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      03-10-2008, 03:06 PM   #1
the1andony
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BMW priceses

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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      03-10-2008, 03:46 PM   #2
koala
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Probably not going to do anything anytime soon. They'll have to eventually if they wish to remain competitive.
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      03-10-2008, 04:08 PM   #3
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Word on the street is a resounding "no"
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      03-10-2008, 04:14 PM   #4
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The official rate from BMW canada is expire on April 30, let see if they will lower the rate at May.
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      03-10-2008, 04:30 PM   #5
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Doubt it, porsche recently increased their prices (last year sometime) on same model cars.
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      03-10-2008, 07:06 PM   #6
koala
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Quote:
Originally Posted by john970 View Post
Doubt it, porsche recently increased their prices (last year sometime) on same model cars.
This is the Canadian forum so it was probably directed as a Canadian question.

Also, Porsche lowered their Canadian pricing by 10-15% in the fall of 2007.
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      03-10-2008, 07:27 PM   #7
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      03-10-2008, 08:44 PM   #8
the1andony
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but think about all the preasure the other euro company is giveing BMW like porch, audi, vw....how can bmw compet wth them?? i think that BMWs price will come down sonner or later
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      03-10-2008, 09:53 PM   #9
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BMW will prob not lower prices at all. They are laying off their german workers because of the high euro to USD pricing. Word is now, BMW is looking to increase their American production plants by 2012 to take advantage of the low USD. So basically get it made in USA dont pay higher wages. Maybe we will see that 6.1% duty we pay out of NA made vehicles removed?
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      03-10-2008, 10:25 PM   #10
koala
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Quote:
Originally Posted by dalrx View Post
BMW will prob not lower prices at all. They are laying off their german workers because of the high euro to USD pricing. Word is now, BMW is looking to increase their American production plants by 2012 to take advantage of the low USD. So basically get it made in USA dont pay higher wages. Maybe we will see that 6.1% duty we pay out of NA made vehicles removed?
Why would they get rid of duty? Americans pay duty on imported vehicles too.
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      03-10-2008, 10:33 PM   #11
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just got back from the dealer, its looking like its going to be 908.09 a month with a 10g down, 5 year @ 6.75%, not fully loaded just msport + premium, so im looking around 950-975 fully loaded if i go that route
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      03-10-2008, 11:03 PM   #12
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Quote:
Originally Posted by koala View Post
Why would they get rid of duty? Americans pay duty on imported vehicles too.

If the vehicle was manufactured in NA then it would be duty free to Canada.
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      03-10-2008, 11:43 PM   #13
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I thought you would still have to pay duty because many parts of the car are made outside of US.
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      03-10-2008, 11:48 PM   #14
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Quote:
Originally Posted by avonord View Post
I thought you would still have to pay duty because many parts of the car are made outside of US.

All NA built VW's are duty free in to Canada so I can't see why BMW would be any different.
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      03-11-2008, 12:05 AM   #15
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If the VIN starts with a number, then it was built in north america... and then since it was, it is duty free.
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      03-11-2008, 12:39 AM   #16
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and that includes mexico too (I drive a jetta), which means even CHEAPER manufacturing costs for the car maker.
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      03-12-2008, 12:10 PM   #17
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Quote:
Originally Posted by Bringinthewolf View Post
If the vehicle was manufactured in NA then it would be duty free to Canada.
I realize this, but I doubt they'll move that much production over here.
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      03-12-2008, 12:27 PM   #18
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^^^

On the contrary... Just the X's for now though...

BMW Group invests US$ 750 million in US plant. Capacity will increase to 240,000 vehicles by 2012.
03/11/2008 Spartanburg, USA.

The BMW Group is investing US$ 750 million in an expansion of its Spartanburg plant. The move will raise production capacity from 160,000 to 240,000 units by 2012 and boost the company's total investment in the plant to US$ 4.2 billion. The plant will grow in size by 140,000 m² - or 60 per cent - to 370,000 m², and 500 new jobs will be created on site.
The expansion will also lead to a hike in purchase and export volumes into and out of the NAFTA region, which will contribute considerably to the BMW Group's natural hedging strategy.

After the expansion, the Spartanburg plant will manufacture the BMW X3, X5 and X6 models for world markets. "Centralizing our know-how for BMW X models in Spartanburg will enable us to work even more efficiently going forward. In addition, it was a logical step for the BMW Group as a global player to increase production capacity in its largest market," said BMW AG Board Member Frank-Peter Arndt.

The three-year construction project includes a new 112,000 m² assembly facility to accommodate the next generation of the BMW X3. The existing Body Shop will be modernised to prepare for the demands of the future, while the Paint Shop will expand by 28,000 m², or 80 per cent.

"The boost in production capacity will positively impact the logistics, suppliers and distribution networks that support the manufacturing processes," said Josef Kerscher, President of BMW Manufacturing Co. While the supplier network may grow, existing supplier companies will ramp up operations to provide automotive parts for the higher production levels, doubling parts container traffic and significantly increasing exports through the Port of Charleston.

When the BMW Group announced in 1992 that it would build its first full manufacturing facility outside of Germany in South Carolina, it put forward some ambitious plans. The company was looking to invest US$ 600 million. Its aim was to create 2,000 new jobs and attract at least nine suppliers to the state by the year 2000.

Reality far exceeded the company's expectations. BMW was employing more than 3,000 people at Spartanburg in 2000, and by 2004 that number had grown to more than 4,600. As 2007 dawned, the number of on-site workforce had grown to more than 5,400.

BMW has invested US$ 3.5 billion in its South Carolina operations to date. Taking the US$ 750 million of new money into account, the US$ 600 million originally pledged has now swollen to total investment of some US$ 4.2 billion.

The nine new suppliers in South Carolina aimed for in the company's original plans have now become 52. Of those, 40 chose the state explicitly because of the presence of the BMW plant. BMW's North American supplier network has grown from 22 in 1992 to 194 companies today.

The success of local manufacturing in the USA is highlighted by the company's rising production and sales figures. Vehicle production at the Spartanburg plant has grown from 429 vehicles in 1994 - the first year of production - to 157,530 units in 2007. In the same period the BMW Group's sales volumes in the United States increased from 65,000 to 335,000 units.
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      03-12-2008, 01:29 PM   #19
koala
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I'm not surprised they're building all the SUV's in the US... Mercedes does that too.

I just can't see them stepping up too much car production in the US.
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      03-12-2008, 03:05 PM   #20
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Quote:
Originally Posted by koala View Post
I'm not surprised they're building all the SUV's in the US... Mercedes does that too.

I just can't see them stepping up too much car production in the US.
True enough, the Z4's are made here as well I believe, but I can't see them building much else here, you're right. But I suppose you never know, especially with the decline in the US $, it should be a bit cheaper to set up shop there.
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      03-12-2008, 05:11 PM   #21
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Quote:
Originally Posted by the1andony View Post
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?
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:
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