perhaps but since they were selling at near invoice before the promotion, it's pretty clear that the diesel was priced a little too high.

[Penguin]

Originally Posted by wch X5

Perhaps but since they were selling at near invoice before the promotion, it's pretty clear that the diesel was priced a little too high.

I think everyone except BMW NA knew this when they announced the price. Most people expected it to be priced no more than $2,000 at the most, with a lot of the sales people thinking less than $1,000 was appropriate.

I think BMW NA figured that with a $1,800 tax credit, they could charge a high price and essentially pocket the $1,800 for themselves, e.g., $3,700 minus the $1,800 tax credit equals a net ocst to the buyer of $1,900... right about where many though it should be priced.

BMW NA Marketing makes some really weird pricing decisions sometimes, e.g., when they launched the X3 it was priced way too close to the X5. And while reviewers generally like the new 1 series a lot, most are surprised by the high pricing compared to the 3 series, e.g., a lot of them believe that while the 1 series is great, it's probably worth the extra money to move up to the 3 series instead.

[Max Blast]

Originally Posted by Penguin

I think BMW NA figured that with a $1,800 tax credit, they could charge a high price and essentially pocket the $1,800 for themselves, e.g., $3,700 minus the $1,800 tax credit equals a net ocst to the buyer of $1,900... right about where many though it should be priced.

I'm wondering how that works out? The $1800 rebate exists solely between a diesel purchaser and the IRS...BMWNA has no stake in that money and F them if they ever thought so, even down to the lowliest CA on the lot.
You're correct in stating that the entire X5 line, the 35d especially is overpriced by about 5K and that's why the "eco-credit" exists. Future MSRPs will only creep upwards, so don't get your hopes up.