BMW looking to cut prices of its diesel-powered vehicles
09-07-09, 07:18 AM
#1
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BMW looking to cut prices of its diesel-powered vehicles
2010 Bmw 335dIf diesels are priced right, there’s going to be a market for it, according to BMW North America CEO Jim O’Donnell who is seeking to get the board of directors in Germany to reduce MSRPs on diesel-powered models. O’Donnell wants to cut its price premium while installing more features to its diesel-run vehicles in order to increase sales.
Currently, BMW North America offers the X5 35d and 335d, which are selling well but O’Donnell believes could be better. He thinks that too much of a premium has been added. He stated that his ideal premium would be just under $2000 for the X5 35d. Current premium for the sports activity vehicle is around $4000.
If the directors do decide to approve the proposal, they’re going to have to be willing to absorb the cost. Diesel technology is expensive compared to regular combustion engines and will have to be covered by the manufacturer if premiums are to be reduced.
O’Donnell believes that most cost can be offset with higher volumes and higher sales. In addition, O’Donnell is asking to allow the importation of cars with more features such as all-wheel drive. He hopes that by 2011, we will have a 3 Series featuring the technology. The CEO is working on the belief that American buyers are becoming more aware of the advantages of diesel and other technologies.
Currently, BMW North America offers the X5 35d and 335d, which are selling well but O’Donnell believes could be better. He thinks that too much of a premium has been added. He stated that his ideal premium would be just under $2000 for the X5 35d. Current premium for the sports activity vehicle is around $4000.
If the directors do decide to approve the proposal, they’re going to have to be willing to absorb the cost. Diesel technology is expensive compared to regular combustion engines and will have to be covered by the manufacturer if premiums are to be reduced.
O’Donnell believes that most cost can be offset with higher volumes and higher sales. In addition, O’Donnell is asking to allow the importation of cars with more features such as all-wheel drive. He hopes that by 2011, we will have a 3 Series featuring the technology. The CEO is working on the belief that American buyers are becoming more aware of the advantages of diesel and other technologies.
09-07-09, 07:39 AM
#2
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Interesting...
Thats selling well? 
Originally Posted by mrefish
According to the November 2009 (No. 86) issue of Bimmer, there have been 487 335d sold from January 2009 to June 2009 out of a total of 42,872 3 Series sold.
09-07-09, 09:45 AM
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09-07-09, 01:02 PM
#6
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The X5 35d would have only been of more interest if they had knocked off about $10K up here. Not enough bang for the buck....and even less so for the even more expensive Q7.
09-07-09, 01:32 PM
#7
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Hey, I myself was slow to believe (as I once was that Hyundai/Kia could buld vehicles of comparable Japanese quality), that modern diesels could be virtually indistinguishable from gas engines. My own memories of the old diesels were as vivid as anyone's. But, when I started to see the new Hyundai/Kia products, and drive them, I saw that I was living in the past. Same with the new diesels. When I started test-driving them, I was amazed.
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09-07-09, 03:26 PM
#10
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As far as diesel marketing goes, Mercedes has generally done a better job of it, at least in the American market, than BMW. BMW's image, of course, is that of the "Ultimate Driving Machine" (and there is a lot of truth to that), emphasizing driver-centered performance over economy. What people don't realize is that the BMW Bluetec diesel's strong low-RPM torque can go a long way towards that sport-performance, though, of course, diesels generally have much lower redlines, and you don't carry them out to gas-engine RPM's. BMW should also, IMO, consider a smaller diesel as an option for its 1-series, for better mileage, especially with the new CAFE's coming up in a few more years.
Last edited by mmarshall; 09-07-09 at 03:35 PM.
09-07-09, 03:42 PM
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If I liked BMW, I would buy the 535d instead of the 535i. Likewise, for any Mercedes or Audi. However, since I don't like any Euro cars (except Porsche or higher), I would only but a diesel car from a Japanese manufacturer. Do any offer diesels here through??
I'm not a big fan of the emission control system that it has to conform to because of a couple of states...they should just sell the urea/whatever injection equipped ones to the states that require it. We have had Smart cars with diesel engines for years...now all of a sudden since it doesn't conform to California's laws, they only sell the gasoline one (which uses more fuel)
We could have had diesels ages ago that needed no changes from the Euro 3 engine spec, but the manufactuers don't realized that Canada is not the United States.
I'm not a big fan of the emission control system that it has to conform to because of a couple of states...they should just sell the urea/whatever injection equipped ones to the states that require it. We have had Smart cars with diesel engines for years...now all of a sudden since it doesn't conform to California's laws, they only sell the gasoline one (which uses more fuel)
We could have had diesels ages ago that needed no changes from the Euro 3 engine spec, but the manufactuers don't realized that Canada is not the United States.
09-07-09, 06:25 PM
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