BMW M3 Forum (E90 E92)

BMW Garage BMW Meets Register Search Today's Posts Mark Forums Read


Go Back   M3Post - BMW M3 Forum > BIMMERPOST Universal Forums > General BMW News and Cars Discussion
 
Evolve Automotive
Post Reply
 
Thread Tools Search this Thread
      10-09-2008, 06:01 PM   #1
Palbay
Captain
 
Palbay's Avatar
 
Drives: 2007 BMW X3
Join Date: Oct 2007
Location: Upstate,SC

Posts: 634
iTrader: (0)

New BMW Sales Strategy

This just popped up in my home email. From Bimmer/File. Looks like Uncle Bimmers "Pull" sales plan ain't workin out so well.None of this is good for BMW.Truly in a Worldwide Financial meltdown.Apparently the 40,000 or so car allocation that was going FROM the US TO Russia,China,India,etc.... might find its way back to the US.In this economy there is a fine line as to how much someone will pay for a luxury item.Might be a good time to grab a Bimmer! Thanks! PalBay
Link to BimmerFile

BMW Re-thinking Sales Plan

Posted: 09 Oct 2008 01:39 PM CDT

As you all know by now BMW made the decision a few months ago to change its strategy. They opted to use the “pull” mentality in much the way MINI operates and has been successful, a car is sought by a purchaser rather than pushed by the dealer. This is to keep supply and demand in check and not allow for a huge inventory or surplus of cars.

Indications from inside Woodcliff Lakes is that there is another change coming. All indications are that the pull plan is going out the window because the economic downturn has gone global and is not just a US issue. BMW had cut US allocations to send them elsewhere, the problem is that elsewhere is getting hit harder with this downturn than the US. The economy in Russia has lost about half of its value in the past few months, a key emerging market for BMW that is no longer going to have the anticipated demand. That is not to mention the issues in Europe and the remainder of Asia.

As we reported yesterday, BMW will be cutting overall production at the Leipzig plant. This was not part of the original plan of just moving allocations, by eliminating cars this signifies something far worse. The other major issue is that customers are not making large scale purchases, like cars, in fear of our economy worsening. This is not helped by the “pull” mentality and the fact leases are not being subsidized as much as in the past. While the industry as a whole is suffering BMW is seeing former customers looking elsewhere for a lower payment as even with the Owner Loyalty rates BMW is not even in the same ballpark payment wise as other marquees.

In a nutshell BMW has indicated that they will announce “a new aggressive sales and marketing plan by tomorrow”. Making Friday announcements is a technique BMW has been using to spur commenting on blogs and forums over the weekend to get some easy free marketing; mainstream media will cover it as well but over the weekend word of mouth picks up a bit.

We suspect that leases may become a bit more reasonable but more so that financing will become even better for longer periods of time. This would make buying the car via financing have similar payments as a lease. There may be new “pull ahead” programs to get existing lease customers into newer cars sooner with special money factors. While these ideas are pure speculation, something is coming tomorrow and it should move cars.

From our conversations with salespeople in the industry this is welcomed news, as they are getting minimal traffic these days and financially hurting badly.

We should have more details by tomorrow afternoon so stay tuned.
__________________
Palbay is offline   United_States
0
Reply With Quote
      10-09-2008, 06:22 PM   #2
chuck92103
Major
 
chuck92103's Avatar
 
Drives: 2011 535i
Join Date: May 2008
Location: Socal

Posts: 1,209
iTrader: (0)

If BMW wants to sell cars he is what I would do.

Extend maintenance and warranty on all models for 8 year 100k models standard.

People would then be ok financing for 5-8 years as the warranty and maintenance is covered.

I think the basic 4yr/50k warranty sucks.

I think the 6yr/100k warranty sucks because they know the aeverage person drives 12k miles per year. So the warranty effectively becomes 6yr/72k. Nothing more than a marketing gimmick as the tranny will fail at 80-120k.
__________________
2011 535i
2008 VW GTI
chuck92103 is offline  
0
Reply With Quote
      10-10-2008, 08:00 AM   #3
Jet335i
Captain
 
Jet335i's Avatar
 
Drives: 2011 E92 IB ZCP DCT
Join Date: Apr 2008
Location: Jersey City, NJ

Posts: 868
iTrader: (5)

I agree on the maintenance/warranty issue, though people NEEDING more than 60 months to pay off a car (even then that's a decent amount of time) just indicates to me there's no scenario in which they can financially swing that car and still be saving money.

A lot of people are scared of owning a bmw (ok, I don't know if that's true but I sure am) post-warranty due to the high cost of parts a labor, even for the littlest thing gone wrong and an extended-warranty coupled with more free maintenance might go a long way to alleviating that and convince more people to buy rather than lease.

can you imagine an e46 m3 still under warranty? i'd be all over it.
Jet335i is offline  
0
Reply With Quote
      10-10-2008, 10:57 AM   #4
phatr1s
First Lieutenant
 
phatr1s's Avatar
 
Drives: 335i Sedan
Join Date: Mar 2007
Location: TX

Posts: 351
iTrader: (0)

Garage List
2007 335i  [0.00]
2007 335i  [0.00]
2007 335i  [0.00]
Palbay,

any updates??
__________________
phatr1s is offline   United_States
0
Reply With Quote
      10-10-2008, 11:09 AM   #5
Joe C
Colonel
 
Joe C's Avatar
 
Drives: e92 335i AKA "BaLLzZz"
Join Date: Aug 2007
Location: NYC

Posts: 2,149
iTrader: (5)

very intrested on the turnout OP
__________________
Any intelligent fool can make things bigger, more complex, and more violent. It takes a touch of genius and a lot of courage to move in the opposite direction. - Albert Einstein

