BMW North America is looking to cut prices of its diesel-powered vehicles

Article by Christian Andrei, on August 26, 2010

If 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.

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Your 2017 Volkswagen Golf Facelift could get as sporty looking as the Golf R with the new R-Line packages. But without the sporty run and the premium price. Set to...
by - January 17, 2017
Whether or not you’re a tech addict, you realize that the digital revolution is now moving at high speed. Before you know it, there’s already a new one on the...
by - January 17, 2017
We really couldn’t deny that quite a number of Audi customers and would-be-buyers are intently waiting for higher performance RS versions of the Audi A4 and A5. Of course, these...
by - January 17, 2017
The Chevrolet Cruze is coming to Australia. But it won’t be known as the Chevrolet Cruze. Instead, it will bear the Holden badge and get the Astra moniker. The 2017...
by - January 17, 2017
As expected, four years after the current generation of the BMW 4 Series was introduced in 2013 with the BMW 4 Series Coupe, the German premium carmaker is implementing a...
by - January 17, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries