BMW and Daimler pledge to keep prices high when chip crisis ends
Link is sus…
There are rumblings that M cars will be sold at around 10k over list going forward…
I can venture to say others will follow suit. It won’t be just BMW and Daimler. GM has vowed to keep inventory low, which will cause prices to stay higher than in the past.
BMWs volume over profit experiment is almost certainly over though, for non M cars as well.
That’s what they say now when all manufacturers are having shortages and prices are universally high. Many customers may not be willing to pay such high prices for BMW/MB if other brands are pumping out “normal” volume again and offering bigger discounts.
Yeah I see this public announcement as a nod to other automakers… it’s like collusion but without actually colluding.
Well, I think the dealerships would prefer to keep selling cars at a profit vs a loss too, so I’m sure they’re lobbying the manufacturers as well, or will be if they haven’t yet.
There will be some issues with union workers in the states, so there will be some balance. It won’t stay THIS low.
So like… if prices remain stagnantly high… does this mean you should take advantage of inflated used car market and sell your current car and just go ahead and lease that M car now?
Asking for a friend
One who has the superpower of predicting future prices should not waste it on buying cars, but rather must corner the stock market.
I thought leasehackr was a collection of superpowers.
Now can someone tell me RV and MF for an M8?
Someone stealing the Financial Times
This makes me nuts: just raise MSRP by 10k then.
Everyone can do whatever they want. But (for instance), if Genesis is cranking volume on substitutes that are plentiful and cheaper, people will vote with their dollars. There are people who will never dump a german badge for a Korean one, and there are plenty who will. Margin vs market share, right now everyone has to play for margin.
Also funny how long people who fought against the reality of shortages, who have now declared a new “Mad Max / order-only” future for durable goods.
This mess won’t sort itself out quickly, but it will sort itself out.
something selling over msrp is better marketing than raising msrp. think of how rolex and AP do it…
I understand how luxury goods work (in theory), they aren’t durable goods. Once you go over MSRP, unless you write a check, you are messing with the advance.
The more prestigious play would actually be “M cars are cash-only: no lease programs at all, no captive financing”.
That would be a sure way to loose a lot of customers.
yeah all of those poor people going “i’m no longer a rolex customer b/c i just paid an extra 10 grand on top for a POS batman”
Think he was referring to the “cash only, no lease programs” comment.
Eh? Not sure what you are replying to.
Exactly. It’s easy to be on the high horse right now no one can undercut you.
Will Audi (VW) undercut them just to beat Toyota as the #1 car maker title?
What will BMW & MB will do then?
Collusion won’t work it will just be like OPEC member countries sticking to their quotas.