Quote:
Originally Posted by the1andony
if u have been on to audi or vw or Toyota's websites you can see that they have lowered most of there car price by more than 4000 thousand dollers....do u guys think that Bavarian Motor Works(BMW) will lower there pricese as well?
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Please help me understand the logic of your reasoning..
2 years ago (March 2006) 1 EURO was worth $1.40 Canadian.
Today, the Euro is worth $1.53 Canadian.
So the Canadian dollar has depreciated 9% against the Euro during the past 2 years.
The 1er is built in Germany, using labour, parts and materials all being paid for by BMW in Euros (weak U.S. dollars has no effect on BMW cost structure - at least for BMW vehicles built in Europe)..
So to be precise, BMW is making 9% less on every car it sells in Canada than it did 2 years ago (assuming no pricing changes).
That the U.S. dollar has lost value against our dollar and the Euro should not cause BMW to reduce its pricing to us when our dollar has also lost ground against the Euro in the past 2 years.
I know some car companies have reduced pricing here - primarily to discourage Canadians from cross border shopping - not because the strength of our currency (or lack thereof) warrants it..
So, on what basis should BMW reduce the price of the 1er - which is already bargain priced when compared to the other BMW series and comparable competitors and even more bargain priced when compared against what all other countries are paying (except the Yanks) and against the value of our dollar vis-a-vis the Euro.. :iono: