Quote:
Originally Posted by SD330i
hmm, I disagree but that is cool. I have said it before we all think we are getting a "better" car thus the need for an increase. Is the new M3 a better car then the previous most would say YES. If the exchange rates were equal do you think it is going to cost BMW that much more to make then the previous? Come on that is just now good business. We can debate the economics of it all day long and exchange rates, interest rates, economy of scale, but the fact will remain
- They will not over price their competitors.
- They will price the car to ensure increased sales.
- They will not under/over price their current line or the SPO line.
- BMW will profit off the car.
Not that I am biased or anything but in my opinion BMW is one of the smartest and best run companies in the world and they just happen to sell cars and oh ya ones that I like.  |
Well, I'm not sure what we disagree about at all.
I agree that BMW will price the car appropriately.
I didn't post this to pretend that the M3 is gonna cost 70k base, I was just curious as to how much the tanking dollar will erode foreign profits (and thus cause BMW to consider raising the price to Americans
There are a thousand other variables that affect pricing, which you have pointed out. The ultimate price will be a result of many factors, all I'm saying is that exchange rate will be one of them and it is stacked
against the US. Increased sales goals will be a factor stacked
in favor of the US.
I'm simply saying the more the US$ devalues, the more expensive our M3 will become. Whether it is $100 extra or $5000 extra. If we 'think' we are getting a better car (as you say), then they can charge more (and overcome the exchange rate loss) because increased US demand will allow for a higher price. And I don't think it necessarily costs more to produce E92 vs. E46. I assume it does tho just because raw materials cost more via inflation.(BMW has stated that raw materials have been increasing significantly - even more than normal inflation)
Again, all I'm saying, is that
in general, the weakening US$ will make this car more expensive to us in the long run. BMW can play games with leverage, demand, mnfg plant location, hedging, etc - but
the price of US imports (M3) inevitably rises when the US$ weakens.
Whether the price ends up at $55k or $65k,
It would have been a bit lower guaranteed if the US$ was not weakening.
I assume you agree with that, just misunderstood me.
