BMW’s New Strategic Vision

Sections: In the Press, Official News, Opinion, Sales/Marketing Aug 2nd, 2008 4 Comments

As we had mentioned earlier in the year, when BMW moved the majority of US bound 3 series production to outside of Germany, BMW is adapting to worldwide economic conditions in order to increase profitability.

We could further elaborate on this after several announcements yesterday by BMWAG but to put it simply: We can not analyze the situation any better than our dear friend Jonathan Spira. Jonathan is CEO and Chief Analyst of Basex Inc., as well as a key contributer to Roundel and the BMWCCA. His full analysis of the future BMW strategy can be found here: Shifting Gears: BMW to Cut Production and Raise Prices

We have seen this coming for sometime due to the down turn of the US economy and the strength of other emerging markets, what will be interesting to see is exactly how much of an increase we are talking and what future models will get scrapped.

Written By: Michael

Jon

A typically insightful and well written article by Jonathon Spira.

I think BMW moving the brand to somewhat more what Mini uses here in the States works well, though a certain percentage of BMW owners are expecting to walk into their dealers and find the car they want. I however think the success Mini has had with its predominantly custom ordered cars shows the potential.
Chris B.

That’s great news, BMW’s will become more expensive to purchase than they already are. Good for them they’ll probably retain the “free maintenance” warranty program to keep interest and give incentive for prospects to come in and buy that just have to have a Bimmer no matter what the cost.

I’m curious to see how this will effect the already mass market image of BMW in the future seeing so many on the streets already. It would be in BMW’s interest to allocate production for other cars like the 3er than their gas guzzling “SAV’s” to Spartansburg if they wish to maintain US market share. Wishful thinking I know.
SS

Will this have any impact on the European Delivery program and the ability to negotiate a good deal? If not, then taking delivery through ED makes even more sense.
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