Quote:
Originally Posted by Suzie's Dad
BMW are trying to raise prices across the board. They took a bath last year on residual values of leases and they have been really hard hit by the huge drop in the value of the US dollar. Their profits last year were the lowest in over a decade. I'm guessing they are also pretty inefficient -- they have been on a roll for 15 years with essentially the same management team, which any MBA student can tell you almost always leads to a lot of fat in the system. The only way they will reverse any of the increases will be if sales drop in response. If that happens, expect a bunch of incentives like cheap leases rather than outright MSRP drops. The high early sales of the X6 are no indicator: almost every new model sells well at first to all us early adopters. It is the second and subsequent years that tell the real story.
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IMHO
The problem with most management teams is too many freshly minted MBA students and not enough people that actually know anything about the business their in.
I think the lease business is dead for a few years. I suspect BMW to use the same sales model as they did with the X6, create a lot of hype then produce units slowly so there are waits. This will give the appearance of "exclusive" to the brand.