Comments on: BMW response to the financial crisis: 0.9% finance rates

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Thanks To Our Valued Sponsors — Wed, 26 Aug 2009 03:03:28 +0000

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By: mr. 7

mr. 7 — Fri, 23 Jan 2009 16:26:36 +0000

what will the interest rates be after 3/2/09?

By: Horatiu B.

Horatiu B. — Mon, 13 Oct 2008 13:30:52 +0000

@Gragop: Apparently the sales were very slow, so they had to do something drastic, despite what we kept hearing for the past few months. Here is what our friend Jonathan said:

“BMW’s announced shift to a “pull” strategy was a bit premature as it
apparently didn’t take into consideration what is going on in the rest of
the world. It should have been clear to most, for example, that China’s
economic miracle was not sustainable given the questionable underlying
manufacturing processes that have come to light in recent months (tainted
milk is just the latest). And China was one of the markets to which BMW
apparently intended to shift allocations.

Unfortunately, when the United States sneezes, much of the world can catch
cold.

BMW’s shift in allocations was predicated upon the fact that it could sell
the cars in other markets at a greater profit. Clearly they didn´t take
the world´s temperature when planning this move.
“

By: Gragop

Gragop — Mon, 13 Oct 2008 12:07:59 +0000

Are they still having that much difficultly unloading the 2008’s? I figured most dealers would be getting low in their allocations of those and would be gearing up for 2009 – despite the economy.

I can’t say I’m surprised this happened though. BMW, like everyone, began to implement corrective measures on leases and loans a little too late and as a result cannot begin the “pull rather than push” product strategy. Wait until the spring – it’ll change.

Oddly, this is how my buddy got $10k off his M Coupe. The car he ended up with sat on a Miami lot for 6 months before being snapped up during all of the marketing support for the Z cars late last year. Maybe we’ll see some of that?