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      04-18-2007, 10:13 AM   #2
gmund1948
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Germany
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Drives: 335 cab,C-6 08, 73 911E 59 D,
Join Date: Apr 2007
Location: American in Germany

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American and Cars demand both ways

Quote:
Originally Posted by swiss_cornholio View Post
I read a lot about waiting lists (especially from Americans) and deposits. Here in Switzerland it goes more like: "M3? Just wait for the brochure, then we discuss the details and then you order. Deposit? If you don't choose too strange options, we don't need that."
Are the dealers in the US just smarter than those in Europe or do we get enough Ms in Europe so there's no need for a waiting list?
I believe there are two factors that play heavily into this

1. The US Price of a comparable BMW at todays exchange rate is so much cheaper in the US. Europeans dont normally buy American Made cars, so
Americans have no real domestic compettitor to BMW (Cadillac Maybe)
The Japanese cars are mass producred and even the performance versions are normally available in reasonable numbers fairly soon after launch.
My 335Cab with all but Nav was $47,9 USD or 35,200K Euros the same car on the German website is 66K Euros with vat. 100% same options, I get Military/
Diplomatic discounts but 5K USD is not going to effect it much
THATS NEARLY HALF PRICE !

2. BMW NA and GMBH have worked hard to make sure the market has not become saturated by the M-3, Pent up demand allows for people to step down to a 335 and BMW has kept their numbers up. Americans assume it is also in short supply in Europe, We on a net forum know better however the
Magazine reading American does not. It is next to impossible to export a
M-3 Euro spec to the states with our differing safety and Emission standards.
It makes no economic sense.

The Other Way
3. Americans can buy X-5s at huge discounts to the Germans and German dealers allocations are often 9 Months out The same with the ML350 from Mercedes. They have lists shared with Audi of known vehicle brokers in the US and part of their sales aggreements often include you may not export clauses. The Dealers are SEVERELY Penalized whena vehicle Like the X-5 or ML-350 show up in Italy, Russia, Korea or anywhere else. The Rest of the World will pay dearly for the Well made SUV, It has become a status symbol.

MB of North America will not sell me an ML on the Diplomat military program
It is 56 percent of what a German Pays for one and 40 Percent of what an Italian pays (find that ODD)

With the exchange rate it is quite profitable to send these SUVS to Europe, Pay the import fees and the VAT, convert to pass TUV and sell on the Market
here. Now if they catch you end up on a broker list and MB, BMW and AUDI will make you life miserable with special legal departments to do just that.

THe Warranty is still valid in the Europe but it goes from 4/50Miles US
in BMWs to 2 yr Unlimited in Europe

Its a game of supply and demand, to Europeans, Luxury SUVS have become status hot selling Vehicles.
The M-3 is a Hot US market car, now if the Us imposed tariffs and the M-3 became $110K to equal the British market would it sell as many
Probably not............................................... .....................
THe Same Corvette I can buy new at $43K USD with a very good warranty
would cost $105K USD in the UK

As a BMW/Porsche/MB/Reman car enthusiast I Like it this way

As an American, I see we are putting our own car companies
out of business buy not charging tariffs

I can order a Vette and have it in 6 weeks, you can have a BMW in about the same time anywhere in Europe, except an X-5

If a Corvette was $43K USD or Around $3OK Euros would it sell ?
Even if you added 19 percent VAT it would be a hit because it would be chaper than any Car and about what a VW Beetle Convertable costs !
Appreciate 0