08 e92 n54
Joe C is offline   United_States
0
Reply With Quote
      10-10-2008, 11:10 AM   #6
Deda
Major General
 
Deda's Avatar
 
Drives: BMW X6 35d
Join Date: Apr 2008
Location: Croatia

Posts: 6,496
iTrader: (0)

hmm,always somekind of game.
Deda is offline   Croatia
0
Reply With Quote
      10-10-2008, 11:20 AM   #7
Palbay
Captain
 
Palbay's Avatar
 
Drives: 2007 BMW X3
Join Date: Oct 2007
Location: Upstate,SC

Posts: 634
iTrader: (0)

Quote:
Originally Posted by phatr1s View Post
Palbay,

any updates??
From BimmerFile.Only applies to 2008 models.Thanks! PalBay
Attached Images
File Type: pdf BMW 2008 Lease Rates.pdf (131.6 KB, 126 views)
__________________
Palbay is offline   United_States
0
Reply With Quote
      10-10-2008, 11:41 AM   #8
thedean786
A Herald of Doom
 
thedean786's Avatar
 
Drives: A Fancy Car
Join Date: Feb 2006
Location: Midwest

Posts: 231
iTrader: (0)

I called a dealership near my house about a 2008 335i sedan the guy refused to budge from 47K - I told him good luck and hung up the phone. Hopefully whatever they are planning will work because I would love to get my hands on one.
__________________
thedean786 is offline   United_States
0
Reply With Quote
      10-10-2008, 02:08 PM   #9
chonko
First Lieutenant
 
Drives: X6 50i/2008 X5 4.8i
Join Date: Jan 2006
Location: Undercover

Posts: 369
iTrader: (0)

Quote:
Originally Posted by Palbay View Post
From BimmerFile.Only applies to 2008 models.Thanks! PalBay
I wish them luck.
chonko is offline  
0
Reply With Quote
      10-10-2008, 11:51 PM   #10
Joe C
Colonel
 
Joe C's Avatar
 
Drives: e92 335i AKA "BaLLzZz"
Join Date: Aug 2007
Location: NYC

Posts: 2,149
iTrader: (5)

wow everything dropped again the coupe m3 isnt 1.9 anymore but now .9 ahhah YESSSSSSSSSSSS
__________________
Any intelligent fool can make things bigger, more complex, and more violent. It takes a touch of genius and a lot of courage to move in the opposite direction. - Albert Einstein

08 e92 n54
Joe C is offline   United_States
0
Reply With Quote
      10-11-2008, 10:29 AM   #11
2ndBimmer
Enlisted Member
 
Drives: 2008 E90 335i
Join Date: Oct 2008
Location: Palatine, IL

Posts: 34
iTrader: (0)

Quote:
Originally Posted by thedean786 View Post
I called a dealership near my house about a 2008 335i sedan the guy refused to budge from 47K - I told him good luck and hung up the phone. Hopefully whatever they are planning will work because I would love to get my hands on one.
what was the MSRP?
Unfortunately, the margins/markup does not increase with a bad economy. If the economy was good, do you think the margin would only be 1%?
I know they need to get rid of the car, but of course there is only so much they can move, of course there is only so much you have in your pocket.
2ndBimmer is offline  
0
Reply With Quote
      10-11-2008, 12:58 PM   #12
Sal@AUTOcouture
BimmerPost Supporting Vendor

 
Sal@AUTOcouture's Avatar
 
Drives: Techno Violet ESS M3
Join Date: Feb 2007
Location: NJ

Posts: 9,487
iTrader: (29)

Send a message via AIM to Sal@AUTOcouture
Quote:
Originally Posted by thedean786 View Post
I called a dealership near my house about a 2008 335i sedan the guy refused to budge from 47K - I told him good luck and hung up the phone. Hopefully whatever they are planning will work because I would love to get my hands on one.
its one of the last handful of '08's left in the country. Why would they give it away?
Sal@AUTOcouture is offline  
0
Reply With Quote
      10-11-2008, 08:37 PM   #13
Bluesummer
Lieutenant General
 
Bluesummer's Avatar
 
Drives: slower than Ayrton Senna
Join Date: Dec 2006
Location: Nürburgring, be there once, your heart, your soul will stay there.

Posts: 15,397
iTrader: (13)

Garage List
2015 M4  [0.00]
2011 E82 135  [0.00]
2011 M3  [0.00]
2007 335  [0.00]
so... what's the new plan?
________
GL1200A
________
Honda cb400 history
________
Penny stock pick
________
CLASS ACTION LAWFIRM
________
LIVE SEX
________
Marilyn_Milkshake live

Last edited by Bluesummer; 09-07-2011 at 05:26 AM.
Bluesummer is offline   Taiwan
0
Reply With Quote
      10-12-2008, 08:26 PM   #14
positiveions
Lieutenant General
 
positiveions's Avatar
 
Drives: 09 MKV JETTA 2.5 & E90 M3 :)
Join Date: Sep 2007
Location: La Verne, CA

Posts: 10,409
iTrader: (1)

Send a message via MSN to positiveions Send a message via Yahoo to positiveions
Quote:
Originally Posted by AutoCouture View Post
its one of the last handful of '08's left in the country. Why would they give it away?
I don't know where you live, but dealers in S. california have diamond dozen E90 335. I would call and hang up too, and try another dealer.
positiveions is offline   Lebanon
0
Reply With Quote
Post Reply

Bookmarks

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump


All times are GMT -5. The time now is 08:54 PM.




m3post
Powered by vBulletin® Version 3.7.0
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
1Addicts.com, BIMMERPOST.com, E90Post.com, F30Post.com, M3Post.com, ZPost.com, 5Post.com, 6Post.com, 7Post.com, XBimmers.com logo and trademark are properties of BIMMERPOST